Advantages And Disadvantages Of Customer Satisfaction

5418 Words 22 Pages
Register to read the introduction… In recent times, customer satisfaction has gained new attention within the context of the paradigm shift from transactional marketing to relationship marketing (Grönroos 1994; Sheth & Parvatiyar 1994). Customers who are satisfied with a purchased product will buy the same product again, more often (Reichheld 1996), and will also recommend it to others (Oliver and Swan 1989). Customer satisfaction is commonly related to two fundamental properties (Ostrom & Iacobucci 1995), including the customer’s judgment of the quality of the product and his evaluation of the interaction experience he or she has made with the product provider (Crosby et al. 1990). Kotler sums this up when he states: “The key to customer retention is customer satisfaction” (Kotler 1994).
TQM is a system for creating competitive advantage by focusing the organisation on what is important to the customer. It can be broken down as follows:
Total: the whole organisations involved and understands that customer satisfaction is everyone’s job.
Quality: the extent to which products and services satisfy the requirements of internal and external
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Is there a single point of contact?
• Organisation structure – is there a customer service management structure in place? What level of control do they have over their service process?
• System flexibility - can we adapt our service delivery system to meet particular customer needs?
b) Transaction elements. These include:
• Order cycle time – what is the elapsed time from order to delivery? What is the reliability/variation?
• Inventory availability – what percentage of demand for each item can be met from stock?
• Order fill rate – what proportion of orders are completely filled within the stated lead time?
• Order status information – how long does it take us to respond to a query with the required information? Do we inform the customer of problems or do they contact us?
c) Post-transaction elements. These includes:
• Availability of spares – what are the in-stock levels of service parts?
• Call-out time – how long does it take for the engineer to arrive, and what is the ‘first call fix rate’?
• Product tracing/warranty – can we identified the location of individual products once purchased? Can we maintain/extend the warranty to customers ‘expected
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Movement of parts is further simplified by bins or containers of fixed size, designed to hold a specific and relatively small number of units of the same part. Different parts are never put into the same containers. In a typical production situation, an operator at a workstation has one or more kanban. When one is empty, this is authorization to obtain a full kanban from either the storage area or the next workstation up the line. The arrival of an empty kanban at a workstation is authorization for that operator to produce sufficient parts to refill it. Thus, production activity is generated by demand from the next operator down the line (‘downstream’), (Steve Brown et al.,

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