Chapter 1 [service, satisfaction & loyalty] Flashcards
Customer Satisfaction
Customer satisfaction generally is defined as the customer’s fulfilment in response to a consumption experience
Customer service
Customer service is anything a service provider does for the customer that enhances the customer experience
2 things that enhances customer service
Spending money
Taking action in short supply
Examples of customer service
- Calling customer by name
- Easy return policy
- On-time delivery
- Showing the customer you care
- Well explained instructions
- Courtesy
Customer loyalty major 2 approaches to define and measure loyalty
Behaviour
Attitude
Behavioural loyalty is measured by the customer purchasing behaviour
What’s the 3 elements?
- Recency of purchase (Time) [R]
- Frequency of purchase (No. of purchase in a period of time)[F]
- Monetary value of purchases [M]
Attitudinal loyalty is measured by referring to the beliefs, feelings and purchasing intention of customers.
True loyalty
Latent loyalty
Spurious loyalty
True loyalty
High level of repeat buying
Strong relative attitude
Latent loyalty
Strong relative attitude
Little repeat purchasing
Spurious loyalty
High level of repeat purchase
Not accompanied by strong attitude [inertia, high switching costs]
Five basic needs [understanding the needs and requirements of customers]
Service Price Product quality Action Appreciation
Service
Expect the service they think is appropriate for the level of purchase they are making
Example = buying a small loaf of bread ~ small service
Buying a house ~ large service
Price
Customers are not looking for the cheapest product but products that satisfies their need in a most value for money manner.
Product Quality
Product that they purchase to be durable and functional until they decided to change them
Action
Customers need actions when a problem or queries arises.
Example = flexible return policy, toll-free customer service line
