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23 Cards in this Set
- Front
- Back
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What are the characteristics of a customer economy?
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the customer is:
- the most important visitor - not dependent on us, we're dependent on them - not an outsider of the business, a part of it - doing us a favor by giving the opportunity to serve them |
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what is customer satisfaction?
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consumer's response to the evaluation of the perceived discrepancy between prior expectation and the actual performance of the product as perceive after its consumption
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what are the 2 components of customer satisfaction?
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- expectation
- perceived performance |
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Where is the Zone of Tolerance?
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Difference between a high level of expectation (desired/ideal level) and low level of expectation (adequate/acceptable level).
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What are the variables of the Zone of Tolerance?
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- situation
- product / service dimensions |
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What are the sources of expectation level?
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- marketing communications
- past experience - word of mouth - alternatives |
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What makes up customer delight?
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- combination of joy and surprise from experiencing exceptionally superior performance
(unexpectedly hight level of performance; arousal; positive affect) - benefits (memorable experience; referrals) |
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What theory did McClure, Li, Tomlin, Cypert, Montague and Montague develop?
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The interdependence of expectation and performance. Expectation may influence how customers evaluate and perceive performance.
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What are the outcomes of customer satisfaction?
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Customer satisfaction leads to:
- Attitude toward brand - Word of mouth - Repurchase intent Which leads to: - Profitability - Stability - Bargaining power which leads to: -Firm value |
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How do you measure customer satisfaction?
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- overall satisfaction
(scaled of 1 to 5) - gap between prior expectation and perceived performance |
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How to do you measure gap between expectation and performance?
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- measure expectation before
- measure performance after - calculate the difference |
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What to keep in mind when measuring satisfaction?
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- who responds
- determining role of expectation and positioning |
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Why measure customer satisfaction?
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- gauge on where organization is compared to:
- competion - the past - cohesive mindset withing the organization - estimated for future performance - PR / IR purpose |
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What is the theory of Anderson, Fornell and Mazvancherly?
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There's a link between customer satisfaction and shareholder satisfaction
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What's the theory of Gruca and Rego?
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1 point increase in ACSI = 7% increase in cash flows and 4% reduction in variability
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What's the theory of Anderson and Mittal?
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There's an asymmetric relationship between satisfaction and profit
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How does equity theory fit into customer satisfaction?
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Individuals compare their outcome/input ratio with those of others.
compare to: - marketers net gain - other consumer's net gain Satisfaction is thought to exist when an individual perceives that the outcome-to-input ratios are fair. |
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What are the aspects of loyalty?
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- behavioural (repeat pruchases)
- attitudinal (psychological attachment or enhanced liking) |
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What are the types of loyalty?
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- premium
- latent - inertia - none (!!) |
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What are the benefits to loyalty?
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Higher:
- basic revenue - additional revenue - decrease in transaction cost - word of mouth - price premium lower: - retention costs |
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What are the obstacles to loyalty?
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- consumer idiosyncrasies:
- changing needs - variety seeking tendency - multi-brand loyalty - withdrawal from the product category - switching incentives |
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What are the characteristics of highly satisfied customers?
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- are 2x more likely to reurn
- 2.8x more likely to recommend / drive new and lapse customer trial |
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What is the customer satisfaction equation?
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satisfaction -> loyalty -> firm profitability
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