This document discusses customer satisfaction. It defines satisfaction as a judgment of pleasurable fulfillment from consumption. Customers are satisfied when a product or service exceeds their expectations. Managers aim to satisfy customers to achieve organizational goals like profits and market share. Customer satisfaction is influenced by perceived quality, choice criteria, and expectations. When expectations are met or exceeded, customers feel positive disconfirmation and satisfaction increases. Dissatisfaction occurs with negative disconfirmation when expectations are not met. Satisfied customers exhibit behaviors like loyalty that benefit firms through increased profits and sales.

1. Customer SatisfactionCustomer Satisfaction
By
K.Madhav Rao
Pin no: 14551E0068

2. What is Satisfaction?What is Satisfaction?
 Satisfaction is a judgment of aSatisfaction is a judgment of a
pleasurable level of consumptionpleasurable level of consumption
related fulfillment.related fulfillment.
 Consumers can experienceConsumers can experience
satisfaction when a product orsatisfaction when a product or
service gives greater pleasure thenservice gives greater pleasure then
anticipated.anticipated.

3. Satisfaction focuses onSatisfaction focuses on
fulfillment in varietiesfulfillment in varieties
 Satisfaction fulfillment is achieved by removing anySatisfaction fulfillment is achieved by removing any
negativity.negativity.
For example having the hardware on your computer repaired.For example having the hardware on your computer repaired.
 Under-Fulfillment or Over-fulfillment satisfaction isUnder-Fulfillment or Over-fulfillment satisfaction is
experienced when unexpected pleasure is achievedexperienced when unexpected pleasure is achieved
 Internal state highlights the meanings that operates inInternal state highlights the meanings that operates in
the consumer field of awareness sociably andthe consumer field of awareness sociably and
culturally.culturally.

4. Managerial Concern withManagerial Concern with
SatisfactionSatisfaction
 Customer is King, satisfyingCustomer is King, satisfying
customer needs and wants.customer needs and wants.
 Product/Service Quality leads toProduct/Service Quality leads to
Customer Satisfaction, LoyaltyCustomer Satisfaction, Loyalty
which achieves Organizationalwhich achieves Organizational
Objectives (e.g. profit, marketObjectives (e.g. profit, market
share, shareholder value)share, shareholder value)

5. Perceived QualityPerceived Quality
 Perceived quality: involvesPerceived quality: involves
preferences, is based on comparativepreferences, is based on comparative
standards, differs among customers andstandards, differs among customers and
situations, and resides in product use.situations, and resides in product use.
 Quality has both cognitive (thinking)Quality has both cognitive (thinking)
and affective (emotional) aspects.and affective (emotional) aspects.

6. How are employee andHow are employee and
customer satisfaction related?customer satisfaction related?
 Corporate slogans and missionCorporate slogans and mission
statement sometimes link customerstatement sometimes link customer
satisfaction to employee satisfaction.satisfaction to employee satisfaction.
 The Critical incident technique: is aThe Critical incident technique: is a
systematic procedure for recordingsystematic procedure for recording
events and behaviors observed to leadevents and behaviors observed to lead
to success or failure on specific task.to success or failure on specific task.

7. How Are Choice andHow Are Choice and
Satisfaction Related?Satisfaction Related?
 Consumers use product features toConsumers use product features to
form satisfaction judgments.form satisfaction judgments.
Choice Criteria – Product or serviceChoice Criteria – Product or service
selectionselection
Satisfaction Drivers – Satisfaction /Satisfaction Drivers – Satisfaction /
DissatisfactionDissatisfaction
 Aspects of the consumption situationAspects of the consumption situation
that directly affect satisfaction arethat directly affect satisfaction are
unpredictable.unpredictable.

8. How Do Consumers JudgeHow Do Consumers Judge
Satisfaction?Satisfaction?
 Expectation – anticipation orExpectation – anticipation or
predictions of future events.predictions of future events.
 The product or services they purchaseThe product or services they purchase
will fulfill their wants.will fulfill their wants.
 For example, When you buy a new car,For example, When you buy a new car,
you expect it run well.you expect it run well.

9. The expectancy disconfirmationThe expectancy disconfirmation
model (EDM) and its limitationmodel (EDM) and its limitation
 Disconfirmation of pre-consumptionDisconfirmation of pre-consumption
expectations is the key influence onexpectations is the key influence on
consumer satisfaction.consumer satisfaction.
 Positive disconfirmation occurs whenPositive disconfirmation occurs when
performances exceed expectations andperformances exceed expectations and
customer satisfaction increases.customer satisfaction increases.
 Negative disconfirmation occurs whenNegative disconfirmation occurs when
expectations are not met, and customerexpectations are not met, and customer
dissatisfaction increases.dissatisfaction increases.

10. Consumer Attributions and theConsumer Attributions and the
Satisfaction ProcessSatisfaction Process
 Attribution Theory – How individuals findAttribution Theory – How individuals find
explanations for outcomes or behaviorsexplanations for outcomes or behaviors
Procedural
Fairness
Interactional
Fairness
Outcomes
Distributional
Fairness
Satisfaction/
Dissatisfaction

11. Different emotions associatedDifferent emotions associated
with satisfactionwith satisfaction
Five emotional response modesFive emotional response modes
 Contentment: The contentmentContentment: The contentment
response is characterized by low levelsresponse is characterized by low levels
of emotional arousal and may entailof emotional arousal and may entail
disinterest. Contentment is a passivedisinterest. Contentment is a passive
response. For example, a consumerresponse. For example, a consumer
might express contentment over amight express contentment over a
family car that has functioned reliablyfamily car that has functioned reliably
over many years.over many years.

12. Emotional response modesEmotional response modes
(Cont’d)(Cont’d)
 Pleasure: the consumer confirmsPleasure: the consumer confirms
expectations and has moderate to highexpectations and has moderate to high
arousal and most likely high toarousal and most likely high to
moderate involvement as well.moderate involvement as well.
Consumer is more actively involved inConsumer is more actively involved in
processing process. For example,processing process. For example,
consumers choose a favorite piece ofconsumers choose a favorite piece of
clothing, play a new CD justclothing, play a new CD just
purchased…purchased…

13. Emotional response modesEmotional response modes
(Cont’d)(Cont’d)
 Relief: A feeling of relieve may come about as aRelief: A feeling of relieve may come about as a
response to unfulfilled negative expectations. Forresponse to unfulfilled negative expectations. For
example, I didn’t have to wait as long as Iexample, I didn’t have to wait as long as I
expectedexpected
 Ambivalence: the simultaneous or sequentialAmbivalence: the simultaneous or sequential
experience of multiple emotional states associatedexperience of multiple emotional states associated
with acquisition or consumption processes. Thiswith acquisition or consumption processes. This
might involve high level of involvement.might involve high level of involvement.
 For example, the joy of a bride choosing herFor example, the joy of a bride choosing her
wedding gown.wedding gown.

14. Consequences of satisfactionConsequences of satisfaction
and dissatisfactionand dissatisfaction
 In response to consumptionIn response to consumption
experiences, consumers exerciseexperiences, consumers exercise
one or more of the four behaviorone or more of the four behavior
responses.responses.

15. Consequences of satisfactionConsequences of satisfaction
and dissatisfaction (Cont’d)and dissatisfaction (Cont’d)
For FirmFor Firm
 Increase profitIncrease profit
 Predictable salePredictable sale
 Positive word of mouthPositive word of mouth

16. Our ConclusionOur Conclusion
Thank you for your attention!Thank you for your attention!
Good Luck on your final!Good Luck on your final!