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CHAPTER – I

INTRODUCTION ABOUT THE STUDY

1.1 INTRODUCTION

Consumer satisfaction is an important element in the evaluationstage satisfaction refers to the buyer’s stage of being adequately rewardedin a buying situation for the sacrifice he has made. Adequately or satisfaction is a result or matching actual part purchase and consumptionexperience with the expected reward from the brand in terms of itsanticipated potential to satisfy the consumer motives.

DEFINING CUSTOMER VALUE AND SATISFACTION

Peter F. Drucker insightfully observed that a company’s first task is“to create customers”. But today’s customers face a vast array of productand brand choices, prices, and suppliers. This is the question:How do customers make their choices?We believe that customers estimate which offer will deliver themost value Customers are value-maximizes, within the bounds of searchcosts and limited knowledge, mobility, and income. They form an

expectation of value and act on it. Then they learn whether the offer lived up to the value expectation and this affects their satisfaction andtheir repurchase probability.

CUSTOMER VALUE

Our premise is that buyers will buy from the firm that they perceive to offer the highest customer delivered value.Customer delivered value is the difference between total customer value and total customer cost. And total customer value is the bundle of benefits customers expect from a given product or service.Consumer satisfaction defined by the Webster’s Dictionary as

“FULLFILMENT OF A NEED OR WANT’.

It is the basic tenet of the modern concept of Marketing. If it is to be the basic test of thesuccessful implementation of the Modern Marketing concept. Than, weare constrained to find a contradiction between the research studies,indicating its adoption and implementation. On one hand consumer dissatisfaction and the wave of consumer’s sweeping the U.S.A. the birth place of the concept on the other. It relates to identifying and quantifyingconsumer’s “expected” and “attained” value satisfaction.

Satisfaction is offer a subjective phenomenon and defends on theconsumer state of mind both at the time of purchase and moreimportantly at the time of consumption.The product that has made level it to opine that “Management mustthink of itself not as producing products but as providing customer creating value satisfaction… The Organization must learn to think of itself not as producing goods or services but as buying customers”.According to American Marketing Association, “consumer goodsare designed for use by ultimate consumers or house holds and in suchform that they can be used without commercial processing”. Theknowledge and sophistication of consumer vary according to whether thegoods are industrial (or) consumer goods.Peter. F. Drucker was apt in saying, “It is the consumer determineswhat a business is… what the customer thinks, he is buying, what isconsiders value is decisive it determines what a business, what it productsand whether it will prosper.