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Customersatisfaction
FromWikipedia,thefreeencyclopedia

Customersatisfactionisatermfrequentlyusedinmarketing.Itisameasureofhowproductsandservices
suppliedbyacompanymeetorsurpasscustomerexpectation.Customersatisfactionisdefinedas"the
numberofcustomers,orpercentageoftotalcustomers,whosereportedexperiencewithafirm,itsproducts,
oritsservices(ratings)exceedsspecifiedsatisfactiongoals."[1]Inasurveyofnearly200seniormarketing
managers,71percentrespondedthattheyfoundacustomersatisfactionmetricveryusefulinmanagingand
monitoringtheirbusinesses.[1]
ItisseenasakeyperformanceindicatorwithinbusinessandisoftenpartofaBalancedScorecard.Ina
competitivemarketplacewherebusinessescompeteforcustomers,customersatisfactionisseenasakey
differentiatorandincreasinglyhasbecomeakeyelementofbusinessstrategy.[2]
"Withinorganizations,customersatisfactionratingscanhavepowerfuleffects.Theyfocusemployeeson
theimportanceoffulfillingcustomers'expectations.Furthermore,whentheseratingsdip,theywarnof
problemsthatcanaffectsalesandprofitability....Thesemetricsquantifyanimportantdynamic.Whena
brandhasloyalcustomers,itgainspositivewordofmouthmarketing,whichisbothfreeandhighly
effective."[1]
Therefore,itisessentialforbusinessestoeffectivelymanagecustomersatisfaction.Tobeabledothis,
firmsneedreliableandrepresentativemeasuresofsatisfaction.
"Inresearchingsatisfaction,firmsgenerallyaskcustomerswhethertheirproductorservicehasmetor
exceededexpectations.Thus,expectationsareakeyfactorbehindsatisfaction.Whencustomershavehigh
expectationsandtherealityfallsshort,theywillbedisappointedandwilllikelyratetheirexperienceasless
thansatisfying.Forthisreason,aluxuryresort,forexample,mightreceivealowersatisfactionratingthana
budgetmoteleventhoughitsfacilitiesandservicewouldbedeemedsuperiorin'absolute'terms."[1]
Theimportanceofcustomersatisfactiondiminisheswhenafirmhasincreasedbargainingpower.For
example,cellphoneplanproviders,suchasAT&TandVerizon,participateinanindustrythatisan
oligopoly,whereonlyafewsuppliersofacertainproductorserviceexist.Assuch,manycellphoneplan
contractshavealotoffineprintwithprovisionsthattheywouldnevergetawayiftherewere,say,100cell
phoneplanproviders,becausecustomersatisfactionwouldbefartoolow,andcustomerswouldeasilyhave
theoptionofleavingforabettercontractoffer.
Thereisasubstantialbodyofempiricalliteraturethatestablishesthebenefitsofcustomersatisfactionfor
firms.ThisliteratureissummarizedbyMittalandFrennea(2010).[3]Theysummarizetheoutcomesin
termsofcustomerbehaviors,immediatefinancialoutcomessuchassalesandrevenues,andlongterm
outcomesbasedonthestockmarket.

Contents
1Purpose
2TheoreticalGround
2.1TheDisconfirmationModel
3NonlinearandAsymmetricRelationshipsinSatisfaction
4Construction
5Methodologies
6Seealso
7References
8Externallinks

Purpose

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"Customersatisfactionprovidesaleadingindicatorofconsumerpurchaseintentionsandloyalty."[1]
"Customersatisfactiondataareamongthemostfrequentlycollectedindicatorsofmarketperceptions.Their
principaluseistwofold:"[1]
1. "Withinorganizations,thecollection,analysisand
disseminationofthesedatasendamessageaboutthe
importanceoftendingtocustomersandensuringthatthey
haveapositiveexperiencewiththecompany'sgoodsand
services."[1]
2. "Althoughsalesormarketsharecanindicatehowwellafirm
isperformingcurrently,satisfactionisperhapsthebest
indicatorofhowlikelyitisthatthefirmscustomerswill
makefurtherpurchasesinthefuture.Muchresearchhas
focusedontherelationshipbetweencustomersatisfactionand
retention.Studiesindicatethattheramificationsof
satisfactionaremoststronglyrealizedattheextremes."

Abusinessideallyiscontinually
seekingfeedbacktoimprove
customersatisfaction.

Researchalsoshowsthatamajorityofthefirmsinvestinmeasuring,monitoring,anddisseminating
customersatisfactioninformationinfact,theseauthorsfoundthatcustomersatisfactionresearchisoneof
themostwidelyconductedmarketingresearchactivitiesinthefirms.[4]
Onafivepointscale,"individualswhoratetheirsatisfactionlevelas'5'arelikelytobecomereturn
customersandmightevenevangelizeforthefirm.(Asecondimportantmetricrelatedtosatisfactionis
willingnesstorecommend.Thismetricisdefinedas"Thepercentageofsurveyedcustomerswhoindicate
thattheywouldrecommendabrandtofriends."Whenacustomerissatisfiedwithaproduct,heorshe
mightrecommendittofriends,relativesandcolleagues.Thiscanbeapowerfulmarketingadvantage.)
"Individualswhoratetheirsatisfactionlevelas'1,'bycontrast,areunlikelytoreturn.Further,theycanhurt
thefirmbymakingnegativecommentsaboutittoprospectivecustomers.Willingnesstorecommendisa
keymetricrelatingtocustomersatisfaction."[1]

TheoreticalGround
"Inliteratureantecedentsofsatisfactionarestudiedfromdifferentaspects.Theconsiderationsextendfrom
psychologicaltophysicalandfromnormativetopositiveaspects.However,inmostofthecasesthe
considerationisfocusedontwobasicconstructsascustomersexpectationspriortopurchaseoruseofa
productandhisrelativeperceptionoftheperformanceofthatproductafterusingit.
Expectationsofacustomeronaproducttellushisanticipatedperformanceforthatproduct.Asitis
suggestedintheliterature,consumersmayhavevarious"types"ofexpectationswhenformingopinions
aboutaproduct'santicipatedperformance.Forexample,fourtypesofexpectationsareidentifiedbyMiller
(1977):ideal,expected,minimumtolerable,anddesirable.While,Day(1977)indicatedamong
expectations,theonesthatareaboutthecosts,theproductnature,theeffortsinobtainingbenefitsandlastly
expectationsofsocialvalues.Perceivedproductperformanceisconsideredasanimportantconstructdueto
itsabilitytoallowmakingcomparisonswiththeexpectations.
Itisconsideredthatcustomersjudgeproductsonalimitedsetofnormsandattributes.Olshavskyand
Miller(1972)andOlsonandDover(1976)designedtheirresearchesastomanipulateactualproduct
performance,andtheiraimwastofindouthowperceivedperformanceratingswereinfluencedby
expectations.Thesestudiestookoutthediscussionsaboutexplainingthedifferencesbetweenexpectations
andperceivedperformance."[5]
Insomeresearchstudies,scholarshavebeenabletoestablishthatcustomersatisfactionhasastrong
emotional(i.e.,affectivecomponent).[6]Stillothersshowthatthecognitiveandaffectivecomponentsof
customersatisfactionreciprocallyinfluenceeachotherovertimetodetermineoverallsatisfaction.[7]
Especiallyfordurablegoodsthatareconsumedovertime,thereisvaluetotakingadynamicperspectiveon
customersatisfaction.Withinadynamicperspective,customersatisfactioncanevolveovertimeas
customersrepeatedlyuseaproductorinteractwithaservice.Thesatisfactionexperiencedwitheach
interaction(transactionalsatisfaction)caninfluencetheoverall,cumulativesatisfaction.Thus,Mittal,
KumarandTsiros(1999)showedhowthesatisfactionexperiencedwithavehicleanddealershipservice
initially(e.g.,6months)couldaffectsatisfactionexperiencedlateron,e.g.,severalmonthslater.[8]Inalater
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study,scholarsshowedthatitisnotjustoverallcustomersatisfaction,butalsocustomerloyaltythat
evolvesovertime.[9]Finally,researchshowsthattherelativeimportanceofsatisfactionantecedents,
especiallythedifferentattributesthataffectcustomersatisfaction,variessignificantlyovertime.[10]
TheDisconfirmationModel

"TheDisconfirmationModelisbasedonthecomparisonofcustomers[expectations]andtheir[perceived
performance]ratings.Specifically,anindividualsexpectationsareconfirmedwhenaproductperformsas
expected.Itisnegativelyconfirmedwhenaproductperformsmorepoorlythanexpected.The
disconfirmationispositivewhenaproductperformsovertheexpectations(Churchill&Suprenant1982).
Therearefourconstructstodescribethetraditionaldisconfirmationparadigmmentionedasexpectations,
performance,disconfirmationandsatisfaction."[5]"Satisfactionisconsideredasanoutcomeofpurchase
anduse,resultingfromthebuyerscomparisonofexpectedrewardsandincurredcostsofthepurchasein
relationtotheanticipatedconsequences.Inoperation,satisfactionissomehowsimilartoattitudeasitcan
beevaluatedasthesumofsatisfactionswithsomefeaturesofproduct."[5]"Intheliterature,cognitiveand
affectivemodelsofsatisfactionarealsodevelopedandconsideredasalternatives(Pfaff,1977).Churchill
andSuprenantin1982,evaluatedvariousstudiesintheliteratureandformedanoverviewof
Disconfirmationprocessinthefollowingfigure:"[5]

NonlinearandAsymmetricRelationshipsinSatisfaction
Sincethe1990'sarichbodyofresearchhasshownthatmanyoftherelationshipsofcustomersatisfaction
withitsantecedentsandconsequencesareasymmetricandnonlinear.Thebasisforthisresearchresidesin
thekeyideathatpeopleareusuallymoresensitivetonegativeinformationthantopositiveinformation,and
thatlossesloomlargerthangains.Thus,negativeeventsarenotonlymoresalienttocustomers,butthey
alsohaveadisproportionatelylargerimpactinthesatisfactionjudgmentformationprocess,andthe
consequentconsumerintentionsandbehaviors.Muchofthisresearchissummarizedinanawardwinning
paperbyProfessorsEugeneAndersonandVikasMittal.[11]Thegeneralfindings,assummarizedintheir
papershow:
Negativeperformanceonanattributehasalargerimpactonoverallsatisfactionthanpositive
performance.Thus,thedeleteriousimpactoffailingexpectationsisproportionatelymuchstrongerthanthe
beneficialimpactofexceedingexpectationsbythesameamount.[12]Thisfindinghasbeenwidely
confirmedformanydifferentindustriesandcustomertypes.[13][14]
Theassociationbetweenoverallsatisfactionandrepurchaseintentionsaswellasbehaviorsisalsonon
linear.[15]

Construction
Organizationsneedtoretainexistingcustomerswhiletargetingnoncustomers.[16]Measuringcustomer
satisfactionprovidesanindicationofhowsuccessfultheorganizationisatprovidingproductsand/or
servicestothemarketplace.
"Customersatisfactionismeasuredattheindividuallevel,butitisalmostalwaysreportedatanaggregate
level.Itcanbe,andoftenis,measuredalongvariousdimensions.Ahotel,forexample,mightask
customerstoratetheirexperiencewithitsfrontdeskandcheckinservice,withtheroom,withthe
amenitiesintheroom,withtherestaurants,andsoon.Additionally,inaholisticsense,thehotelmightask
aboutoverallsatisfaction'withyourstay.'"[1]
Asresearchonconsumptionexperiencesgrows,evidencesuggeststhatconsumerspurchasegoodsand
servicesforacombinationoftwotypesofbenefits:hedonicandutilitarian.Hedonicbenefitsareassociated
withthesensoryandexperientialattributesoftheproduct.Utilitarianbenefitsofaproductareassociated
withthemoreinstrumentalandfunctionalattributesoftheproduct(BatraandAthola1990).[17]
Customersatisfactionisanambiguousandabstractconceptandtheactualmanifestationofthestateof
satisfactionwillvaryfrompersontopersonandproduct/servicetoproduct/service.Thestateofsatisfaction
dependsonanumberofbothpsychologicalandphysicalvariableswhichcorrelatewithsatisfaction
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behaviorssuchasreturnandrecommendrate.Thelevelofsatisfactioncanalsovarydependingonother
optionsthecustomermayhaveandotherproductsagainstwhichthecustomercancomparethe
organization'sproducts.
WorkdonebyParasuraman,ZeithamlandBerry(LeonardL)[18]between1985and1988providesthebasis
forthemeasurementofcustomersatisfactionwithaservicebyusingthegapbetweenthecustomer's
expectationofperformanceandtheirperceivedexperienceofperformance.Thisprovidesthemeasurerwith
asatisfaction"gap"whichisobjectiveandquantitativeinnature.WorkdonebyCroninandTaylorpropose
the"confirmation/disconfirmation"theoryofcombiningthe"gap"describedbyParasuraman,Zeithamland
Berryastwodifferentmeasures(perceptionandexpectationof
performance)intoasinglemeasurementofperformanceaccording
toexpectation.
Theusualmeasuresofcustomersatisfactioninvolveasurvey[19]
fromsoftwareproviderssuchasConfirmit,Medallia,Opinionmeter
andSatmetrix[20]withasetofstatementsusingaLikertTechnique
orscale.Thecustomerisaskedtoevaluateeachstatementinterms
oftheirperceptionsandexpectationsofperformanceofthe
organizationbeingmeasured.Theirsatisfactionisgenerally
measuredonafivepointscale.
"Customersatisfactiondatacanalsobecollectedona10point
scale."[1]
"Regardlessofthescaleused,theobjectiveistomeasurecustomers
perceivedsatisfactionwiththeirexperienceofafirmsofferings."[1]
Itisessentialfor
firmstoeffectively
managecustomer
satisfaction.Tobe
abledothis,we
needaccurate
measurementofsatisfaction.[21]

CustomerSatisfactionMeasurement
TouchScreenDeviceInaHotel

Goodqualitymeasuresneedtohavehighsatisfactionloadings,goodreliability,andlowerrorvariances.[22]
Inanempiricalstudycomparingcommonlyusedsatisfactionmeasuresitwasfoundthattwomultiitem
semanticdifferentialscalesperformedbestacrossbothhedonicandutilitarianserviceconsumption
contexts.AstudybyWirtz&Lee(2003),[23]foundthatasixitem7pointsemanticdifferentialscale(for
example,OliverandSwan1983),whichisasixitem7pointbipolarscale,consistentlyperformedbest
acrossbothhedonicandutilitarianservices.Itloadedmosthighlyonsatisfaction,hadthehighestitem
reliability,andhadbyfarthelowesterrorvarianceacrossbothstudies.Inthestudy,[23]thesixitemsasked
respondentsevaluationoftheirmostrecentexperiencewithATMservicesandicecreamrestaurant,along
sevenpointswithinthesesixitems:pleasedmetodispleasedme,contentedwithtodisgustedwith,
verysatisfiedwithtoverydissatisfiedwith,didagoodjobformetodidapoorjobforme,wisechoice
topoorchoiceandhappywithtounhappywith.
Asemanticdifferential(4items)scale(e.g.,ErogluandMachleit1990),[24]whichisafouritem7point
bipolarscale,wasthesecondbestperformingmeasure,whichwasagainconsistentacrossbothcontexts.In
thestudy,respondentswereaskedtoevaluatetheirexperiencewithbothproducts,alongsevenpoints
withinthesefouritems:satisfiedtodissatisfied,favorabletounfavorable,pleasanttounpleasantand
IlikeitverymuchtoIdidntlikeitatall.[23]
Thethirdbestscalewassingleitempercentagemeasure,aoneitem7pointbipolarscale(e.g.,Westbrook
1980).[25]Again,therespondentswereaskedtoevaluatetheirexperienceonbothATMservicesandice
creamrestaurants,alongsevenpointswithindelightedtoterrible.[23]
Itseemsthatdependentonatradeoffbetweenlengthofthequestionnaireandqualityofsatisfaction
measure,thesescalesseemtobegoodoptionsformeasuringcustomersatisfactioninacademicandapplied
studiesresearchalike.Allothermeasurestestedconsistentlyperformedworsethanthetopthreemeasures,

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and/ortheirperformancevariedsignificantlyacrossthetwoservicecontextsintheirstudy.Theseresults
suggestthatmorecarefulpretestingwouldbeprudentshouldthesemeasuresbeused.[23]
Finally,allmeasurescapturedbothaffectiveandcognitiveaspectsofsatisfaction,independentoftheirscale
anchors.[23]Affectivemeasurescaptureaconsumersattitude(liking/disliking)towardsaproduct,which
canresultfromanyproductinformationorexperience.Ontheotherhand,cognitiveelementisdefinedas
anappraisalorconclusiononhowtheproductsperformancecomparedagainstexpectations(orexceeded
orfellshortofexpectations),wasuseful(ornotuseful),fitthesituation(ordidnotfit),exceededthe
requirementsofthesituation(ordidnotexceed).[26]
Recentresearchshowsthatinmostcommercialapplications,suchasfirmsconductingcustomersurveys,a
singleitemoverallsatisfactionscaleperformsjustaswellasamultiitemscale.[27]Especiallyinlarger
scalestudieswherearesearcherneedstogatherdatafromalargenumberofcustomers,asingleitemscale
maybepreferredbecauseitcanreducetotalsurveyerror.[28]Thus,thereisanincreasingtrendtousea
singleitemsformeasuringoverallsatisfaction.[4][10][29][30][31][32]

Methodologies
AmericanCustomerSatisfactionIndex(ACSI)isascientificstandardofcustomersatisfaction.Academic
researchhasshownthatthenationalACSIscoreisastrongpredictorofGrossDomesticProduct(GDP)
growth,andanevenstrongerpredictorofPersonalConsumptionExpenditure(PCE)growth.[33]Onthe
microeconomiclevel,academicstudieshaveshownthatACSIdataisrelatedtoafirm'sfinancial
performanceintermsofreturnoninvestment(ROI),sales,longtermfirmvalue(Tobin'sq),cashflow,
cashflowvolatility,humancapitalperformance,portfolioreturns,debtfinancing,risk,andconsumer
spending.[34][35][36]IncreasingACSIscoreshasbeenshowntopredictloyalty,wordofmouth
recommendations,andpurchasebehavior.TheACSImeasurescustomersatisfactionannuallyformorethan
200companiesin43industriesand10economicsectors.Inadditiontoquarterlyreports,theACSI
methodologycanbeappliedtoprivatesectorcompaniesandgovernmentagenciesinordertoimprove
loyaltyandpurchaseintent.[37]ASCIscoreshavealsobeencalculatedbyindependentresearchers,for
example,forthemobilephonessector,[38]highereducation,[39]andelectronicmail.[40]
TheKanomodelisatheoryofproductdevelopmentandcustomersatisfactiondevelopedinthe1980sby
ProfessorNoriakiKanothatclassifiescustomerpreferencesintofivecategories:Attractive,One
Dimensional,MustBe,Indifferent,Reverse.TheKanomodelofferssomeinsightintotheproductattributes
whichareperceivedtobeimportanttocustomers.
SERVQUALorRATERisaservicequalityframeworkthathasbeenincorporatedintocustomer
satisfactionsurveys(e.g.,therevisedNorwegianCustomerSatisfactionBarometer[41])toindicatethegap
betweencustomerexpectationsandexperience.
J.D.PowerandAssociatesprovidesanothermeasureofcustomersatisfaction,knownforitstopbox
approachandautomotiveindustryrankings.J.D.PowerandAssociates'marketingresearchconsists
primarilyofconsumersurveysandispubliclyknownforthevalueofitsproductawards.
Otherresearchandconsultingfirmshavecustomersatisfactionsolutionsaswell.TheseincludeA.T.
Kearney'sCustomerSatisfactionAuditprocess,[42]whichincorporatestheStagesofExcellenceframework
andwhichhelpsdefineacompanysstatusagainsteightcriticallyidentifieddimensions.
ForB2Bcustomersatisfactionsurveys,wherethereisasmallcustomerbase,ahighresponseratetothe
surveyisdesirable.[43]TheAmericanCustomerSatisfactionIndex(2012)foundthatresponseratesfor
paperbasedsurveyswerearound10%andtheresponseratesforesurveys(web,wapandemail)were
averagingbetween5%and15%whichcanonlyprovideastrawpollofthecustomers'opinions.
IntheEuropeanUnionmemberstates,manymethodsformeasuringimpactandsatisfactionofe
governmentservicesareinuse,whichtheeGovMoNetprojectsoughttocompareandharmonize.[44]
ThesecustomersatisfactionmethodologieshavenotbeenindependentlyauditedbytheMarketing
AccountabilityStandardsBoard(MASB)accordingtoMMAP(MarketingMetricAuditProtocol).

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Seealso
Businesscase
Computerusersatisfaction
Customerservice
CustomerLoyalty
TheInternationalCustomerServiceInstitute

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41. Johnson,MichaelD.AndersGustafssonb,TorWallinAndreassenc,LineLervikcandJaesungCha(2001)."The
evolutionandfutureofnationalcustomersatisfactionindexmodels".JournalofEconomicPsychology22(2):
217245.doi:10.1016/S01674870(01)000307(https://dx.doi.org/10.1016%2FS01674870%2801%29000307).
ISSN01674870(https://www.worldcat.org/issn/01674870).
42. Bluestein,AbramMichaelMoriartyRonaldJSanderson(2003).TheCustomerSatisfactionAudit.Axminster:
CambridgeStrategyPublications.ISBN9781902433981.
43. CustomerRelationshipManagement,EmergingConcepts,ToolsandApplication,EditedbyJagsishNSheth,
AtulParvatiyarandGShainesh,publishedbyTataMcGrawHillEducationseeChapter21,pages193to199
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44. EuropeanCommission:eGovMoNet:eGovernmentMonitorNetwork
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Externallinks
CustomerSatisfactionTheSurveyofOrganizationalExcellence,UniversityofTexas
(http://www.utexas.edu/research/cswr/survey/site/customer/cspaper.pdf)
CustomerSatisfaction:ACentralPhenomenoninMarketing
(http://www.academia.edu/1977823/CUSTOMER_SATISFACTION_A_CENTRAL_PHENOMEN
ON_IN_MARKETING)
CustomerSatisfactionsurveymethodcomparisontable(http://www.infoquestcrm.co.uk/Survey
MethodsTable.pdf)

https://en.wikipedia.org/wiki/Customer_satisfaction

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