Friday, 8 February 2013

Marketing Research 200 - Meaning of Satisfaction and Measurement


Marketing Research 200

Curtin University
Rebecca Licacristi Budianto
15359111


Meaning of Satisfaction and Measurement

Introduction
Satisfaction is a word that has a broad meaning. The meaning of satisfaction can be for sense of achievements, expectations, fulfillments, opportunity to redress and more. Satisfaction concept can be measure, but it is not easy as it is relates to people’s perceptions that built based on customer experience. There are many types of satisfaction and satisfaction in marketing term is customer satisfaction. This report will be discussing about customer satisfaction in more specific way and also the ways to measure customer satisfaction concept.

Customer Satisfaction
Customer satisfaction is a way to measure whether the product or service that being offered success to meet or fails to meet or even goes beyond customer’s expectations (Abdallat and Emmam 2012, 1). There are many definitions for customer satisfaction but all have the same meaning. Customer satisfaction depends on the quality and effects of their experiences that is affected by customer expectations with the products or services they receive or even with the organization itself (Kim, Wang and Mattila 2010, 980). Customer satisfaction is one of the most important roles in marketing, it is the key for businesses to survive in the market and be profitable.

Importance to Business
The reason why businesses focus on customer satisfaction is to determine the ways to increase the customer base, customer loyalty, profits and revenue, market share and opportunity to survive in the market (Customer Satisfaction 2007). For example, the competition in banking industries is increasing. Banks become highly concern to improve the quality of services and satisfaction of their own customers. The way banks operate also change in order to fulfill the customer requirements to meet customer satisfaction (Muntean and Stremtan 2011, 656).

Customer base and customer loyalty will develop through several processes. First, the customers have to build their trust, while, trust can be build through customer satisfaction. With customer satisfaction, it means businesses have developed a relationship indirectly with the customers. Relationship is important to grab the customers, to be loyal and so that businesses have the customer base.

Factors That Affect Customer Satisfaction
There are so many unpredictable situations where customer might meet or not meet their satisfaction level. Uncertainty avoidance reflects the feelings and behaviors of the individual when faced with unknown situation (Duque and Lado 2010, 677). There are factors that affect customer satisfaction like quality, money and time. For example, quality could be means for satisfaction of consumer through the products offered, while, money could be means for satisfaction where customers had spent their money and it is worth after experience the results, and time, like satisfied by the performance of the products or services after putting high effort to find.

Service is the main thing that might drives customer satisfaction. The performance of customer service, positively or negatively, will affect customer’s experience. If the customer service behaves positively like more agreeable behavior and less quarrelsome behavior, it will create a good experience and positively will reach customer satisfaction (Ma and Dube 2011, 87). So, both parties have to cooperate with each other on their behavior to create a good atmosphere or feeling, especially at the first impression.

Importance of Market Research
Many businesses spend a lot of time and money for doing a market research. Market research is about understanding the customers. Businesses might do online surveys, focus groups and interviews to track customer satisfaction because customer satisfaction is a major factor for determine marketing strategy (Munteanu, Ceobany, Bobalca and Anton 2010, 125). Businesses should develop customer’s attitude because customer satisfaction and customer loyalty has a strong relationship. Satisfaction will be more towards opinion and attitude, but loyalty is about customer’s behavior and that is why some customers did satisfied but still not come back to the retail shop (Cacioppo 2000). 

Loyal customers can do more than just keep coming back, for example, they can do powerful advertising through word-of-mouth. The customers who are only feel satisfied probably not doing this kind of things. As mentioned by Dimitriadis (2010, 298), customer satisfaction is important as a way to build a long lasting bond or relationship with the customers, which will lead to customer loyalty. By measuring customer satisfaction, businesses will have opportunity to understand better how to attract new customers.

Customer satisfaction depends on expectation and perception, while expectation and perception are not permanent, it keeps changing. To keep up with the current situations, businesses need to do customer satisfaction survey frequently to maintain high customer satisfaction level.

The Measurement
Customer satisfaction can be measure through customer satisfaction rating and the results will be based on the customer response itself. When the customers answer a customer satisfaction survey, the customer mind-set will be from their past experiences. Cognitive and affective factors also play the role in customer satisfaction. When a customer experience an emotional situation, it might leave an impact in their memory and it will influence when the customer deciding their satisfaction level (Verela-Neira, Vazquez-Casielles and Iglesias 2010, 92).

The measurement is using a survey made up of list of statements or questionnaires. The questionnaires structures will be based on two aspects that are perceptions and expectations. The customers will response based on the rating score from 1 which means very low to 5 which means very high (Shanin and Janatyan 2011, 102). The results will determine customer’s level of satisfaction.

Advantages of the Measurement
The advantage of measuring customer satisfaction is able to know how successful the businesses are in providing products or services to the market, make the customer happy in the best way so that they tend to be loyal and businesses can be cost efficient and effective in doing their services (Conklin 2012). The word satisfaction itself also has different meaning behind to customer, for example, it could be satisfaction with the products or services performance, satisfaction because the products or services meet their expectations and more.

Therefore, determine the score for satisfaction alone is not enough. Understanding what might have to change in order to improve satisfaction is the aims of the overall measurement, for example, rearrange the customer service. It has been argued that satisfied customer has a link with satisfied employees. Businesses can examine the service outcome by looking at customer satisfaction. The outcome of service quality is the customer attitude which can be negative or positive (Yang and Coates 2010, 756).

Conclusion
Customer satisfaction is not easy to achieve, it needs time and good relationship to develop trust. Businesses need to focus on goal, to satisfy the customer and reinforce the customer service. Customer service quality must meet customer needs and deliver an excellent service by putting customers first. Better service quality will lead to higher customer satisfactions. High customer satisfaction will cause in increase in customer demand, which will result in customer loyalty and also stronger market performance for the businesses (Jasmand, Blazevic and Ruyter 2012, 25). The most unsatisfied customers are the best source for learning.




References
Abdallat, Muhannad M.A, Ph.D and Hesham El - Sayed El - Emmam, Ph.D. 2012. “Customer Satisfaction.” PhD diss., King Saud University. http://faculty.ksu.edu.sa/73944/DocLib/Customer%20satisfaction.PDF
Cacioppo, Kevin. 2000. Measuring and Managing Customer Satisfaction. Quality Digest. Accessed March 25, http://www.qualitydigest.com/sept00/html/satisfaction.html
Conklin, Michael. 2012. Measuring and Tracking Customer Satisfaction. Zoomerang. Accessed March 22, http://www.zoomerang.com/whitepapers/customersat.pdf
Dimitriadis, Sergio. 2010. “Testing perceived relational benefits as satisfaction and behavioral outcomes drivers.”  International Journal of Bank Marketing 28 (4): 297-313.
Duque, Lola C. and Nora Lado. 2010. “Cross-cultural comparisons of consumer satisfaction ratings.” International Marketing Review 27 (6): 676-693.
Jasmand, Claudia, Vera Blazevic and Ko de Ruyter. 2012. “Generating Sales While Providing Service: A Study of Customer Service Representatives’ Ambidextrous Behavior.” Journal of Marketing 76 (20-37).
Kim, Min Gyung, Chenya Wang and Anna S.Mattila. 2010. “The relationship between consumer complaining behavior and service recovery.” International Journal of Contemporary Hospitality Management 22 (7): 975-991.
Ma, Zhenfeng and Laurette Dube. 2011. “Process and Outcome Interdependency in Frontline Service Encounters.” Journal of Marketing 75: 83-98.
Muntean, Andreea and Filimon Stremtan. 2011. “Research Regarding The Satisfaction of Bank Services Consumers at CEC Banks S.A.” Annales Universitatis Apulensus Series Oeconomica 13 (2): 655-661.
Munteanu, Corneliu, Ciprian Ceobany, Claudia Bobalca and Oana Anton. 2010. “An analysis of customer satisfaction in a higher education context.”  International Journal of Public Sector Management 23 (2): 124-140.
Shanin, Arash and Nassibeh Janatyan. 2011. “Estimation of Customer Dissatisfaction Based on Service Quality Gaps by Correlation and Regression Analysis in a Travel Agency.” International Journal of Business and Management 6 (3): 99-108. 
Varela-Neira, Concepcion, Rodolfo Vazquez-Casielles and Victor Iglesias. 2010. “Explaining customer satisfaction with complaint handling.” International Journal of Bank Marketing 28 (2): 88-112.
Yang, Hua and Nigel Coates. 2010. “Internal marketing: service quality in leisure services.” Marketing Intelligence & Planning 28 (6): 754-769.

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