You are on page 1of 95

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS.

“CONSUMER SATISFACTION IN CONSUMER DURABLES-A CASE STUDY ON LG ,VIDEOCON & PHILIPS”

EXECUTIVE SUMMARY
It is with a feeling of great satisfaction that I present this Project on “CONSUMER SATISFACTION IN CONSUMER DURABLES-A CASE STUDY ON LG, VEDIOCON & PHILIPS” for all of you. I have given the details about the customer satisfaction Strategies in general and Analysis of 3 Big consumer durables companies, LG, VIDEOCON AND PHILIPS. My aim in this Project is to offer a deep enough understanding of why customer satisfaction is important in today’s globalized scenario. Today, many companies find themselves in a rapid state of transition customers are giving these companies powerful wakeup calls-usually with their money as the alarm clock-that offering the else product, services or prices alone may not be enough to ensure loyalty. As a result, companies have tried to enough to ensure loyalty. As a result, companies have tried to programs accordingly. Often, we assume that customers are satisfied and sales will increase, but the concept and drive for satisfied customers generally have proven far less than satisfactory for companies seeking higher sales and profits, greater quality levels and more cultural cohesion among staff. My objective of this project was to study the following: 1. 2. 3.
4.

customer satisfaction Purposes and Importance. Philosophy of customer satisfaction Analysis of consumer satisfaction in consumer durables with respect to color

TV.

1

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS.
5.

Strategies for improving customer satisfaction.

2

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS.

Chapter no. 1 1.01 1.02 1.03 1.04 2 2.01 2.02 2.03 2.04 2.05 2.06 3 4 4.01 4.02 About the project. Need Objectives. Scope. Research methodology. Literature review. Introduction

Topic

Page no.

01 02 02 03

04-19 20-30 31-40 41-53 54-65 66-70 71-79

Importants of customer satisfaction Theories of customer satisfaction Satisfaction measurement: overall measures of satisfaction 26 inventive principles in customer satisfaction enhancement Magical words create customer satisfaction Case study Conclusion Observations & findings. Suggestions & conclusion. Bibliography & Webliography. Annexure

80-83 84-87 88 89-92

3

4 . CHAPTER 1 ABOUT THE PROJECT (1. In intense consumer-focused activities. Some of the areas where improvement may be expected include: • Better determination of customer uses and needs. • Gaining insight for new products and/or service offerings.01) NEED The need to determine customer satisfaction will vary somewhat by the competitive circumstances of a given industry. • A sharper focus on areas having the greatest need for improvement. measuring customer satisfaction is critical. But every company in every industry can benefit by examining the needs of their customers. To meet these objectives many companies strives to be a fair employer encouraging a contented and happy workforce by ensuring all staff are well trained and motivated. • Identification of problems with customer services.02) OBJECTIVES. (1. VIDEOCON & PHILIPS.Consumer satisfaction in consumer durables -A case study on LG.

Customers are the main object of the business and hence there satisfaction is a need of hour in today’s competitive environment. 4. All enquiries will be responded to the same day they are received.03) SCOPE OF THE STUDY Customer satisfaction is very important a company can gain a high success by achieving customer satisfaction. 3. within the limits of Their viability. And hence to satisfy these customers is a very challenging task. efficiently and with courtesy at all times. Customers will be treated professionally. 5. Hence every company have to developed there own prompt customer service centre trough which they can provide highly effective service and also have to find out innovative strategies. Endeavour to dispatch all stock items within 24 hours. 5 . Supply quality products at competitive prices. VIDEOCON & PHILIPS. (1. Guarantee to give full attention to personal service and customer satisfaction. 1. Hence by this the company can gain high level of customer satisfaction and can achieve the high profitability with increase in sales and also customer loyalty. Today’s customers are well educated and more conscious about the product which they buying. In this way the company’s sales will also increase and there by there profitability. 2.Consumer satisfaction in consumer durables -A case study on LG. A very satisfied customer is a loyal with that of company’s product And can generate positive word of mouth and also can influence others to purchase.

Secondary data has been collected from various books. Thus for this libraries like e-banking challenges and opportunities.Consumer satisfaction in consumer durables -A case study on LG. 2. (1. VIDEOCON & PHILIPS. magazines. The format of questionnaire is provided in the project. Primary data has been collected by visiting banks and meeting the concerned managers through a questionnaire. journals & newspaper articles.04) RESEARCH METHODOLOGY USED FOR THE PROJECT 1. 6 .

" meaning expected purchases in the future. He is not an outsider on our business. Different needs are of varying importance to the customer. both with the supplier and with other sources.’ . advertising. (2. He is not an interruption on our work. surveys. Both customer needs and expectations may be determined through interviews. marketing.Mahatma Gandhi A customer is someone who makes use of or receives the products or services of an individual or organization." meaning "habit". VIDEOCON & PHILIPS. a customer was someone who frequented a particular shop. who made it a habit to purchase goods there. We are dependent on him. we are not doing him a favors by serving him. The word historically derives from "custom. and with whom the shopkeeper had to maintain a relationship to keep his or her "custom. and other communications. He is a part of it. Customer expectations are influenced by cultural values.Consumer satisfaction in consumer durables -A case study on LG. He is doing us a favors by giving us an opportunity to do so.01) INTRODUCTION CUSTOMER ‘A customer is the most important visitor on your premises. CHAPTER:-2 LITERATURE REVIEW. Customer needs may be defined as the goods or services a customer requires to achieve specific goals. He is not dependent on us. He is the purpose of it. 7 .

many companies find themselves in a rapid state of transition customers are giving these companies powerful wakeup calls-usually with their money as the alarm clock-that offering the else product. we assume that customers are satisfied and sales will increase. Customers at times do not have a clear understanding of their needs. 8 . Conversations. companies have tried to programs accordingly. services or prices alone may not be enough to ensure loyalty. Customers include direct recipients of products and services. As a result.Consumer satisfaction in consumer durables -A case study on LG.” Today. and other organizations and entities that interact with an organization to produce products and services. Assisting in determining needs can be a valuable service to the customer. greater quality levels and more cultural cohesion among staff. but the concept and drive for satisfied customers generally have proven far less than satisfactory for Companies seeking higher sales and profits. As a result. Often. In the process. “Groups or individuals who have a business relationship with the organization —those who receive and use or are directly affected by the products and services of the organization. expectations may be set or adjusted to correspond to known product capabilities or service. Thus. internal customers who produce services and products for final recipients. VIDEOCON & PHILIPS. data mining or other methods of collecting information. companies have tried to enough to ensure loyalty.

customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. 9 . Pleasure or contentment derived from such gratification. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. A source or means of gratification. SATISFACTION Kotler (2000) defined satisfaction as: “a person’s feelings of pleasure or disappointment resulting from comparing a product are perceived performance (or outcome) in relation to his or her expectations”. helps you to ensure that your business measures up to their expectations. and where you need improvement. CUSTOMER SATISFACTION.Consumer satisfaction in consumer durables -A case study on LG. • • • The fulfillment or gratification of a desire. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. VIDEOCON & PHILIPS. In a competitive marketplace where businesses compete for customers. A business term is a measure of how products and services supplied by a company meet or surpass customer expectation. Getting your customer to tell you what’s good about your products or services. The overall attitude a person has about a product after it has been purchased Customer satisfaction is the key to success. Hence. or appetite. need.

If the performance exceeds expectations. they are skilled in market engineering not just product engineering. If the performance falls short of expectations. The best marketing department in the world cannot sell products that are poorly made or fail to meet a need. At a very low level of customer satisfaction. marketing is only one factor in attracting and keeping customers. The marketing department can be effective only in companies whose employees have implemented a competitively superior customer value-delivery system. customers are likely to abandon the company and even bad mouth it. Too many companies think that it is the marketing or sales department’s job to acquire and manage customers. VIDEOCON & PHILIPS. Customer centered companies are adept at building customers. The link between customer satisfaction and customer loyalty is not proportional. but Infact. the customer is highly satisfied or delighted. the customer is dissatisfied. In general satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectations. the customer is satisfied. Whether the buyer is satisfied after purchase depends on the offer’s performance in relation to the buyer’s expectations. not just products. At levels two or four customers 10 .Consumer satisfaction in consumer durables -A case study on LG. Suppose customer satisfaction is rated on a scale from one to five. If the performance matches the expectations.

At level five. High satisfaction or delight creates an emotional bond with the brand or company. are fairly satisfied but still find it easy to switch when a better offer comes along. Measuring this satisfaction is an important element of providing better. not jut a rational preference. the customer is Very likely to repurchase and even spread good word of mouth about the company. more effective and efficient services. This is especially important in relation to the provision of public services. 11 . A service is considered satisfactory if it fulfils the needs and expectations of the customers. VIDEOCON & PHILIPS.Consumer satisfaction in consumer durables -A case study on LG. Many companies found that completely satisfied customers are six times more likely to repurchase products over the following 18 months than its “very satisfied” customer. Customer satisfaction is the extent to which the desires and the requirements of the clients are met. When clients are not satisfied with a service as provided. The level of customer satisfaction with services is an important factor in developing a system of service provision that is responsive to clients needs while minimizing costs and time requirements and maximizing the impact of the services on target populations. the service is neither effective nor efficient.

It is also called "customer surplus". companies have faced the toughest challenge to attract customers. Remember only if P2 is greater than P1 will the customer buy the product and the difference (P2-P1) will be termed as the customer perceived value.Consumer satisfaction in consumer durables -A case study on LG. Example:-Assume the cost of producing product X (cost to manufacture) is C1 and the price the manufactures sells at is P1. From the time marketing came into existence. CUSTOMER PERCEIVED VALUE Customer perceived value (CPV) is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering relative to perceived alternatives. Today. The difference (P1-C1) is the "manufacturer's surplus" 12 . This can only happen if the customer perceives that the value of the product being sold to him is worth more than what he thinks of the product. Assume the customer perceives that the value of this product is P2 (P2>P1). the same companies face the challenge to convince the customers to take their wallet share. VIDEOCON & PHILIPS.

service. and resale value. VIDEOCON & PHILIPS.Consumer satisfaction in consumer durables -A case study on LG. Will you buy the X’s CTV?? Not necessarily. You would like the TV to deliver certain levels of reliability.delivery. You add up all the Values from these four sources product. The buyer evaluates these elements together with the monetary cost to form a total customer cost 13 . which consists of more than the money. as a buyer for a large consumer durable company want to buy a color TV from X or Y. For example: You. and psychic cost. Finally. personnel and image-and perceive X as delivering greater customer value. energy. You also perceive differences in the accompanying services. You might also examine your total cost of transacting with X versus Y. Total customer cost includes the buyer’s time. TOTAL CUSTOMER COST It is the bundle of cost that customers expect to incur in evaluating. using and disposing of the given market offering. training and maintenance and decide that X provides better service and more knowledgeable and responsive personnel. obtaining. durability. The competing salespeople carefully describe their respective offers. you place higher value on X’s corporate image. performance.

It can reduce the buyer’s monetary costs by reducing the time. energy. Total customer cost is too high in relation to total customer value X deliver. If it is. However. 2. Second. VIDEOCON & PHILIPS. 2. First. personnel and/or image benefits. 3. services. then you might choose Y’s CTV. and psychic costs. It can reduce its product’s monetary cost to the buyer. the seller must assess the total customer value and total customer cost associated with each company’s offer in order to know how his or her offer rates in the buyer’s mind. X can improve its offer in three ways: 1. customer perceived value is a useful framework that applies to many situations and yields rich insights. You will buy form whichever source you think delivers the highest perceived customer value. Implications of Perceived Value: 1.Consumer satisfaction in consumer durables -A case study on LG. the seller who is at a customer perceived value disadvantage has two alternatives: • To increase total customer or 14 . Buyers operate under various constraints and occasionally make choices that give more weight to their personnel benefit than to the company’s benefit. It can increase total customer value by improving product.

services. personnel and image benefits. if the company sets expectations too low. However. • To decrease total customer. These companies are aiming for TCS. or absorbing some buyer risk by offering a warranty CUSTOMER EXPECTATIONS How do buyers form their expectations? From past buying experience.total customer satisfaction. Customers Expect Solid Information. Providing your customers with tangible information lets them know that you value them and respect their ability to make sound decisions. the buyer is likely to be disappointed. When they feel that. they’re respected. The former calls for strengthening or augmenting the offer’s product. One way to ensure they receive beneficial information is to ask probing questions 15 . some of the companies are raising expectations and delivering performance to match. Today. they're more open and willing to do more business with your company. The latter calls for reducing the buyer’s costs by reducing the price. If marketers raise expectations too high. Here are six customer expectations that are the cornerstone of outstanding service and increased sales: 1. VIDEOCON & PHILIPS. it won’t attract enough buyers. friends’ and associates’ advice and marketers and competitors information and promises. simplifying the ordering and delivery process.Consumer satisfaction in consumer durables -A case study on LG.

Customers don't want to be transferred to every unit of your business to have their problems solved. Customers don't want to be told that there's only one way or one solution. Customers Expect Consulting. This means taking ownership of our customer’s requests. and the problems associated with attaining them. ask about the objectives they've set for their company. They'll respond positively when they're given options. Your responsiveness will create a bond of trust. you are your customer only contact to determining how to use your product and/or service to get the best RETURN ON INVESTMENT (ROI). VIDEOCON & PHILIPS. 2. Customers Expect Options. and a communication comfort level. As the expert on your business' products and services. You must be easy to do business with. Options are essential because they create dialogue and discussion. For instance. You must take the time to ask pertinent 16 . but they expect communication excellence from you. problem.. So. and ensuring that their needs are met to their satisfaction. during your conversations to uncover needs they may not have voiced. Customers Expect Superior Communication. 4. if you tell them that you will call them back at a certain time. make sure that you do. etc.Consumer satisfaction in consumer durables -A case study on LG. 5. Open dialogue can lead to more sales. Customers Expect Single Source Service. They want to be able to do business with you with the slightest amount of discomfort. They may not be the best communicators. 3.

calling to say hello. passing on information that may be of interest. etc. questions aimed at finding how your customer is using your product and/or service. They know that they have to reinforce why it's in the customers best interest to continue doing business with them. and customer loyalty will keep you in business! In short. The best businesses are those that believe in going the extra mile for their customers. Customers Expect A Seamless Relationship. but remembers retention is the best method of building profit.Consumer satisfaction in consumer durables -A case study on LG. VIDEOCON & PHILIPS. 6. This will demonstrate your ability and knowledge as well as your intent to spend the necessary time with them to meet their specific needs. product updates. Stay in touch with your customers by keeping them informed of new events. Meeting these six customer expectations will help you gain customer loyalty. Building a relationship with your customers built on mutual trust and respect takes time and effort. 17 .

Not to be passed around 8. organizations should have knowledge about customer perceptions and the influence of factors such as service encounter. Dedicated attention 10. customers compare perceived quality of service with the expected quality of service. Professional service 17. Knowledgeable help 11. Empathy 18. Further. Anticipation of my needs 4. I want . knowledge of factors influencing the desired service level. Follow-through 14. 1. Explanations in my terms 5. To be kept informed 13. To be listened to (and heard) 9. 18 . While evaluating service offered by an organization. image of the service organization. It requires an understanding of customer expectations and the types of expectations. Therefore. Honesty 15. . Feedback 16. VIDEOCON & PHILIPS. efficient service 3.Consumer satisfaction in consumer durables -A case study on LG. To be informed of the options 7. service evidence. and zone of tolerance will help organizations consistently meet and exceed service expectations of customers. Friendliness 12. Respect Hence we can conclude from this that Delivering quality service consistently gives a competitive edge to organizations. adequate service level. When I'm a Customer. Basic courtesies 6. and price of the service on customer perceptions. To be taken seriously 2. Competent. .

lifetime customer value (LCV). backed by the superior value-delivery system. like recovery. VIDEOCON & PHILIPS. and phone encounters to be able to understand customer perceptions. face-to-face. and coping and innovate strategies to influence customer perceptions. adaptability. The value proposition consists of the whole cluster of benefits the company promises to deliver. or lifetime value (LTV) and a new concept of "customer life cycle management" is the present value of the future cash flows attributed to the customer relationship. spontaneity. They should examine the factors that influence customer satisfaction/dissatisfaction. The key to generating high customer loyalty is to deliver high customer value. DELIVERING HIGH CUSTOMER VALUE As delivering greater customer value. customer lifetime value (CLV). According to Michael Lanning. it is more then the core positioning of the offering.Consumer satisfaction in consumer durables -A case study on LG. a company must deign a competitively superior value proposition aimed at a specific market segment. CUSTOMER LIFETIME VALUE In marketing. 19 . Organizations should also attempt to understand the various types of service encounters like remote.

VIDEOCON & PHILIPS. a customer who does not buy (in a given period or from a given catalog) is still considered a customer of the firm because she may very well buy at some point in the future. customers who do not renew are considered "lost for good". In reality. In customer retention situations. One of the challenges for firms in customer migration situations is that the firm may not know when the relationship is over (as far as the customer is concerned). the firm knows when the relationship is over. because in theory it represents exactly how much each customer is worth in monetary terms. Magazine subscriptions and car insurance are examples of customer retention situations. 20 . In customer migration situations. rather than on maximizing short-term sales CALCULATING CUSTOMER LIFETIME VALUE Customer lifetime value has intuitive appeal as a marketing concept. it is difficult to make accurate calculations of customer lifetime value due to the complexity of and uncertainty surrounding customer relationships. The other category is referred to as customer migrations situations.Consumer satisfaction in consumer durables -A case study on LG. The specific calculation depends on the nature of the customer relationship. and therefore exactly how much a marketing department should be willing to spend to acquire each customer. Customer relationships are often divided into two categories. In contractual or retention situations. Use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction.

• Period the unit of time into which a customer relationship is divided for analysis. If the model uses only one churn rate. the assumption is that the churn rate is constant across the life of the customer relationship. Most models to calculate CLV apply to the contractual or customer retention situation. In practice. etc. A year is the most commonly used period. Customer lifetime value is a multi-period calculation. analysis beyond this point is viewed as too speculative to be reliable. Most models can be written using either churn rate or retention rate. Discounting is an advanced topic that is frequently ignored in customer lifetime value calculations. Retention costs include customer support. • Retention cost the amount of money a company has to spend in a given period to retain an existing customer. The current interest rate is sometimes used as a simple (but incorrect) proxy for discount rate. The number of periods used in the calculation is sometimes referred to as the model horizon. VIDEOCON & PHILIPS. usually stretching 3-7 years into the future.Consumer satisfaction in consumer durables -A case study on LG. promotional incentives. • Discount rate the cost of capital used to discount future revenue from a customer. These models make several simplifying assumptions and often involve the following inputs: • Churn rate the percentage of customers who end their relationship with a company in a given period. billing. One minus the churn rate is the retention rate. 21 .

and their lifetime value is Rs. Kotler defined satisfaction as: “a person’s feelings of pleasure or disappointment resulting from comparing a product are perceived performance (or outcome) in relation to his or her expectations”. then the customer is judged to be profitable. or Cost per New Customer). For incremental marketing that does not incur any incremental overhead that would be allocated against profit.60. if a new customer costs Rs. • Profit Margin Profit as a percentage of revenue. VIDEOCON & PHILIPS. • Periodic Revenue: The amount of revenue collected from a customer in the period. For example. USES OF LIFETIME VALUE Lifetime Value is typically used to judge the appropriateness of the costs of acquisition of a customer.02) CUSTOMER SATISFACTION-IMPORTANTS Many researchers have looked into the importance of customer satisfaction.50 to acquire (CPNC. gross profit margins are acceptable. Depending on circumstances this may be reflected as a percentage of gross or net profit. and acquisition of additional similar customers is acceptable. (2.Consumer satisfaction in consumer durables -A case study on LG. 22 .

billing clarity and quick service. Hoyer and MacInnis said that satisfaction can be associated with feelings of acceptance. courteous employees. service quality. according to Kotler (2000) refer to “the form taken by human needs as they are shaped by culture and individual personality”. Customers’ needs state the felt deprivation of a customer (Kotler. and delight.Consumer satisfaction in consumer durables -A case study on LG. helpful employees.2. good value. VIDEOCON & PHILIPS. billing timeliness. excitement. organizations must be able to satisfy their customers needs and wants (La Barbera andMazursky. There are many factors that affect customer satisfaction. 1983). knowledgeable employees. According to Hokanson.Whereas customers’ wants.02-I In order to achieve customer satisfaction. Fig. relief. these factors include friendly employees. accuracy of billing. Effect of Customer Satisfaction on Profitability 23 . 2000). happiness. competitive pricing.

According to Hoyer and MacInnis (2001). • A Totally Satisfied Customer contributes17 times as much revenue as a Somewhat Dissatisfied Customer. dissatisfied 24 . Equally well. They all convey a similar message in that: • Satisfied customers are most likely to share their experiences with other people to the order of perhaps five or six people. Zairi “There are numerous studies that have looked at the impact of customer satisfaction on repeat purchase.Consumer satisfaction in consumer durables -A case study on LG. Customer satisfaction does have a positive effect on an organization’s profitability. • A Totally Dissatisfied Customer decreases revenue at a rate equal to 1.6 times as much revenue to a company as a Somewhat Satisfied Customer. brand loyalty. The conclusion of the study was: • A Totally Satisfied Customer contributes2. and positive word of mouth. Coldwell: “Growth Strategies International (GSI) performed a statistical analysis of Customer Satisfaction data encompassing the findings of over 20.8 times what a Totally Satisfied Customer contributes to a business”.000customer surveys conducted in 40 countries by Info Quest. satisfied customers form the foundation of any successful business as customer satisfaction leads to repeat purchase. loyalty and retention. VIDEOCON & PHILIPS.

it is important to realize that many customers will not complain and this will differ from one industry sector to another. • Furthermore. relative cost. they need to realize that it costs as much as 25 percent more to recruit new customers”. product/service quality. • Lastly.Consumer satisfaction in consumer durables -A case study on LG. brand/firm associations. 25 . new product activity. and manager/employee capability and performance (Figure 2. customers are more likely to tell another ten people of their unfortunate experience. if people believe that dealing with customer satisfaction/complaint is costly.2-II). VIDEOCON & PHILIPS. Aaker said that the strategic dimension for an organization includes becoming more competitive through customer satisfaction/brand loyalty.

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS.

Figure 2.02-II
Performance Measures Reflecting Long-Term Profitability CONSEQUENCES OF CUSTOMER SATISFACTION AND DISSATISFACTION The consequences of not satisfying customers can be severe. According to Hoyer and MacInnis, dissatisfied consumers can decide to: • discontinue purchasing the good or service, • complain to the company or to a third-party and perhaps return the item, or • engage in negative word-of-mouth communication. Customer satisfaction is important because, according to La Barbera and Mazursky, “satisfaction influences repurchase intentions whereas

dissatisfaction has been seen as a primary reason for customer defection or discontinuation of purchase”. EFFECT OF CUSTOMER SATISFACTION ON CUSTOMER LOYALTY AND RETENTION However, Bowen and Chen said that having satisfied customers is not enough, there has to be extremely satisfied customers. This is because customer satisfaction must lead to customer loyalty.

26

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Bansal and Gupta: “Building customer loyalty is not a choice any longer with businesses: it’s the only way of building sustainable competitive advantage. Building loyalty with key customers has become a core marketing objective shared by key players in all industries catering to business customers. The strategic imperatives for building a loyal customer base are as: • Focus on key customers • Proactively generate high level of customer satisfaction with every interaction • Anticipate customer needs and respond to them before the competition does • Build closer ties with customers • Create a value perception”.

Sivadas and Baker-Prewitt said “there’s an increasing recognition that the ultimate objective of customer satisfaction measurement should be customer loyalty”. Fornell said “high customer satisfaction will result in increased loyalty for the firm and that customers will be less prone to overtures from competition”.

This view was also shared by Anton who said that “satisfaction is positively associated with repurchase intentions, likelihood of recommending a product or service, loyalty and profitability”. Loyal customers would purchase from the firm over an extended time (Evans and Berman,).

Guiltinan, Paul and Madden said that satisfied customers are more likely to be repeat (and even become loyal) customers.

27

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS.

Sivadas and Baker-Prewitt: “Satisfaction also influences the likelihood of recommending a departmental store as well as repurchase but has no direct impact on loyalty. Thus satisfaction in itself will not translate into loyalty. However, satisfaction wills foster loyalty to the extent that it is a prerequisite for maintaining a favorable relative attitude and for recommending and repurchasing from the store. Once customers recommend a department store it fosters both re patronage and loyalty towards that store.

Thus the key to generating loyalty is to get customers to recommend a store to others. Also, customers are likely to recommend a department store when they are satisfied with that store and when they have a favorable relative attitude towards that store”.

Evans and Berman “Companies with satisfied customers have a good opportunity to convert them into loyal customers – who purchases from those firms over an extended period”.

Clarke said, “a business that focuses exclusively on customer satisfaction runs the risk of becoming an undifferentiated brand whose customers believe only that it meets the minimum performance criteria for the category. Long-term customer retention uncompetitive markets require the supplier to go beyond mere basic satisfaction and to look for ways of establishing ties of loyalty that will help ward off competitor attack”.

28

Clarke said that customer satisfaction is really no more than the price of entry to a category. Therefore. According to Reichheld. Customers may change providers because of price. or simply because they want some variation (Storbacka and Lentinen. customer satisfaction is not necessarily a guarantee of loyalty. Bowen and Chenare correct to say that customers must to be extremely satisfied. or because the competitor is offering new opportunities. McIlroy and Barnett: “An important concept to consider when developing a customer loyalty programmed is customer satisfaction. They said that in certain industries up to 75% of customers who switch providers say that they were ‘satisfied’ or even ‘very satisfied’ with the previous provider. 29 . Satisfaction is a measure of how well a customer’s expectations are met while customer loyalty is a measure of how likely a customer is to repurchase and engage in relationship activities.). 65 to 85percent of customers who defect to competitors’ brands say they were either satisfied or very satisfied with the product or service they left.Consumer satisfaction in consumer durables -A case study on LG. As far as organizations are concerned. it must be able to create loyalty amongst customers. For satisfaction to be effective. VIDEOCON & PHILIPS. they want their customers to be loyal to them and customer satisfaction doesn’t guarantee this. According to Storbackaand Lentinen. in order to ensure that customers do not defect.

while on the other side of the coin there is a high costpenalty to low loyalty. purchasing their goods and services repeatedly. In other words. Loyalty is vulnerable because even if customers are satisfied with the service they will continue to defect if they believe they can get better value.Consumer satisfaction in consumer durables -A case study on LG. Therefore. Yet the evidence shows that the old rules of successful and profitable management still hold good: customer retention is still a key to long-term profits. Clarke: “The notion of customer loyalty may appear at first sight to be outmoded in the era of the Internet. but it is hard to have loyalty without satisfaction”. They said that true customer loyalty is created when the customer becomes an advocate for the organization. McIlroy and Barnett. without incentive. “in a business context loyalty has come to describe a customer’s commitment to do business with a particular organization. the very fact that customers can so readily 30 . Satisfaction is a necessary but not a sufficient condition of loyalty. VIDEOCON & PHILIPS. Anderson and Jacobsen said customer loyalty is actually the result of an organization creating a benefit for a customer so that they will maintain or increase their purchases from the organization. convenience or quality elsewhere. when customers are able to explore and evaluate competing alternatives as well as checking reports from others – at the touch of a button. customer satisfaction is not an accurate indicator of loyalty. and recommending the services and products to friends and associates”. we can have satisfaction without loyalty. Indeed.

The strategic imperatives for building a loyal customer base are as: • Focus on key customers • Proactively generate high level of customer satisfaction with every interaction • Anticipate customer needs and respond to them before the competition does • Build closer ties with customers • Create a value perception”. VIDEOCON & PHILIPS. Today. assess the competing services and products on offer and then so easily make the new purchase does in itself give added weight to the importance of building strong ties of loyalty with customers”. They even serve as part-time employees. Building loyalty with key customers has become a core marketing objective shared by key players in all industries catering to business customers. in part because they know the product and require less information. marketers are seeking information on how to build customer loyalty. increased sales and reduced operational costs. Therefore loyal customers not only require less information themselves. Finally. 31 . loyal customers cost less to serve. they also serve as an information source for other customers”. The increased profit comes from reduced marketing costs. Bowen and Chen: It is commonly known that there is a positive relationship between customer loyalty and profitability. Bansal and Gupta: “Building customer loyalty is not a choice any longer with businesses: it’s the only way of building sustainable competitive advantage.Consumer satisfaction in consumer durables -A case study on LG.

). 32 . According to the study done by Bowen and Chen. • Cross-purchase of your other products. a beneficial ‘flywheel’ kicks in. • Reduced operating cost because of familiarity with your service system. • Price premium due to appreciation of your added-value services. They said that it will continue only as long as the customers feel they are receiving better value than they would obtain from another supplier. Anton: “When you can increase customer loyalty. it supported the contention that there is a positive correlation between loyal customers and profitability.Consumer satisfaction in consumer durables -A case study on LG. organizations must be able to anticipate the needs of their customers (Kandampully and Duffy. customer’s interest in maintaining a loyal relationship is depended on the firm’s ability to anticipate customer’s future needs and offering them before anyone else. According to Kandampully and Duffy. In order to ensure that there is customer loyalty. Bowen and Chen: “The result of our study supported the contention that there is a positive correlation between loyal customers and profitability. VIDEOCON & PHILIPS. Loyal customers indeed provide more repeat business and were less likely to shop around for the best deals than non-loyal customers”. powered by: • Increased purchases of the existing product. • Positive word-of-mouth in terms of referring other customers to your company”. McIlroy and Barnett said that loyalty cannot be taken for granted.

Conclusion Based on the views and research done by numerous researchers and academicians.03) THEORIES OF CUSTOMER SATISFACTION (2. though customer satisfaction does not guarantee repurchase on the part of the customers but still it plays a very important part in ensuring customer loyalty and retention.Consumer satisfaction in consumer durables -A case study on LG.03-A) CUSTOMER SATISFACTION MODEL (KANO) 33 . Clark: “Customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today’s ever increasing competitive environment. it can be concluded that customer satisfaction is very important. Day said that the identification and satisfaction of customer needs leads to improved customer retention. Thus. VIDEOCON & PHILIPS. It is vitally important to understand the factors that impact on customer retention and the role that it can play in formulating strategies and plans”. (2.

Customer satisfaction model:The customer satisfaction model from N. These classifications are useful for guiding design decisions in that they indicate when good is good enough. The Kano Model of Customer (Consumer) Satisfaction classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction.03 -I KANO Model Project activities in which the Kano Model is useful: 1. Kano is a quality management and marketing technique that can be used for measuring client happiness. Identifying customer needs 34 .Consumer satisfaction in consumer durables -A case study on LG.ustomer satisfaction model. Fig.2. and when more is ter. VIDEOCON & PHILIPS.

however the absence or poor performance of these attributes results in extreme customer dissatisfaction. and excitement. VIDEOCON & PHILIPS. performance. Threshold attributes are not typically captured in QFDs (Quality Function Deployment)or other evaluation tools as products are not rated on the degree to which a threshold attribute is met. maximizes performances attributes. 3. Performance Attributes 35 . Threshold Attributes Threshold (or basic) attributes are the attributes provides diminishing returns in terms of customer satisfaction. Determining functional requirements Concept development Analyzing competitive products Other tools that is useful in conjunction with the Kano Model: 4. 1. 3. and includes as many “excitement” attributes as possible at a cost the market can bear. 2. 4.Consumer satisfaction in consumer durables -A case study on LG. A competitive product meets basic attributes. Eliciting Customer Input Prioritization Matrices Quality Function Deployment Value Analysis The Kano Model of Customer satisfaction divides product attributes into three categories: threshold. 2. the attribute is either satisfied or not.

These attributes are often of little or no consequence to the customer. most will fall into the category of performance attributes. Of the needs customers verbalize. Excitement attributes often satisfy latent needs – real needs of which customers are currently unaware. For example. and do not factor into consumer decisions. VIDEOCON & PHILIPS.Consumer satisfaction in consumer durables -A case study on LG. Although they have followed the typical evolution to a performance then a threshold attribute. however their absence does not lead to dissatisfaction. an absent or weak performance attribute reduces customer satisfaction. Other Attributes Products often have attributes that cannot be classified according to the Kano Model. The price for which customer is willing to pay for a product is closely tied to Performance attributes. and will improve customer satisfaction. providing excitement attributes that address “unknown needs” can provide a competitive advantage. Performance attributes are those for which more is generally better. customers would be willing to pay more for a car that provides them with better fuel economy. Excitement Attributes Excitement attributes are unspoken and unexpected by customers but can result in high levels of customer satisfaction. Conversely. cup holders were initially excitement attributes. In a competitive marketplace where manufacturers’ products provide similar performance. These attributes will form the weighted needs against which product concepts will be evaluated. An example of this type of attribute 36 .

Rate your satisfaction if the product did not have this attribute? Kano Model Analysis Customers should be asked to answer with one of the following responses: A) Satisfied. is a plate listing part numbers can be found under the hood on many vehicles for use by repairpersons. asking the question “How much extra would you be willing to pay for this attribute or more of this attribute?” will aid in trade-off 37 . Application of the Kano Model Analysis:• A relatively simple approach to applying the Kano Model Analysis is to ask Customer’s two simple questions for each attribute: 1. As Customers frequently rate most attributes or functionality as important. • Basic attributes generally receive the “Neutral” response to Question 1 and the” Dissatisfied” response to Question 2. C) Dissatisfied. This often requires a trade-off analysis against cost. • Eliminate or include performance or excitement attributes that their presence or absence respectively lead to customer dissatisfaction. VIDEOCON & PHILIPS. Rate your satisfaction if the product has this attribute? And 2. D) Don’t care.Consumer satisfaction in consumer durables -A case study on LG. Exclusion of these attributes in the product has the potential to severely impact the success of the product in the marketplace. B) Neutral (It’s normally that way).

decisions. For each product feature a pair of questions is formulated to which the customer can answer in one of five different ways. The information obtained from the Kano Model Analysis. VIDEOCON & PHILIPS. specifically regarding Performance and excitement attributes. • Consideration should be given to attributes receiving a “Don’t care” response as they will not increase customer satisfaction nor motivate the customer to pay an increased price for the product.Consumer satisfaction in consumer durables -A case study on LG. provides valuable input for the Quality Function Deployment process. However. especially for performance attributes. 38 . STEPS IN THE CUSTOMER SATISFACTION MODEL Kano developed a questionnaire to identify the basic. Prioritization matrices can be useful in determining which excitement attributes would provide the greatest returns on Customer satisfaction. The first question concerns the reaction of the customer if the product shows that feature (functional question). do not immediately dismiss these attributes if they play a critical role to the product functionality or are necessary for other reasons than to satisfy the customer. 2. performance and excitement factors as well as the other three additional factors. 1.

VIDEOCON & PHILIPS.Consumer satisfaction in consumer durables -A case study on LG. 3. The second question concerns the reaction of the customer if the product does NOT show this feature (dysfunctional question). 4. By combining the answers all attributes can be classified into the six 39 . factors.

(2. What is six sigma? 2. Six Sigma was developed by Motorola in the 1980s but has its roots in Statistical Process Control (SPC).4 defects per million occurrences. the purpose of Six Sigma is to reduce process variation so that virtually all the products or services provided meet or exceed customer expectations. 1. These performance deficiencies may be causing real problems for the organization. which first appeared in 1920s. Process improvement in what is six sigma? In statistical terms. How do six sigmas work? 3. This is defined as being only 3. VIDEOCON & PHILIPS. HOW DOES SIX SIGMA WORK? There are three basic elements to Six Sigma: チœ Process improvement チœ Process design/re-design チœ Process management Each of the above three elements is examined in more detail below. Process improvement The purpose of process improvement is to eliminate the root causes of performance deficiencies in processes that already exist in the organization. Six Sigma was developed by Motorola in the 1980s but has its roots in Statistical Process Control (SPC). or may be preventing it from working as efficiently and 40 .03-B) SIX SIGMA AIMS TO MAXIMIZE Customer satisfaction and minimize defects. which first appeared in 1920s.Consumer satisfaction in consumer durables -A case study on LG.

• IMPROVE – root causes are removed by means of designing and implementing changes to the offending process. effectively as it could. There are several reasons why this could be necessary: 41 . Process design/re-design Sometimes simply improving existing processes is not enough. • DEFINE – a serious problem is identified and a project team is formed and given the responsibility and resources for solving the problem. new processes will need to be designed. theories are generated as to what might be causing the problem and. or existing processes will need to be re-designed. VIDEOCON & PHILIPS. • ANALYSE – based upon these preliminary ideas. To eliminate these deficiencies a five-step approach is used. by testing these theories. therefore. root causes are identified. • MEASURE – data that describes accurately how the process is working currently is gathered and analyzed in order to produce some preliminary ideas about what might be causing the problem. • CONTROL – new controls are designed and implemented to prevent the original problem from returning and to hold the gains made by the improvement.Consumer satisfaction in consumer durables -A case study on LG. and.

4. one or more of its core processes.Consumer satisfaction in consumer durables -A case study on LG. • MATCH – develop a set of performance requirements for the new process that match these goals. • ANALYSE – carry out an analysis of these performance requirements for the new process. 3. and then implement it. An organization identifies an opportunity to offer an entirely new product or service. VIDEOCON & PHILIPS. 2. taking into account the customer requirements. that simply improving an existing process will never deliver the level of quality its customers are demanding. a five-step approach is used to design/re-design a process: • DEFINE – identify the goals for the new process. An organization may choose to replace. • DESIGN & IMPLEMENT – work this outline design up into a detailed design for the new process. An organization discovers. 1. As with process improvement. during an improvement project. 42 . and based upon this produce an outline design for the new process. rather than repair.

process management is often the most challenging and time-consuming part of Six Sigma. Process management Because it requires a fundamental change in the way an organization is structured and managed. key customer requirements. process management consists of: • • • • Defining processes. • Analyzing data to enhance measures and refine the process management mechanisms. and responding quickly to problems and process variations. • VERIFY – make sure the new process performs as required and introduce controls to ensure it keeps performing that way. Measuring performance against customer requirements and key performance indicators. 43 . and process outputs.Consumer satisfaction in consumer durables -A case study on LG. In general. VIDEOCON & PHILIPS. • Controlling process performance by monitoring process inputs. and Process owners. process operation.

affective (emotional-feeling/like-dislike) and behavioral (current/future actions).04) SATISFACTION MEASUREMENT: OVERALL MEASURES OF SATISFACTION Satisfaction measures involve three psychological elements for evaluation of the product or service experience: cognitive (thinking/evaluation). (2.Consumer satisfaction in consumer durables -A case study on LG. but not satisfaction for a product or brand that has never been used. A loyalty measure (affective. behavioral): Would you recommend "X" to your family and friends? A series of attribute satisfaction measures (affective and cognitive): How satisfied are you with the "taste" of X? How important is "taste" to you in selecting X? Satisfaction and attitude are closely related concepts. VIDEOCON & PHILIPS. Customer satisfaction usually leads to customer loyalty and product repurchase. Note that it is meaningful to measure attitudes towards a product that a consumer has never used. how satisfied are you with "X PRODUCT"? Satisfaction is a result of a product related experience and this question reflects the overall opinion of a consumer's experience with the product's performance. Satisfaction measurement questions typically include items like: An overall satisfaction measure (emotional): Overall. The distinction is that 44 . But measuring satisfaction is not the same as measuring loyalty. The psychological concepts of attitude and satisfaction may both be defined as the evaluation of an object and the individual's relationship to it.

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. satisfaction is a "post experience" evaluation of the satisfaction produced by the product's quality or value.

Intentions to repurchase (behavioral measures): Do you intend to repurchase X? Satisfaction can influence post-purchase/post-experience actions other than usage (such as word of mouth communications and repeat purchase behavior). Additional post-experience actions might include product or

information

search

activity,

changes in shopping behavior and trial of associated products. As shown in Figure 2.04-I customer satisfaction is influenced by perceived quality of product and service attributes, features and benefits, and is moderated by customer expectations regarding the product or service. Each of these constructs that influence customer satisfaction need to be defined by the researcher. Fig.2.04-I: - Satisfaction measurement

45

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Satisfaction Measurement: Affective Measures of Customer Satisfaction A consumer's attitude (liking/disliking) towards a product can result from any product information or experience whether perceived or real. Again, it is meaningful to measure attitudes towards a product or service that a consumer has never used, but not satisfaction.

Satisfaction Measurement: Cognitive Measures of Customer Satisfaction A cognitive element is defined as an appraisal or conclusion that the product was useful (or not useful), fit the situation (or did not fit), exceeded the requirements of the problem/situation (or did not exceed). Cognitive responses are specific to the situation for which the product was purchased and specific to the consumer's intended use of the product, regardless if that use is correct or incorrect.

Satisfaction Measurement: Behavioral Measures of Customer Satisfaction It is sometimes believed that dissatisfaction is synonymous with regret or disappointment while satisfaction is linked to ideas such as, "it was a good choice" or "I am glad that I bought it." When phrased in behavioral response terms, consumers indicate that "purchasing this product would be a good choice" or "I would be glad to Purchase this product." Often, behavioral measures reflect the consumer's experience individuals associated with the product (i.e. customer service representatives) and the intention to repeat that experience.

46

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS.

Fig.2.04-II
Satisfaction Measurement: Expectations Measures Many different approaches to measuring satisfaction exist in the consumer behavior literature. Leonard Berry in 2002 expanded previous research to refine ten dimensions of satisfaction, including: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. Berry's dimensions are often used to develop an evaluative set of satisfaction measurement questions that focus on each of the dimensions of customer satisfaction in a service environment.

47

VIDEOCON & PHILIPS. and word-of-mouth from friends and associates. such as well identified performance standards. but the product actually delivered 3 pages per minute and good quality color printing. and the ability of the product or service to meet our needs. When we make major purchases. then the cognitive evaluation comparing product performance and expectations 48 . This information influences our expectations and ability to evaluate quality. value. features and benefits of products and services may be identified as both explicit and implicit expectation questions. Customer satisfaction is largely a reflection of the expectations and experiences that the customer has with a product or service. we research the product or service and gain information from the advertising. salespersons. However expectations also reflect that influences the evaluation of the product or service. A diagnostic approach to satisfaction measurement is to examine the gap between the customer's expectation of performance and their perceived experience of performance. For example. Explicit expectations are mental targets for product performance.Consumer satisfaction in consumer durables -A case study on LG. if expectations for a color printer were for 11 pages per minute and high quality color printing. Types of Customer Expectations that Influence Satisfaction Customer performance expectations for attributes. This "satisfaction gap" involves measuring both perception of performance and expectation of performance along specific product or service attributes dimensions.

would be 11 PPM — 3 PPM + High — Good. and accuracy. flexibility. they are the performance we see and — often erroneously — assume are all that exist. Mobile 49 . customization. Each system's performance measures are unique. or others such as: accessibility. Implicit expectations represent the norms of performance that reflect accepted standards established by business in general. mobile phones are continually evolving. options. timeliness. Static performance expectations are the visible part of the iceberg. and even cultures. other companies. integrations.Consumer satisfaction in consumer durables -A case study on LG. dependability. or system requirements develop. For example. VIDEOCON & PHILIPS. Dynamic performance expectations are about how the product or service evolves over time and includes the changes in support and product or service enhancement needed to meet future business or use environments. tangible cues which augment the application. and user friendly interfaces. Dynamic performance expectations may help to "static" performance expectations as new uses. with each item weighted by their associated importance. Technological expectations focus on the evolving state of the product category. industries. Static performance expectations address how performance and quality for a specific application are defined. cutting edge technology. though general expectations relate to quality of outcome and may include those researched by Berry.

Person to person relationships are increasingly important. These highly involving products enhance perceptions of status. For each of these types of expectations that when fulfilled result in customer satisfaction (or when not delivered. service providers. market rate plans with high cancellation penalties. and the extent to which a product or service meets the 50 . ability to communicate. VIDEOCON & PHILIPS. communication skills. Expectations for interpersonal support include technical knowledge and ability to solve the problem. courtesy. and customer perceptions regarding professionalism of conduct. self-image. helpfulness. camera. appearance. Satisfaction Measurement: Perceived Quality Measures Perceived quality is often measured through three measures: overall quality. enthusiasm. Interpersonal expectations involve the relationship between the customer and the product or service provider. email. time to problem resolution. and can even invoke fear when the product is not available. perceived reliability. result in dissatisfaction and complaining behavior). patience. MP3. ego. The availability of low profile phones with email. in an effort to deal with the desire to switch to new technology phones. the perceived quality and value are critical and directly influence intention to repurchase and loyalty. and blue tooth technology changes technology expectations as well as the static and dynamic performance expectations of the product. often including image.Consumer satisfaction in consumer durables -A case study on LG. especially where products require support for proper use and functioning. understood my situation and problem.

However when repeat purchases are made in some product categories. thereby enabling service and product improvements which will lead to higher satisfaction levels. Satisfaction Measurement: Perceived Value Measures Perceived value may conceptually refer to the overall price divided by quality or the overall quality divided by price. the consumer behavior literature shows that price is a primary indicator of quality when other attributes and benefits are relatively unknown. The research is just 51 . VIDEOCON & PHILIPS. expectations of price that would be paid. Customer perceptions of quality are the single greatest predictor of customer satisfaction. Perceived value is measured in many ways including overall evaluation of value.Consumer satisfaction in consumer durables -A case study on LG. in measuring customer satisfaction is to see where a company stands in this regard in the eyes of its customers. price may be reduced in importance. of course. and value. Satisfaction Measurement: Customer Loyalty Measures Customer loyalty reflects the likelihood of repurchasing products or services. Customer satisfaction is a major predictor of repurchase. quality. customer's needs. Improving Customer Satisfaction Once a Customer Satisfaction Measurement Program Is in Place Customer satisfaction research is not an end unto itself. but is strongly influenced by explicit performance evaluations of product performance. The purpose.

Linking of Customer Satisfaction scores with employee and management monetary incentives.Consumer satisfaction in consumer durables -A case study on LG. through its actions. and tracking of operational variables which drive satisfaction scores. one component in the quest to improve customer satisfaction. Changes in corporate hiring practices. • • Recognition of employees who contribute to customers' satisfaction. 52 . must show that customer satisfaction is important to it. Identification. • • • • • Customer-based improvement goals. Measurement of and plans for improvement of employee satisfaction. • • • Acknowledging areas where the company needs to improve. Plans for improving operational variables. Incorporation of customer satisfaction skills into employee training programs. Involvement of management and employees in the development of plans for customer satisfaction improvement. measurement. This can be done in several ways. VIDEOCON & PHILIPS. We will touch on each of these issues briefly. Allocating appropriate resources to the improvement of customer satisfaction. • • Linking management bonuses to satisfaction scores. There are many others. including: • • Top management commitment. Top Management Commitment Top management. Clear and frequent communication of what is being done to improve customer satisfaction.

a reallocation of current incentives will suffice.Consumer satisfaction in consumer durables -A case study on LG. VIDEOCON & PHILIPS. from top management to front-line employees and suppliers. The keys to success are: • Making sure that all employees are aware of why a particular employee is being recognized. Monetary incentives for improving customer satisfaction scores should reach all levels of the organization. Management incentives do not have to result in incremental expenditures. Additionally. • Making sure that each employee being recognized is worthy of recognition. 53 . Recognition of Employees Who Contribute to Customers' Satisfaction This is an inexpensive way to foster customer satisfaction. For example. Incentive programs can be structured so that all employees in an organizational unit receive compensation if the unit's customer satisfaction goals are met. exemplary service on the part of individual employees can be rewarded on an ad hoc basis. Linking of Customer Satisfaction Scores with Employee and Management Monetary Incentives This really is just a case of having management put its money where its mouth is. if 100% of a manager's bonus is dependent upon meeting operational and sales goals. the mix could be changed to include customer satisfaction goals.

Using the previous example. and Tracking of Operational Variables Which Drive Satisfaction Scores:-The results of a customer satisfaction survey need to be evaluated to determine what needs to be improved. and to set goals and strategies for reducing them. Identification. Once you have identified what needs to be improved. if customers really desire wait times of ten minutes or less. Goals should be as specific as possible. Such plans need to be based on what customers really need." Customer-Based Improvement Goals These ties directly to the previous point. rather than what management believes to be a good goal. It is better to say "we want to reduce wait times during peak periods from an average of twenty minutes to fifteen minutes by the end of June.Consumer satisfaction in consumer durables -A case study on LG. You may need to do a separate survey with customers to actually set appropriate goals. The next step should be to quantify actual customer waiting times." than to say "we need to reduce customer waiting times. you need to develop a plan for improving each identified area. For example. If this is not economically feasible. Measurement. Plans for Improving Operational Variables 54 . having management dictate that wait times must be reduced to fifteen minutes will have limited appeal with customers. VIDEOCON & PHILIPS. at least talk to a number of customers and gain their input before setting a goal. a survey may find that customer waiting times need to be reduced.

and incentive programs. Measurement of and Plans for Improvement of Employee Satisfaction Unhappy employees will have difficulty in keeping customers happy.Consumer satisfaction in consumer durables -A case study on LG. and how much it needs to be improved. and then developing action plans to improve employee satisfaction. reward. and 55 . • Specific employee-performance expectations with regard to keeping customers satisfied. VIDEOCON & PHILIPS. regardless of the quality of training. The keys to successful planning are to: • • • Involve front-line employees and management in the planning process. Once you have established what needs to be improved. plans need to be developed to make improvement happen. Descriptions of what keeps customers satisfied. This is done by measuring actual improvement in operations and customer satisfaction. Incorporation of Customer Satisfaction Skills into Employee Training Programs Employee training programs should be modified to include: • • • A description of the importance of customer satisfaction to the company. recognition programs. Changes in Corporate Hiring Practices Certain types of people will do a better job of satisfying customers than will other types of people. Make sure plans are specific. Evaluate the success of plans once they have been put into place. A description of customer satisfaction measurement programs. You should consider measuring the satisfaction levels of employees.

recognition programs. 56 . you should incorporate this knowledge into your hiring practices. Once you have determined the types of employee behaviors are important to customers.Consumer satisfaction in consumer durables -A case study on LG. VIDEOCON & PHILIPS.

and Control (DMAIC). 9. 5. 1. Institute fast response team for handling urgent customer issue. Use mini-kits for product advertisement. Split major sales between several business customers. VIDEOCON & PHILIPS. 3. C. 6. 7. 57 . Five steps of Six Sigma improvement approach: Define. B. Utilize customized marketing approach for complete market segmentation: cluster prospective buyers into groups that have common needs. Mass customization: each customer is a market. Make an object or system easy to disassemble. Divide the market by regions and establish autonomous region sales centers. Sustain. Increase the degree of fragmentation or segmentation. Improve. Divide an object or system into independent parts. 2. Standardize. (2. Analyze. 4. Measure. Set in order. Principle 1. D. the tried to presents collection of examples in the field of Customer Satisfaction. Shine. 8.Consumer satisfaction in consumer durables -A case study on LG. Segmentation A. Five steps of '5S' continuous improvement technique: Sort.05) 26 Inventive Principles In Customer Satisfaction Enhancement Continuing to search for non-technical applications of 40 Inventive Principles in various spheres. Transition to micro-level. Describe product differentiation in advertisement on molecular level. preferably those related to Quality Management.

Principle 3. 1. B. 6. VIDEOCON & PHILIPS. 3. Provide benefits. labeling. Make each part of an object or system fulfill a different and useful function. 10. 2. prestige. advertising and promotions for each customer sector. 8. C. Select market segments on which organization will focus. Address advertising by the use of customer perceived needs (image. packaging. Hire local people to acquire cultural knowledge of local customers. 12. Develop different strategy for each market segment. Use stratified sampling for heterogeneous customer population survey. Weigh importance of customer needs in Quality Functional Deployment (QFD).) for each customer stereotype. Customize marking. 9. Principle 2. Make each part of an object or system function in conditions most suitable for its operation. Use Pareto diagram for customer feedback analysis. 7. Local Quality A. Hire different marketing professionals for each market segment. bonuses and extra service for the most valuable customers. Emphasize product or service advantages in advertisement. 58 .Consumer satisfaction in consumer durables -A case study on LG. 11. 5. Use different (individual) marketing approach. 4. Taking Out • Separate discounted goods. etc. etc. Locate distribution centers near customers.

' Rule No. 3. Create network of sales intermediaries. Promise bounty for serial labels collection (e. 8. Use. 13. re read rule No. merger. Make operations contiguous or parallel. Offer discount Choose shop or service location at heavily popular mall center. VIDEOCON & PHILIPS. season. Strive for business synergism with customers: partnership. An unhappy customer will tell ten or more people about his bad experience. Bring customers into design loop. alliance. Combine product quality with service quality to enhance customer satisfaction.Try to Follow.1' A happy customer will tell only five people about his good experience. 7. 5. Rule No. 4. Exchange discount coupons with neighborhood shops and services. 2. 6. hobby. film heroes. vacation.1: 'Customer is always right. Principle 5. Principle 4. etc. Merging 1. present. bring them together in time.g.2: 'If customer is ever wrong..Consumer satisfaction in consumer durables -A case study on LG. Target sales for purchase occasion (routine Use focus groups for customer preferences study. 14. 59 . sport teams). weather.

stories. 1. 3. Principle 8 (inverted).Consumer satisfaction in consumer durables -A case study on LG. Use introductory questions for customer priming at survey interview. Advertise by media. before the product or service is designed. Arrange organization system for Just-In-Time (JIT) delivery. Use endorsement by high-profile celebrities in advertising: 'Champion customer always buys our product Principle 7. Prepare presentation before customer visit. Preliminary Action A. movies. 2. Perform. 2. 4. Afterwards Action 1. before it is needed. Arrange lottery with partial price reimbursement. VIDEOCON & PHILIPS. 1. 2. Pre-arrange an object or system such that they can come into action from the most convenient place and without losing time for their delivery. sport games. 2. Offer post-paying. Provide after-sales service. Benchmark the best in class leaders. Principle 6. video. 4. Preliminary market research. Preliminary send questionnaire before survey interview. Benchmark 1. 5. concerts. 3. 60 . B. the required change of an object or system (either fully or partially). 3. Provide rebate coupon for next purchase or service. Present bounty or keepsake (token for memory) after purchase or service. Start advertising at the stage of product or service development.

Adapt to highly competitive business environment with dynamic customer needs and steadily increasing expectations. 'Reduce variation' (W. VIDEOCON & PHILIPS. 4. Static State 1. Principle 11(inverted). Utilize flexible policy for price vs. Dynamics A. 5. Divide an object or system into parts capable of movement relative to each other. 2. make it movable or adaptive. B.E. 1. 61 . Allow (or design) the characteristics of an object. Deming) to keep it within customer specified limits. 3. Match business to individual customer demands. process or system is rigid or inflexible. If an object. process. Set adjustable season prices. C. Steady increase versatility of products or services. system or external environment to change to be optimal or to find an optimal operating condition. Principle 9 (inverted).Consumer satisfaction in consumer durables -A case study on LG. purchased quantity. Potentiality Gap 1. Principle 10. Build entrance barriers for competitors by enhancement of product or service advantages.

3. C. 5. 8.' 'Zero Defects' (P. B. VIDEOCON & PHILIPS. Under-promise and over-deliver to avoid customer dissatisfaction. Partial or Excessive Action 1. 1. 6. Launch lot by manufacturing small customized series. Principle 12. 2.E. Use 9.Crosby) quality goals. 999. 99. If an action is already periodic. Periodically repeat advertisement for stable business image support. Principle 14. 'All or Nothing' (W. . Use pauses between impulses to perform a different action. Nurture customer needs using 'Saturation' advertising by all media techniques. 4. use periodic or pulsating actions. Quote more to allow price reduction during negotiations. change the periodic magnitude or frequency. price figures. Instead of continuous action.B. Deming) Establish 'Six Sigma. Set zero prices for overdue delivery (Pizza Hut). 3. 62 . Periodic Action A. Slightly embellish product or service features in advertisement.Consumer satisfaction in consumer durables -A case study on LG. 7. etc. Compromise at conflict resolution. Institute monthly and weekly customer communication in addition to annual survey. Provide extra product quantity or extra service as a bounty. 2. Principle 13 (inverted) 1. Use discounts. 3. 2.

63 . 7. 6.Consumer satisfaction in consumer durables -A case study on LG. demand. Eliminate all idle or intermittent actions or work. Carry on work continuously. Create customer standards based on tradition. 5. 4. Fill pauses during negotiations. 8. Use customer stereotype. 9. all the time. Employ multi-skilled personnel at bottleneck functions to avoid breaks or Operate re-marketing and supporting marketing for steady customer delays in service. 4. 1. Principle 15. Use pauses and breaks in TV and radio programs for advertisement. 6. Nurture customer loyalty. Create organization trademark and preserve brand image. 3. Establish long-term business alliances with customers. needs and expectations is a never ending challenge. make all parts of an object or system work at full load. Strive for customer retention. B. Be aware that satisfaction of customer wants. 2. 5. Continuity of Useful Action A. 10. Provide 24 hours per day service. 11. Strive for continual survival at the marketplace. Apply synchro-marketing for periodical or season demand. VIDEOCON & PHILIPS.

If feedback is already used. introduce feedback (referring back. change its magnitude or influence. Feedback A. 7.Consumer satisfaction in consumer durables -A case study on LG. Principle 16. report. 6. Introduce feedback buttons and site visitor counting on advertisement 64 . VIDEOCON & PHILIPS. satisfaction feedback form. The most loyal customer is a dissatisfied customer who later has all of his needs Principle 17. mail. Establish product returns and field failures analysis system. cross-checking) to improve a process or action. focus group. 4. 3. website. interview. 1. 3. Customers whose complaints are handled properly are more loyal than customers who never had a complaint. Use customer dissatisfaction source as a valuable feedback and opportunity for improvement 2. Enlist customers into design process. etc. 4. visit. "Blessing in Disguise" 1. Listen to 'Voice of the Customer' in multiple ways (survey. met. Utilize organization guarantees to get feedback data on how products or services fail to meet customer needs. Institute customer complaints resolution and response system. Establish toll-free telephone numbers for consumer communication. Eliminate fear of change by introducing fear of competition. 2. 5. B.).

Use neutral third party (arbitrator) during difficult negotiation. 4. Merge one object or system temporarily with another (which can be easily removed). Regional sales offices. Intermediate customers: wholesaler.E. 2. Principle 18 (inverted). Anticipate customer future needs – the ideal basis for customer loyalty. 2..Consumer satisfaction in consumer durables -A case study on LG.g. Introduce moderator to a focus group. Utilize Anticipatory Failure Determination (AFD) for product reliability Principle 19. prediction. 3. retailer. 7. Feed-forward 1.Deming). B. transportation and delivery agencies. 8. External certification bodies (e. DHL). BSI. Use an intermediary carrier article or intermediary process. distributor. 4. Hire the best professional consultant for marketing or advertising. 65 . Utilize barcodes system to gather information for future marketing decision making. Hire experts for marketing research and forecasting. 3. FedEx.. 5. 8. Intermediary A. VIDEOCON & PHILIPS. 'Predict and compare' (W. Export/import. UL). 6. Distribution systems (e. UPS.g. 1.

Mechanics Substitution A. acoustic. 6. Principle 21. magnetic and electromagnetic fields to interact with the object or system. audio. 3. 1. etc. Customer visit by CEO. 7. Create a strong brand image through use of 'corporate colors. Electronic trade. system or external environment. Use of multiple media techniques (photo. website). Principle 22. Electronic communication. Electronic tagging.) for 4. 2. video. Direct Contact 1. 3. customer presentation. Telemarketing. 2.' 66 . taste or smell) means. 5. from unstructured fields to those having structure. Color Changes A. Change the color of an object. email. 8. TV. Principle 20 (inverted). Website attendees counting. Survey without interviewer (mail. Online web marketing and sales. Change from static to movable fields. VIDEOCON & PHILIPS. Electronic cards for demographic data collection with market research. B. Use electric. Replace a mechanical means with sensory (optical. Computerized interview. 1.Consumer satisfaction in consumer durables -A case study on LG. C.

Make packaging transparent to enable product self-advertising. Principle 24. 2. 2. 3. Make objects interact with a given object of the same material (or material with identical properties). Recovering 1. Parameter Changes A. system or external environment. delivery. VIDEOCON & PHILIPS. 67 . Establish virtual shopping.Consumer satisfaction in consumer durables -A case study on LG. 3. Change an object's or system's physical state (e. B. Divide customers to homogeneous sectors (clusters). Hire local people to acquire cultural knowledge of local customers. Include customers (consumers) from the sector being surveyed into focus groups for survey. Principle25. Homogeneity A. Change the transparency of an object. 1. Utilize different colors in mistake-proofing to prevent unintended use. Change the concentration or consistency. 4. Get customer to make stock inventory transparent for Just-In-Time Principle 23. liquid or solid).g. 2. Institute online catalogs. 4. to a gas.. B. Use the same brand name for homogeneous product group. Warranty – commitment of manufacturer to repair or replace any part that fails during the life of product. 1.

4. the quality department in Samsung is called 'Customer Satisfaction Team').. self- esteem. D. Use special offers for sales or service promotions. 5. 4. satisfaction of cultural needs. Change the degree of flexibility. E.Consumer satisfaction in consumer durables -A case study on LG. Principle 26. Change other parameters. 3. 68 .). Sell non-material attributes (e. 2. customer. C. VIDEOCON & PHILIPS.g. Introduce obsession with customer-perceived quality and desire to delight customers into the organization. 2.. Change traditional names (e.g. Boosted Interactions 1. Overcome reluctance of dissatisfied customers to complain.' 3. 1. Achieve 'Wow!' effect by exceeding customers' expectations and providing them with advantage over their competitors. etc. Switch marketing of product or service to non-traditional customers. Change the temperature. image. Get customers excited about a product or service by giving them Hire highly creative individuals who understand 'The voice of the ownership of the change. Initiate new challenges for the customer service team.

(2. They can hurt or soothe."That's not my job. through simple rephrasing. Hold please! The phone immediately clicks and the operator is gone.05) MAGICAL WORDS CREATE CUSTOMER SATISFACTION Man does not live by words alone. a negative can be turned into a positive. It was certainly not the response she wanted to hear! How many times have you walked into a store or called a company and received a response that turned up the hair on the nape of your neck? Words are powerful. despite the fact that sometimes he has to eat them. It is how we combine and state our words and the voice and body inflection we use that can turn a frustrated customer into a happy one. Let us look at some of the frustrating statements you have heard and discover how. leaving the client stranded and frustrated. You could almost see the steam coming out of her ears. 2.Consumer satisfaction in consumer durables -A case study on LG. The tone of the operator's voice indicates she is hurried and really does not have time for one more 69 . VIDEOCON & PHILIPS." stated the clerk flippantly with a touch of body language to exasperate the situation even further. We can hurt our customers and potential customers or have them walk away happy and glad they either called or came into our business simply by using words with a positive twist. The customer stood there with her mouth half open. Some combination of words creates an immediate negative reaction or image for the receiver of the communication. -Adlai Stevenson 1.

It allows the customer to feel in control and make a choice. "May I tell her what this is regarding?" is a much more pleasant question and places the caller at ease. It does not represent your company well and is a technique for passing the buck or placing the blame elsewhere. 70 . who is this? My gut feeling is to respond by saying "none of your business!" A better question to ask is "May I tell him who's calling?" This places the caller in control of the situation and they can choose whether to disclose their name. 5. Whenever possible. VIDEOCON & PHILIPS. interruption. Try "It might take me a few minutes (or however long it may really take) to find that information. Well that department is wrong! This statement places blame on another section or person within the business. What if this had been an emergency? A simple "Would you hold please?" would have resolved the situation. Just a minute and I'll be right back. 3. Put the request in the form of a question. The customer feels as though they have never had control of the situation and are angered by receptionist's lack of response to their needs. give the customer options or ask for permission to take your next action. The caller is once more in control of the conversation. Would you like to hold or can I call you back?" 6. Well. 4. What’s this about? This confrontational question can be restated in a nonthreatening manner.Consumer satisfaction in consumer durables -A case study on LG. The customer is placed in a situation where they have no choice.

and quite possibly the last. VIDEOCON & PHILIPS. "That's a great question. lower shelf. it’s the company policy. You have three choices when asked the location of a product. then give them a complete description of where the item can be found. We can't do that. not what you can't. The first and best response is "let me show you." shows a willingness to rectify the situation and places the customer at ease. right side. 09.. Maybe the customer has just walked the aisle five times and still can not find the product they want. they just want the situation corrected regardless of where the mistake was made. The customer does not care who is wrong. It is an immediate tension reliever and begins to dissipate a customer's angry feelings.time they have been in your store and they have no idea where the different departments are located." is more pleasant to hear and gives the customer alternatives to select from. 7. will put a wall of defensiveness up as fast as any statement. Or maybe this is the first.." If you do not know the location then be honest and find out. about halfway back. "Good question. Customers do not care what the organizational policies or rules are..Consumer satisfaction in consumer durables -A case study on LG. Its back there someplace. Remember. Remember to tell the customer what you can do.. 95% of the policies are made for 5% of the 71 ." If however you are unable to take the customer to the item..." 8. We can. Let me get someone who can show/tell you. is not the response a customer wants when they ask where they can find an item. "it's on aisle 5. "Let me see how I can fix this for you.

you will never have exactly the same experience as the customer.. 12. You have to have. Can you provide us with??" If the customer's response is no. 10. is a demand. We all experience a given situation differently." This really makes the client feel special. "We want to help you. A better way to approach a request is. Let me see how I can fix it. The customer really doesn't care whose job it is. "Normally we don't do that. That can't happen is like telling the customer they are lying. 11. customers that will always ask for the exception. "I'll be glad to help you. then begin to explore alternatives or other avenues for obtaining the information." 13. It lets them know it is not the normal company policy and yet there are always exceptions to the rules and a willingness to satisfy the customer's needs.Consumer satisfaction in consumer durables -A case study on LG.. To place the customer at ease. 72 . VIDEOCON & PHILIPS. Even though you believe the situation did not occur." or "let me get someone from that department to help you" indicates willingness on your part to either help or get assistance for the individual. try "I apologize you had that experience. it’s not my job. not a request. In your case. No two experiences will ever be the same because of our past and our perceptions. I'll gladly make an exception. They just want a situation rectified.

Apologize and move on. Are your words magic to their ears or do they come crashing down leaving the customer frustrated. The customer wants resolution to the problem. So who really made the mistake.Consumer satisfaction in consumer durables -A case study on LG. The individual who does the data entry is not a computer. it is just as bad as blaming another person or department. it’s the computers fault. Words can send an upset customer into orbit." Hence. Review some of the words and phrases you use when speaking with a customer. Let me see how I can correct it. "I'm sorry you had this experience. defensive and angry? Select your words and phrases wisely and you too will calm the raging client and win loyal customers. 14. words can also soothe and express that you are ready to help and serve. 73 . VIDEOCON & PHILIPS. When sincerely stated. the computer or the person? When blame is placed on an object.

Ease of access to the dealer 2.The results of the CUSTOMER SATISFACTION SURVEY are denoted in the graphical format as follows: 1. to increase customer satisfaction. which further increase company’s profitability along with good corporate image. VIDEOCON & PHILIPS to study the consumer satisfaction in consumer durables. Quality of information available online to the customer 3.Consumer satisfaction in consumer durables -A case study on LG. Ability to resolve problems on first call 6. Skills of helpline personnel 74 . This survey was conducted in questionnaire form. The courtesy and patience shown by company/helpline 4. as follows. Ease of access to helpline 5. This survey also helped me to study what are the most important strategies that each company must take. VIDEOCON & PHILIPS. CHAPTER 3 CASE STUDY I have conducted the survey of 60 consumers who are using color TV of LG. Clarity in providing service related information 7.

Consumer satisfaction in consumer durables -A case study on LG. VIDEOCON & PHILIPS. : LG:Questions Quality of information available Excellent Very 1 good 10 5 4 5 6 5 Good Poor Bad Total 5 8 10 5 2 5 4 3 1 0 0 3 0 2 0 0 0 1 20 20 20 20 20 20 online The courtesy and patience shown by 2 company Ease of access to helpline 5 Ability to resolve the problem on first 10 call Clarity in providing service related 12 information Skills of helpline personnel 6 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q u a lit y oTf h e c o u r t e sE a s e o f A b ilit y t o C la rit y in s k ills o f y in fo rm a t ioann d p a t ie n a c c e s s t ore s o lve t h ep ro vid in g h e lp lin e ce a va ila b le s h o w n b y h e lp lin e p ro b le m o n s e rvic e p e rs o n n e l o n lin e c o m p a n y fir s t c a ll re la t e d in fo r m a t io n bad poor good ve ry g o o d e x c e lle n t VIDEOCON: 75 .

Questions Excellent Very good 10 5 8 5 9 2 Good 15 20 18 17 15 18 Poor 1 3 1 7 0 6 Bad 0 0 0 0 0 2 Total 30 30 30 30 30 30 Quality of information available 4 online The courtesy and patience shown 2 by company Ease of access to helpline 3 Ability to resolve the problem on 1 first call Clarity in providing service related 6 information Skills of helpline personnel 2 information access to Quality of PHILIPS Clarity in providing Ease of 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Bad Poor Good Very good Excellent 76 .Consumer satisfaction in consumer durables -A case study on LG. VIDEOCON & PHILIPS.

Questions 100% Excellent Very good 1 1 2 2 Clarity in providing Good 6 Bad Poor 3 2 Bad Total 0 0 0 0 0 0 10 10 10 10 10 10 90% Quality of information available 0 80% 70% online 60% The courtesy and patience shown 50% 40% company 30% Ease of access to helpline 20% Ability to resolve 10% problem the 0% information Quality of by 1 0 on 1 access to Ease of 6 Poor Good Very good 5Excellent 3 6 1 6 5 1 2 first call Clarity in providing service related 1 information Skills of helpline personnel 1 2 2 1.Consumer satisfaction in consumer durables -A case study on LG. LG How would you rate your level of satisfaction? 77 . VIDEOCON & PHILIPS.

VIDEOCON & PHILIPS. level of satisfaction VEDIOC ON VIDEOCON 10% 3% 27% 23% 37% extermly satisfied dissatisfied satisfied extermly dissatisfied somewhat satisfied PHILIPS 2. How would you rate the overall quality of product? [Considering all your experience] OVERALL QUALITY OF LG 78 .Consumer satisfaction in consumer durables -A case study on LG.

How did you know about the product? 79 .Consumer satisfaction in consumer durables -A case study on LG. VIDEOCON & PHILIPS. OVERALL QUALITY OF VIDEOCON OVERALL QUALITY OF PHILIPS 3.

VIDEOCON & PHILIPS.Consumer satisfaction in consumer durables -A case study on LG. AWARENESS OF LG AWARENESS OF VIDEOCON AWARENESS OF PHILIPS 4. How would you rate the product to a friend/ relatives? 80 .

VIDEOCON & PHILIPS. What you look for in order of importance when selecting products? LG 81 .Consumer satisfaction in consumer durables -A case study on LG. LG LG 5% 0% 20% 25% 50% Exellent Very good G ood Poor Bad VEDIO N CO 0% 0% 30% VIDEOCON 20% 50% Exellent Very good G ood Poor Bad PHILIPS PHILIPS 0% 10% 10% 30% 50% Exellent Very good G ood Poor Bad 5.

VIDEOCON & PHILIPS. L G 1% 5 2% 5 4% 0 2% 0 Qa u lity C st o B n nm ra d a e F m rity a ila VIDEOCON V D C N E IO O 2 3% 2 7% 3% 3 17 % Qa u lity C st o B n na e ra d m Fa ilarity m PH ILIPS PHILIPS 10% 30% 40% 20% Q uality C ost Brand nam e Fam ilarity CHAPTER:-4 82 .Consumer satisfaction in consumer durables -A case study on LG.

01) OBSERVATIONS FINDINGS By conducting a CUSTOMER SATISFACTION SURVEY in 3 best consumer durables company LG. CONCLUSION (4. VIDEOCON & PHILIPS & by evaluating its analysis I came to know that. Ease of access to helpline. The areas about which I’ve asked the peoples are as follows along with some suggestions:- 83 . The courtesy and patience shown by company. Skills of helpline personnel In some or more numbers. VIDEOCON & PHILIPS. The charts and graphs explain the overall satisfaction among the customers of LG.Consumer satisfaction in consumer durables -A case study on LG. And hence every company has to deal with these key factors with more genuine efforts. there is some amount of dissatisfaction among there consumers because of neglecting or by not employing genuine efforts in some areas like Quality of information available online. though this three companies are following the best customer service & satisfaction strategies tactics. Ability to resolve the problem on first call. In today’s cut-throat competition world the above factors are help the company to distinguish it from its competitors. VEDIOCON & PHILIPS in various aspects.

84 . COLOR TELIVISION. To increase there overall satisfaction the company should give Important to the consumer.Consumer satisfaction in consumer durables -A case study on LG. SATISFACTION LEVEL OF QUALITY. Hence LG. I found that these all companies are giving good attention on maintaining the quality of the TV. Hence every customer has its own definition of quality according to his/her own experience and perceptions. good sound system. OVERALL LEVEL OF SATISFACTION about the company’s product i. Many of the consumers said that they like the • • LG TV because of its quality. Quality is very important factor which leads to satisfaction. VIDEOCON & PHILIPS. 2. 1. VIDEOCONE customers like the TV because of its clarity and good audio system • Many of the PHILIPS customers are find that there TV is very attractive and also having a nice sound system.e. audio-visual excellence and other similar aspects. They should have to welcome the complaints in pretty manner and should act quickly so that dissatisfied customer will turn to satisfied customer and will increase the loyal customers. VIDEOCONE & PHILIPS should have to developed there product (TV) in such a manner that it will have all the aspects like attractiveness.

VIDEOCON & PHILIPS. Positive word of mouth about company’s quality of television and other aspects will increase the sales and also satisfaction. 3. because they establishes the direct contact with the consumer .Consumer satisfaction in consumer durables -A case study on LG. PROMOTIONAL STRATEGIES. In the promotion of goods salesman also playing a very vital role. Advertising is all time favorite mode of communication of all this three companies all three are using this mode in a very aggressive and good manner and has become successful in creating the wide awareness about there TV’s. Company’s efforts to market its brand of TV i. advertisings word of mouth also pays a very important role.maintains friendly relation with the consumers. 85 . Also conducting trade fares in which they shows the demonstration and try to solve there doubts about product by clarifying there doubts at the same place. Hence promotion is the too which all this 3 companies can use effectively and can achieve customer satisfaction along with profit.e. In this along with trade fears. and hence leads to high consumer satisfaction hence consumer durables companies has to give a very wide attention in overall development and has to increase the skills of there sales person so that they will act with the consumer in more skillful manner.

AND QUALITY) WHILE SELECTING THE TV:Here I have asked that on what basis the customers select the TV of particular company. 86 . IMPORTANTS OF FACTORS (BRAND. FAMILARITY. maintains the quality and other important aspects so that there present customer will turn companies potential customers into actual ones. and hence it’s a responsibility of the company to create friendly & prompt customer service. RATING OF PRODUCT TO THERE FAMILY AND FRIENDS:Again word of mouth comes over here. VIDEOCON & PHILIPS. Many consumers are very loyal to the company that they using only one brand over the years. 5. Some changes the product on the basis of costs. Hence I found that many customers are very careful and look and try to examine the entire factors starting from bran to familiarity before final purchasing. VIDEOCON & PHILIPS said that they attracted towards brand name. Many consumers of LG. 4. and there pat experience about the quality of the TV. If the consumer rates the products in good manner then his/her friend or relative will also attract to buy the product. Many of the consumer said that they will rate there color TV in very good to good range only few consumer said excellent. quality and then familiarity. COST. Then cost.Consumer satisfaction in consumer durables -A case study on LG.

e.) The companies should create a self explanatory and very effective advertisement so that more consumer i. This will enhance their quality of service and ultimately the customer satisfaction Also they should developed there websites in such a way that customers will not fond it difficult to access and have to achieve the ability to resolve the problem on its first call. Also Under-promise and over-deliver should be avoided to decrease customer dissatisfaction. Warranty (commitment of manufacturer to repair or replace any part that fails during the life of product. Also companies should have to segment the market properly by adopting different strategy for different market so that selling the product will be effective and efficient. (4. 87 . To improve there quality of service these companies can benchmark the activities of best player in market. both rural as well as urban customers will attract to buy your product. VIDEOCON & PHILIPS.02) SUGGESTION Hence I would like to suggest all 3 companies that they have to develop a well equipped prompt customer service by employing skill and trained work force. Try to find out some innovative strategies time to time like giving discounts.Consumer satisfaction in consumer durables -A case study on LG.

current market trend and the competitors position in market. Also if these companies give the opportunity to customers for participation in designing and improving of other aspects by giving Importants to their views & expectations in mind then this will also create a satisfaction among the customers. For this customer satisfaction survey will play an important role. Also the companies have to carry market research to find out expectations. VIDEOCON & PHILIPS. And also have to keep a continuous contact with the customers to find out the number of satisfied and dissatisfied customers. 88 .Consumer satisfaction in consumer durables -A case study on LG.

CONCLUSION Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Serious consideration of consumer complaints. For customer satisfaction it is necessary to establish and maintain certain important characteristics like: a.Consumer satisfaction in consumer durables -A case study on LG. it becomes necessary to satisfy customers. Gaining high levels of customer satisfaction is very important to a business because satisfied customers are most likely to be loyal and to make repeated orders and to use a wide range of services offered by a business. Since sales are the most important goal of any commercial enterprise. VIDEOCON & PHILIPS. Efficient delivery. Good customer handling skills d. Customer satisfaction levels can be measured using survey techniques and questionnaires. Quality b. The need to satisfy customer for success in any commercial enterprises is very obvious. Customers are the sole reason for the existence of commercial establishments. The income of all commercial enterprises is derived from the payments received for the products and services to its external customers. Satisfaction is the feeling of pleasure or disappointment attained from comparing a products perceived performance (outcome) in relation to his or her expectations. e. Fair prices c. 89 .

the customer is highly satisfied or delighted. If the performance falls short of expectations. If the performance exceeds expectations. the customer is dissatisfied. If the performance matches the expectations.Consumer satisfaction in consumer durables -A case study on LG. 90 . the customer is satisfied. VIDEOCON & PHILIPS.

Marketing management -Rajan Saxena 2. Basic marketing -A global managerial approach -William Perrealt & Jr.com 6.co. Marketing management -Philip Kotler 3. BIBLIOGRAPHY 1.wikipedia.in 91 .yahoo. VIDEOCON & PHILIPS. www.E. www.google.Consumer satisfaction in consumer durables -A case study on LG.com 5.Jerome McCarthy WEBSITES 4. www.

Tick mark () on the given appropriate options. -A case study on LG. Less than 1 lakhs. Pls. ♦ ♦ ♦ ♦ ♦ Name:Gender:Age:Occupation:What is your annual income? More than 1 lacks-3 lakhs More than 3 lakhs. VIDEOCON & PHILIPS. what you look for in order of importance when selecting products. ♦ Which brand of color TV you are using? LG VIDEOCON PHILIPS ♦ Please rank. VIDEOCON & PHILIPS. Quality Cost Brand name Familiarity Any other 92 . CONSUMER SATISFACTION SURVEY Please take a few minutes to complete this survey. Your views are extremely important in context of the findings and interpretations.Consumer satisfaction in consumer durables -A case study on LG. ANNEXURE Consumer satisfaction in consumer durables.

2. 1. C. 3. Dissatisfied Extremely dissatisfied 6. How would you rate the overall quality of product? [Considering all your experience] Very high quality High quality Average Low quality Very low quality 93 . VIDEOCON & PHILIPS. How did you know about the product? Advertisements Friends/relatives Salesman 4. Please list any top 3 reasons if you are satisfied with the company’s product. Trade fairs Any other How long have you been a customer of company? Less than 1 year 1-3 year How would you rate your level of satisfaction? Extremely satisfied Satisfied Somewhat satisfied More than 3 years 5. C.Consumer satisfaction in consumer durables -A case study on LG. B. A. A. B. Please list any top 3 reasons if you are Dissatisfied with the company’s product.

Quality of information available online to the customer Excellent Very good Good Poor Bad iii. VIDEOCON & PHILIPS.Consumer satisfaction in consumer durables -A case study on LG. How do you rate the following aspects? Ease of access to the dealer Excellent Very good Good Poor Bad ii. Clarity in providing service related information Excellent Very good Good Poor Bad 94 . 7. i. Ease of access to helpline Excellent Very good Good Poor Bad v. How would you recommend the product to a friend/ relatives? Excellent Very good Good Poor Bad 8. The courtesy and patience shown by company/helpline Excellent Very good Good Poor Bad iv. Ability to resolve problems on first call Excellent Very good Good Poor Bad vi.

VIDEOCON & PHILIPS.Consumer satisfaction in consumer durables -A case study on LG. vii. Skills of helpline personnel Excellent Very good Good Poor Bad 9. Would you like to continue your relationship with the same company? Yes No Signature:- 95 .