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CUSTOMER SATISFACTION MANAGEMENT

Posted in Customer Management

General understanding of consumer satisfaction or dissatisfaction is the result of differences between consumer expectations and performance perceived by consumers. From the various definitions of consumer satisfaction that have been researched and defined by marketing experts, it can be concluded that customer satisfaction is a behavior response consumer in the form of after-purchase evaluation of an item or service that they feel (product performance) compared to consumer expectations.Consumer satisfaction is very dependent on the perceptions and expectations of consumers themselves. Factors that influence consumers’ perceptions and expectations when making purchases of goods or services are needs and desires felt by consumers when making purchases of goods or services, past experiences when consuming these goods or services and experiences of friends who have consume these goods or services and advertising.In a competitive environment, an indicator that can show customer satisfaction is whether the consumer will buy back and use the product in the future.

Customer needs are fulfilled is one of the factors forming Customer Satisfaction (Customer Satisfaction), in addition to other factors related to Customer Service. And this customer satisfaction is what we need to ensure the continuity of our business. Aspects that can affect customer satisfaction effectively [13], namely:

1. Warranty costs. Several companies deal with the warranty costs of their products / services through a percentage of sales. The company’s failure to give satisfaction to customers is usually because the company does not provide guarantees for the products they sell to customers.

2. Handling of complaints from customers. Statistically this is important to note, but it is often too late for companies to realize it. If complaints / claims from customers are not immediately resolved, customer defections cannot be prevented.

3. Market Share. It is a matter that must be measured and related to company performance. If the market share is measured, then the quantity is measured, not the quality of the company’s service.

4. Costs of poor quality. This can be of satisfactory value if costs for customer defect can be estimated.

5. Industry reports. There are many types and industry reports, as stated by J.D Power in Bhote, which is the report that is the fairest, most accurate, and most eagerly made by the company.Guiltinan [14] argues that one of the benefits of customer satisfaction is that it can increase customer loyalty, as shown in the figure below

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Customer satisfaction is an emotional response to the evaluation of the consumption experience of a product or service. Kotler defines customer satisfaction as the level of one’s feelings after comparing the performance (or results) that he feels compared to his expectations (Kotler, Philip, and Garry Armstrong, 2005). Basically, customer satisfaction includes the difference between expectations and performance or the results obtained.

According to Kotler [1], satisfaction is feeling happy or disappointed someone who appears after comparing between perceptions or impressions of the performance or results of a product and expectations. So, satisfaction is a function of perception or impression of performance and hope. If the performance is below expectations, the customer is not satisfied. If the performance meets expectations, the customer will be satisfied. If the performance exceeds expectations, the customer will be very satisfied or happy. The key to generating customer loyalty is to provide high customer value.The relationship between customer satisfaction and loyal customers is disproportionate [2], for example, customer satisfaction is ranked on a 1-5 scale, namely:

1. Customer satisfaction at a very low level (level 1), most likely customers will move away from the company and speak ill of it.

2. Customer satisfaction at level 2 to level 4, customers feel somewhat satisfied, but it is still possible to move when a better offer appears.

3. Customer satisfaction at level 5, customers are very likely to buy back and even disseminate good news about the company.

High satisfaction or satisfaction creates an emotional bond with the brand or company and is not only fixated on reasonable choices.While satisfaction according to Kotler and Armstrong (2001: 9): Consumer satisfaction is the extent to which the assumption of product performance meets the expectations of buyers. If the product’s performance is lower than the customer’s expectations, the buyer is satisfied or very happy.¬†According to Zeithaml and Bitner (2000: 75) the definition of satisfaction is: Consumer response or response regarding fulfillment of needs. Satisfaction is an assessment of the features or features of a product or service, or the product itself, which provides the level of consumer pleasure related to meeting consumer consumption needs. Consumer satisfaction can be created through quality, service and value.

Customer expectations are believed to have a large role in evaluating product quality (goods and services) and customer satisfaction. Customer expectations basically have a close relationship between determining quality and customer satisfaction. Customer expectation always exists because of four things (Kertajaya, 2004):

  1. Individual Need or individual needs

If your customer already has high demands, then his expectations are definitely high too.

  1. Word of Mouth

Customers can have certain expectations because of other people’s stories. Other people’s stories are often seen as references.

  1. Past experience or past experience

People who already have good experience in the past will be able to receive services at least the same as they used to be. If not, he will be disappointed.

  1. External communication or external communication

It is an attempt by the company to promise something to customers in order to attract customers.