In today’s competitive environment, companies that survive and prosper place an emphasis on meeting or exceeding customers’ expectations.
The American Marketing Association defines customer satisfaction as “the degree to which there is match between the customer’s expectations of the product and the actual performance of the product.” Customer expectations are generally formed by:
- Information consumers receive from companies (advertising, marketing communications, salespersons, etc.)
- Other people (friends, family, opinion leaders, etc.)
- Past experience with the product
By understanding these expectations (through marketing research) and managing them (by providing excellent products and customer service), the firm can deliver superior value to its customers and establish customer loyalty.
Customer satisfaction also includes the customer’s definition and the firm’s interpretation of the concept of quality. To many customers, their perception of the value of their purchase goes beyond the good or service itself to include additional elements such as their interaction with the company during the purchasing process and any after-sales customer service.
Customer satisfaction research can serve as an effective tool in evaluating the firm’s marketing programs and can deliver valuable feedback to assist in making necessary changes. It can help the marketer understand what the customer perceives as value, and what his or her expectations might be. It can also measure how well the firm has performed against customer expectations.
Ultimately, customer satisfaction exists whether or not it is formally measured. Prudent companies conduct customer satisfaction research in order to:
1. Understand the customers’ expectations of their products and services
2. Measure the company’s effectiveness in meeting customers’ expectations
3. Identify ways to better align their products and services with customers’ expectations
