...Customer satisfaction is defined as an "evaluation of the perceived discrepancy between prior expectations and the actual performance of the product" (Tse and Wilton, 1988, Oliver 1999). Several studies have proven that customer satisfaction, together with quality provided, is one of the key drivers of service performance for a company (Anderson et al. 1994; Fornell 1992). Main reasons for which a company should seek customer satisfaction are increased loyalty, effective feedback and suggestions, attraction of new customers through free word-of-mouth publicity, saving marketing and advertising costs, as well as retaining existing ones. According to Keiningham, Munn, and Evans (2003, p. 37), “both practitioners and academics have accepted the premise that customer satisfaction results in customer behavior patterns that positively affect business results.” While it is highly argued that retaining current customers is easier than attracting new ones, as it would normally cost 20 times more to attract new customers rather than keeping existing ones per Carson Research Consulting, Inc. report. Continuous customer satisfaction from the offered product will lead to an easy purchase decision every time the need for these products and services arises. Thus, customers tend to become loyal to these providers, where their satisfaction helps to increase customer loyalty, reducing the need to allocate marketing budget to acquire new customers, where their word-of-mouth will also bring...
Words: 482 - Pages: 2
...Abstract Exercise III Author: Muhammad Sabbir Rahman, Abdul Highe Khan & Md. Mahmudul Haque Title: A Conceptual Study on the Relationship between Service Quality towards Customer Satisfaction: Servqual and Gronroosʼs Service Quality Model Perspective Journal: Asian Social Science, Vol. 8, No. 13, 2012 The article explores the effect of service quality on customer satisfation, by the use of service quality models, SERVQUAL and Gronroos. The outcome of this study is not reflected in the abstract, but it does state that suggestions for managers on implementing these concepts, are given. Both SERVQUAL and Gronroos are previously described phenomenons in service quality theory. The article seeks to compare the two models, and as a result the article takes form as a descriptive and exploratory approach. As mentioned before, the article explores service quality models, SERVQUAL and Groonroos and the article limits itself to these two service quality models and their individually limited appllication areas. The article argues that customer satisfaction is influenced by a variety of quality subjects, these include functionalty, technical, company image and service quality, and it seeks to find the effect from the aforementioned service quality models. Author: J. Will M. Bertrand and Jan C. Fresco Title: Modelling and Simulation, Operations management research methodoligies using quantitative modeling Journal: International Journal of Operations & Production Management...
Words: 2310 - Pages: 10
...Employee satisfaction is a measure of how contented workers are with their job and working environment. Keeping spirits high among workers can be of great benefit to any company, as contented workers will be more likely to produce more, take fewer days off, and stay loyal to the company. There are many factors involved in improving and maintaining high the employee satisfaction, which wise employers would do fine to execute. To measure employee satisfaction, many companies conduct surveys or face-to-face meetings with employees to gain information. Both of these methods have fruits and flaws, and should be chosen carefully. Surveys are more common, allowing workers more freedom to be honest without fear of harmful effect. Interviews with company management can feel intimidating, but if done correctly can let the worker know that their voice has been heard and their concerns addressed by those in charge. The purpose of this study is to find out the antecedents that effect employee satisfaction. These factors may effect to work environment and reflect to employee attitude and behaviors, and the factors that force employee turnover, and To access the satisfaction level of employees. to identify the factor which improve the satisfaction level of employee, to know the employee satisfaction towards the facilities and to offer valuable suggestion to improve the satisfaction level of employees. Job satisfaction should be major determinants of an employee organizational behavior. ...
Words: 781 - Pages: 4
...To: Seek Ideal Group Inc. Board of Directors From: Chamroeun LIM Seek Ideal Group Inc. President & Cofounder Date: January 12, 2014 Subject: Proposal to Have an On-Going Marketing Research Studies Attached you will find my proposal for an on-going marketing research studies, as well as the result and analysis of our initial marketing research studies conducted by the marketing department. With your support, our research team was able to determine the causes of sale decrease and the increasing number of customer dissatisfactions: 1. Marketing messages were 2. Ads were not deliver a-call-to-action for consumers 3. No tracking system for the effectiveness of the existing marketing campaign 4. Negative branding image 5. Insufficient consumers’ demographic profiles Seek Ideal Group Inc. experienced a decrease in sale revenue during the fourth quarter of 2013. The customer satisfaction department also received many complains. The sale and marketing department raised concern over the effectiveness of the existing marketing campaigns. Given multiple business lines that the corporation currently managing and its recent establishment in Cambodia, an ineffective marketing strategy can lead to a negative return on investment and resources. Therefore, the need for an ongoing marketing research is critical for the survival of the corporation in the short term—as well as sustainable growth in the long run. Please do not hesitate...
Words: 2145 - Pages: 9
...Measuring Customer Satisfaction Introduction In order to have a successful business, there must be customers. Customers are considered those who obtain goods or services. Clients may be viewed as those who seek professional advice or guidance. Those who acquire, or agree to acquire, ownership (in case of goods), or benefit or usage (in case of services), in exchange for money or other consideration under a contract of sale are buyers or purchasers (Business Dictionary Definitions, 2011). However businesses view themselves as having customers, clients, buyers, or purchasers, it is important for them to recognize who they are and what it takes to keep them. Years ago the idea was that satisfied customers had a huge impact on the success or performance of the company. Most researchers defined customer satisfaction in terms of how well the company’s goods or services does compared to the expectations of the customer. Some even view customer satisfaction as a characteristic of a total quality culture in an organization. Studies have found that companies who have a higher percentage rate of keeping their customers are more profitable than those with a lesser percentage rate. Identification of Best Practices Per Evans & Lindsey (2009) in Managing Quality, “To create satisfied customers, the organization needs to identify customers’ needs, design the production and service systems to meet those needs, and measure the results as the basis for improvement” (pg. 190). Likewise...
Words: 1067 - Pages: 5
...Emergence of new healthcare policy, changed vision in healthcare based on prevention and wellness and the attempt to add entire population under the shield of care, demand greater nursing care to meet the challenges. Good leaders can create expert nurses capable of undertaking future challenges and keep them in the facility, creating better patient satisfaction and outcome. Research article by Furtado, Batista, & Silva (2011) explores the leadership role in nursing turnover and career abandonment intention. This article is relevant today as many nurses abandon facilities for career growth, seek better work environment or change career altogether. The Issue of Nurse Turnover in Present Day Healthcare Nursing turnover is a huge problem affecting healthcare industry today. Literature review from the above mentioned research article shows that while economy is growing and unemployment rate is low, there shall be high nurse turnover but when job availability decreases and economic growth slows down, nurses are forced to stick to the same position whether they are satisfied or not. Also, some frustrated nurses are likely to abandon the career and seek job elsewhere. Healthcare organizations require highly trained, stable and fully engaged nurses to provide effective care and the financial cost of losing a single nurse is more than twice a nurse’s annual salary (Hunt, 2009). Financial burden of nurse leaving the facility, cost of hiring and training new staff and the time it takes to fit them...
Words: 1038 - Pages: 5
...in this industry. A discovery-oriented decision problem typically seeks to answer "what" or "why" questions about a problem/opportunity; with the focus often being to generate useful information. A strategy-oriented decision problem typically seeks to answer "how" questions about a problem/opportunity. The focus is generally on selecting alternative courses of action. Managers have to constantly face both discovery-oriented decision problems and strategy-oriented decision problems in the industry. They face these decisions both internally with employees and externally with the direction of the brand. The manager might want to know why sales have dropped in the most recent month. In order to answer that question he or she must conduct the proper research and gather relevant data to answer the question. The “how” question is very important as well. To dig deeper into consumer behavior and understand the root of the consumer decision-making process is essential. With this information a manager can find out how these customers are viewing the products, for example. Trying to solve a strategy-oriented decision problem before addressing the discovery-oriented problems is like trying to build a house without a blue print. It is very difficult to strategize an effective ground game if the mission is not clear and concise. 2) Based on the JD Power study, explain the relationship between price and satisfaction. The JD Power study notes that price is very important; it’s a concern...
Words: 621 - Pages: 3
...Registration Number#: 412002452 Date: 10/09/2013 With the use of motivation theory discuss how Caribbean managers can enhance the motivation of their employees? Provide relevant examples to illustrate your answer. The purpose of this paper is to exemplify, with the use of motivational theories how Caribbean managers can relate and enhance the motivation of employees. Employees' performance has been proven to have some correlation with their motivation within the workplace. Motivation is defined as the processes that accounts for an individual’s intensity, direction, and persistence of effort toward attaining a goal. Workers can be either negatively or positively motivated. Positive motivation can consist of goals or rewards that would allow for self-actualization. On the other hand, Negative motivation occurs where one undertakes responsibility of a task they do not feel comfortable with. Motivation can be divided into two types; Intrinsic and Extrinsic Motivation. Intrinsic Motivation refers to the individual's motivational stimuli within ones self. He or she formulates the drive to perform a specific task because its results are in accordance with their beliefs or it fulfills a desire and therefore importance is attached, meaning they thrive on the fact they are faced with a challenge to their ability. However, Extrinsic Motivation means that the individual's motivational stimuli affected by outside forces. In other...
Words: 1405 - Pages: 6
...think I am/am not an entrepreneur. I am a ... entrepreneur because...” 15/9/201 Introduction In this assignment, I will explain as to why I think I am a lifestyle entrepreneur and the reasons as to why I think I am classified as this type of entrepreneur. I will discuss what a lifestyle entrepreneur is as well as the major motivations that form an integral part of the lifestyle entrepreneur’s choice to follow the specified path. The following motivations of autonomy, family and leisure time, passion and intrinsic reward and satisfaction as well as life quality will be discussed at different stages of my assignment. I will also show how some of these motivations integrate together to form a basis for the lifestyle entrepreneur. What is a lifestyle entrepreneur? As noted by Henderson (2002:49), to support a desired lifestyle or provide a family income is reasons as to why a lifestyle entrepreneur will start a new venture. These entrepreneurs also seek independence and control over their own schedule. Whilst Mottiar (2007:67) argues that a lifestyle entrepreneur is concerned with maintaining income at a level sufficient enough to provide them and their family with adequate funds to allow them to enjoy their chosen lifestyle. As can been seen in the above, lifestyle entrepreneurs aim to make as much money as they require to live and maintain the lifestyle of their choice (Janssen-Selvadurai, 2010:187). Important components to the lifestyle entrepreneur that act as motivating...
Words: 1768 - Pages: 8
...El-Youbi Karima Dr. Achibat Academic Writing II (AWT1002/12) March 31, 2016 Comparison and Contrast Essay Celebrities and Ordinary People: What Is the Difference? Lifestyle is a term used to refer to the way people live, reflecting their entire range of values, activities, and attitudes. In fact, there are different lifestyles depending on the different categories of people. In this essay, the focus will be on the differences between celebrities and ordinary people lifestyle in terms of privacy, look, and self-satisfaction. One of the main differences between ordinary people and celebrity’s lifestyle is privacy. Actually, celebrities do not have enough privacy; their lives are spattered all over the globe. They are always under surveillance, even when they are doing simplest things as their fans want to know every specific detail about their private life. Even their families are pulled into spotlights. They cannot talk, walk, date, or even get married without taking into consideration their image in the media and their status within the society. For example, Cameron Daiz was shot years ago on a nude beach taking off her clothes; she made of herself the subject of critics and media criticizing her action even if this is her personal life. Unlike celebrities, ordinary people have enough privacy in their life. Ordinary people can do whatever they want and their life is far from being splashed. They can walk, dress, and have fun as they want. For instance, a freshman can...
Words: 784 - Pages: 4
...decrease employee turnover, thereby decreasing training costs, recruitment costs and loss of talent and organisational knowledge. By implementing lessons learned from key organizational behavior concepts employers can improve retention rates and decrease the associated costs of high turnover. However, this isn't always the case. Employers can seek "positive turnover" whereby they aim to maintain only those employees who they consider to be high performers. Retention Strategies In order to retain employees and reduce turnover managers must meet the goals of employees without losing sight of the organization's goals, thereby creating a "win-win" situation. Valance and expectancy theories provided some of the earlier guidance for retaining employees. Valence is the degree to which the rewards offered by an organization align with the needs employees seek to fulfill. High valence indicates that the needs of employees are aligned well with the rewards system an organization offers. Conversely, low valence is a poor alignment of needs with rewards and can lead to low job satisfaction and thereby increase turnover and decrease retention. Job satisfaction can simply be defined as the feelings people have about their jobs.[1] It has been specifically defined as a pleasurable (or unpleasurable) emotional state resulting from...
Words: 1048 - Pages: 5
...you standing. Sometimes big retailers spend less time helping customers with returns than they do selling them. The goal of customer service is to bring customers back. Sara’s job as a customer service representative is to do just that, making sure customers leave happy and leaving a positive outlook of the business. This sometimes means dealing with complaints, listening to customers, being helpful even if there is no profit involved and going the extra mile to ensure satisfaction. Kay Miranda wrote in her column for Chron Small Business Media, that in evaluating service process, there are three main components of a good customer service role, 1. To increase sales, 2, To solve problems and 3. Control cost. We have all heard the cliché, “You can’t please all the people all the time”, and that may be true. No one likes hearing complaints, but if you give it your attention, you may be able to please that one person. The goals of the customers Sara may come in contact with are to seek satisfaction for products or services that did not meet expectations. Any time a consumer comes to a customer service desk, more than likely it is to complain, return or exchange products due to damages, warranties, quality etc. “No matter how good your products or services are, there will always be problems that...
Words: 861 - Pages: 4
...unique culture that can be thought of as a very strong customer-responsive culture. Their company motto is “Don’t be Evil” which exemplifies their goal of developing products in the best interest of the customer. Although they deal with their customers in a virtual world, they have increased customer satisfaction through their innovations that are developed in order to improve the usefulness and efficiency of their products. Additionally, Google encourages innovation within its organization. Engineers are allowed to spend 20% of their time to work on “pet” projects, which has cultivated numerous projects. Some of the more successful projects include Google Earth, Gmail, and Google mobile which allows customers to get answers via text(Google gears down). Furthermore, this empowers the employees of Google to create and improve effective products that will increase the convenience and satisfaction customers will experience when using the internet. Google seeks to eliminate hierarchical structures by dividing employees into small teams that work on certain tasks. Also, Google offers employees with incredible perks that set them apart from other companies and increases job satisfaction and motivation within their employees. For example, there is free food, free fitness center, and a free doctor on site that the employees have access to. Google is very outcome oriented because they value creativity. Finally, Google’s culture creates an environment that focuses on team orientation and...
Words: 2174 - Pages: 9
...Management Notes Video People’s behavior is not only about the person, but the environment they are in! Industrial/Organizational (I/O) Psychology: I-side: human resources functions Ex: training, selection, performance appraisal O-side: understanding and predicting behavior Ex: motivation, work attitudes, stress, leadership, team effectiveness Organizational behavior: the scientific study of individual and group behavior in organizations; focused on different levels of analysis * Use of the scientific method to understand and solve problems relate to people in organizations * Focus on organizational behavior * Individuals: attitudes, behavior, health * Groups/teams: norms, cohesion, conflict * Organizations: firm performance, culture, climate Historical influences: * Fredrick Taylor: first to subject work to scientific study; interested in efficiency * Published Principles of Scientific Management (1911) * Conducted first field experiments like shuffling studies * Time-and-motion studies to identify “one best way” to do a job * Ford example; he found a way to make Ford cars cheaper * Elton Mayo: studied workers at Hawthorne; worked of the Western Electric Co. in late 20’s – early 30’s * Research on effects of lighting, breaks, length of work day, and type of incentive pay on performance * Illumination studies and Hawthorne Effect * Social factors affect behavior in...
Words: 6250 - Pages: 25
...competitive marketplace, customer satisfaction is tied directly to long- term profitability. Customers whose needs and requirements are not met will take their business elsewhere. If a customer is happy they tend to be loyal, and if loyalty is measured they not only buy more, they will recommend it to others. The best way to find out if your customer is satisfied is to ask them. With there being many measurement tools available, what’s the best way to track and measure customer satisfaction and how does this data interpret a realistic action plan? Identification of Best Practices Companies face challenges when they seek to identify, measure, and track customer satisfaction. Tools such as surveys, scorecards and questionnaires are increasingly popular since they help measure critical information available to a broad range of industries. A standard customer satisfaction survey asks participants to convey their opinions characterized by quality, price and service. To be useful, the information needs to be tangible so companies can implement improvements. The difficulty in creating a survey is typical low response rates, questions must be well written, and questions need to target the issues. On the other hand they are quick, relatively inexpensive, and there is a large sample size. Customer satisfaction scorecards measure where a company stands in the eyes of its customers, thereby enabling service and product improvements which will lead to higher satisfaction levels. Advantages to the...
Words: 1232 - Pages: 5
