Importance Of Customer Satisfaction

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CHAPTER 1 1.1 INTRODUCTION Satisfying customers is one of the main objectives of every business. The message is obvious – satisfied customers improve business and dissatisfied customers impair business. Customer satisfaction is an asset that should be monitored and managed just like any physical asset. Introduction to Customer satisfaction: Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly 200…show more content…
Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget motel—even though its facilities and service would be deemed superior in 'absolute' terms." The importance of customer satisfaction diminishes when a firm has increased bargaining power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As such, many cell phone plan contracts have a lot of fine print with provisions that they would never get away if there were, say, 100 cell phone plan providers, because customer satisfaction would be far too low, and customers would easily have the option of leaving for a better contract…show more content…
A 2003 survey by the International Telecommunication Union (ITU) revealed that roughly a third of countries have fewer than one mobile subscription for every 20 people and one-third of countries have fewer than one land-line telephone subscription for every 20 people. In terms of Internet access, roughly half of all countries have fewer than one out of 20 people with Internet access. From this information, as well as educational data, the ITU was able to compile an index that measures the overall ability of citizens to access and use information and communication technologies. Using this measure, Sweden, Denmark and Iceland received the highest ranking while the African countries Nigeria, Burkina Faso and Mali received the

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