SPECIFIC AIMS/OUTCOMES:

1.2.3 Demonstrate an understanding of Customer Satisfaction

This will include:
 Describe Customer Satisfaction and identify who the
Customer is
 Analyze Customer’s Perception of Quality
 Categorize Feedback using Customer Complaints
 Distinguish between Product and Service Quality
 Translate Needs into Requirements
 Distinguish between Customer Retention and Customer
Satisfaction
 CONTENTS
• Meaning of customer & customer focus
• Classification of customers
• Customer perception of quality
• Customer requirements
• Customer satisfaction
• Customer delight
• Handling customer complaints
• Understanding customer behavior
• Concept of internal & external customers
1. What is the sole purpose of every business?
2. What is a customer?
1. Give examples of customers in the business or industry that you work in.
3. What is a consumer?
1. Give examples of consumers in the business or industry that you work in.
4. What are internal customers
5. What are external customers
6. What is a Product? What is a service?
1. Distinguish between the two.
7. What are customers specifications (needs and wants)?
8. Customer perception of quality:
1. Product quality satisfaction
2. Service quality satisfaction
9. What is customer feedback?
1. How is customer feedback measured
10. What is customer satisfaction and customer loyalty (Retention).
11. What is a customer focused business and how does it benefit
What is every business’s sole purpose?
• Businesses exist to:
• Make money through making business
transactions with its customers
• Serve the community or a higher
purpose while also making a profit
  In sales, commerce and economics, a customer (sometimes
known as a client, buyer, or purchaser) is the recipient of
a good, service, product or an idea- obtained from a
seller, vendor, or supplier via a financial
transaction or exchange for money or some
other
valuable consideration.

 A person who buys goods or services from a shop or

business.

1.  A person
What of a specified kind with whom one has to
is a customer?
1. deal.
Give examples of customers in the business or industry that you work in.

2. What is a consumer?
1. Give examples of consumers.
• CUSTOMER FOCUS
Customer focus can be defined as the degree to which a firm
continuously satisfies customer needs and expectations.
It includes
• Emphasis on customer-defined quality
• Emphasis on customer service
• Integration of customer information for new
product development
• Partnering with customer for the product development, R&D,
technology forecasting.
 IMPORTANCE OF CUSTOMER FOCUS

• The customers are the valuable assets for any organization.

• The success of an organization depends on the
satisfied customer.
• The satisfied customer tends to purchase frequently
and more.
• The manufacturing and service organization use
customer
satisfaction as the measure of quality.
• Identifying the customer expectation is the key to satisfy the
customer.
1. What are is market share?
1. Pick any product and list 2 or more of competing products and estimate their
market share.
2. How can a business increase it’s market share.
CLASSIFIACTION OF CUSTOMERS
• The Negotiator
Doesn’t matter if calm and quiet, or confident and loud – negotiators
always want to bargain. If you’re dealing with them, know that a common
objection is to bargain your price based on a cheaper competitors offer.
But most of the time they want to bargain as a matter of principle.
• The Well-Informed
The well-informed are confident. They will walk directly towards you,
giving you a firm handshake. Although they already seem to know
everything, they expect professional advice from you. Often their decision
to purchase is based on how the product reflects their social status.
• The Annoyed One
Every once in a while you have to deal with customers who complain
about almost everything. Whether it’s the high price, the bad quality or
the unfriendly seller- there’s nothing really you can do to please the
customer. They’re just always irritated.
• The Suspicious One
Suspicious customers will not hide their mistrust of products and
advertising. They’re one thing above all: critical. They will gladly let you
explain everything and surprise you with a strong opinion and knowledge
• The Questioner
This type of customer can be very pushy as he wants to know
everything.
• The Ones Who Agree On Everything
These customers are reserved and act shy. They will say “yes” quickly. At
the same time they’re overwhelmed and feel that they’ve been taken by
surprise. The sales conversation is a stressful moment for them.
Sensitivity
is required here.
• The Indecisive
These are the customers who aren’t really sure about what they want.
They’ll give you short, indecisive answers, saying things like “maybe” or
the dreaded “I don’t know.” There is a lot going on in their head.
Numerous questions show that they are considering whether to buy or
not to buy.
1. What is a Product? What is a service?
1. Distinguish between the two.
 Product Quality Dimensions

These dimensions describe product quality specifically in the following paragraphs.

Performance refers to the efficiency with which a product achieves its intended purpose.

Features are attributes of a product that supplement the product’s basic performance.
These include many of the “bells and whistles” contained in products.

Reliability refers to the propensity for a product to perform consistently over its useful
design life.

Conformance is perhaps the most traditional dimension of quality. When a product is

designed, certain numeric dimensions for the product’s performance are established, such as
capacity, speed, size, durability, or the like. These numeric product dimensions are referred to
as
specifications.

Durability is the degree to which a product tolerates stress or trauma without failing.
Conformance is perhaps the most traditional dimension of quality. When a product is
designed, certain numeric dimensions for the product’s performance are established, such as
capacity, speed, size, durability, or the like. These numeric product dimensions are referred to as
specifications.

Durability is the degree to which a product tolerates stress or trauma without failing.

Serviceability is the ease of repair for a product. A product is very serviceable if it can be
repaired easily and cheaply.

Aesthetics are subjective sensory characteristics such as taste, feel, sound, look, and smell.

Perceived quality is based on customer opinion. As we said in the beginning of this chapter,
quality is as the customer perceives it. Customers imbue products and services with their
understanding of their goodness. This is perceived quality.
Serviceability is the ease of repair for a product. A product is very serviceable if it can be
repaired easily and cheaply.

Aesthetics are subjective sensory characteristics such as taste, feel, sound, look, and smell.

Perceived quality is based on customer opinion. As we said in the beginning of this chapter,
quality is as the customer perceives it. Customers imbue products and services with their
understanding of their goodness. This is perceived quality.
 Service Quality Dimensions
Tangibles include the physical appearance of the service facility, the equipment, the
personnel, and the communication materials. For example, a hotel with yellowed linens
will be rated low for quality. Hair salons catering to an elite clientele might invest in
ambient lighting and employ only well-dressed hairstylists.

Service reliability differs from product reliability in that it relates to the ability of the
service provider to perform the promised service dependably and accurately.

Responsiveness is the willingness of the service provider to be helpful and prompt in

providing service.

Assurance refers to the knowledge and courtesy of employees and their ability to inspire
trust and confidence.

Empathy from the service provider. In other words, the customer desires caring,
individualized attention from the service firm.

There are several other dimensions of service quality, such as availability, professionalism,
timeliness, completeness, and pleasantness.
 CUSTOMER PERCEPTION OF
•
QUALITY
According to Deming, “Quality may be defined as an
excellent product or services that fulfills or exceeds our
expectations”.
• An American Society for Quality (ASQ) survey on
end user perceptions of important factors that
influenced purchases showed the following ranking:
1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation
 CUSTOMER EXPECTATIONS
here are the most common customer expectations
• Solid information
• Options
• Engagement
• Complaint management
• Flexibility
• Creativity
• Fairness
• Trust
 CUSTOMER SATISFACTION
This can be achieved by the following ways
1. Treat your Customers Right – Genuinely Interact
2. Don’t Come on Too Strong – Respect Your Customers
3. Always Listen – Hear What Your Customers are Saying
4. Continue to Satisfy – Offer Ongoing Support and Specials
5. Treat a Customer Like a Valued Partner – Communication is
Two Way
6. Build Trust – Alert Customers to Large Scale Changes, Good
or Bad
7. Be Transparent – Honesty is Crucial When it comes to
Mistakes
8. Follow Through on Your Word – Follow Up on
Promises
 CUSTOMER DELIGHT
Customer delight is surprising a customer by exceeding his or
her expectations and thus creating a positive emotional
reaction.

There are three objectives when implementing Customer

Delight:
 make customers loyal
 have customers that are more profitable
 have clients talk positively about your product, brand or
shop,
the so-called word of mouth
 HANDLING CUSTOMER
COMPLAINTS
• Effectively handling customers’ complaints is one of the most
important aspects for a company to consider in order to
provide a better overall experience.
• Here are some tips that could help companies to handle
complaints more effectively:
• Provide an appropriate channel to receive complaints
• Recording
• Resolution
• Communicating with the complainant
• Thorough investigation
• Response
• Follow-up
 UNDRSTANDING CUSTOMER
BEHAVIOR
Consumer behavior is the study of individuals and
organizations and how they select and use products and
services. It is mainly concerned with psychology,
motivations, and behavior.
The study of consumer behavior includes:
• How consumers think and feel about different alternatives
(brands, products, services, and retailers)
• How consumers reason and select between different
alternatives
• The behavior of consumers while researching and
shopping
• How consumer behavior is influenced by their
environment
(peers, culture, media)
• How marketing campaigns can be adapted and improved to
 Factors influencing customer behavior
• Social factors- family, roles and status, ref. groups

• Economic factors- size of family, disposable Income

propensity to consume, consumer credit.
• Cultural factors- values, Beliefs, arts

• Personal factors- age, occ., life style, personality

• Physiological factors- basic needs

CONCEPT OF INTERNAL &
EXTERNAL CUSTOMER
Internal Customers and External Customers are basically those who
purchase or buy the product of an organization / company / factory.
The customer may be the vendor, distributor, and supplier or may be
the end user.
Internal customers and External customers are differing from each
other in many aspects. Internal Customers are those individuals,
division or employee who purchases the product of the company /
organization being the part of the company in a way or other. External
Customers are those individuals who do not belong to company /
organization in any aspect or may be the end user of the product.
Quality and quantity of the product should meet the demands of the
External customer as he the end user of the product.

1. Give examples of internal customers

2. Give examples of external customers