A Good Example for Understanding Positioning Positioning is how the firm or brand wants to be perceived by consumers relative to its competitors. It is a very important topic in the study of marketing and usually forms the basis of a firm’s competitive strategy. Typically the firm structures its entire range of marketing mix …
Positioning Example: Banks versus Credit Unions Find Out More…
Is a High Customer Satisfaction Goal Worthwhile? The ongoing pursuit of high customer satisfaction (CSAT) scores may have a negative impact on the firm’s profitability over time. While there are substantial benefits stemming from high CSAT, it is important to balance both the needs of the firm and its customers. Because of the interplay …
High Customer Satisfaction Goals May Lead to Reduced Profitability Find Out More…
Overtime most customers will be “just” satisfied Many organizations find it frustrating that their customer satisfaction (CSat) scores reach a plateau and it becomes very difficult to achieve real increases in CSat. However, this is caused “naturally” and, overtime, all firms will find that their customer base primarily fits into the “just satisfied” range …
Is Pursuing High Customer Satisfaction Worthwhile? The relationship between high customer satisfaction, leading to increased customer retention (loyalty), resulting in increased long-term profitability is generally well supported by academic research and commercial practice. But there are situations and industries where this logical relationship may not hold true. Therefore, when reviewing customer satisfaction issues it …
The High Customer Satisfaction and Low Profitability Paradox Find Out More…
What is a “Value Proposition”? A key aspect of a successful marketing strategy is the clear definition and communication of a sought-after value proposition. A good way to think about the firm’s value proposition is consider what is different and beneficial about the firm’s (or brand’s) offering/s in the marketplace. Over time, firms/brands will …
Customer Satisfaction (CSat) and Customer Value are Different Concepts in Marketing Customer satisfaction and value are both fundamental concepts in the understanding of marketing. It is important to note that while they are highly interrelated, they also operate independently. Essentially, value is when a consumer perceives that they will get a good deal from …
What is the difference between customer satisfaction and customer value? Find Out More…
Don’t Under-promise and Over-deliver! It’s a common cliché to under-promise and over-deliver, which even some marketing consultants and professional speakers have tended to suggest. The problem with this approach is that it is based on a very simplistic understanding of the customer satisfaction model and is a very poor strategic choice for a firm. …
Why under-promising and over-delivering is a poor strategy Find Out More…
About the SERVQUAL (or RATER) Model (Note: This model is also referred to as the RATER model, which stands for the five service factors it measures, namely: reliability, assurance, tangibles, empathy and responsiveness.) As is indicated by the name of this model, SERVQUAL is a measure of service quality. Essentially it is a form …
What are the Limitations of CSat? (Customer Satisfaction) As we know, there are many benefits of customer satisfaction and many firms strive to maximize their CSat scores. In service firms in particulars, customer satisfaction is often their key marketing goal (and most significant marketing metric) that is regularly tracked and assessed. However, there are a …
Introduction to the Disconfirmation Model of Consumer Satisfaction Essentially customer satisfaction is the consumer’s evaluation of how well the firm (usually a service firm) has lived up to their promises. As outlined in the general discussion of customer satisfaction, consumers compare their initial expectations of likely value against their perception of the actual value …
Disconfirmation Model of Customer Satisfaction Find Out More…
