Customer Satisfaction and Loyalty

AdoringNovaculite2585 avatar
AdoringNovaculite2585
·
·
Download

Start Quiz

Study Flashcards

10 Questions

What is the core idea behind treating customers as important individuals?

Customers' opinions, needs, and wants are worthy of listening to and they deserve maximum effort from service providers.

Why is it not always possible to meet customer expectations?

Because customers' expectations, wants, and needs may be impractical.

What is the focus of customer service beyond just providing products or services?

How the customer is treated and understanding their other important wants and needs.

What is the implication of the customer not always being 'right' for customer service?

It means that service providers must focus on contributing to the customer's positive impression even when they can't meet their requests.

What is the key to achieving realistic excellent customer service?

Understanding how to provide service and not just what to provide, by focusing on the customer's experience and other important wants and needs.

What is the primary reason for treating customers as if they are important and their opinions are worthy of listening to?

Because they deserve to be treated as if they are important and their opinions are worthy of listening to.

What should be the maximum effort of those serving customers, even when their expectations are impractical?

To provide maximum effort on the part of those serving them.

What can contribute to a customer's positive impression, even when their requests cannot be fulfilled?

How they are treated by the customer service provider.

What is essential to understand in order to provide realistic excellent customer service?

The customer's other important wants and needs.

What is the key to achieving realistic excellent customer service, according to the text?

How the service is provided.

Study Notes

Customer Satisfaction

  • Customer satisfaction is the attitude resulting from the interaction between customer expectations and performance perceptions.
  • It is superior to service quality, as it includes evaluations of service quality, but also other factors such as price, convenience, and value.
  • Four elements influence customer satisfaction:
    • Basic elements of the product or service that customers expect all competitors to deliver.
    • Basic support services that make the product or service more effective and easier to use.
    • A recovery process for counteracting bad experiences.
    • Extraordinary services that excel in meeting customers' personal preferences, appealing to their values or solving their particular problems.
  • Factors outside the area of service, such as price, convenience, and value, also influence customer satisfaction and vary by industry.

Customer Loyalty

  • Customer satisfaction is related to customer loyalty and organizational profits.
  • Customer loyalty can be seen as both an attitude and a behavior, or just a behavior.
  • One definition of customer loyalty is the proportion of times a customer chooses the same product or service in a specific category, compared to the total number of purchases made in that category.
  • A customer who continues to repurchase from an organization because of a lack of alternatives is not considered loyal.
  • Classic marketing literature defines loyalty as having both attitudinal and behavioral components, including attitudes such as intention to buy again, willingness to recommend, and lack of motivation to seek alternatives, and behaviors such as repeat purchases, positive word-of-mouth, and referrals.

Correcting Customer Service Myths

  • The phrase "The customer is always right" is a myth and can be misleading.
  • Customers may make unreasonable requests, have unreasonable expectations, and sometimes not understand what a company can and can't do for them.
  • Instead, customers should be treated as if they are important, and their opinions, needs, and wants are worthy of listening to, and they deserve to receive maximum effort from those serving them.
  • The focus of customer service should be not only on what is provided to the customer, but also on how it is provided, to create a positive impression and meet customers' other important wants and needs.

Customer Satisfaction

  • Customer satisfaction is the attitude resulting from the interaction between customer expectations and performance perceptions.
  • It is superior to service quality, as it includes evaluations of service quality, but also other factors such as price, convenience, and value.
  • Four elements influence customer satisfaction:
    • Basic elements of the product or service that customers expect all competitors to deliver.
    • Basic support services that make the product or service more effective and easier to use.
    • A recovery process for counteracting bad experiences.
    • Extraordinary services that excel in meeting customers' personal preferences, appealing to their values or solving their particular problems.
  • Factors outside the area of service, such as price, convenience, and value, also influence customer satisfaction and vary by industry.

Customer Loyalty

  • Customer satisfaction is related to customer loyalty and organizational profits.
  • Customer loyalty can be seen as both an attitude and a behavior, or just a behavior.
  • One definition of customer loyalty is the proportion of times a customer chooses the same product or service in a specific category, compared to the total number of purchases made in that category.
  • A customer who continues to repurchase from an organization because of a lack of alternatives is not considered loyal.
  • Classic marketing literature defines loyalty as having both attitudinal and behavioral components, including attitudes such as intention to buy again, willingness to recommend, and lack of motivation to seek alternatives, and behaviors such as repeat purchases, positive word-of-mouth, and referrals.

Correcting Customer Service Myths

  • The phrase "The customer is always right" is a myth and can be misleading.
  • Customers may make unreasonable requests, have unreasonable expectations, and sometimes not understand what a company can and can't do for them.
  • Instead, customers should be treated as if they are important, and their opinions, needs, and wants are worthy of listening to, and they deserve to receive maximum effort from those serving them.
  • The focus of customer service should be not only on what is provided to the customer, but also on how it is provided, to create a positive impression and meet customers' other important wants and needs.

Understanding the differences between service quality and customer satisfaction, and the importance of customer loyalty.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.

Get started for free
Use Quizgecko on...
Browser
Browser