Customer Satisfaction Customer Satisfaction Chapter 18Chapter 18

Lai DoanLai Doan

Cheryl OkunrinboyeCheryl Okunrinboye

Sheila NichelsonSheila Nichelson

What is Satisfaction?What is Satisfaction?

Satisfaction is a judgment of a Satisfaction is a judgment of a pleasurable level of consumption pleasurable level of consumption related fulfillment.related fulfillment.

Consumers can experience Consumers can experience satisfaction when a product or satisfaction when a product or service gives greater pleasure then service gives greater pleasure then anticipated.anticipated.

Satisfaction focuses on Satisfaction focuses on fulfillment in varietiesfulfillment in varieties

Satisfaction fulfillment is achieved by removing any Satisfaction fulfillment is achieved by removing any negativity.negativity.

For example having the hardware on your computer repaired.For example having the hardware on your computer repaired.

Under-Fulfillment or Over-fulfillment satisfaction is Under-Fulfillment or Over-fulfillment satisfaction is experienced when unexpected pleasure is achievedexperienced when unexpected pleasure is achieved

Internal state highlights the meanings that operates in Internal state highlights the meanings that operates in the consumer field of awareness sociably and the consumer field of awareness sociably and culturally.culturally.

What is dissatisfaction?What is dissatisfaction?

An unpleasant level of An unpleasant level of consumption related fulfillment.consumption related fulfillment.

For example, Personal experience For example, Personal experience with Hyundai's 100,000 miles or with Hyundai's 100,000 miles or 10 year warranty is just for the 10 year warranty is just for the engine not the other components. engine not the other components.

Managerial Concern with Managerial Concern with SatisfactionSatisfaction

Customer is King, satisfying Customer is King, satisfying customer needs and wants.customer needs and wants.

Product/Service Quality leads to Product/Service Quality leads to Customer Satisfaction, Loyalty Customer Satisfaction, Loyalty which achieves Organizational which achieves Organizational Objectives (e.g. profit, market Objectives (e.g. profit, market share, shareholder value)share, shareholder value)

Basic factors that influence Basic factors that influence satisfactionsatisfaction

How are performance and Satisfaction How are performance and Satisfaction related?related?

Many managers believe that product Many managers believe that product performance or service quality paves performance or service quality paves the road to satisfactionthe road to satisfaction

Judgment are always based on Judgment are always based on someone’s perceptionssomeone’s perceptions

Perceived QualityPerceived Quality

Perceived quality: involves Perceived quality: involves preferences, is based on comparative preferences, is based on comparative standards, differs among customers and standards, differs among customers and situations, and resides in product use.situations, and resides in product use.

Quality has both cognitive (thinking) Quality has both cognitive (thinking) and affective (emotional) aspects.and affective (emotional) aspects.

How are employee and How are employee and customer satisfaction related?customer satisfaction related?

Corporate slogans and mission Corporate slogans and mission statement sometimes link customer statement sometimes link customer satisfaction to employee satisfaction.satisfaction to employee satisfaction.

The Critical incident technique: is a The Critical incident technique: is a systematic procedure for recording systematic procedure for recording events and behaviors observed to lead events and behaviors observed to lead to success or failure on specific task.to success or failure on specific task.

How Are Choice and How Are Choice and Satisfaction Related?Satisfaction Related?

Consumers use product features to Consumers use product features to form satisfaction judgments.form satisfaction judgments.

Choice Criteria – Product or service Choice Criteria – Product or service selectionselection

Satisfaction Drivers – Satisfaction / Satisfaction Drivers – Satisfaction / Dissatisfaction Dissatisfaction

Aspects of the consumption situation Aspects of the consumption situation that directly affect satisfaction are that directly affect satisfaction are unpredictable.unpredictable.

How Do Consumers Judge How Do Consumers Judge Satisfaction?Satisfaction?

Expectation – anticipation or Expectation – anticipation or predictions of future events.predictions of future events.

The product or services they purchase The product or services they purchase will fulfill their wants.will fulfill their wants.

For example, When you buy a new car, For example, When you buy a new car, you expect it run well.you expect it run well.

The expectancy disconfirmation The expectancy disconfirmation model (EDM) and its limitationmodel (EDM) and its limitation

Disconfirmation of pre-consumption Disconfirmation of pre-consumption expectations is the key influence on expectations is the key influence on consumer satisfaction.consumer satisfaction.

Positive disconfirmation occurs when Positive disconfirmation occurs when performances exceed expectations and performances exceed expectations and customer satisfaction increases.customer satisfaction increases.

Negative disconfirmation occurs when Negative disconfirmation occurs when expectations are not met, and customer expectations are not met, and customer dissatisfaction increases.dissatisfaction increases.

Other Comparative Standards Other Comparative Standards for Judging Satisfactionfor Judging Satisfaction

Desires – The levels of products’ Desires – The levels of products’ attributes and benefits that a attributes and benefits that a consumer believes will lead to or consumer believes will lead to or are connected with high-level are connected with high-level values.values.

Judging Satisfaction (Cont’d)Judging Satisfaction (Cont’d)

Fairness – Perceptions of fairness affects Fairness – Perceptions of fairness affects consumers’ satisfaction.consumers’ satisfaction.

Homan’s Rule of Justice – Parties’ reward in Homan’s Rule of Justice – Parties’ reward in exchange with others should be proportional exchange with others should be proportional to their investments or lossesto their investments or losses

Distributional Fairness – How rewards or Distributional Fairness – How rewards or outcomes are partitioned among the outcomes are partitioned among the participants in an exchange.participants in an exchange.

Procedural Fairness – Manner in which the Procedural Fairness – Manner in which the outcomes are delivered.outcomes are delivered.

Interactional Fairness – How the consumer Interactional Fairness – How the consumer is treated by the marketer.is treated by the marketer.

Consumer Attributions and the Consumer Attributions and the Satisfaction ProcessSatisfaction Process

Attribution Theory – How individuals find Attribution Theory – How individuals find explanations for outcomes or behaviorsexplanations for outcomes or behaviors

Procedural Fairness

Interactional Fairness

OutcomesDistributional

Fairness

Satisfaction/

Dissatisfaction

Different emotions associated Different emotions associated with satisfactionwith satisfaction

Five emotional response modesFive emotional response modes Contentment: The contentment Contentment: The contentment

response is characterized by low levels response is characterized by low levels of emotional arousal and may entail of emotional arousal and may entail disinterest. Contentment is a passive disinterest. Contentment is a passive response. For example, a consumer response. For example, a consumer might express contentment over a might express contentment over a family car that has functioned reliably family car that has functioned reliably over many years.over many years.

Emotional response modes Emotional response modes (Cont’d)(Cont’d)

Pleasure: the consumer confirms Pleasure: the consumer confirms expectations and has moderate to high expectations and has moderate to high arousal and most likely high to arousal and most likely high to moderate involvement as well. moderate involvement as well. Consumer is more actively involved in Consumer is more actively involved in processing process. For example, processing process. For example, consumers choose a favorite piece of consumers choose a favorite piece of clothing, play a new CD just clothing, play a new CD just purchased…purchased…

Emotional response mode (Cont’d)Emotional response mode (Cont’d)

Delight: Delight response involves Delight: Delight response involves either a positive disconfirmation of either a positive disconfirmation of expectations or; alternatively, a expectations or; alternatively, a positive event or outcome that the positive event or outcome that the consumer did not have any consumer did not have any expectations about. Example, Sear’s expectations about. Example, Sear’s $5 coupon.$5 coupon.

Emotional response modes Emotional response modes (Cont’d)(Cont’d)

Relief: A feeling of relieve may come about as a Relief: A feeling of relieve may come about as a response to unfulfilled negative expectations. For response to unfulfilled negative expectations. For example, I didn’t have to wait as long as I example, I didn’t have to wait as long as I expected expected

Ambivalence: the simultaneous or sequential Ambivalence: the simultaneous or sequential experience of multiple emotional states associated experience of multiple emotional states associated with acquisition or consumption processes. This with acquisition or consumption processes. This might involve high level of involvement.might involve high level of involvement.

For example, the joy of a bride choosing her For example, the joy of a bride choosing her wedding gown.wedding gown.

Consequences of satisfaction Consequences of satisfaction and dissatisfactionand dissatisfaction

In response to consumption In response to consumption experiences, consumers exercise experiences, consumers exercise one or more of the four behavior one or more of the four behavior responses.responses.

Consequences of satisfaction Consequences of satisfaction and dissatisfaction (Cont’d)and dissatisfaction (Cont’d)

Exit: Not to purchase or use that product or Exit: Not to purchase or use that product or service again.service again.

Voice: Compliments an organization may Voice: Compliments an organization may receive when it delivers an especially receive when it delivers an especially satisfying outcome, complaints to the satisfying outcome, complaints to the company about performance failure, company about performance failure, negative and positive word of mouth with negative and positive word of mouth with other consumers or consuming other consumers or consuming organizations, or third party complaints or organizations, or third party complaints or compliments. compliments.

Consequences of satisfaction Consequences of satisfaction and dissatisfaction (Cont’d)and dissatisfaction (Cont’d)

Customer loyalty: is a deeply held Customer loyalty: is a deeply held commitment to re-buy or re-patronize a commitment to re-buy or re-patronize a preferred product or service preferred product or service consistently in the future, despite consistently in the future, despite situational influences and marketing situational influences and marketing efforts having the potential to cause efforts having the potential to cause switching behavior.switching behavior.

Consequences of satisfaction Consequences of satisfaction and dissatisfaction (Cont’d)and dissatisfaction (Cont’d)

Twist: refer to positive and Twist: refer to positive and negative ways in which consumers negative ways in which consumers restructure meanings, roles, and restructure meanings, roles, and objects in the marketplace.objects in the marketplace.

Example of positive twistExample of positive twist

Volunteer to answer phones during Volunteer to answer phones during annual fund drives, regularly annual fund drives, regularly customers stopped by-passer to customers stopped by-passer to take coffee without paying.take coffee without paying.

Negative twistNegative twist

Consumers reflect their dissatisfaction Consumers reflect their dissatisfaction with a company by engaging in with a company by engaging in negative twist.negative twist.

Unwanted behaviors or acts or Unwanted behaviors or acts or resistance against the companyresistance against the company

Example: Creating website to inform Example: Creating website to inform other about the one’s dissatisfaction other about the one’s dissatisfaction with a company.with a company.

Consequences of satisfaction Consequences of satisfaction and dissatisfaction (Cont’d)and dissatisfaction (Cont’d)

For FirmFor Firm Increase profitIncrease profit Predictable salePredictable sale Positive word of mouthPositive word of mouth

Summary: Transformation Summary: Transformation in the Laundry Industryin the Laundry Industry

Americans wash a whopping 200 billion Americans wash a whopping 200 billion pound of laundry per year.pound of laundry per year.

In many parts of world laundry still be In many parts of world laundry still be done as it has been for at least 4000 years.done as it has been for at least 4000 years.

In U.S. doing laundry has undergone a In U.S. doing laundry has undergone a major transformation, a lot easier now.major transformation, a lot easier now.

U.S has 35,000 coin operated laundry in U.S has 35,000 coin operated laundry in urban area, customers, single, under 35. urban area, customers, single, under 35.

Summary: Transformation Summary: Transformation in the Laundry Industry cont’din the Laundry Industry cont’d

The laundry industry is changing. One of the The laundry industry is changing. One of the change is the growth of the wash/dry and fold change is the growth of the wash/dry and fold service or offer multi-service. service or offer multi-service.

At Drain Wash in S.F. customer can grab a bit, At Drain Wash in S.F. customer can grab a bit, listen to live music or poem reading.listen to live music or poem reading.

At Stan Klein’s rock and fold in Chicago, At Stan Klein’s rock and fold in Chicago, treating customer to neon light, movies on five treating customer to neon light, movies on five screens, and gospel music while juggling loads.screens, and gospel music while juggling loads.

These Laundromats attempt to change how These Laundromats attempt to change how customer feel about doing laundry.customer feel about doing laundry.

1.1. What type of satisfaction, if any do you What type of satisfaction, if any do you believe consumers associate with believe consumers associate with

completing their Laundrycompleting their Laundry Satisfaction fulfillmentSatisfaction fulfillment Five emotional response modesFive emotional response modes

ContentmentContentment PleasurePleasure DelightDelight ReliefRelief AmbivalenceAmbivalence

2. How are multi-service laundry trying to 2. How are multi-service laundry trying to influence satisfaction?influence satisfaction?

Voice: Compliments of Brian Wash may Voice: Compliments of Brian Wash may receive when it delivers an especially receive when it delivers an especially satisfying outcome.satisfying outcome.For example by word of mouthFor example by word of mouth

Customer loyalty: is a deeply held Customer loyalty: is a deeply held commitment to come back for service commitment to come back for service consistently in the future.consistently in the future.

How are multi-service laundry trying to How are multi-service laundry trying to influence satisfaction? (Cont’d)influence satisfaction? (Cont’d)

Twist: refer positive and negative Twist: refer positive and negative ways in which consumers ways in which consumers restructure meanings, roles, and restructure meanings, roles, and objects in the Laundry place.objects in the Laundry place.For example returning the laundry For example returning the laundry

cart back into the building.cart back into the building.

3. What factors should Brain Wash consider in 3. What factors should Brain Wash consider in assessing satisfaction with its new assessing satisfaction with its new

multi-service laundry? multi-service laundry? Customer is King, satisfying Customer is King, satisfying

customer needs and wants.customer needs and wants.Product/Service Quality leads to Product/Service Quality leads to

Customer Satisfaction, Loyalty Customer Satisfaction, Loyalty which achieves Organizational which achieves Organizational Objectives (e.g. profit, market Objectives (e.g. profit, market share, shareholder value)share, shareholder value)

What factors should Brain Wash consider in What factors should Brain Wash consider in assessing satisfaction with its new assessing satisfaction with its new

multi-service laundry? (Cont’d)multi-service laundry? (Cont’d)

Perceived quality: involve Perceived quality: involve preferences, is based on preferences, is based on comparative standards, differs comparative standards, differs among customers and situations, among customers and situations, and resides in product use.and resides in product use.

Our Contact InformationOur Contact Information

Contact person: Prof. James WhalenContact person: Prof. James Whalen Telephone: (314) 367-6501Telephone: (314) 367-6501 E-mail: whalenjpw133@aol.comE-mail: whalenjpw133@aol.com

Our ConclusionOur Conclusion

Thank you for your attention!Thank you for your attention!

Good Luck on your final!Good Luck on your final!

Happy Holidays to you and Happy Holidays to you and your beloved ones!your beloved ones!