Customer Satisfaction Chapter 18

1. Customer Satisfaction Chapter 18 Lai Doan Cheryl Okunrinboye Sheila Nichelson

2. What is Satisfaction? • Satisfaction is a judgment of a pleasurable level of consumption related fulfillment. • Consumers can experience satisfaction when a product or service gives greater pleasure then anticipated.

3. Satisfaction focuses on fulfillment in varieties • Satisfaction fulfillment is achieved by removing any negativity. • For example having the hardware on your computer repaired. • Under-Fulfillment or Over-fulfillment satisfaction is experienced when unexpected pleasure is achieved • Internal state highlights the meanings that operates in the consumer field of awareness sociably and culturally.

4. What is dissatisfaction? • An unpleasant level of consumption related fulfillment. • For example, Personal experience with Hyundai's 100,000 miles or 10 year warranty is just for the engine not the other components.

5. Managerial Concern with Satisfaction • Customer is King, satisfying customer needs and wants. • Product/Service Quality leads to Customer Satisfaction, Loyalty which achieves Organizational Objectives (e.g. profit, market share, shareholder value)

6. Basic factors that influence satisfaction How are performance and Satisfaction related? • Many managers believe that product performance or service quality paves the road to satisfaction • Judgment are always based on someone’s perceptions

7. Perceived Quality • Perceived quality: involves preferences, is based on comparative standards, differs among customers and situations, and resides in product use. • Quality has both cognitive (thinking) and affective (emotional) aspects.

8. How are employee and customer satisfaction related? • Corporate slogans and mission statement sometimes link customer satisfaction to employee satisfaction. • The Critical incident technique: is a systematic procedure for recording events and behaviors observed to lead to success or failure on specific task.

9. How Are Choice and Satisfaction Related? • Consumers use product features to form satisfaction judgments. • Choice Criteria – Product or service selection • Satisfaction Drivers – Satisfaction / Dissatisfaction • Aspects of the consumption situation that directly affect satisfaction are unpredictable.

10. How Do Consumers Judge Satisfaction? • Expectation – anticipation or predictions of future events. • The product or services they purchase will fulfill their wants. • For example, When you buy a new car, you expect it run well.

11. The expectancy disconfirmation model (EDM) and its limitation • Disconfirmation of pre-consumption expectations is the key influence on consumer satisfaction. • Positive disconfirmation occurs when performances exceed expectations and customer satisfaction increases. • Negative disconfirmation occurs when expectations are not met, and customer dissatisfaction increases.

12. Other Comparative Standards for Judging Satisfaction • Desires – The levels of products’ attributes and benefits that a consumer believes will lead to or are connected with high-level values.

13. Judging Satisfaction (Cont’d) • Fairness – Perceptions of fairness affects consumers’ satisfaction. • Homan’s Rule of Justice – Parties’ reward in exchange with others should be proportional to their investments or losses • Distributional Fairness – How rewards or outcomes are partitioned among the participants in an exchange. • Procedural Fairness – Manner in which the outcomes are delivered. • Interactional Fairness – How the consumer is treated by the marketer.

14. Consumer Attributions and the Satisfaction Process • Attribution Theory – How individuals find explanations for outcomes or behaviors Procedural Fairness Satisfaction/ Dissatisfaction Distributional Fairness Outcomes Interactional Fairness

15. Different emotions associated with satisfaction Five emotional response modes • Contentment: The contentment response is characterized by low levels of emotional arousal and may entail disinterest. Contentment is a passive response. For example, a consumer might express contentment over a family car that has functioned reliably over many years.

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

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

18. Emotional response modes (Cont’d) • Relief: A feeling of relieve may come about as a response to unfulfilled negative expectations. For example, I didn’t have to wait as long as I expected • Ambivalence: the simultaneous or sequential experience of multiple emotional states associated with acquisition or consumption processes. This might involve high level of involvement. • For example, the joy of a bride choosing her wedding gown.

19. Consequences of satisfaction and dissatisfaction • In response to consumption experiences, consumers exercise one or more of the four behavior responses.

20. Consequences of satisfaction and dissatisfaction (Cont’d) • Exit: Not to purchase or use that product or service again. • Voice: Compliments an organization may receive when it delivers an especially satisfying outcome, complaints to the company about performance failure, negative and positive word of mouth with other consumers or consuming organizations, or third party complaints or compliments.

21. Consequences of satisfaction and dissatisfaction (Cont’d) • Customer loyalty: is a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, despite situational influences and marketing efforts having the potential to cause switching behavior.

22. Consequences of satisfaction and dissatisfaction (Cont’d) • Twist: refer to positive and negative ways in which consumers restructure meanings, roles, and objects in the marketplace.

23. Example of positive twist • Volunteer to answer phones during annual fund drives, regularly customers stopped by-passer to take coffee without paying.

24. Negative twist Consumers reflect their dissatisfaction with a company by engaging in negative twist. • Unwanted behaviors or acts or resistance against the company • Example: Creating website to inform other about the one’s dissatisfaction with a company.

25. Consequences of satisfaction and dissatisfaction (Cont’d) For Firm • Increase profit • Predictable sale • Positive word of mouth

26. Summary: Transformation in the Laundry Industry • Americans wash a whopping 200 billion pound of laundry per year. • In many parts of world laundry still be done as it has been for at least 4000 years. • In U.S. doing laundry has undergone a major transformation, a lot easier now. • U.S has 35,000 coin operated laundry in urban area, customers, single, under 35.

27. Summary: Transformation in the Laundry Industry cont’d • The laundry industry is changing. One of the change is the growth of the wash/dry and fold service or offer multi-service. • At Drain Wash in S.F. customer can grab a bit, listen to live music or poem reading. • At Stan Klein’s rock and fold in Chicago, treating customer to neon light, movies on five screens, and gospel music while juggling loads. • These Laundromats attempt to change how customer feel about doing laundry.

28. What type of satisfaction, if any do you believe consumers associate with completing their Laundry • Satisfaction fulfillment • Five emotional response modes • Contentment • Pleasure • Delight • Relief • Ambivalence

29. 2. How are multi-service laundry trying to influence satisfaction? • Voice: Compliments of Brian Wash may receive when it delivers an especially satisfying outcome. • For example by word of mouth • Customer loyalty: is a deeply held commitment to come back for service consistently in the future.

30. How are multi-service laundry trying to influence satisfaction? (Cont’d) • Twist: refer positive and negative ways in which consumers restructure meanings, roles, and objects in the Laundry place. • For example returning the laundry cart back into the building.

31. 3. What factors should Brain Wash consider in assessing satisfaction with its new multi-service laundry? • Customer is King, satisfying customer needs and wants. • Product/Service Quality leads to Customer Satisfaction, Loyalty which achieves Organizational Objectives (e.g. profit, market share, shareholder value)

32. What factors should Brain Wash consider in assessing satisfaction with its new multi-service laundry? (Cont’d) • Perceived quality: involve preferences, is based on comparative standards, differs among customers and situations, and resides in product use.

33. Our Contact Information • Contact person: Prof. James Whalen • Telephone: (314) 367-6501 • E-mail: whalenjpw133@aol.com

34. Our Conclusion Thank you for your attention! Good Luck on your final! Happy Holidays to you and your beloved ones!