Customer Satisfaction, Loyalty, and Empowerment

Good Essays
Topics: Marketing
Marketing
Dr. Arni Arnthorsson
Customer Satisfaction, Loyalty, and Empowerment 1. Should a company be happy or concerned if most customers are satisfied?
Satisfaction of the consumer is one of the main goals for a company to achieve. Customer satisfaction is defined as the feeling that results when an offering meets a consumer’s expectations. Companies around the world are doing many surveys, in order to measure the satisfaction of their consumers because the importance of consumer satisfaction is one of the main factors for a company. According to the question, should a company be happy or concerned if most consumers are satisfied, the answer is concerned. The reason of this answer is that if all consumers would be satisfied then it is okay, but in this case not all consumers are satisfied, so there are some consumers who are not satisfied. The company should work hard in order to not leave space for concerns for these people who would be unsatisfied. These unsatisfied consumers would have a big influence on the company because these consumers express their concerns to other people and then other people might not want to buy anything from that company. However, one of the main strategies that companies use to achieve their goals of satisfaction is to influence the consumer’s expectations. Customer’s expectations should be very high because if the product or service doesn’t meet their expectations they would be unsatisfied and have a negative perception. Marketers should make their expectations a bit lower so the service or product would exceed their expectations and then customers would be very satisfied.
An example of consumer satisfaction would be like this: I usually order pizza at the restaurant called Extreme Pizza so then they deliver it at my home. They always bring it on time so they never are late, and also the food is warm. I am very satisfied with the product and service they provide to me. However, one day I heard my friend complaining about a

You May Also Find These Documents Helpful

  • Good Essays

    Customer loyalty and customer satisfaction Customer Loyalty can be difficult to define given the different views that are presented within the literature. Zithaml, Berry and Parasuraman (1996) determine that loyalty includes a customer’s intention to stay with an organisation and that loyalty includes four elements: repurchase intentions, recommending the service provider to other customers, less complaints and tolerance of price increases. Oliver, (1999) provides a different definition and…

    • 1016 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    1. INTRODUCTION The history of the automobile begins as early as 1769, with the creation of steam engined automobiles capable of human transport.[1] In 1806, the first cars powered by an internal combustion engine running on fuel gas appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline- or petrol-fueled internal combustion engine. The year 1886 is regarded the year of birth of the modern automobile - with the Benz Patent-Motorwagen, by German inventor Carl Benz. Cars…

    • 4208 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    The relationship between customer loyalty and customer satisfaction John T. Bowen University of Nevada, Las Vegas, Nevada, USA Shiang-Lih Chen University of Nevada, Las Vegas, Nevada, USA Keywords Customer loyalty, Customer satisfaction, Database marketing, Hotels Abstract Develops and implements a method for hotels to identify attributes that willincrease customerloyalty. Otherhotels can replicate the methodology used in this study. The study makes…

    • 3709 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    The Relationship between Customer Loyalty and Satisfaction Introduction In the past decades, there was a controversial issue about the relationship between customer loyalty and satisfaction. Actually, it is still a heated debate nowadays. Some people said that customer satisfaction bring customer loyalty, while some people believed that customer loyalty affect customer satisfaction. Interestingly, very few executives and managers understand the critical difference. The purpose of this paper is…

    • 2229 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    INTRODUCTION Customers are becoming ever more demanding, and in most markets they have more options to choose from than ever before. . A customer is a person who becomes accustomed to buying from you. Without a strong track record of contact and repeat purchase, this person is NOT your customer; he is a buyer. A true customer is grown over time. The satisfaction a customer gets from the consumption of an organization’s product or service pre-empts his or her subsequent decisions on the same products…

    • 2509 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Customer Loyalty

    • 2202 Words
    • 9 Pages

    1. Relevant literature The literature pertaining to relationships among customer satisfaction, customer loyalty, and profitability can be divided into two groups. The first, service management literature, proposes that customer satisfaction influences customer loyalty, which in turn affects profitability. Proponents of this theory include researchers such as Anderson and Fornell (1994); Gummesson (1993); Heskett et al.(1990); Heskett et al. (1994); Reicheld and Sasser (1990); Rust, et al. (1995);…

    • 2202 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Customer Loyalty

    • 1494 Words
    • 6 Pages

    STUDY ON CUSTOMER LOYALTY ON STAINLESS STEEL WITH REFERENCE TO SALEM STEEL PLANT Customer loyalty can be defines as “customer behavior characterized by a positive buying pattern during an extended period (measured by means of repeat purchase, frequency of purchase, wallet share or other indicators) and driven by a positive attitude towards the company and its products or services” (Looy, Gemmel & Dierdonck, 2003). Statement of the problem: To Study on Customer Loyalty no Stainless…

    • 1494 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Customer Loyalty

    • 1401 Words
    • 6 Pages

    The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed. A typical example of this type of model is: quality of product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability. Contents [hide] 1 The service quality model 2 Expanded models 3 Data collection…

    • 1401 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Customer Loyalty

    • 5169 Words
    • 21 Pages

    ABSTRACT Customer and customer loyalty have an increasing importance in today’s competitive world. The companies follow customer share intelligence instead of market share intelligence. The most used method for this is information technology based customer relationship management. In this paper it is examined the factors that affect this loyalty, the place of information technology based customer relationship management variables such as club cards, calling centers and web sites…

    • 5169 Words
    • 21 Pages
    Powerful Essays
  • Best Essays

    Customer Loyalty

    • 3103 Words
    • 13 Pages

    1.0 Introduction The term “customer loyalty” is indisputably one of the most widely studied subjects by researchers in the world, intensively evolving over the years. According to past reviews, loyalty has been defined as a repeat purchase that is a result of a preference, attitude or market share. However, according to Uncles, Dowling and Hammond’s (2003) review of literature, there is no universally agreed definition (Jacoby and Chestnut, 1978; Dick and Basu, 1994; Oliver, 1999). Therefore,…

    • 3103 Words
    • 13 Pages
    Best Essays