Customer Satisfaction

Gap, Attribution and Equity Models

Customer Satisfaction

Repeat Purchase
(Loyalty)
Income Trend: USA
 Stuff…

• Bigger House
• Flat screen TV
• Cell phone
• Low cost airlines
• Internet
• Gourmet food
Product Satisfaction
 What Influences Satisfaction?

• With Life

• With People

• With Products
 Satisfaction = Attitudes based on
Actual Experience

• “How satisfied are you with your life?”

• “How satisfied are you with your marital

relationship?”

• “How satisfied are you with your job?”

• “Please rate your overall satisfaction with the quality

of at
1 / Not service received at Holiday Inn?”
All Satisfied 9 / Very Satisfied
 Gap Model
Performance
Functional Attributes

Satisfaction

Feelings
Hedonic Attributes
 Expectations

• Flights should leave within 15 minutes

• Hotel rooms should be clean

• McGill facilities should be modern

• Tim Hortons should be fresh

• Resorts should give me a welcome drink

 Gap Model
Performance
Functional Attributes

Expectations
Satisfaction
Expectations (Functional) +
Expectations (Hedonic)

Feelings
Hedonic Attributes
 Flight Delay Expectations

• Within 15 minutes
 Gap Model
Performance
Functional Attributes

Expectations
Satisfaction
Expectations (Functional) +
Expectations (Hedonic)

Gap
Functional Gap (Actual – Expected)
+ Hedonic Gap (Actual – Expected)
Feelings
Hedonic Attributes
 Gap Model
Performance
Functional Attributes

Expectations
Expectation 1 + Expectation 2 Satisfaction

Gap
Gap 1 + Gap 2

Feelings
Hedonic Attributes
 Airlines
• Performance: Functional attributes
– On-time arrival/departure
– Convenient schedule
– Curbside Check-in
– Cleanliness of Cabin
– Fair price

• Feelings: Hedonic attributes

– Great Price
– Birthday Greeting Expectations
– Upgrade to First Class
– In-flight Music
– In-flight Neck massage
– Fun Uniform
 Maximizing Satisfaction

• Hook
– High expectations on Attribute #1

• Surprise
– Low/Absent expectations on Attribute #2
Airline Food
 Gap Model
= TORA + Expectations/Gap
Performance
Functional Attributes

Expectations
Expectation 1 + Expectation 2 Satisfaction

Gap
Gap 1 + Gap 2

Feelings
Hedonic Attributes
 TORA
Charitable Donations

• Number of People Served

Functional
• Diseases Targeted Attributes

• Administrative Costs
• History of Service

Hedonic
Attributes
 Attribution Model
Performance

Expectations
Satisfaction

Gap

(Negative Gap)

Feelings
 Attribution Model
Performance = Gap Model + Attributions

Expectations
Satisfaction

Gap

(Negative Gap)

Attributions Feelings

Focus
Stability
Control
• Attributions for Negative Gap
– Focus (Airline’s fault? Act of God?)
– Stability (One time event? Pattern of events?)
– Control (Is it being fixed? At what stage of repair?)
 Jet Blue Incident
• Attributions for Negative Gap
– Focus (Airline’s fault? Act of God?)
– Stability (One time event? Pattern of events?)
– Control (Is it being fixed? At what stage of repair?)

• Negative info
• Losses loom larger than gains (attitudes)
• Greater memory for bad than good (memory)
• More likely to spread bad news than good (repetition)
 Equity Model
Fairness = Gap Model + Fairness

Performance

Expectations
Satisfaction

Gap

Feelings
 Fairness

 Fair Trade Coffee

Production  American Apparel

 Saturn Cars
Sales  Starbucks Coffee
 Fairness

 Fair Trade Coffee

Production American Apparel
 Sunkist Tuna
Employees
 Apple Computers
Environmen
t

 Saturn Cars
Sales  Starbucks Coffee
• Local diary farmers

• Social causes
– donate 10% of pretax profits to charities
– hiring homeless people as workers

• Rainforest Crunch ice-cream

– nuts from tribal cooperative in Brazil