Mgt 451 Research Paper

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Crystal Diaz MGT 451 Professor Widman June 13, 2010 1)What does customer satisfaction mean to you and how could you measure that in the stimulation? As Anderson, Fornell, and Rust state, “To compete in such a world, firms must strike the right balance between their efforts to compete efficiently and their efforts to compete effectively.” Two arguments were discussed, one that customer satisfaction and profitability are well-matched. For example, customers that are satisfied can decrease, “the time and effort devoted to handling returns, rework, warranties, and complaint management, while at the same time lowering the cost of making future transactions. The second theory believes that, “ increasing customer satisfaction should increase costs, as doing so often requires efforts to improve product attributes or overall product design.”…show more content…
So think about it if a customer is satisfied that means that effort is being made to consistently innovate. Customers do not like to be bored, they seek newness, what’s economical, and what suits them. Determining how well a company can cope with these demands, will be proven through the success of the company. It will show if there are a repeat of customers. Customer satisfaction is filled with tons of responsibilities which consist of plenty of cost. I disagree with customer satisfaction leading to decrease in quality. If anything it will increase quality. For example, at the Disney Store, the store manager is ecstatic when happy customers report to him with positive feedback. This adds to new merchandise, which is more expensive, but better quality. The new merchandise being more expensive, means that it’s better quality, that the company has to

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