Article Review: Customer Satisfaction and Retention
Stew Leonard have stated (that) the customer is always right, if the customer is ever wrong, the customer is always right. The statement is Disneyland’s policy to protect their customer’s right. This organization was really want to make sure that all the customer will satisfied after using their products, and will come again to their company. Too, Nike Company will make sure the customers didn’t just wear their Nike, but they experienced them. Why these companies are really caring about customer satisfaction and retention? In this manner, customer satisfaction and retention will bring a big impact on the company profits.
Traditionally, Customer satisfaction rather than retention has been the focus of research and managerial efforts. Customer satisfaction has been deemed directly to affect customer retention and companies’ market share (Rust and Subramanian, 1992). Services quality, service features and customer-complaint handling determine customer satisfaction in business. Services offering, such as extended hours of operation and competitive interest rate a lso play a role in determining satisfaction (Lévesque and McDougall, 1996). Later research, however, indicated that companies are more successful if they apply customer retention rather than customer satisfaction strategies (Knox, 1998).
What is satisfaction? Satisfaction is an overall customer attitude towards a service provider (Lévesque and McDougall,1996,p.14) or an emotional reaction to the difference between what customers anticipate and what they receive (Zineldin,2000) regarding the fulfillment of some need, goal or desire (Oliver,1999). A similar definition is providing by Gerp ...