Mission

Cavite State University shall provide Vission

excellent, equitable, and relevant CAVITE STATE UNIVERSITY The Premier University in historic Cavite recognized for
educational opportunities in the arts,
sciences and technology through quality (CvSU) excellence in the development of globally and morally
instruction and responsive research and Cavite Civic Center Palico IV, Imus Cavite upright individuals.
development activities.  (046) 415-0021  (046) 415-0012
www.cvsu.edu.ph
It shall produce professional, skilled and
morally upright individuals for global
competitiveness.

Submitted to the faculty of the

Department of Management
Cavite State University
Imus City, Cavite

Submitted by:
Bigay, Josh Laurence
Arciaga, Marvin D.
Agravante, Andrei
Vargas Jonas Eric T.
OMGT-3A

Submitted to:
Mr. Jian Matriano
 IMPORTANCE OF CUSTOMER SATISFACTION AND LOYALTY

Customer satisfaction plays an important role within your business. Not

only is the leading indicator to measure customer loyalty, identify unhappy customers,
reduce churn and increase revenue. It is also a key point of differentiation that helps you
attract new customers in competitive business environment

THE AMERICAN SATISFACTION INDEX

In 1994 the university of Michigan business school and the American society for
quality (ASQ) released the first American customer satisfaction index (ACSI), an
economic indicator that measures customer satisfaction at the national model.

ACSI MODEL

Perceive Complain
d t
Quality

Perceived Customer
Value Satisfaction
(ACSI)

Customer Loyalt
Satisfactio y
n
 CUSTOMER-DRIVEN QUALITY CYCLE

Customer needs and expectations

(Expected Quality)

Identification of customer needs

Translation into product/services

specification (Design/Quality)

Output
(Actual quality)

Input
(Perceived quality)

Measurement and Feedback

 LEADING PRACTICES

 They clearly define key customer groups and markets considering competitors
and other potential customers
 They understand bot near and long term customer needs and expectations
 They understand the linkages between the voice of customers and design,
production, process and delivery.
 They build relationship with customers through commitments that promote trust
and confidence.
 They have effective complaint management process by which customer can
easily comment, complaint and receive prompt resolution of their concern.
 They measures customer satisfaction compare the result relatives to the
competitors and use the information to evaluates and improve internal process.

IDENTIFYING CUSTOMER
Customer – the purchaser of goods and services
Consumer – The end user of the goods and services

Figure 4.3 AT&T’s Customer-Supplier Model

Output
Your Suppliers Input Your Process Your Customer

Requirements and Feedback Requirements and Feedback

THREE LEVELS OF QUALITY

1. Organization Level – businesses has various external customer who may fall between
the organization and consumer and who have distinct needs and expectations.
2. Process Level – departments, and key cross functional processes within a company
have internal customers who contributes to the company’s mission and depend on the
departments or function’s products or services to ultimately serve consumers and
external customer.
3. Performer Level – each company receives inputs from others and produces some output
for their internal customer.

CUSTOMER SEGMENTATION
 - Customers generally have different requirements and expectations.
- Juran suggests classifying customer into two main groups
- Vital few
- Useful Many
- Profitability

UNDERSTANDING CUSTOMERS NEEDS

According to David A. Garvin products and services have many dimensions of
quality
1. Performance
2. Features
3. Reliability
4. Conformance
5. Durability
6. Serviceability
7. Aesthetics

Five key dimensions of service quality contributes to customer perception:

1. Reliability
2. Assurance
3. Tangibles
4. Empathy
5. Responsiveness

Noriako Kano, A Japanese Professor, suggested three classes of customer

requirements:
1. Dissatisfiers
2. Satisfiers
3. Exciters/Delighters

GATHERING AND ANALYSING CUSTOMER INFORMATION

Key approaches to gathering customer information:
- Comments cards and formals surveys
- Focus Groups
- Direct customer contact
- Field Intelligence
- Complaint Analysis
- Internet Monitoring

Affinity Diagram - Useful tool for organizing large volumes of informations

efficiently and identifying natural patterns or groupings.

KJ method – Developed in 1960’s by Kawakita Jiro (Japanese Anthropologist), a

technique for gathering and large numbers of ideas or facts.
CUSTOMER RELATIONSHIP MANAGEMENT

Truy excellent componies foster close relationships with customers tht lead to loyalty.

excellent customer relationship management depends on 5 aspects

1. Accessibility and commitments - customer-focused organizations provide customers easy t

access to their employees.

2. Selecting and deceloping customers-contact employees-

Customer contact employees are particularly important. They are people whose main
responsibility bring them into regular contact with customers in person by telephone, or through
other means.

3. Customer contact requirements -

Frontline personnel who come in daily contact with customers have a significant amount or
responsibility for customers satisfaction.
4. Effective complaint management -
Despite all efforts to satisfy customers, every bussiness experience unhappy customers.
Complaint can adversely affect business if not dealt with effectively.

5. Strategic partnership and alliances -

Today's suppliers are being asked to take on greater responsibilities to help their customers.
As componies focus more on their core competencies things they do bes they are looking out
side their organizations for assistance with noncritical support processes.

MEASURING CUSTOMER SATISFACTION

Customer feedback is vital to a business. Customer satisfaction is defined as a

measurement that determines how happy customers are with a company's products,
services, and capabilities.
A company can do the following:
 Discover the perceptions of customers
 Identify the causes of dissatisfaction and failed expectations
 Compare the performance of the company
 Determine the areas for improvements
  Track trends

Example of Customer feedback surveys or ratings:

Very Poor Poor Neither Poor Good Very Good

Or Good
1 2 3 4 5

Strongly Disagree Neither Agree Agree Strongly

Disagree or Disagree Agree
1 2 3 4 5

Very Dissatisfied Neither Satisfied Satisfied Very

Dissatisfied or Dissatisfied Satisfied
1 2 3 4 5