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Retaining Customers:

Managing Quality

Customer's Perspective of Quality

Winning Customers' Loyalty by Meeting and Exceeding Their Expectations

by Vadim Kotelnikov & Ten3 East-West

"Kodak sells film, but they don't advertise film. They advertise memories" - Theodore Levitt

 

Customer Satisfaction: Main Benefits1

  1. Customers stay with the company longer

  2. Customers deepen their relationship with company

  3. Customers demonstrate less price sensitivity

  4. Customers recommend company's products or services to others

The Instrumental Component of Customer Value Derives from:2

  1. Functional features of the product

  2. Product quality

  3. Timely delivery

Eight Dimensions of Product Quality

by David Garvin

  1. Performance - operating characteristics (speed, comfort, ease of use, and so on); for multiple performance features, the relative importance of each

  2. Features - extras, add-ons, or gimmicks that enable a customer to somewhat customize a product

  3. Reliability - the likelihood that the product will perform as expected and not malfunction within a given time period

  4. Conformance - the degree to which the product satisfies or conforms to pre-established standards

  5. Durability - the length of time, or extent of use, before the product deteriorates and must be replaced; durability is a function of the product's operating environment and reliability

  6. Serviceability - the speed, ease, and convenience of getting or making maintenance work or repairs and the courtesy and competency of service people

  7. Aesthetic - the look, sound, smell, feel, or taste of the product based on personal taste; though subjective, some aesthetic judgments tend to be common

  8. Perceived Value - subjective opinions about the product based on images or attitudes formed by advertising and/or the reputation of the producer

Customer Expectations

Customer is defined as anyone who receives that which is produced by the individual or organization that has value. Customer expectations are continuously increasing. Brand loyalty is a thing of the past. Customers seek out products and producers that are best able to satisfy their requirements. A product does not need to be rated highest by customers on all dimensions, only on those they think are important.

Customer Satisfaction - a Critical Component of Profitability

Customer loyalty is a major contributor to sustainable profit growth. To achieve success, you must make superior service second nature of your organization. A seamless integration of all components in the service-profit chain - employee satisfaction, value creation, customer satisfaction, customer loyalty, and profit and growth - links all the critical dynamics of top customer service...More

 

Bibliography:

  1. "Extreme Management", Mark Stevens, 2001

  2. "TQM - Creating a Continuously Improving Organisation", W.E. Cole and J.W. Mogab, 2000

Founder - Vadim Kotelnikov. © Copyright by Ten3 East-West.  | Copyright | Glossary | Links | Site Map |

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