Below is a complete, detailed, explanation of CUSTOMER SATISFACTION, written in clear paragraphs, with definitions, importance, models, factors, examples, and case studies.
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Customer Satisfaction – Meaning and Detailed Explanation
Customer satisfaction refers to the overall evaluation a customer makes after purchasing or consuming a product or service. It measures how well a company meets or exceeds customer expectations, needs, and desires. In simple terms:
Customer Satisfaction = Customer’s Perception of Performance – Customer’s Expectations
If performance is higher than expectations → customer is highly satisfied.
If performance matches expectations → customer is satisfied.
If performance is lower than expectations → customer is dissatisfied.
Customer satisfaction is crucial because it directly affects loyalty, retention, profitability, and brand success.
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Characteristics of Customer Satisfaction
1. Subjective
It varies from customer to customer.
Example: Two people eating the same dish may rate it differently.
2. Psychological
It involves emotions, perception, and personal feelings.
Example: A rude salesperson can reduce satisfaction even if the product is good.
3. Comparative
Based on comparison with expectations or experiences with competitors.
Example: Comparing Ola with Uber.
4. Dynamic
Expectations change, so satisfaction level also changes with time.
Example: Customers now expect fast, free delivery.
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Factors Affecting Customer Satisfaction
1. Quality of Product/Service
Customers compare the actual performance with what was promised.
Example:
If a mobile phone promises a 24-hour battery but lasts only 6 hours → dissatisfaction.
2. Price
Customers expect value for money.
Example:
High-priced hotel with average food leads to dissatisfaction.
3. Service Quality Dimensions (SERVQUAL Model)
Reliability: Doing what is promised
Responsiveness: Quick service
Assurance: Employee knowledge
Empathy: Caring attitude
Tangibles: Physical environment
4. Customer Expectations
Influenced by advertising, online reviews, word-of-mouth, past experience.
