1. Satisfaction as a Core Concept
The concept of consumer satisfaction is very important for the success of an organization.[1] Many organisations have come up with measures to ensure that both the employees and the consumers are satisfied with the products that they produce as well as the working condition. Satisfaction is defined as the fulfilment of a person’s wishes, expectation and pleasure that they derive from the product or the activity that they undertake.[2]
1.1. Understanding Satisfaction vs Dissatisfaction
Both consumer satisfaction and dissatisfaction affect the company in a way. Dissatisfaction refers to the case where the consumer expectations have not been met by the given organization and this can affect the company in a negative manner.[3]
Consumers have an important role to play especially when it comes to informing other people about their experience with a given company.[4]
Consumers are likely to inform more people about their dissatisfaction more than satisfaction. In cases where a client is satisfied with the services, they will inform about three to five of their peers while in case they are not satisfied they can share the negative experience with up to twenty people.[5]
1.2. A Broader View on Importance of Satisfaction
Consumer satisfaction is very important in the success of the company. When clients have a good experience at any company, they tend to come back to get the same service again and again.[6] The spread of the good experience with the companies is likely to attract new customers as well as keeping the old ones. Satisfaction is also likely to lead to brand loyalty and some of the clients are likely to become the brand ambassadors. On the other hand, in a case a client shares their dissatisfaction with the company they are likely to scare away potential clients.[7]
Currently, other clients and the company can come to defend the company in case a dissatisfied client decides to share their experience online.
1.3. Profit Impact of Dissatisfaction
Dissatisfaction is catastrophic to any company. The company is likely to spend more trying to salvage their image that has been portrayed by the dissatisfied clients. Dissatisfied clients are likely to communicate about their experience with many people as compared to those who are satisfied.[8]
Spending more trying to repair the damage that is already done is likely to cost the various businesses and companies more. Dissatisfied clients are not likely to use the same brand again or to visit the same business again. A company or a business that is not able to retain client has to strive harder to make profits since it will mainly be dealing with new clients.
2. Antecedents of Satisfaction
There are various factors that play an important role in the consumer satisfaction. The attitude of the client when they get into the store or buy a certain product greatly influences their satisfaction level.[9]
2.1. Expectation and Perceived Product Performance
Customer expectation and perception on product performance is an integral component of consumption fulfillment.[10]
Attainment of full customer satisfaction calls for proper management of such expectations and perceived product performance in the market. A good management of the expectations has the impact of customer exhilaration.[11] Such customers would be able give positive feedback on the general views concerning the product.
The management involves strategic dis-confirmation of the customer’s general opinion concerning a product in the market by use of strategically organised marketing activities as shown in figure 1. Furthermore, it should be characterised by coming up with as many solutions on the needs of the customers as well as embracing transparent dealings with the clients. The timelines given to customers should also be clear enough to make the customers fully understand the possibility of technical hitches which may arise in the process.[12] The businesses ought to be optimistic and realistic on they deal with the customers.
2.2. Customer Characteristics
The consumer characteristics deals with studying customer behavior in relation decision making process on demand and purchases in regards to a product. A good understanding of the Consumer characteristics is as important to a firm in ensuring the full satisfaction of its consumers.[13]
Through the understanding of the customer characteristics, the business management would be able to identify underutilised segments of the customer base as well as identification of available prime opportunity. These characteristics are unique to specific customers within certain segments. Some of the consumer characteristics include individual interest, opinion, habits and style of decision making processes.[14]
Other customer characteristics include age, gender and culture. A thorough evaluation of these factors is important in coming up with strategic plans which are geared towards ensuring customer satisfaction.
2.2.1. Past experience and adaptation
Human relationships are based on past experiences. The consumer past experiences are a good basis for establishing lasting relationships.[15]
These past experiences can be used to develop the product brand which would be satisfactory to the customers. The customer satisfaction will go a long way in boosting the customer loyalty and biases to a given product. The business management should have good records of past experiences with the customers. A good customer satisfaction can be derived from proper analysis of product performance in the market relative to the expectations of the consumers of the product.[16] Best experiences are realised in cases of the actual shopping, purchasing, and consumption of products in the market. Such experiences are helpful in guiding the consumer attitudes and purpose for product purchases.[17] After the experiential marketing, a good adaptation would be done to suit the varied needs of consumers for an appropriate customer satisfaction. The adaptation is done to help address the needs and preferences of the consumer.
2.2.2. Taking desires into consideration
The key objective of marketing is to create the desire for a product or service in the potential customer. Taking desire into consideration is all about creating an image and perception in the buyer that the product or the service which they are interested in is the perfect solution to their problem or would suitably meet their need.[18]
A good marketing strategy should see a strong desire for a given product of interest as the main goal.
2.2.3. Effect of norms
Norms such as social norms are the key drivers of human behavior and are vital in consumer decision making.[19]
In most cases consumers take the behavior and expectations of others into consideration when they resolve on a product. Social norms therefore determine their behavior and preferences. Social norms are linked to consumer’s behavioral intentions and attitudes. Norms can be specified either as descriptive or prescriptive (injunctive) and studies have shown that the distinction determine how consumers make decisions.[20]
Prescriptive norm focus consumer on that which is approved and is likely to actuate the typical attitudes whereas descriptive describe the behavior of others and consumers are likely to follow such norms.
3. Measurement of Satisfaction Level
Usually, upon satisfaction, customers do walk away without giving any feedback on the services they received.[21]
This poses a big challenge in the measurement of the level of satisfaction. However, the following methods can be used in the measurement of satisfaction.
Customer Survey – to get informative feedback from customers, carry out a survey through platforms such as emails and phone calls. It is done repeatedly over a period and each time the customer responds to weighted questions.[22]
Be able to understand customer’s expectations – Get to know what they need from you, in order to satisfy them by giving them the best of their expectation.[23]
Measurement of the loyalty of the customer – In this context, customer loyalty means the likelihood of repurchasing particular products and services. This measurement is done by finding out whether the customer recommends a product to other people such as friends and relatives.[24]
4. Consequences of Satisfaction
In an organization, the customer satisfaction has very positive impact. Foundation of a successful business is formed by the customers who are satisfied.[25]
4.1. High Satisfaction / No Dissatisfaction
Embracing full customer satisfaction is an important basis for a long term achievement of a business enterprise. In the current competitive market, it is so challenging to find customers and develop a long term relationship with them.[26] To achieve the aforementioned relationship, the customer should not experience any element of dissatisfaction.
4.1.1. Retention
In any business company, customer satisfaction retention is interdependent. Obtaining a customer for the first time is a hard job, influencing a customer to repeat their coming is even harder and retention of the customer is the hardest job of all.[27]
It all begins from customer satisfaction for retention to occur.
4.1.2. Loyalty
Customers who are loyal to your company will stay more with the company for the rest of their life.[28]
They stick to the company because they want to, not because that it is a must. These loyal people even recommend to the family and friends to use your products and services.
4.2. Dissatisfaction
Customer dissatisfaction refers to a situation in which the customer is not happy a product or service offered by a company. To measure dissatisfaction, questions about the goods and services offered, are asked according to some scale. Dissatisfaction occurs when there are failures in delivery of the requested good or service.[29] For instance, a customer who expects some product or service to be free realises that the service was charged, and yet it is free elsewhere.
4.2.2. Complaint behavior
Naturally, there are always no direct complaints made by customers when they are not satisfied with some or all of your goods and services.[30]
They usually present their grievances to others in their surrounding including work partners, family members, friends and your competitors, before the perception reaches the owner of the business. It is crucial, as business owner, to know your customer complaint behavior. Understand the reasons why they complain as well as how they complain.
5. 7 P’s Of Marketing Mix
Philip Kotler explains the concept of marketing mix as “the set of controllable variables that a firm can apply to influence the response of the buyer.”[31] In this context, the controllable variables refer to the 7 ‘P’s which include Product, Price, Place, Promotion, People, and Process and Physical evidence. Every single firm endeavors to construct a composition of 7 ‘P’s, which can result to the highest level possible of consumer satisfaction. The mix is amassed with the needs of the target consumers in and may vary from one organization to another.
5.1. Product
It is pointless to develop a product or service that no one is ready to buy, yet for most businesses the decision of what to offer comes first, and then they hope to locate a market for it after coming up with the product. A successful firm will first get to know what the consumer wants or needs and then develop the right product that will satisfy the consumer.[32]
The product that is perfect must provide value for the consumer. The consumer will only be satisfied when they receive the right product that they want and of value.
5.2. Price
The worth of a product is in what the consumer is ready to pay for it.[33]
In as much as the price needs to be competitive, it does not have to be the cheapest. Setting the price of the product requires a firm to take many factors into consideration as it has an effect on the profitability of the firm and demand for the service or product. A firm should price its product a way that the consumer gets a better value for their money. This can be achieved by adding extra features or services to the product that will satisfy the consumer.
5.3. Place
Goods are produced so that they can be sold to the consumer. They must therefore be made accessible to consumers at a place where they can make purchases conveniently; in the right place, time and quantity. The management must make critical decisions on how to sell the product; whether directly or through wholesaler and distributor.
5.4. Promotion
If the product is made with the needs of the consumer in mind, is priced rightly and availed to consumers in a convenient place but no awareness is made to consumer about its features or availability, then the marketing effort may be in vain. Promotion is therefore an important element of the marketing mix, and is the way a firm communicates to its consumers what it does and offers. It includes branding, PR, advertising, sales management, corporate identity and exhibitions.[34] It must convince the consumer to be satisfied with the product in order to purchase it.
5.5. People
The people who come into contact with a firm’s consumers will make an impression that can either have a positive or negative effect on consumer satisfaction.[35] The reputation of a company lies on people’s hands. The people must therefore be trained appropriately, be motivated and have the proper attitude. In this way the employees will be able to meet the needs of the consumer to their satisfaction.
5.6. Process
The process of providing a service, and the way in which those who deliver it carry out theirs selves, is very crucial to consumer satisfaction.[36]
Consumers are more interested in the working of the system; issues such as information dissemination to them, waiting time and usefulness of staff are crucial to keep consumers happy. This P is always overlooked yet it determines if a business can maintain its consumers.
5.7. Physical Evidence
It is impossible to experience a service before it is delivered.[37]
Therefore, this means that choosing a service to be used is a risky business as it is similar to purchasing something intangible. The uncertainty in this can be can be minimised by assisting potential consumers to “see” what they are purchasing. Consumers will be satisfied with a product when the company displays excellence right a good reception area, to clean and tidy premises.
Figure 2: Summary of the 7 P’s of Marketing.
6. SWOT Analysis
6.1. Strengths
The strengths of a firm in achieving consumer satisfaction are the competencies or factors that will help it utilise opportunities, contribute to the realization of its objectives and reduce the impact of threats.[38]
The firm can only have a strength if it does something better than its competitor. Some of the strengths that it can have include strong brand name, location of the company, expertise in marketing, and new technology.
6.2. Weakness
There are some factors that reduce the ability of a business to achieve its objectives. These are the weaknesses, and the business has to avoid this for efficient marketing. The factors include weak brand name, bad reputation among consumers, poor distribution network, and lack of patent protection.
6.3. Opportunities
A business can use any situation or event as a weapon of marketing or as an opportunity. The situations can help the firm reduce costs, improve process, and increase the volume of outputs. Such opportunities that a business can utilise include collaboration, non-tight regulations, merger or acquisition, identification of different market segments and removal of trade barriers.
6.4. Threat
Changes in the market environment may present threats to a company.[39]
A business has to carefully look into the situations that can hamper its marketing strategy. These situations include changes in consumer loyalty, economic condition, new regulations, increased barriers to trade, natural disasters affecting supply and increased competition.
Most of the previous research has focused more on how the firm relates with the consumer with reference to consumer expectation, experience and satisfaction. Very few studies have focused on how the consumer relates with the company and how they evaluate the company in relation to their expectations and actual experience; that is the dimensions of human interaction with a firm. In addition, with respect to consumer characteristics, studies have had a bias towards aspects of social norms such as attitudes and behaviour only. There is need to conduct further research to examine other aspects of norms that affect consumer expectations.
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[1] C.J. Warren. 2011. Understanding the impact of core product quality on customer satisfaction, team identification, and service quality. University of Minnesota, p. 4.
[2] M. Grant. 2013. Give and take: A revolutionary approach to success. New York, N.Y: Viking. p. 6.
[3] P. Kumar. 2010. Marketing of hospitality and tourism services. New Delhi, India: Tata McGraw Hill Education, p. 33
[4] Z. Wan. 2012. Powerful brand influentials: Conceptualization, measurement, and distinctiveness of a brand's influential consumers, University of Southern California. p.5.
[5] M. Cotiu. 2013. Satisfaction with goods and services: definitions and determinants. A critical review of the literature. Babes Bolyai University, Cluj-Napoca, p. 68.
[6] E. Sivadas & P. Jindal. 2017. Alternative measures of satisfaction and word of mouth. The Journal of Services Marketing, vol. 31, no. 2, p. 119.
[7] Z. Wan. 2012. Powerful brand influentials: Conceptualization, measurement, and distinctiveness of a brand's influential consumers, University of Southern California. p. 16.
[8] M. Cotiu. 2013. Satisfaction with goods and services: definitions and determinants, p. 72.
[9] T. Anisimova. 2013, "Evaluating the impact of corporate brand on consumer satisfaction", Asia Pacific Journal of Marketing and Logistics, vol. 25, no. 4, p. 562.
[10] R. Oliver. 2014. Satisfaction: A Behavioral Perspective on the Consumer: A Behavioral Perspective on the Consumer. Routledge, p. 396.
[11] E. Torres. 2014. Deconstructing service quality and customer satisfaction: Challenges and directions for future research. Journal of Hospitality Marketing & Management, 23(6), p.656.
[12] E. Torres. 2014. Deconstructing service quality and customer satisfaction: Challenges and directions for future research. Journal of Hospitality Marketing & Management, 23(6), p.657.
[13] M. Johnstone and P. Tan. 2015. Exploring the gap between consumers’ green rhetoric and purchasing behavior. Journal of Business Ethics, 132(2), p.320.
[14] P. Rani. 2014. Factors influencing consumer behavior. International Journal of Current Research and Academic Review, 2(9), p.53.
[15] T. Hennig-Thurau, and U. Hansen, eds., 2013. Relationship marketing: Gaining competitive advantage through customer satisfaction and customer retention. Springer Science & Business Media.p.13.
[16] S. Tseng and S. Hung. 2013. A framework identifying the gaps between customers' expectations and their perceptions in green products. Journal of Cleaner Production, 59, p.176.
[17] B. Schmitt and L. Zarantonello.2013. Consumer experience and experiential marketing: A critical review. In Review of marketing Research (p. 36). Emerald Group Publishing Limited.
[18] A. Osterwalder, Y. Pigneur, G. Bernarda and A. Smith, 2014. Value proposition design: How to create products and services customers want. John Wiley & Sons. p. 23.
[19] K. Farrow, G. Grolleau and L. Ibanez. 2017. Social norms and pro-environmental behavior: A review of the evidence. Ecological Economics, 140, p.4.
[20] M. Johnstone and L. Tan. 2015. Exploring the gap between consumers’ green rhetoric and purchasing behaviour. Journal of Business Ethics, 132(2), pp.312.
[21] M. Cotiu.2013, "Satisfaction with goods and services: definitions and determinants…p. 69.
[22] N. Hill & J. Alexander (2017). The handbook of customer satisfaction and loyalty measurement.pp.287.
[23] V. Kumar, I. Dalla Pozza and J. Ganesh.2013. Revisiting the satisfaction–loyalty relationship: empirical generalizations and directions for future research. Journal of Retailing, 89(3), pp.248.
[24] V. Kumar, I. Dalla Pozza and J. Ganesh.2013. Revisiting the satisfaction–loyalty relationship: empirical generalizations and directions for future research. Journal of Retailing, 89(3), pp.249.
[25] M. Cotiu.2013, "Satisfaction with goods and services: definitions and determinants, p. 68.
[26] N. Hill & J. Alexander (2017). The handbook of customer satisfaction and loyalty measurement, p.231.
[27] N. Hill & J. Alexander (2017). The handbook of customer satisfaction and loyalty measurement, p.129.
[28] B. E. Hayes. 2008, Measuring customer satisfaction and loyalty: Survey design, use, and statistical analysis methods. Milwaukee, Wisconsin: ASQ Quality Press. p.109.
[29] A. Muthukrishnan. (2015). Persistent Preferences in Market Place Choices: Brand Loyalty, Choice Inertia, and Something in Between.p.78.
[30] A. Kinicki & B. Williams. (2008). Management: A practical introduction. New York: McGraw-Hill/Irwin.p.31.
[31] CIM. (2018). Marketing and the 7PS; A brief summary of marketing and how it works. The Chartered Institute of Marketing.p.2.
[32] ibid…p.4
[33] CIM. (2018). Marketing and the 7PS; A brief summary of marketing and how it works. The Chartered Institute of Marketing, p.4.
[34] Ibid, p.5.
[35] ibid... p.5.
[36] ibid... p.6.
[37] ibid... p.6
[38] A. Akgün, H. Keskin and H. Ayar.2014. Standardization and adaptation of international marketing mix activities: A case study. Procedia-Social and Behavioral Sciences, 150, p.610.
[39] A. Akgün, H. Keskin and H. Ayar.2014. Standardization and adaptation of international marketing mix activities, p.612.
