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How Can Customer Satisfaction Be Used As a Marketing Tool in an E-Business?

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❶If customer satisfaction can be defined as the feeling a person experiences when an offering meets his or her expectations, then there are two critical ways to improve customer satisfaction. Skip to main content.

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Definition: Customer Satisfaction
14.3 Customer Satisfaction
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E-business owners improve business relationships by calling customers immediately after shipping issues occur. Small e-business owners recognize that customer satisfaction is key to continued business success. Satisfied customers often provide repeat business, referrals and word-of-mouth advertising. E-business owners can use customer satisfaction as a marketing tool in much the same way it's used for other businesses.

You learn from it and promote it to improve your business, products and services with the goal of current and potential customers noticing and reacting positively. Whether customers are satisfied or dissatisfied with your business, any feedback they provide about their experience or the products and services they want can help you with your marketing strategy.

Customer feedback can show you the types of marketing efforts that are working and the areas of your business and marketing you need to improve to increase customer satisfaction. Small e-business owners solicit feedback in a variety of ways including email, surveys, social networks, forums, and blog comments. Feedback in the form of solicited or unsolicited detailed praise, or testimonials, is a valuable marketing tool that can help you to attract new customers, retain current customers and build your reputation.

Shoppers often actively research several e-businesses, products and services online before making a purchase. Testimonials posted as reviews on your website, partner sites and in e-newsletters, act as referrals that outline reasons why shoppers can trust your business. These actions can improve customer opinion, business practices and create positive advertising. A small e-business owner addresses dissatisfaction by following up with a customer via phone or email within a week after a sale, or immediately after receiving or hearing about a complaint, to attempt to resolve issues or ask for customer feedback.

Another way you can use satisfaction is by satisfying customers with more than your product offerings. This metric is defined as "The percentage of surveyed customers who indicate that they would recommend a brand to friends.

This can be a powerful marketing advantage. Further, they can hurt the firm by making negative comments about it to prospective customers.

Willingness to recommend is a key metric relating to customer satisfaction. In literature antecedents of satisfaction are studied from different aspects. The considerations extend from psychological to physical and from normative to positive aspects. However, in most of the cases the consideration is focused on two basic constructs as customers expectations prior to purchase or use of a product and his relative perception of the performance of that product after using it.

Expectations of a customer on a product tell us his anticipated performance for that product. As it is suggested in the literature, consumers may have various "types" of expectations when forming opinions about a product's anticipated performance. For example, four types of expectations are identified by Miller While, Day indicated among expectations, the ones that are about the costs, the product nature, the efforts in obtaining benefits and lastly expectations of social values. Perceived product performance is considered as an important construct due to its ability to allow making comparisons with the expectations.

It is considered that customers judge products on a limited set of norms and attributes. Olshavsky and Miller and Olson and Dover designed their researches as to manipulate actual product performance, and their aim was to find out how perceived performance ratings were influenced by expectations. These studies took out the discussions about explaining the differences between expectations and perceived performance.

In some research studies, scholars have been able to establish that customer satisfaction has a strong emotional, i. Especially for durable goods that are consumed over time, there is value to taking a dynamic perspective on customer satisfaction. Within a dynamic perspective, customer satisfaction can evolve over time as customers repeatedly use a product or interact with a service. The satisfaction experienced with each interaction transactional satisfaction can influence the overall, cumulative satisfaction.

Scholars showed that it is not just overall customer satisfaction, but also customer loyalty that evolves over time. It is negatively confirmed when a product performs more poorly than expected.

There are four constructs to describe the traditional disconfirmation paradigm mentioned as expectations, performance, disconfirmation and satisfaction. In operation, satisfaction is somehow similar to attitude as it can be evaluated as the sum of satisfactions with some features of a product. Churchill and Suprenant in , evaluated various studies in the literature and formed an overview of Disconfirmation process in the following figure: Organizations need to retain existing customers while targeting non-customers.

It can be, and often is, measured along various dimensions. A hotel, for example, might ask customers to rate their experience with its front desk and check-in service, with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a holistic sense, the hotel might ask about overall satisfaction 'with your stay. As research on consumption experiences grows, evidence suggests that consumers purchase goods and services for a combination of two types of benefits: Hedonic benefits are associated with the sensory and experiential attributes of the product.

Utilitarian benefits of a product are associated with the more instrumental and functional attributes of the product Batra and Athola The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products.

Work done by Parasuraman, Zeithaml and Berry Leonard L [11] between and provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance.

This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. The usual measures of customer satisfaction involve a survey [12] using a Likert scale.

The customer is asked to evaluate each statement in terms of their perceptions and expectations of performance of the organization being measured. Good quality measures need to have high satisfaction loadings, good reliability, and low error variances.

Definitions of Customer Satisfaction

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Customer satisfaction is an abstract concept and involves such factors as the quality of the product, the quality of the service provided, the atmosphere of the location where the product or service is purchased, and the price of the product or service.

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If customer satisfaction can be defined as the feeling a person experiences when an offering meets his or her expectations, then there are two critical ways to improve customer satisfaction. The first is to establish appropriate expectations in the minds of customers.

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Definition: Customer Satisfaction. Customer satisfaction measures how well a firm is able to meet the expectations of customers. Customer satisfaction is a key concept in marketing, as a firm cannot retain its customers unless it has highly satisfied customers. Customer Satisfaction Definition. Customer satisfaction is a term used to describe a scenario when an exchange meets the needs and expectations of its user. It captures the provision of goods or services that fulfil the customer’s expectations in terms of quality and service in relation to the price paid.

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Customer satisfaction is a consumer’s perception of how well an organization has delivered on their communicated value proposition. The key points to note about this definition are: Customer satisfaction is the perception of a consumer. Definition: Customer satisfaction indicates the fulfillment that customers derive from doing business with a firm. In other words, it’s how happy the customers are with their transaction and overall experience with the company.