What Is Consumer Satisfaction

1466 Words6 Pages
What is Customer Satisfaction? The definition of customer satisfaction has been debated again and again due to increasing attempts to measure it by organizations. (Hanan 2010). In general, customer satisfaction is a highly personal assessment which is affected by customer expectations. It is based on the customer’s experience with the organization and other personal outcomes. A satisfied customer has been defined by many researchers as the “one who receives significant added value” to his/her bottom line (Hanan 2010). In fact, customer satisfaction is used to help companies to assess how well their products or services is being able to meet or exceed customer expectations. It is often regarded as the fundamental determinant of long term consumer behaviour. Customer satisfaction measures are an overall psychological evaluation based on customer’s experience with the service and the lifetime of the product. (Smith 2007) Importance of customer satisfaction As discussed above, customer satisfaction is considered as the fundamental determinant of long term consumer behaviour. Customer satisfaction is considered to be so important because it affects directly the company’s profitability, customer retention and customer loyalty. According to Hoyer and MacInnis (2001), the foundation of any successful business is made up of satisfied customers. The more satisfied the customers are, the greater is their retention, the positive the word of mouth and hence the more benefits to the firms (Ranaweera and Prabhu 2003, 82). This is because customer satisfaction leads to repeat purchases, brand loyalty and positive word of mouth. Growth Strategies International (GSI) performed a statistical analysis involving over 20 000 customer surveys conducted in 40 countries by InfoQuest. The results were: * A Totally Satisfied Customer contributes 2.6 times as much revenue to a

More about What Is Consumer Satisfaction

Open Document