This document discusses customer satisfaction, including its meaning, components, models, and measurement. Customer satisfaction results from fulfillment of needs and expectations, and differs between individuals. It is directly impacted by product/service performance and quality. Models of customer satisfaction include expectation disconfirmation, perceived performance, norms, attribution, and equity. Measuring customer satisfaction involves comparing expectations to actual perceptions and experiences. Maintaining high customer satisfaction is important for customer loyalty, retention, and superior business performance.

1. Customer Satisfaction

2. Meaning, Definition
• Gratification, pleasure, fulfilment of
desire.
• A feeling that emanates from
fulfilment of needs and wants.
• Evaluated on the basis of what is
received against what was expected.
• Satisfaction = Things not going wrong
• Differs from person to person.
• Direct outcome of product/service
performance.

3. Customer Satisfaction
• Understanding the satisfaction of
buyers in reference to a business
transaction is a customer
satisfaction.
• Howard and Seth (1969): Customer
Satisfaction
– “the buyer’s cognitive state of
being adequately or inadequately
rewarded for the sacrifice he/she
has undergone”.

4. Customer Satisfaction
• Day and Landon (1977):
– Satisfaction is important to the
individual consumer because it
reflects a positive outcome from the
outlay of scarce resources and/or the
fulfilment of unmet needs”.

5. Customer Satisfaction
• Churchill and Suprenant (1982):
An outcome of purchase and use
resulting from the buyer’s
comparison of the rewards and costs
of the purchase relative to
anticipated consequences”.
• Two forms of satisfaction –
transaction specific, satisfaction
overall.

6. Significance of CS

7. Components of Customer
Satisfaction
• Quality values influencing satisfaction
behaviour:
– Quality
– Value efficiency
– Timeliness
– Access
– Self-management
– Environment
– Team work
– Commitment
– innovation

8. CS Models
1. The expectation disconfirmation
model
2. The perceived performance model
3. Norms model
4. Multiple process model
5. Attribution model
6. Affective model
7. Equity model

9. CS Models
1. The expectation disconfirmation
model
Consumer compares pre-
consumption expectations with
post-consumption experiences,
thus forming an attitude of
satisfaction or dissatisfaction
towards the product/service.

10. CS Models
2. The perceived performance
model
The model holds in the situations
where a product/service
performance is so well that the
consumer’s expectations are
shadowed by the consumer’s post-
consumption reaction to the
product/service.

11. CS Models
3. Norms model
consumer compares perceived
performance with some
standard for performance which
is not a predictive expectation.
The consumer uses what should
happen as the comparison
standard.

12. CS Models
4. Multiple process model
Consumers use more than one
standard of comparison in
forming a
confirmation/disconfirmation
judgement about an experience
with a product/service.

13. CS Models
5. Attribution model
Consumers use three factors to
determine the attribution’s
effect on satisfaction. These
are:
• Locus of Causality
• Stability
• Controllability

14. CS Models
• Locus of Causality
– Can be external i.e. service
provider gets the credit or blame.
– Can be internal i.e. consumer is
responsible for product/service
performance.

15. CS Models
• Stability
– Stable causes would tend to have
more impact on satisfaction
because consumers tend to be
more absolving of product/service
failures that appear to be rare
events.

16. CS Models
• Controllability
– A poor consumption experience
may mean that consumers will be
unsatisfied with the
product/service provider if the
consumer believes that the
provider can control the cause of
dissatisfaction.

17. CS Models
6. Affective model
This model moves beyond
rational processes. Here
emotion, liking and move have
influence over feeling of
satisfaction or dissatisfaction
emerging out of consumption
experience.

18. CS Models
7. Equity model
This model emphasises the consumer’s
experience about fair treatment in the
consumption process.
The model focuses on the amount of return for
effort made by the consumers or the concept of
social comparison (the perceived relative level of
product/service performance that other
consumers experience).
Categories of fairness:
• Procedural fairness
• Interactional fairness
• Distributional fairness.

19. Rationale of Customer
Satisfaction
1. CS building customer loyalty
2. CS helping in customer
retention
3. CS strengthening customer’s
repurchase intentions
4. CS leading to superior business
performance

20. Service Quality and CS
• Service quality school
• Satisfaction school

21. Service quality school
• Satisfaction an antecedent of
service quality
• Satisfaction with a number of
individual transactions “decays”
into an overall attitude towards
service quality.

22. Satisfaction school
• Assessments of service quality lead
to an overall attitude towards the
service that is called satisfaction.
• Strong link between customer
satisfaction and customer
retention.
• customer’s perception of service
and quality of pdt will determine
the success of the pdt or service in
the market.

23. • If the experience of the service
greatly exceeds the expectations
clients had of the service, then
satisfaction will be high, and
vice-versa.
• Perception of service delivery are
measured separately from
customer expectations and the
gap between the two provides a
measure of service quality.

24. Measuring CS
• Expectation & CS
• The profit chain model
– Employee perception and business
performance

25. Measuring CS
• Service expectation model
– Comparing customer’s actual perception
with their expectations.
– In the first case ‘quality’ is considered
and in the second case cs is considered.
– Compare evaluations of the user with his
satisfaction connected to an ideal
product/service.
– Sometimes expectations are subjective
or they can be suggested by the
provider.

26. Measuring CS
• Variability in the Service Process
model
– Heterogeneous customers
– Lack of rigorous policies and processes
– High employee turnover
– Nature of customisation