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Topic: Purpose of Customer Relationship

Learning objectives

· To acquaint the students with the concept of customer satisfaction
· To establish different levels of customer satisfaction in the minds of students


Customer Satisfaction is primarily a post evaluative behavior that results from a comparison between pre-purchase expectations and actual performance of the product. A delightful experience is a process wherein customers receive fulfillment that exceeds the satisfaction of unexpected needs and wants. Dissatisfaction is an event wherein expectations are not met and thus expectations fall short of the real experiences.Satisfaction occurs when expectations are adequately met. However, satisfied customers may not turn out to be loyal customers. In this perspective, a finding of Xerox is very interesting. Xerox* revealed an important finding in a study of satisfaction. The company ranked satisfaction on a 5-point scale ranging from 1 to 5. 1 represented completely dissatisfied while 5 represented completely satisfied. To its astonishment company found that customers who opted for 4 as their level of satisfaction were six times more likely to switch to an alternative offering than those who opted for level 5 satisfaction category. Thus satisfaction may be there but the customer can unexpectedly change their loyalties or brand.


Satisfied customers often switch brands or buy from other companies. Do you agree or disagree with this notion? Substantiate your answer with valid arguments.

Learning outcomes

After completing this activity, the students will be able to:

  • To understand and identify the dynamics of customer satisfaction (Generalized outcomes)
  • To appreciate probable reasons for defected, dissatisfied customers and to understand the importance of contingency in a business situation. (Specific outcomes)


*First appeared in Frank R.Kardes, Consumer Behavior (Reading, Mass.: Addison-Wessley, 1999):110

Reappeared in Zikmund W. G.; Raymond. M.Jr; Gilbert F.W, Customer Relationship Management: Integrating Marketing, strategy and Information Technology (John Wiley & Sons, Inc., 2003):73

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Satisfaction relates to the results of a process; loyalty relates to a relationship—one that can actually survive a negative product or service process.”
—William Bleuel, Ph.D., survey services expert
“It’s time to realize that customer satisfaction is (only) a cornerstone in building the bridge between company and customer.” 
—William Bleuel, Ph.D., survey services expert
“To effectively drive business performance, companies need to move from the loose proxy of satisfaction to analysis that provides better insight into the business.”
Braun Consulting, “Customer Value Management”

On the surface, it seems like a logical business conclusion: Keep customers and employees satisfied, and an organization can expect to earn their long-term loyalty.

According to industry experts, that’s actually a huge leap of faith.

For starters, many people mistake customer satisfaction and vustudents.ning customer loyalty for each other—assuming that they’re essentially the same thing. Actually, they’re quite different, and it’s important for professionals to understand the difference,

satisfaction relates to the results of a process,” whether its the process of sales, service or product performance. In service industries, for example, satisfaction is often based on the on-site repair process.

Loyalty, on the other hand, is a much longer-term proposition. Loyalty relates to a relationship—one that can actually survive a negative product or service process. (Just think about how loyal parents remain to their children, even after the inevitable challenges.)

Truly loyal customers look beyond the occasional negative experience, continuing to purchase a company’s products or services. Not surprisingly, the converse is also true. As many studies have shown, satisfied customers do not necessarily become or remain loyal customers.


See the attached files or handouts 



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