Anderson, Fornell, and Lehmann (1994) say that companies that strive for high customer satisfaction are more likely to receive larger economic returns. They also know that these economic returns are not at once recognized. Matzler et al., (1996) argue that customer satisfaction act as an indicator of future business opportunities, where a satisfied customer is loyal to the company, which implies a stable future cash-flow. This is strengthened by Anderson, Fornell, and Lehmann (1994) who acknowledge the fact that there is a positive relationship between customer satisfaction and profitability.
2.5.2 Negative Aspect
Rust and Oliver (2000) say that a customer that is satisfied with a product or service will raise their repurchase frequency and future prospects. Referable to the customers higher expectations, it will become more unmanageable for the firm to satisfy the customers in the next purchase cycle. According to Rust and Oliver (2000), this might damage the company in the long run. A company that raises customer’s expectation too high will get problem with retaining the same customer satisfaction in the future. …show more content…
The company would be better off reducing the expectations and then deliver more than expected (Ciavolino and Dahlgaard, 2007). Furthermore, Rust and Oliver (2000) wonder if satisfactions are a suitable goal and argues that companies do not earn an advantage by seeking a high tier of customer satisfaction when it only conjures up expectations that are difficult to reach and, in turn, increases the cost for sampling to achieve these higher expectations.
Anderson, Fornell, and Rust (1997) further argued that, productivity within the company will be damaged because of the cost and the search after customer satisfaction. Furthermore, in accession to higher cost, the company must add more effort in improving product attributes or overall product design to keep satisfaction at the desired level (Anderson, Fornell, and Rust, 1997). 2.5.3. Meeting Customer Service Standards Most of the transactions can be done by the internet or phone banking. However, some still have to be done in person. There are a number of regular, but infrequent transactions that require "special" processing. Unluckily, some customers will have to rely on dealing with an employee he or she experiences. Otherwise, i will have to be in the queue until the spell of that person only to realize that there was not the need for joining the queue in the foremost post. Then when you consistently offer excellent service, how do you exceed customer expectations? 2.6. Exceeding Customer Expectation Often companies and organisations claim in their publicity that they will "exceed" customer expectations. Such phrases are frequently included in mission/vision/values type statements. The message may even be shown on posters prominently displayed in shop fronts or reception areas. Customers normally have high expectations. Merely it is really rare for customer service representatives to regularly see the expectations of customers, let alone surpass them. Service expectations are seen when customers are supplied with the right product/service, at the right quality, at the correct price, every single time. The emphasis here is on "every single time". Few questions can be asked about regular transactions, customers have. Do they receive prompt, effective and courteous service every time? Does the company or organisation manage busy and quiet times equally well? 2.7. Involvement Of Customer In order to implement the satisfaction programs, there is the need to focus on the involvement of the customer. The interaction between customers and service providers is an important determinant of perceptions of service quality (Zenithal et al, 1988). Sometimes the …show more content…
Westbrook, and Oliver, 1991). Anderson and Sullivan (1993) proposed that “a dissatisfied customer is more likely to look for data on alternatives and more likely to give in to competitor overtures than a satisfied client”. In summation, a past research shows that satisfaction is a true predictor of re-purchase intentions (Wang, 2001). Maximization of customer loyalty is a priority for most industries. Loyal customers are individuals who remain clients of their original supplier even if a competitor proposes more advantageous conditions. They are the most profitable ones and they are free marketing channels in terms of benefits obtained by companies from word-of –mouth. These clients are the most liked. Lejeune in 2001 referred in his research that, Churn management consists of techniques that enable firms to maintain their profitable clients and its aims at increasing client
2.5.2 Negative Aspect
Rust and Oliver (2000) say that a customer that is satisfied with a product or service will raise their repurchase frequency and future prospects. Referable to the customers higher expectations, it will become more unmanageable for the firm to satisfy the customers in the next purchase cycle. According to Rust and Oliver (2000), this might damage the company in the long run. A company that raises customer’s expectation too high will get problem with retaining the same customer satisfaction in the future. …show more content…
The company would be better off reducing the expectations and then deliver more than expected (Ciavolino and Dahlgaard, 2007). Furthermore, Rust and Oliver (2000) wonder if satisfactions are a suitable goal and argues that companies do not earn an advantage by seeking a high tier of customer satisfaction when it only conjures up expectations that are difficult to reach and, in turn, increases the cost for sampling to achieve these higher expectations.
Anderson, Fornell, and Rust (1997) further argued that, productivity within the company will be damaged because of the cost and the search after customer satisfaction. Furthermore, in accession to higher cost, the company must add more effort in improving product attributes or overall product design to keep satisfaction at the desired level (Anderson, Fornell, and Rust, 1997). 2.5.3. Meeting Customer Service Standards Most of the transactions can be done by the internet or phone banking. However, some still have to be done in person. There are a number of regular, but infrequent transactions that require "special" processing. Unluckily, some customers will have to rely on dealing with an employee he or she experiences. Otherwise, i will have to be in the queue until the spell of that person only to realize that there was not the need for joining the queue in the foremost post. Then when you consistently offer excellent service, how do you exceed customer expectations? 2.6. Exceeding Customer Expectation Often companies and organisations claim in their publicity that they will "exceed" customer expectations. Such phrases are frequently included in mission/vision/values type statements. The message may even be shown on posters prominently displayed in shop fronts or reception areas. Customers normally have high expectations. Merely it is really rare for customer service representatives to regularly see the expectations of customers, let alone surpass them. Service expectations are seen when customers are supplied with the right product/service, at the right quality, at the correct price, every single time. The emphasis here is on "every single time". Few questions can be asked about regular transactions, customers have. Do they receive prompt, effective and courteous service every time? Does the company or organisation manage busy and quiet times equally well? 2.7. Involvement Of Customer In order to implement the satisfaction programs, there is the need to focus on the involvement of the customer. The interaction between customers and service providers is an important determinant of perceptions of service quality (Zenithal et al, 1988). Sometimes the …show more content…
Westbrook, and Oliver, 1991). Anderson and Sullivan (1993) proposed that “a dissatisfied customer is more likely to look for data on alternatives and more likely to give in to competitor overtures than a satisfied client”. In summation, a past research shows that satisfaction is a true predictor of re-purchase intentions (Wang, 2001). Maximization of customer loyalty is a priority for most industries. Loyal customers are individuals who remain clients of their original supplier even if a competitor proposes more advantageous conditions. They are the most profitable ones and they are free marketing channels in terms of benefits obtained by companies from word-of –mouth. These clients are the most liked. Lejeune in 2001 referred in his research that, Churn management consists of techniques that enable firms to maintain their profitable clients and its aims at increasing client