PROJECT REPORTON

CUSTOMER SATISFACTION(BUSINESS RESEARCH METHODS)

APRIL: - 2013SESSION: - 2012 - 2013

Submitted To: Submitted By:Ms. Sugand Ankit GuptaAssistant Professor MBA IIDepartment of Management Studies 28401

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ABSTRACT

MY project report gives brief study, on what are Customer Satisfaction and the techniques of

achieving Customer Satisfaction. It focuses on customer’s perceptions. Many firms are interested

in understanding what their customers thought about their shopping or purchase experience,

because finding new customers is generally more costly and difficult than servicing existing or

repeat customers. Such researches provide a wider scope to the firms in the terms of high

customer satisfaction.

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TABLE OF CONTENTS

S.No. Particulars Page No.

1. INTRODUCTION

- Meaning of Customer Research

- Why Organizations Focus on Customer

Satisfaction?

- Need of Customer Research

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2. Business Techniques of Customer Research 5

3. Why Measure the Customer Satisfaction? 6

4. Customer Satisfaction Measurement 7

5. Need for Measuring Customer Satisfaction 8

6. Review of Literature 9

7. Research Methodology 10

8. Bibliography 11

INTRODUCTION

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CUSTOMER SATISFACTION

“Customer Satisfaction is a business term of how the products and the services supplied

by the company meet or surpass the customer expectation. It is the key performance

indicator within the business.”

…Berlin Asong

WHY ORGANIZATIONS FOCUS ON CUSTOMER SATISFACTION?

Businesses monitor customer satisfaction in order to determine how to increase their

customer base, customer loyalty, revenue, profits, market share and survival. Although

greater profit is the primary driver, exemplary businesses focus on the customer and

his/her experience with the organization.

They work to make their customers happy and see customer satisfaction as the key to

survival and profit. Customer satisfaction in turn hinges on the quality and effects of their

experiences and the goods or services they receive.

NEED OF CUSTOMER SATISFACTION

The most important asset of any organization is its customers.

Satisfied customers pay their bills promptly which greatly improves cash flow – the

lifeblood of any organization.

BUSINESS TECNIQUES OF CUSTOMER SATISFACTION

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One of the key customer satisfaction techniques is the need to provide front line

employees with the ability to respond to customer situations quickly without the need to

‘ask for permission’.

Innovation drives customers' satisfaction. As customers' needs keep changing, an

innovation-driven company is capacitated to exceed customers' expectations.

To provide after sale services.

Listen actively and carefully.

Anticipate that the customer will be asking questions. They may be easy, they be hard.

But encourage them anyway. If you cannot provide an answer, promise to find out the

answer from someone who can.

Be patient, look from the customer's point of view and work from there. This point of

view will always give you the best outlook on the situation.

Always keep a smile on your face when dealing with customers which can lead to

customer satisfaction. This positive attitude can rub off and turn a potentially negative

situation into a positive experience.

WHY MEASURE THE CUSTOMER SATISFACTION?

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Customer satisfaction is tied directly to profitability. Well-established research by Bain &

Company found that, for many companies, an increase of 5% in customer retention can

increase profits by 25% to 95%. The same study found that it costs six to seven times

more to gain a new customer than to keep an existing one.

CUSTOMER SATISFACTION MEASUREMENT

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A basic and effective base line customer satisfaction survey program should focus on

measuring customer perceptions of how will the company delivers on the critical success

factors and dimensions of the business as defined by the customers.

Organizations need to retain existing customers while targeting non-customers.

Measuring customer satisfaction provides an indication of how successful the

organization is at providing products and/or services to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the state of

satisfaction will vary from person to person and product/service to product/service. 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 factors the customer, such as other

products against which the customer can compare the organization's products.

FOR EXAMPLE:

Service Promptness

Courtesy of Staff

Responsiveness

Understanding the customer problem, etc.

The findings of the company performance should be analyzed both with all customers and by

key segments of the customer population. The essential starting point for Customer Satisfaction

Measurement (CMS) is exploratory research. Since satisfaction is about an organization’s ability.

To meet customer requirement one has to start by clarifying with customers exactly what those

requirements are. This is done through exploratory research using focus groups or one to one

depth interviews.

Two main factors determine the accuracy of CMS. The first is the asking the right question and

the second is the asking them to the right people sample of customers which accurately reflects

the customer base.

Three things decide the accuracy of a sample. They are:

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1. It must be representative.

2. It must be randomly selected.

3. It must be adequate enough.

NEED FOR MEASURING CUSTOMER SATISFACTION

“Customers are too good to lose

---------- Lets keep them happy!

“Customer is the king.”

“Marketing starts with the customer and ends the customer”.

…Peter Drucker.

So no organization, small or big ignores the customers.

“Earth is not the center of universe but revolves around the Sun”.

…Copernicus.

Similarly, we have come to believe that business firm is not the center of economic

universe but revolves around the customer.

REVIEW OF LITERATURE

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About customer satisfaction

Customer satisfaction occurs when the experience obtained from transaction match

expectation. Customer may forget experience that match expectation although, customers

will generally notice and also remember those experience that deviated from expectation.

Methodologies

The Kano model is a theory of product development and customer satisfaction developed

in the 1980s by Professor Noriaki Kano that classifies customer preferences into five

categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model

offers some insight into the product attributes which are perceived to be important to

customers. Kano also produced a methodology for mapping consumer responses to

questionnaires onto his model. SERVQUAL or RATER is a service-quality framework

that has been incorporated into customer-satisfaction surveys (e.g., the revised

Norwegian Customer Satisfaction Barometer) to indicate the gap between customer

expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known for

its top-box approach and automotive industry rankings. J.D. Power and Associates'

marketing research consists primarily of consumer surveys and is publicly known for the

value of its product awards.

Other research and consulting firms have customer satisfaction solutions as well. These

include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the

Stages of Excellence framework and which helps define a company’s status against eight

critically identified dimensions. For Business to Business (B2B) surveys there is the Info

Quest box. This has been used internationally since 1989 on more than 110,000 surveys

(Nov '09) with an average response rate of 72.74%. The box is targeted at "the most

important" customers and avoids the need for a blanket survey.

RESEARCH METHODOLOGY

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INTRODUCTION

Research is an art of scientific investigation through search for new facts in any branch of

knowledge. It is a moment from known to unknown.

Research always starts with a question or a problem.

Its purpose is to find answers to questions through the application of the scientific

method.

It is a systematic and intensive study directed towards a more complete knowledge of the

subject studied.

“My Research based on Descriptive Research.”

Descriptive research is also called Statistical Research. The main goal of this type of research is

to describe the data and characteristics about what is being studied. The idea behind this type of

research is to study frequencies, averages, and other statistical calculations. Although this

research is highly accurate, it does not gather the causes behind a situation. Descriptive research

is mainly done when a researcher wants to gain a better understanding of a topic for example, a

frozen ready meals company learns that there is a growing demand for fresh ready meals but

doesn’t know much about the area of fresh food and so has to carry out research in order to gain

a better understanding. It is quantitative and uses surveys and panels and also the use of

probability sampling.

BIBILOGRAPHY

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http://projects.students3k.com/mba-project-on-customer-satisfaction.html

http://thecustomerinstitute.blogspot.in/2010/03/kano-model-for-measuring-customer.html

http://www.prnewswire.com/news-releases/jd-power-and-associates-reports-overall-

customer-satisfaction-with-property-claims-experience-remains-high-despite-a-second-

consecutive-year-of-historic-number-of-settlements-200870411.html

http://www.wikipedia.org/

http://www.google.co.in/

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