Presented by:

Nicole Gordon Rakesh Sinanan

Customer satisfaction measures how well a companys business activities including the actual product , service, company, and how the company operates in the global environment. Customer satisfaction measures are an overall psychological evaluation that is based on the customers lifetime of product and service experience

Surveys provide: Formal feedback to a firm Positive signal to customers that firms care Surveys are: Direct Clear of purpose Easy to administer Easy to interpret

Hypothesis:

Individuals who are more satisfied are more likely to respond to a satisfaction survey than are individuals who are less satisfied. (Lebow 1982)

Alternative hypothesis:

Both highly satisfied and highly dissatisfied customers are more likely to respond to a satisfaction survey than customers who are neither highly satisfied nor dissatisfied.

Satisfaction results may differ depending on the different data collection processes e. g. personal, telephone, mail interviews. Satisfaction data collected using different modes are not comparable.

When a decision is framed in positive terms, it will be perceived more positively than when the same decision is framed in negative terms.(Tversky and Kahneman 1979,1984)

Framing questions is likely to lead to more favorable associations than framing it in negative terms. This may influence the shape of the underlying response distribution

There seems to be a relationship between the level of customer satisfaction obtained in a study and the timing of the measurement. Customer satisfaction appears to be highest immediately subsequent to purchase but to decrease somewhat over time.

Customer satisfaction

measurements are influenced by such personal characteristics (response styles) as social desirability and acquiescence.(ElGuebaly et al. 1983)

Answers to several types of questions may well be related to the survey participants mood at the time the question is asked and answered.

Overall Measures of Satisfaction involves three (3) psychological elements for evaluation of product or service experience:

Cognitive (thinking/evaluation) Affective (emotionalfeeling/like-dislike) Behavioural (current/future actions)

1.An overall satisfaction Overall, how satisfied are you with Activia? measure(emotional):

2.A loyalty measure (affective, behavioural)

Would you recommend Activa to your family and friends?

3.A series of attribute How satisfied are you with the taste? satisfaction measures How important is taste to you in selecting a yogurt? (affective and cognitive)
4.Intention to repurchase (behavioural measures)

Do you intend to repurchase Activia?

Affective Measures of Customer Satisfaction

Cognitive Measures of Customer Satisfaction

Behavioural Measures of Customer Satisfaction

Expectations Measures

Explicit expectation are mental targets for product performance. Implicit expectation represent the norms of performance that reflect accepted standards established by business in general, other companies, industries and even cultures.

Static Dynamic Technological Interpersonal

Perceived Quality Measures

Perceived Value Measures

Customer Loyalty Measures

When to conduct customer satisfaction surveys:

Three (3) approaches

1. 2. 3. Post Purchase Evaluation Periodic Satisfaction Surveys Continuous Satisfaction Tracking

Product Use Product Familiarity Product Evaluation

Message and Package Evaluation

Value Analysis Satisfaction Measurements

Abraham Lincolns quote about fooling people could be usefully modified for customer satisfaction research to read You can satisfy all the people some of the time, and some of the people all the time, but you cannot satisfy all the people all the time. As marketers we know that we must segment our customer base. It is no good trying to satisfy everyone, as we do not aim our products at everyone. What matters is that we achieve high scores of satisfaction in those segments in which we play.

Peoples views change continuously and the performance of companies in delivering customer satisfaction is also changing. Measuring satisfaction must be a continuous process. Tracking surveys provide benchmarks of ones own companys performance and, if competitor suppliers are also being measured, there will be measurements of relative performance. Therefore researchers must design a survey that will accurately show real differences. The questionnaire needs to be consistent so there is no dispute about answers differing because of changes to questions. The sample of each survey must be large enough to provide a reliable base and the selection of the sample must mirror earlier surveys so like is being compared with like.

Based on different research: There seems to be significant relationships between general levels of (global, life) satisfaction and customer satisfaction

There may also be a significant relationship between the number of shopping or choice alternatives and customer satisfaction

 The primary conclusion of this article is that measurements of customer satisfaction are very context dependent. The measurement of customer satisfaction is less than precise, possibly confounded with other variables, subject to considerable methodological contamination, and likely reflective of the influence of numerous factors other than those explicitly incorporated in measuring devices