THE MISMEASURE OF SATISFACTION:A WHITE PAPER ON CUSTOMER SATISFACTIONMEASUREMENT IN THE AUTOMOTIVE INDUSTRYby: Murlidhar RaoSUMMARY:
Four areas of research pertinent to the measurement of Customer Satisfaction areexamined. The four areas and the key findings from each are summarized below.1.
Theoretical Views Regarding Customer Satisfaction
Satisfaction results from the confirmation of customers’ expectations. Satisfactionis similar to attitude in that it is both
and has an
component. Customer Satisfaction pertains to a
such as a serviceexperience, while attitude pertains to an
, such as a vehicle or a marque.2.
Customer Satisfaction Measurement is Analogous to “Quality”Measurement
The “Confirmation of Expectations” paradigm of Customer Satisfaction isanalogous to the “Quality Function Deployment” paradigm for products and to the“Gap Model” for services. While satisfaction with individual transactions does notlead to customers’ perceptions of high quality, Customer Satisfaction as a majoringredient of quality is explicitly recognized in the criteria for the MalcolmBaldrige National Quality Award.3.
Empirical Findings Regarding Customer Satisfaction
According to IBM, a “closed loop” is needed to overcome dissatisfaction. IBMclaims to have quantified the revenue potential of one point of customersatisfaction, while AT&T has obtained weights for the components of customersatisfaction. According to AT&T, Satisfaction with Repair Quality is a directfunction of “fixed right first time”. Burke Research bemoans the lack of