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Customer satisfaction — Meaning and methods of measuring

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The chapter presents the idea of customer satisfaction, defines conditions of loyalty, describes selected methods of customer satisfaction measuring and presents international standards referring to customer satisfaction measurement.
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CUSTOMER SATISFACTION —
MEANING AND METHODS OF MEASURING
GRZEGORZ BIESOK, JOLANTA WYRÓD-WRÓBEL
Rozdział w monografii / chapter in a book
Tytuł książki
Book title
Marketing and logistic problems in the management of
organization
Redakcja
Editors
Honorata Howaniec, Wiesław Waszkielewicz
Strony
Pages
23-41
Wydawnictwo
Editorial office
Bielsko-Biała: Wydawnictwo Naukowe Akademii Techniczno-
Humanistycznej w Bielsku-Białej
Rok
Year
2011
ISBN 978-83-62292-81-3
Biesok, G, Wyród-Wróbel, J (2011). Customer satisfaction — Meaning and methods of
measuring. In: H. Howaniec, W. Waszkielewicz (ed.), Marketing and logistic problems in the
management of organization (23-41). Bielsko-Biała: Wydawnictwo Naukowe Akademii
Techniczno-Humanistycznej w Bielsku-Białej.
Biesok G, Wyród-Wróbel J. – Customer satisfaction – meaning and…
23
Chapter II
CUSTOMER SATISFACTION —
MEANING AND METHODS OF MEASURING
Grzegorz Biesok, Jolanta Wyród-Wróbel
Abstract
Abstract: The chapter presents the idea of customer satisfaction, defines conditions of loyalty,
describes selected methods of customer satisfaction measuring and presents international standards
referring to customer satisfaction measurement.
Introduction
It is not easy to recognize and satisfy the consumers’ needs, expectations and habits, and
knowing them doesn’t guarantee success on the market, because consumer behaviour is not
rational. Among the methods, which can verify the consumer satisfaction of purchase or service,
there is not one, universal method which would enable to express this issue in a comprehensive
manner.
The idea of the customer satisfaction is understood differently. At its base there is a
concept of needs and their fulfilling. Various understanding of the needs and emotional states
associated with them leads to an alternating treatment of satisfaction, and to a different approach
to its measurement. At present, science can not unequivocally answer, what is the customer
satisfaction and what factors determine it. This makes the existence of several methods of
measuring satisfaction based on arbitrary approaches to their authors. For the purposes of quality
management systems, there are some tries to standardize the approach to measuring customer
satisfaction, but these regulations in nature are very general.
Chapter reviews and organizes the approach to the understanding of customer satisfaction,
including the normative approach, identifies factors determining the satisfaction and pays
attention to the Authors' study, who pointed their own satisfaction factors.
1. Concept of satisfaction
The existence of many companies on the market is conditioned with a number of satisfied
customers. Customers are the key factor of the existence and company development on the
market. It is obvious then, that firms, which want to face the competition, need to provide
valuable and unique terms to their customers, that will satisfy their needs. This satisfaction
includes not only the feelings associated with the purchasing process, but also the atmosphere
before and after the execution of purchases.
Chapter II
24
If the company brings itself closer for clients, it easier fulfils their needs and desires for in a long
period of time1. Therefore, a crucial factor of building a long-term success of the company is
ongoing satisfying client’s needs2. Customer satisfaction is often associated with the customer
gratification. Products or services, that are a source of satisfaction, provide the desirable value to
their customers, at least in an sufficient degree. Standard ISO 10004 specifies, that: “Satisfaction
is a judgement, an opinion expressed by the customer. The degree of satisfaction reflects the gap
between the customer’s vision of the expected product, and the customer’s perception of the
delivered product” 3.
All decisions, made by the consumer, are affected by many factors, including economic
ones, such as: incomes, price, savings, loans, the impact of marketing instruments, and non-
economic factors, such as: demographic, social or psychological ones4. Recognizing and
satisfying customer’s needs, expectations, preferences and behaviour is not easy andwhat is
more — knowing it does not guarantee success on the market. The reason of this is the fact, that
consumer behaviour is not rational. Consumers, who make a purchase of a certain good, usually
have already clarified requirements referring to its quality, purpose or use. They do not pay for
the product in a physical sense, but they pay for value or what they expect from the product.
Expectation have a different scope and sometimes they could be very overstated or quite modest.
That’s why taking a decision by the consumer is preceded by initiating and defining the
customer’s specific needs.
The consumer need means a demand for specific goods and services. According to
J. Senyszyn: “Consumer need is a state of indispensability of products possession or use, being a
result of achieved level of development of the human environment and his requirements as a
bio-psycho-social structure”5. All the consumption needs refer to with the products of human
labour. Another definition says, that the need is a potential or actual condition of the absence of
something, what is necessary to keep a person alive and allows him for individual development,
gaining and maintain a certain social status, etc.6. Needs provide a discomfort associated with
the lack of satisfaction caused by shortage of tangible or intangible values in the certain
situation. There are few fundamental human needs — but human desires have unlimited
character. Although people have limited resources, so they choose the products which provide
good value for money7.
The basis of the customers’ choice is perceived by its value, which specific products or
services are able to deliver. Specifying value for the good is not the same as for the service —
value in services is different from the value of products. Due to the nature of services, their
value has always immaterial character, although there are also material elements. Customer’s
reception of service is generally more emotional than the perception of products. Value plays a
very important role in customers’ decision making. Having a choice between several offers, they
decide on the products or services which value is perceived as the highest. Customers do not
evaluate the product value and cost in an objective manner, but only as perceived value. The
valuation of the goods delivered to the customer is a challenge for today’s manufacturers. The
1
Szymczak J., Urbaniak M. Satysfakcja klienta jako wyznacznik działań przedsiębiorstw. Marketing i Rynek 12/2006.
p. 23.
2
Mazurek-Łopacińska K. Zachowania nabywców i ich konsekwencje marketingowe. Warsaw. PWE Ed. 2003. p. 305.
3
International standard ISO/TS 10004:2010 Quality management — Customer satisfaction — Guidelines for
monitoring and measuring. Geneva. International Organization for Standardization. 2010. p. 15.
4
Włodarczyk-Śpiewak K. Czynniki determinujące strukturę konsumpcji młodych gospodarstw domowych. Szczecin.
University of Szczecin. 2003. p. 64.
5
Senyszyn J. Potrzeby konsumpcyjne. Wstęp do ekonomicznej teorii potrzeb. Gdańsk. University of Gdańsk Ed. 1995. p.
66.
6
Baruk A. I. Nabywcy finalni jako podmioty marketingowego oddziaływania. Dom Organizatora Ed. Toruń. 2008. p. 39.
7
Kotler P., Armstrong G., Saunders J., Wong V. Marketing. Podręcznik Europejski. Warsaw. PWE Ed. 2002.
Biesok G, Wyród-Wróbel J. – Customer satisfaction – meaning and…
25
products available on the market are very modern, and their production is based on advanced
techniques and technology. Therefore, it is difficult to say how much the product is worth from
the point of view of the customer. It is important to make a distinction between the
organization’s view of the quality of the delivered product and the customer’s perception of the
delivered product, because the perception governs the customer’s satisfaction8.
If customer’s expectations are met, we can talk about the satisfaction of purchase, which is
defined as a function of convergence the expectations with the perceived mode of action of the
products by the purchaser. There are many definitions of satisfaction in the literature, which
stress in the varying degrees the individual aspects of customer satisfaction, for example
reaction for offered service or product, an opinion on compliance with the requirements and
finally feelings accompanying the acquisition of a good (tables 1–3).
A state of satisfaction or dissatisfaction is a subjective feeling and is a results of specific
experiences of individual perceptions and emotions. This satisfaction or dissatisfaction reflects a
feeling connected with the completed or unfulfilled expectations in relation to a particular
product or service9. The satisfaction felt by the client, is associated with the experience of his
positive impressions, and conversely will be linked to dissatisfaction with the lack of positive
incentives.
Reviews of products or services available on the market are very diverse and they are
rather subjective in nature. The same we could say about customer satisfaction, which is a
personal feeling, and it is affected by various factors. From an analytical point of view, there are
three kinds of satisfaction10:
1. Partial or global satisfaction.
2. Current or accumulated satisfaction.
3. Independent or comparative satisfaction.
Table 1. Definitions of the satisfaction relating to the reaction to services and products
Reaction
to
services and products
1. The client’s emotional response, combining his experiences and feelings after
consumption of a product or service, with the expectations and perceived value11.
2. The positive emotional consumer’s reaction on product or service evaluation12.
3. The result of psychological process in which the client compares the perceived level of
business performance with distinctive standards, which generally are his expectations13.
4. The resultant between the expected product quality, perceived product quality and the
importance of its various properties
14
.
Source: own study.
8
International standard ISO/TS 10004:2010 Quality management […]. Op. cit. p. 3.
9
Baruk A. Marketingowe kreowanie wartości. Problemy Jakości. 7/2002. P. 24.
10
Mazurek-Łopacińska K. Zachowania nabywców [...]. Op. cit. p. 307.
11
Mazurek-Łopacińska K. Zachowania nabywców [...]. Op. cit. p. 306.
12
Falkowski A, Tyszka T. Psychologia zachowań konsumenckich. GWP Ed. Gdansk 2009.
13
Nieżurawski L., Kobylański A., Pawłowska B. Pomiar satysfakcji klientów i jego znaczenie dla przedsiębiorstw
problemy badawcze. Problemy Jakości. 3/2003.
14
Ibidem.
Chapter II
26
Table 2. Definitions of the satisfaction relating to an opinion on compliance
O
ts
1. The buyer opinion about degree of compliance of transactions in relation to his needs
and expectations15.
2. Customer’s perception of the degree to which the customer’s requirements have been
fulfilled16.
3. Valuation of acquired product or service
17
.
Source: own study.
Table 3. Definitions of the satisfaction relating to the feelings of the purchaser related to
the acquisition of a good
F
eelings related to the acquisition of a good by the purchaser
1. Feeling experienced by customer having used the offer meeting his expectations18.
2. The buyer’s awareness that his expectations were fully met or exceeded with the
organization he was serviced by19.
3. State of satisfaction caused by gaining something, fulfilling wishes, is a state of
pleasure derived from the specific reason20.
4. Subjective impression formed gradually by repeated customer experiences with
products and services of a certain company21.
5. State of mind which is an emotion that expresses satisfaction or dissatisfaction of the
choice made by buying22.
6. Reflection of a situation in which the final product offered by the organization meets a
set of customer requirements23.
7. Positive or negative feeling of a client in connection with the value he received as a
result of using a particular product offered in a specific situation24.
8. Providing to the customers a set of values which best meets their needs
25
.
Source: own study.
The partial satisfaction refers to a specific element of the product or service. It can include
aesthetics of making the product, durability, safe operation, service. However the global
satisfaction is the sum of partial satisfactions because it relates to all services. In order to
distinguish these kinds of satisfaction, extent and duration of the study and a reference to the
competition should be taken into account.
15
Skrzypek E. Jakość i efektywność. Marie Curie-Skłodowska University of Lublin Ed. 2000.
16
International standard ISO 9000:2005 Quality management systems — Fundamentals and vocabulary. In: Polish
standard PN-EN ISO 9000:2006. Systemy zarządzania jakością. Podstawy i terminologia. Warsaw. PKN. 2006. p. 26.
17
Westbrook R. A., Oliver R. L. The dimensionality of consumption Emotion Patterns and Consumer Satisfaction.
Journal of Consumer Research. 18/1998. p. 84–91.
18
Kotler P., Armstrong G., Saunders J., Wong V. Marketing [...]. Op. cit.
19
Lotko A. Zarządzanie relacjami z klientem. Strategie i systemy. Radom. Radom Technical University. 2004.
20
Olejniczak T., Ankiel-Homa N. Praktyczne metody pomiaru satysfakcji klientów. Marketing w Praktyce. 8/2004. p. 25.
21
Lisowski J. L. Określić satysfakcję klienta. Marketing w Praktyce. 5/1999. p. 17.
22
Otto J. Marketing relacji. Koncepcja i stosowanie. Warsaw. C. H. Beck Ed. 2004. p. 73.
23
Hill N., Aleksander J. Pomiar satysfakcji i lojalności klientów. Cracow. Oficyna Ekonomiczna Ed. 2003. p. 11.
24
Woodruff R. B., Garidial S. F. Know Your Customer. New Aproaches to Understanding Customers Value and
Satisfaction. Cambridge (Mass.) Backwell Publishers Inc. 1996. p. 95.
25
Rehker M. Informacja marketingowa jako czynnik sukcesu usługodawców finansowych działających w segmencie
klientów detalicznych cz. 2. Bank i Kredyt. 7/2004. p. 56.
Biesok G, Wyród-Wróbel J. – Customer satisfaction – meaning and…
27
The current satisfaction is an assessment of the current level of satisfaction with the service or
product that is used in a certain time and space. The accumulated satisfaction is the result of
cumulative ubiquitous experiences of the customers in a limited time for any product, service or
business.
Another kind of satisfaction is the isolated satisfaction, known as an independent
satisfaction, which is based on the evaluation of customer satisfaction with the offer of a specific
firm. The relative satisfaction compares the various competing companies.
The level of customer satisfaction is the result of the characteristics of the product or service and
the company’s communications and customer experience, and the requirements of the product.
The client requirements are related to the subjective perception of the product or service by the
customer. The higher requirements in relation to the actual characteristics of the product offered
by the company, the lower customer satisfaction is. Conversely, some features of offers only
participate in preventing customer dissatisfaction, and some of them shape it26.
The matter of customer satisfaction is very important for every organization. The final
evaluation of tenders carries a twofold consequences related to its satisfaction or dissatisfaction.
It is due to positive or negative differences between the purchase and the expectations connected
with it. This influences further customer behaviour on a market27.
2. Factors of satisfaction (own research)
Authors, in one of their own research, decided to verify the importance of selected attributes of
the customer satisfaction. In a survey, they asked 122 respondents in age 18–50 years, to recall a
recently purchase of a good, which is not purchased every day (e.g., car, electronics, computer,
clothes, jewellery, perfume, etc.), and which satisfied them. Then respondents were asked to
define their overall level of satisfaction (in the continuous scale 1–5, where 5 meant the greatest
satisfaction) and to provide an indicative price of purchased goods. The main task for the
respondents was to express an opinion to the 21 satisfaction attributes (formed as theses) and to
give their agreement or disagreement with the theses (in the scale: completely agree, rather
agree, it’s hard to say, tend to disagree, totally do not agree.) The examined attributes of
satisfaction are showed in table 4.
Table 4. Attributes of satisfaction studied in the research
The attributes related to
product
The attributes related to
purchasing process
The attributes related to
feelings
Price
Exceeding expectations
Fulfilling requirements
Customer-friendly
orientation of producer
Planning purchase
Promotion
Image of the seller
Customer service
Clarified expectations
Extended decision-making
process
Positive emotions
Customer’s experience
Affirmation of the product
Perception of the good’s
value
Perception of the good’s
quality
Delight
Loyalty to the seller
Source: own study.
26
Ibidem. p. 307–309.
27
Antonides G., Raaij W. F. Zachowanie konsumenta. Podręcznik akademicki. Warsaw. PWN Ed. 2003. p. 487.
Chapter II
28
The research verified a number of attributes (factors) which could be applied to measurement
customer satisfaction. Customer satisfaction is determined by the attributes of the product, the
purchasing process and the feelings of the buyer. Customer requirements fulfilment and the his
perception of good’s quality is a natural base of satisfaction. Perception of quality and value of
product, its full compliance with customer requirements and the positive emotions associated
with purchasing are the main determinants of satisfaction. However, exceeding the client’s
requirements contrary to some opinions — does not seem to be indispensable for achieving
satisfaction. Planning purchase and clarified expectations supports customer satisfaction as well.
Relationship with a producer and a product is more important that relation with a seller. Authors
did not observe any correlation between the price and other elements of marketing-mix on the
level of customer satisfaction.
The results allowed to group the analyzed factors in three levels, due to their impact on
customer satisfaction. The most important of them (core) are: the product quality and value,
rational decision-making process and positive emotions (figure 1).
Figure 1. Core and less important factors of customer satisfaction
Source: own study.
3. Customer loyalty
Nowadays, in conditions of increasing competition, the existence of firms in the market and its
development depends on maintaining customer satisfaction, what brings a long-term success and
profitability for the company. The most important result of high level customer satisfaction is
his loyalty. Loyalty is focused on the aspect of friendship with the company, and a loyal
customer is a person who28:
makes regular recurring purchases,
uses company’s products,
28
Dziekoński M. Lojalność wpisana w strategię. Marketing w Praktyce. 5/2004. p. 18.
Marketing elements
Exceeding client expectations
Purchasing process
Product value
and
quality
Rational
decision-making
process
Positive emotions
Biesok G, Wyród-Wróbel J. – Customer satisfaction – meaning and…
29
broadcasts positive information about company,
is resistant to the competition and its promotion.
T. O. Jones and W. E. Sasser define customer loyalty as an sense of connectedness, attachment
to the company or people working in it, or products offered by it29. In the market, where
competition is at highest intensity, only total customer satisfaction leads to his loyalty.
A customer loyalty brings long-term benefits. Loyal customer gives profits, reduces costs,
because maintaining a loyal client is cheaper than acquisition of new one. The most important
element of building customer loyalty is satisfaction with the purchase of goods and services. A
client fulfils his needs using a combination of money, resources consumption, time and effort
and skills30. Without customer satisfaction, we can not expect that he will be loyal and
permanently associated with the company. Satisfaction encourages customer loyalty, but does
not determines it. A limited number of customers in a competitive market, forces companies to
find ways of developing bonds with each client.
After the process of consumption, consumers confront their feelings with their
expectations and preferences. If they were met and exceeded, consumers feel satisfied. In case of
high satisfaction, the company does not need to specifically apply for, willingly bought the
product because it will “sell itself”. If the client shows an average satisfaction with the product,
he will not be loyal to the company and can quickly change it to give another interesting offer.
Only high customer satisfaction helps to create strong emotional ties with the company, and
shapes his loyalty to the company and its products31.
Organizations should not think only about customer loyalty towards them, but should
think of their loyalty to customers, because only a complete dedication, sense of duty and
faithfulness in meeting customer requirements allow to collect proper profits, generated by loyal
customers32. Loyalty is focused on strong and friendly relationships between customer and a
company. Thanks to loyal customers the company generates profits, because they make regular
purchases and offer a product, service to others. Except regular shopping, loyalty means
affection, respect and dedication for the company.
A customer may be loyal to33:
brand ,
product category,
personnel and the place of purchase,
community around the brand,
organization.
This commitment is expressed primarily in the trust and fidelity to the company and offered
products. Following types of loyalty may be named34:
true loyalty,
hidden loyalty,
false loyalty,
lack of loyalty.
True loyalty is a deepest state of dedication. Extremely loyal customers are the most valuable for
any company. They are proud of purchases and provide positive feedback to others. They are
29
Rudawska E. Lojalność klientów [...]. Op. cit. p. 27.
30
Becker G. S. Ekonomiczna teoria zachowań ludzkich. PWN Ed. Warsaw 1990. p. 165.
31
Mazurek- Łopacińska K. Orientacja na klienta w przedsiębiorstwie. Warszawa. PWE Ed. 2002. p. 25–26.
32
Hill N., Aleksander J. Pomiar satysfakcji i lojalności klientów [...]. Op. cit. p 33.
33
Urban W., Siemieniako D., Lojalność klientów. Modele, motywacja i pomiar Warsaw. PWN Ed. 2008.
34
Dick A. S., Basu K. Customer loyalty: toward and integrated conceptual framework. Journal of the Academy of
Marketing Science. 1994. Vol. 22 Spring, p. 99–113.
Chapter II
30
treated as partners, have an impact on the creation of new products tailored to their individual
and high needs. Appreciate the company by frequent and large purchases35.
Hidden loyalty occurs when customers — despite of the high confidence in the products of
the company — do not purchase them too often. It is not an effect of reluctance of the consumer,
but it depends on various other factors, for example low income, which do not permit frequent
purchases. Clarification and understanding of such behaviour should give a chance to develop
effective approaches to develop loyalty.
Clients characterized by false loyalty, make a fairly frequent purchases, but their degree of
relationship with the companies is not high. The reasons for making such purchases may be
for example experience, habit or convenience. Such persons are more sensitive on
competition offer, and therefore are more willing to change their tastes.
Companies should not target too many marketing efforts to a group of customers with the
lack of loyalty, which rarely make small purchases, because the costs incurred for their
acquisition may be greater than the derived benefit from them.
Loyal customers are extremely valuable and profitable for the company value. Acquiring a
new customer is more expensive than maintaining the present one. Therefore, companies use
various methods and strategies for securing and maintaining the client at all times.
For example widely used loyalty programs are an effective method of binding a client with
the company. Loyalty programs are a great tool to communicate with well-identified, target
customers. Their main objective is acquirement the best knowledge about customer and its
efficient utilization for creation an appropriate management strategies. The obtained information
about the client specifically about his wealth, lifestyle, frequency of purchases, allow to pre-
determine the type of customers. Then the best potential customers can be chosen, and effective
relationships with them can be created using appropriate way of communication36.
Programs for loyal customers include for example:
contests,
awards,
loyalty card,
programs of collecting points and exchanging them for various awards,
discounts and promotions for regular loyal customers,
free after-sales service, maintenance, etc.
Each customers should feel, that they are important for the company, unique and well-known.
The basis of good relationship with a client is the appropriate diagnosis.
4. Selected methods of customer satisfaction measuring
Measuring customer satisfaction is a very important aspect in the functioning of any enterprise,
especially in the changing market conditions. Well-designed customer satisfaction measuring
provides an answer to the question: Are customers satisfied? An important role in the customer
satisfaction measuring is to identify the factors influencing on the lack of it.
The most valuable information for a company can be provided especially by those
customers who are particularly dissatisfied. These dissatisfied people have information which
would enable to find the reason for which the product, the service have not fulfilled his
expectations, contributing to a lack of satisfaction.
35
Rudawska E. Lojalność klientów. [...]. Op. cit. p. 30–31.
36
Niewiadomska J. Znajomy klient, lojalny klient. Handel No. 12 (245). p. 22–23.
Biesok G, Wyród-Wróbel J. – Customer satisfaction – meaning and…
31
Customer satisfaction information (both positive and negative) can help guide the organization
to address issues related to meeting stated customer’s requirements. It can also help the
organization to understand and address the customer’s expectations, or issues related to the
customer’s perception of the delivered product or the organization, and thereby enhance
customer satisfaction37.
Companies and institutions are using satisfaction measuring to38:
understand the expectations and requirements of customers,
determine, how company and its competitors meet these expectations and
requirements,
prepare services and products based on information obtained as a result of the survey,
find out, what current trends are in offer, to take an immediate action,
establish priorities, objectives and standards, to assess how company has achieved it,
assess the impact of changes in politics, corporate strategy, products and services.
The benefits of this sort of tests are huge, they relate to, among others39:
increasing customer loyalty, consumers or employees,
identification and exploitation market opportunities,
gaining competitive advantage,
obtaining or retaining market share,
increasing revenue,
reducing the costs,
optimizing investment in modifications.
Survey methods measuring customer satisfaction can be broadly categorized as qualitative or
quantitative. Table 5 presents some of them.
Table 5. Customer satisfaction measuring methods
Quantitative
surveys
Qualitative
surveys
Surveys
Interview F2F
Interview:
CATI, CAWI, CASI, CAPI, PAPI
Servquall
CIT, CSI
Sound, Ranking
IDI
FGI
Expert Group
Newsgroup
Mystery Shopping
Experiment
Desk Research
Source: own study.
Research of satisfaction may refer both to products and services. It is not possible to take
advantage of all these methods completely. Table 6 presents an exemplary customer satisfaction
measurement methods for products and services.
37
International standard ISO/TS 10004:2010 […]… Op. cit. p. 11.
38
Badania satysfakcji klientów jako metoda osiągania przewagi konkurencyjnej. [on-line] Predictive Solution SPSS
Polska. 2011 [cited: 27.02.2011]. Retrived from: http://www.spss.pl/dodatki/download/Badania_satysfakcji_klientow.pdf
39
Ibidem.
Chapter II
32
Table 6. Satisfaction measuring methods relating to products and services
Methods relating to
services
Methods relating to
prod
ucts
Servquall
CIT
Mystery Shopping
CSI
NPS
Surveys
CSI
Interview
FGI, Newsgroup
NPS
Source: own study.
The purpose of customer satisfaction measuring is40:
identification of criteria which play a key role in evaluating the product or service by
customers,
research the perception of a product or service by customers,
assessing the fulfilment of customer expectations for product or service,
research the level of customer satisfaction with a cooperation with the company,
comparing the level of customer satisfaction with products of the competition,
understanding the main factors of customer satisfaction, affecting positively and
negatively on the level of satisfaction,
determining customer’s expectations connected with attributes of a product or service,
identifying the most important customer service elements,
determining the degree of importance of individual factors influencing the customer
service.
So far there is not one universal method in the customer satisfaction measuring. Each
measurement is exposed to error of estimate, because it is extremely difficult to measure human
emotional response. Therefore, it is very important to learn all capabilities and limitations before
making a decision concerning the choice of a specific methods.
The companies, which explore the degree of customers satisfaction with services, usually
apply the set of methods and measures. Choosing the methods depends on their specificity41.
Among the instruments, that are necessary to measure customer satisfaction, we can distinguish
about 30 measures, which can be divided into three groups42:
measures of product value and the value of the nonconformity with the client’s
expectations with the customer satisfaction,
measures of satisfaction or its lack,
measures of customer satisfaction or its lack due to the consequences it may bring.
Every company has information that can be used in the study of customer satisfaction, for
example: the number of complaints and grievances, complaints filed, the volume of sales, etc.
It is possible to differ two strategies of gathering information concerning the client satisfaction.
One of them is a passive strategy. The passive strategy means collecting information without
greatest engagement e.g. concerning complaints, without further analyzing threats and reasons
of them. The second strategy, called the active one, means all activities of continual measuring
and analysing customer satisfaction43.
40
Badanie satysfakcji klientów [on-line] Syntheos. New Market Researches. 2011 [cited: 22.02.2011]. Retrived from:
http://syntetos.pl/index.php/pl/badanie-satysfakcji-klientow.
41
Nieżurawski L., Kobylański A., Pawłowska B. Pomiar satysfakcji klientów i jego znaczenie dla przedsiębiorstw
problemy badawcze. Problemy Jakości. 3/2003.
42
Baruk A. Marketingowe […]. Op. cit. p. 24.
43
Badania satysfakcji klientów biznesowych.
[on-line]. Pentor S.A. 2008 [cited: 20.02.2011]. Retrived from:
http://www.pentor.pl/17564.xml.
Biesok G, Wyród-Wróbel J. – Customer satisfaction – meaning and…
33
Figure 2. Customer satisfaction measuring process
Source: Badania satysfakcji klientów biznesowych [on-line] Pentor S.A. 2008 [cited: 20.02.2011].
Retrived from: http://www.pentor.pl/17564.xml.
Designing of satisfaction measuring should include following groups of customers44:
Customers who are loyal to us.
Customers who are loyal to the competition.
Clients who use multiple providers.
In addition, the research should be divided into stages (figure 2).
Customer satisfaction measuring is carried out in various ways. One of more interesting methods
of customer satisfaction surveys is a method of CSI — Customer Satisfaction Index. This
method is used in measuring customer satisfaction with services and products. A Customer
Satisfaction Index can be an effective tool for monitoring, reporting and tracking the
performance of the organization or its specific aspects, with regard to customer satisfaction.
This method is relatively simple and does not require the preparation of a comprehensive
survey questionnaire. It demands a choice of appropriate criteria which will be evaluated by the
respondents. Every respondent assesses the importance of chosen criteria and assigns them an
appropriate level of satisfaction at Likert scale (scale of 1–5).
Calculation CSI ratio is based
on a formula45:
Where:
n — number of the requirements (attributes) included in the analysis,
i — current requirement (attribute),
W — the validity of the current requirement (attribute) for the customer,
C — customer satisfaction rating of the current requirement (attribute).
The result of calculation are data, which are placed on a positioning map (matrix). The
positioning map is composed of four areas that suggest in a direct way which elements should be
44
Ibidem.
45
Metoda CSI [on-line]. [cited: 19.05.2010] Retrived from: http://www.ioz.pwr.wroc.pl/Pracownicy/Dobrowolska/2009-
10z-ZJ-cwiczenia/K7-09-ZJ-Metoda_CSI.pdf
Determining the
object and
purpose of the
study
Developing
research plan
Gathering
information
Analysis of
information
Presentation of
results
Definition:
Customer
Products,
Services
Priorities
Objectives
Sources
Created
Methods
Tools
Technique
Attempt
Main conclusions
Consequences
Recommenda-
tions
Qualitative
Quantitative
Statistical
analysis
Qualitative
and
quantitative
techniques
Time
Cost of risk
=
=
n
i
ii
CWCSI
1
Chapter II
34
improved and in what time. Matrix also indicates which factors are most important to
respondents and how they are judged by them. This instrument makes taking strategic decisions
easier — identifies strengths and weaknesses of companies.
Other method, combining the rational aspect (product features, service levels, prices, etc.)
and emotional (values, response to customer feedback, etc.) is NPS — Net Promoter Score. NPS
is based on the fundamental idea, that set of company’s customers can be divided into three
categories: Promoters, Passives and Detractors, by asking one question: How likely are you to
recommend that product to a colleague or friend?
Customers respond on a 0 to 10 point rating scale and are categorized as follows46:
Promoters — they are loyal (score 9–10), they are loyal enthusiasts, who will keep
buying and refer others.
Passives — they are not loyal (score 7–8), they are satisfied but unenthusiastic
customers who are vulnerable to competitive offerings.
Detractors — they certainly do not recommend our product, brand to anyone (score 0–
6), they are unhappy customers who can damage your brand and impede growth
through negative word-of-mouth.
To calculate company’s Net Promoter Score (NPS), is necessary take the percentage of
customers who are Promoters and subtract the percentage who are Detractors. Answers are
provided in 11 point scale from 0 (do not recommend the product, companies) to 10 (definitely
recommend). Respondents’ answers are marked on a scale (figure 3).
Figure 3. Graphic presentation of the NPS indicator
Source: own elaboration based on How to calculate your score [on-line] Net Promoter Satmetrix
Systems, Inc., Bain & Company, and Fred Reichheld [cited: 25.02.2011] Retrived from:
http://www.netpromoter.com/np/calculate.jsp.
Supplementary to the basic asked questions you can ask some additional ones, which enable to
explain the reason of pointed rating.
Last method, presented in the chapter, will be Critical Incident Technique. It is a method
of gathering facts (incidents) from domain experts or less experienced users of the existing
system. It is used to gain knowledge, how to improve the performance of the involved
individuals. The Critical Incident Technique (CIT) is used to look for the cause of human-
system (or product) problems to minimize loss to person, property, money or data. The
investigator looks for information on the performance of activities (e.g. tasks in the workplace)
and the user-system interface. Both operators and records (e.g. documented events or recorded
telephone calls) can provide such information. The investigator may focus on a particular
incident or set of incidents which caused serious loss. Critical events are recorded and stored in a
46
How to calculate your score [on-line]. Net Promoter Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld
[cited: 25.02.2011]. Retrived from: http://www.netpromoter.com/np/calculate.jsp.
How likely are you to recommend that product to a colleague or friend?
0
1
2 3 4 5 6
7 8
9 10
Detractors Passives Promoters
Not at all likely Neutral
Extremely
likely
Biesok G, Wyród-Wróbel J. – Customer satisfaction – meaning and…
35
database or on a spreadsheet. Analysis may show how clusters of difficulties are related to a
certain aspect of the system or human practice. Investigators then develop possible explanations
for the source of the difficulty. The method generates a list of good and bad behaviours which
can then be used for performance appraisal.
Stages of the method include47:
Performing a direct interview with people using services.
Categorization. Incidents/events are identified and divided into categories based on
similarities. During research experts work independently and the results of their work
are compared. Convergence at 80% is satisfactory, any discrepancies are discussed.
Then reanalysis of incidents takes place, which is carried by another group of experts.
This time aimed at the disposal of the division of partial results to carried out by
previous experts. Convergence that is expected must be also about 80%.
Creating statistics. Presentation of the balance between positive and negative events in
each group and between groups.
The result of using this method is to create groups and categories to assist in identifying critical
events. Authors of the method divided incidents into 12 categories combined into three thematic
groups: staff reaction for any errors, staff response of customers needs and requests, staff
spontaneous action48.
5. Customer satisfaction in quality management systems
The main goal of quality management is enhancing customer satisfaction. Customers require
products and services that satisfy their expectations and it is clear that in modern, client-oriented
economy, market success, and even the existence of an organization, depends on compliance
between the offer and customer requirements.
Implementing quality management systems, based on international standards ISO 9000
series, is the most widespread approach to quality management. Quality management system
(QMS) is defined as set of interrelated or interacting elements, as people, resources,
infrastructure, processes et al., combined together to establish objectives regarding to quality and
to achieve these objectives. It is a part of the organization’s management system that focuses on
the achievement of results, in relation to the quality objectives, to satisfy the needs, expectations
and requirements of clients and other interested parties49.
Customer satisfaction is present in the QMS at least at two levels:
1. Level of quality management principles, expressed in customer focus principle, saying
that organizations depend on their customers and therefore should understand current
and future customer needs, should meet customer requirements and strive to exceed
customer expectations50.
2. Level of quality management requirements, saying e.g. in point 5.2 of ISO 9001
(customer focus), that top management shall ensure that customer requirements are
determined and are met with the aim of enhancing customer satisfaction51.
47
Badania satysfakcji [on-line]. Research and development solutions. 2010 [cited: 20.02.2011]. Retrived from:
http://www.rdsolutions.pl/wp-content/uploads/2010/08/BADANIE_SATYSFAKCJI_KLIENTOW.pdf
48
Krzyżanowska M., Wajer R., CIT — metoda badania jakości usług. Problemy Jakości. 11/2000. p. 11.
49
Cf. International standard ISO 9000:2005 [...]. Op. cit. p. 22.
50
Ibidem, p. 6.
51
International standard ISO 9001:2008 Quality management systems — Requirements. In: Polish standard PN-EN ISO
9000:2009. Systemy zarządzania jakością. Wymagania. Warsaw. PKN. 2009. p. 18.
Chapter II
36
Figure 4. Place of satisfaction in quality management system
Source: International standard ISO 9000:2005 Quality management systems — Fundamentals and
vocabulary. In: Polish standard PN-EN ISO 9000:2006. Systemy zarządzania jakością. Podstawy i
terminologia. Warsaw. PKN . 2006. p. 8. Modified.
ISO 9000 series quality management system encourages organizations to analyse customer
requirements, define the processes that contribute to the achievement of a product which is
acceptable to the customer, and keep these processes under control. A quality management
system can provide the framework for continual improvement to increase the probability of
enhancing customer satisfaction and the satisfaction of other interested parties. Because
customer needs and expectations are changing, and because of competitive pressures and
technical advances, organizations are driven to improve continually their products and
processes52.
Any activity in an organisation should be treated as a process and organisations shall
systematically identify and manage the processes (process approach). Whole quality
management system is a process transforming customer requirements into product fulfilling
customer needs and giving him satisfaction (figure 4). In this model customer satisfaction and its
monitoring is necessary to evaluation, whether the organization has met the customer
requirements. Customer is the main drive of quality management and quality improvement,
because using this model organisation shall:
1. determine the needs and expectations of customers, identify and define customers
requirements,
2. transform these requirements into internal technological and organisational aspects,
3. employ proper processes and manage them,
4. assess the results of activities and including customer satisfaction.
52
International standard ISO 9000:2005 [...]. Op. cit. p. 10.
Continual improvement
Requirements
Management
responsibility
Resource
management
Product
realisation
Measurement,
analysis and
improvement
Satisfaction
Product
Biesok G, Wyród-Wróbel J. – Customer satisfaction – meaning and…
37
Doing so runs the regulatory mechanism based on customer satisfaction (figure 5).
Figure 5. QMS regulatory mechanism based on customer satisfaction
Source: own elaboration. Based on International standard ISO/TS 10004:2010 Quality management
— Customer satisfaction — Guidelines for monitoring and measuring. Geneva. International
Organization for Standardization. 2010. p. 14.
The customer’s expectations are mainly shaped by the customer’s experience, the information
available and the customer’s needs. The planned (then delivered) product characterizes the
product that the organization intends to deliver. It is generally a compromise between the
organization’s understanding of the customer’s expectations, the organization’s capabilities, its
internal interests and the technical, statutory and regulatory constraints applicable to the
organization and the product. The customer’s perception by the customer’s needs, its market and
its environment. The degree of satisfaction reflects the gap between the customer’s vision of the
expected product, and the customer’s perception of the delivered product53.
53
International standard ISO/TS 10004:2010 Quality management [...] Op.cit. p. 14.
Customer
(external quality)
Organisation
(internal quality)
Customer’s
Expectation
of Product
Customer’s
Perception
of Product
Planned
Product
Delivered
Product
Degree of satisfaction
Degree of conformance
Chapter II
38
Figure 6. Inter-relationship of ISO 10001, ISO 10002, ISO 10003 and ISO 10004 in
customer-related processes
Source: Based on International standard ISO/TS 10004:2010 Quality management — Customer
satisfaction — Guidelines for monitoring and measuring. Geneva. International Organization for
Standardization. 2010. p. 31.
The main objective of quality management is optimization of these three relations, shown on
figure:
degree of conformance (within organization),
degree of satisfaction of the consumer,
gap between internal and external view of quality.
Because customer-related processes and his satisfaction are fundamental in quality management,
they were described in the ISO standards 10001–10004. These standards, with common title
“Quality management — Customer satisfaction” provide guidance for planning, designing,
developing, implementing, maintaining and improving customer-related processes.
Biesok G, Wyród-Wróbel J. – Customer satisfaction – meaning and…
39
The standard family contains following documents54:
ISO 10001:2007 Quality management — Customer satisfaction — Guidelines for
codes of conduct for organizations.
ISO 10002:2004 Quality management — Customer satisfaction — Guidelines for
complaints handling in organizations.
ISO 10003:2007 Quality management — Customer satisfaction — Guidelines for
dispute resolution external to organizations.
ISO/TS 10004:2010 Quality management Customer satisfaction — Guidelines for
monitoring and measuring.
These standards describe a coherent system of customer satisfaction management. Figure 6
shows relationship among ISO 10001, ISO 10002, ISO 10003 and ISO 10004 in this system.
Standard ISO/TS 10004:2010 provides guidance in defining and implementing processes
to monitor and measure customer satisfaction. The standard recommends, that the organization
should establish a systematic approach to monitoring and measuring customer satisfaction. This
approach should be supported by an organizational framework to enable the planning, operation,
maintenance and improvement of processes for monitoring and measuring customer
satisfaction55.
System for monitoring and measuring customer satisfaction among others should ensure
fully understanding the customer’s expectations and perception of how well those expectations
are met, should ensure the correctness, completeness and relevance of data pertinent to customer
satisfaction, should ensure that monitoring of customer satisfaction is ongoing and continuous56.
Summary
There are a lot of methods for measuring customer satisfaction, but the same satisfaction is
difficult to measure. Despite of access to several methods of measuring customer satisfaction
continues to grow new cells. Based on the literature, the authors isolated the 21 attributes
describing customer satisfaction. The task of the respondents was to assess satisfaction with the
purchase of goods, which was planned earlier. Research has shown that the earlier plan to
purchase and specify their requirements is essential in the sense of satisfaction. Exceeding
customer requirements does not seem to be a factor necessary to achieve satisfaction. Results
obtained by the authors of the study allowed for the construction of a perspective on buyer
satisfaction and its determinants. Perception of quality and value of product, its full compliance
with customer requirements and the positive emotions associated with purchasing are the main
determinants of satisfaction.
54
ISO Catalogue. 03.120.10: Quality management and quality assurance [on-line]. Geneva. International Organization for
Standardization. 2011 [cited: 20.02.2011]. Retrived from: http://www.iso.org/iso/
iso_catalogue/catalogue_ics/catalogue_ics_browse.htm?ICS1=3&ICS2=120&ICS3=10.
55
International standard ISO/TS 10004:2010 [...]. Op. cit. p. 4.
56
Cf. ibidem.
Chapter II
40
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SATYSFAKCJA KLIENTA — ZNACZENIE I METODY POMIARU
Streszczenie: Rozdział przedstawia zagadnienia obejmujące pojęcie satysfakcji klienta, definiuje
czynniki wpływające na jego lojalność, opisuje wybrane metody pomiaru satysfakcji klienta oraz
międzynarodowe standardy określające zasady pomiaru zadowolenia klienta.
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Abstract: The organizations have to compete with many other organizations in the same industry. As a result, they must identify the requirements of the internal and external environments, as well as their own, in order to produce the best results.Strategic planning is an essential process for all organizations. As we all know, what most of the people in Sri Lanka believe is that Sri Lankan public universities have failed to achieve their targets well. The strategic planning aspect of Sri Lankan public universities is poor and they have failed to achieve the strategic objectives well. This is highlighted as an important requirement of the strategic plan for public sector universities that can make radical changes. But most public universities failed to come up with the most suitable strategic plan for them, which was investigated in this study. The researcher collected the information from multiple sources, in-depth desk research, and in-depth interviewresearch to identify the barriers to strategic planning in public sector universities. This study used a purposive sampling method to collect data and conducted seven key in-depth interviews with university system strategic directors and registrars. The researchers identified six new themes as barriers in the strategic planning process. Lack of awareness in the strategic planning process, digital adoption, solidarity, transformation in management skills, impact on the external environment, and public perception via social media and media. Keywords: Barriers, Strategic Planning, Universities, Strategy, Multi-sources
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Orientation: Supply chain risk management in the Zimbabwean business context is under researched, presenting numerous opportunities for further empirical investigations. This article is an attempt to address manifest research gaps in this area, using the food retail environment as a practical case.Research purpose: To investigate the nexus between supply chain risk management and operational performance in the food retail industry in Zimbabwe.Motivation for the study: The food retail industry in Zimbabwe faces numerous supply chain risks, as most of the products sold are imported. It is essential to understand how the management of these supply chain risks impacts the operational performance of firms.Research approach, design and method: The study employed a quantitative survey design, using a sample of 227 food retail firm managers and supply chain professionals based in Harare. The collected data were analysed using structural equation modelling.Main findings: The results of the study showed significant positive relationships between supply chain risk management and risk information sharing and risk analysis and assessment. Further significant positive relationships were observed between risk analysis and assessment and risk-sharing mechanisms. In turn, risk-sharing mechanisms significantly predicted operational performance. However, no significant direct relationship was observed between supply chain risk management and operational performance.Practical/managerial implications: The study demonstrates that the operational performance of food retailing firms can be improved significantly through the institutionalisation of the mediating variables (risk information sharing, risk analysis and assessment, risk-sharing mechanisms) considered in this study. Management in the food retail industry may use the results of this study as a problem-solving framework for addressing operational constraints.Contributions/value-add: The study provides information that aids in the understanding of supply chain risk management, risk information sharing, risk analysis and assessment, risk-sharing mechanisms and operational performance, as well as the connection between them in a food retail context.
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Although both consumption emotion and satisfaction judgments occur in the postpurchase period, little is known about their correspondence. This article investigates the interrelationships between the two constructs by way of taxonomic and dimensional analyses to identify patterns of emotional response to product experiences. Five discriminable patterns of affective experience were uncovered, which were based on three independent affective dimensions of hostility, pleasant surprise, and interest. The results extend prior findings of a simple bidimensional affective-response space and reveal that satisfaction measures vary in their ability to represent the affective content of consumption experiences. Copyright 1991 by the University of Chicago.
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