When the reward share is less than what the customer is demanding then the customer is likely to express dissatisfaction and quit the relationship. The equity theory outlines the benefits of creating and maintains relationships with customers that lead to building customer loyalty and eventually boosting the organizational performance. Therefore the purpose of building relationships that are equal to both parties according to this theory is to retain customers in the existing company. Eventually customer loyalty is created once the organization successfully retains the customers. Despite this knowledge the industry has overlooked the power of equity in developing customer loyalty and enhancing customer relationship
Customer satisfaction: It is a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a balanced score. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation.
Question 1 answer: Customer relationship management is mainly about building relationships with a company’s targeted profitable customers and maintaining that relationship through delivering customer value, as in how a consumer perceives a certain product and values it enough to buy it rather than buying the competitor’s product, and delivering customer satisfaction where the product meets the exact expectations the consumer had actually expected from the product or more, but not less. Companies can build customer relationships at many levels, depending on the nature of the target market (Kotler and Armstrong, 1988). Companies with many low-margin customers can develop basic relationships by which a company doesn’t get to know it’s consumers
Mystery shopping, a form of participant observation, uses researchers to act as customers or potential customers to monitor the quality of processes, performance and procedures used in the delivery of a service. The need for specific performance information stems from the increasing emphasis being placed on performance by service managers. While service standards are invariably set by head office staff and senior management, the task of delivering these standards falls to individual customer-facing personnel. Variations in service performance can have a major impact on customer satisfaction. This is emphasized by Bateson(1992) who suggested that the customer’s experience during the delivery of a product/service is as important to customer satisfaction as is the benefit that the marketers.
Customer loyalty is a central goal of relationship marketing, supported by numerous claims of how organisations can benefit from having loyal customers. Customer loyalty has been connected to customer profitability due to reasons such as lower marketing costs, possibilities for cross-selling, and premium pricing. Loyal customers are also more likely to become advocates of the organisation, spreading positive word-of-mouth (Reichheld and Sasser 1990, Narayandas 1998). Customer loyalty is not only a goal of relationship marketing; it is also conceptually closely related to the concept of relationships. Like customer loyalty, relationships have been conceptualised as having a behavioural and an attitudinal dimension.
There are also a few restrictions and complicated business systems and structure found particularly in Japan (See 4.3. Institutional Settings). However, these ‘hard’ factors are easier to overcome according to the three professionals we have interviewed. Rather, our data confirms that the ‘soft’ factors such as the complex way of networking and building a relationship, language and communication, different mind-set and culture are the biggest barrier to the market entry into Japan. This ‘soft’ factors influence both relationships with the business partner and with the customers.
CHAPTER ONE: INTRODUCTION Background of the study The impact of customer services is huge on customer satisfaction and loyalty. In order to understand these factors we need to explain the key words and their meanings. Customer satisfaction in other words emphasis on the high quality relationship with the customer, which in turn determines the satisfaction and loyalty of customer for services provider .The most important goal and objective of any organization is customer satisfaction and retention in long term attainment of the goal. Customer retention cost less than that of attracting new customer. A famous marketing theory of
Question 2: Discuss the concepts customer satisfaction, customer value and customer relationship in a manner that clearly explain the differences between these concepts as well as the alignment between these concepts in your business. Make use of practical business examples to highlight the meaning. (25) Customer value is the benefit that the customer believes that they receive from our product or service, as discussed above. * Customer satisfaction is critically hinged upon the ability to deliver an acceptable level of value to the customer in a consistent manner. Customer satisfaction is the measure of how our product/service meets the customer value expectations.
While taking a decision by an organisation needs to ensure that the decision should have a positive impact on its customer. It should see that the customer is satisfied with the decision or if the decision puts a negative effects on the customer`s perception about the organisation. If the organisation does not focus on the customer satisfaction than the long run for the organisation is difficult. After coming to know the customers, organisation started establishing a unique brand identity and providing excellent customer service for grabbing customer attention. If the intent of business intelligence and analytics is optimizing business opportunities, then most business scenarios involving revenue generation and managing the customer experience
Thereby, companies must always be mindful of customers and must constantly ask themselves questions such as; what do customers want from us? What strategies can be used to improve current customer perceptions (Hong and Goo et al. 2004) For a customer quality of a single product can be measured by the superiority of that product or service. In other words, the customers’ judgment about a product in terms of excellence and superiority (Zeithaml,