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Customer satisfaction
Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meet or surpass customer expectation. It is seen
as a key performance indicator within business and is part of the four perspectives
of a Balanced Scorecard.
Because are basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantity of research in this area has
recently been developed. Work done by Bart Allen and Brodeur between 1990
and 1998 defined ten 'Quality Values' which influence satisfaction behavior,
further expanded by Berry in 2002 and known as the ten domains of satisfaction.
These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency,
Ease of Access, Environment, Inter-departmental Teamwork, Front line Service
Behaviors, Commitment to the Customer and Innovation. These factors are
emphasized for continuous improvement and organizational change measurement
and are most often utilized to develop the architecture for satisfaction
measurement as an integrated model. Work done by Parasuraman, Zeithaml and
Berry (Leonard L) between 1985 and 1988 provides the basis for the
measurement of customer satisfaction with a service by using the gap between the
customer's expectation of performance and their perceived experience of
performance. This provides the measurer with a satisfaction "gap" which is
objective and quantitative in nature. Work done by Cronin and Taylor propose the
"confirmation/disconfirmation" theory of combining the "gap" described by
Parasuraman, Zeithaml and Berry as two different measures (perception and
expectation of performance) into a single measurement of performance according
to expectation. According to Garbrand, customer satisfaction equals perception of
performance divided by expectation of performance.
2. Rate(on a scale of 1 to 5) the amount you spend on cosmetics, from among the following
monthly categories,
5=SPEND THE MOST….1=SPEND THE LEAST
a. Lipcolor/gloss ___
b. Nail Paints ___
c. Eye Shadow/Mascara ___
d. Eye Liner/Kajal ___
e. Foundation/Compact ___
2. Does brand in cosmetics matter to you? Please answer for particular categories.
YES NO
a. LipColor
b. Nail Paints
c. Eye Shadow/Mascara
d. Eye Liner/Kajal
e. Foundation/Compact
11. Do you think Lakme’s prices are reasonable as compared to other companies?
a. Yes b. No c. Never bought
13. How has been your experience with the Lakme cosmetics that you ever purchased?
a. Poor b. Average c. Good d. Very Good
14. Do you buy Lakme most often as compared to other brands?
a. Yes b. No, please specify the brand you buy most often____________
15. How was your purchase experience, in terms of behaviour of the sales representative of
Lakme?
a. Poor b. Average c. Good d. Very Good e. Never bought
Satisfied customers increase the bottom line. Satisfied customers are usually low maintenance, keeping costs of
sales low. Dissatisfied customers use valuable employee time and create a bad reputation that has to be countered
with higher advertising costs.
Hence, paying close attention to customer satisfaction is just common sense. Intuit founder Scott Cook once said "If
you can't please your current customers, you don't deserve any new ones."
Research Methodology
Steiner Marketing's satisfaction studies are implemented with surveys that are executed either through the web, by
phone, fax, or mail.
Research Suggestion
To define marketing strategies, a satisfaction study is most efficient when combined with a loyalty study. Once
problematic persuasive attributes are identified, appropriate measures can be taken to address the issues. To evaluate
implementation efficiency, it is sufficient to measure the changes in satisfaction for the relevant attributes.
Depending on the number of issues that need to be addressed, a fully or partly customized study is needed.
Customer satisfaction is closely related to employee satisfaction. Hence, simultaneous customer and employee
testing yields extra information on which, what, how, and why issues need to be addressed.
A continuous improvement of your customers' happiness with your products and services is most important to
safeguard revenues and profits.
Executive summary
Within a short span of the last five-six years, the use of cosmetics by Indian
consumers has increased significantly with more and more women and men
taking greater interest in personal grooming, increasing disposable incomes,
changing life styles, influence of satellite television and greater product choice
and availability.
This cosmetics and personal care industry has been growing at an average rate of
20 per cent for the last few years. The growing Indian cosmetics market offers
promising prospects for international brands. The growth rate in the cosmetics
market reflects an increasing demand for beauty care products in India. Perfumes
and fragrances, skin care, and hair care products are some of the major segments
with promising prospects for U.S. companies.
The urban population with increasing purchasing power is the major force driving
demand for cosmetics and toiletries. India is a very price-sensitive market and
mass-market products constitute the major part of the cosmetics and toiletries
market. India’s import of cosmetics and toiletries and intermediate raw materials
is around US$ 120 million, of which the U.S. has a share of approximately
Research Methodology