Measurement of Customer Satisfaction

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Research and concepts An index method for measurement of customer satisfaction Ï Ingrid Fecikova Â
The author Ï Ingrid Fecikova is a Lecturer at the Technical University of  Koice, Slovakia. s Keywords Customer satisfaction, Measurement, Customer retention, Customer loyalty, Profit Abstract Customer satisfaction (CS) has become an important issue for commercial and public service organisations. Companies win or lose based on what percentage of their customers they can keep. Success is largely about retention of customers, which again depends on CS level. It would be a great help to be able to comprehensively measure the quality of product and service, by relating the measures of quality to real customer behaviour. Some companies get feedback about CS through the percentage of complaints, some through non-systematic surveys, again some do not measure CS at all, because ``the system would not add anything useful and is very time-consuming''. Give three managers in the same company the same objective: to improve CS, however it may be measured, and they will come up with three distinctly different and incompatible plans. CS requires a number of ingredients, all of which need to be considered. Aims to develop and simplify measurement systems by using a general formula that makes quantitative measurement of CS possible. Considers four important aspects that have a negative or positive influence on profitability related to CS. Electronic access The Emerald Research Register for this journal is available at www.emeraldinsight.com/researchregister The current issue and full text archive of this journal is available at www.emeraldinsight.com/0954-478X.htm The TQM Magazine Volume 16 . Number 1 . 2004 . pp. 57-66 # Emerald Group Publishing Limited . ISSN 0954-478X DOI 10.1108/09544780410511498

Introduction
In an atmosphere of heavy competition it is dangerous to be a non-customer oriented company. Most markets are very competitive, and to survive, organisations need to produce products and services of very good quality that yield highly satisfied and loyal customers. Establishing and achieving customer satisfaction is a main goal of business nowadays, because there is very clear and strong relationship between the quality of product, customer satisfaction and profitability (Figure 1). Satisfied customers are more likely to return to those who have helped them, and dissatisfied customers are more likely to go elsewhere next time. The key to organisational survival is the retention of satisfied customers. Loyalty of customers is a function of satisfaction, and loyal customers: . spend more on your products and services; . encourage others to buy from you; and . believe that what they buy from you is worth what they pay for it. The result is optimized long-term profit. If companies want to achieve customer satisfaction, they must measure it, because ``you can not manage what you cannot measure'' (Ho, 1995). Market research techniques to measure customer satisfaction include: . customer satisfaction survey methodologies; . focus groups to study customer satisfaction issues; . standardised packages for monitoring customer satisfaction; and . various computer software. There are some problems with typical customer satisfaction measurement techniques such as focus groups, survey methodologies and customer satisfaction software. These include: . analytical ± concerned with techniques, formal procedures, systems, and so on; . behavioural ± concerned with the attitudes, beliefs, perceptions, motivation, This paper was elaborated in the frame of solution of investigation task VEGA No.1/9404/02 ``Research of methods of implementation an accepted risk of machinery in the stage of its constructing''.

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An index method for measurement of customer satisfaction

Ï Ingrid Fecikova Â

The TQM Magazine Volume 16 . Number 1 . 2004 . 57-66

Figure 1 Dependence between quality, satisfaction and profitability

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