Consumer Satisfaction in Consumer Durables-A Case Study On LG, Videocon & Philips

Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS.
CONSUMER SATISFACTION IN CONSUMER DURABLES-A CASE STUDY ON LG ,VIDEOCON & PHILIPS
EXECUTIVE SUMMARY
It is with a feeling of great satisfaction that I present this Project on CONSUMER SATISFACTION IN CONSUMER DURABLES-A CASE STUDY ON LG, VEDIOCON & PHILIPS for all of you. I have given the details about the customer satisfaction Strategies in general and Analysis of 3 Big consumer durables companies, LG, VIDEOCON AND PHILIPS. My aim in this Project is to offer a deep enough understanding of why customer satisfaction is important in todays globalized scenario. Today, many companies find themselves in a rapid state of transition customers are giving these companies powerful wakeup calls-usually with their money as the alarm clock-that offering the else product, services or prices alone may not be enough to ensure loyalty. As a result, companies have tried to enough to ensure loyalty. As a result, companies have tried to programs accordingly. Often, we assume that customers are satisfied and sales will increase, but the concept and drive for satisfied customers generally have proven far less than satisfactory for companies seeking higher sales and profits, greater quality levels and more cultural cohesion among staff. My objective of this project was to study the following: 1. 2. 3.
4.
customer satisfaction Purposes and Importance. Philosophy of customer satisfaction Analysis of consumer satisfaction in consumer durables with respect to color
TV.
5.
Strategies for improving customer satisfaction.
Chapter no. 1 1.01 1.02 1.03 1.04 2 2.01 2.02 2.03 2.04 2.05 2.06 3 4 4.01 4.02 About the project. Need Objectives. Scope. Research methodology. Literature review. Introduction
Topic
Page no.
01 02 02 03
04-19 20-30 31-40 41-53 54-65 66-70 71-79
Importants of customer satisfaction Theories of customer satisfaction Satisfaction measurement: overall measures of satisfaction 26 inventive principles in customer satisfaction enhancement Magical words create customer satisfaction Case study Conclusion Observations & findings. Suggestions & conclusion. Bibliography & Webliography. Annexure
80-83 84-87 88 89-92
CHAPTER 1 ABOUT THE PROJECT

(1.01) NEED The need to determine customer satisfaction will vary somewhat by the competitive circumstances of a given industry. In intense consumer-focused activities, measuring customer satisfaction is critical. But every company in every industry can benefit by examining the needs of their customers. Some of the areas where improvement may be expected include:
Better determination of customer uses and needs.
Identification of problems with customer services.
A sharper focus on areas having the greatest need for improvement.
Gaining insight for new products and/or service offerings.
To meet these objectives many companies strives to be a fair employer encouraging a contented and happy workforce by ensuring all staff are well trained and motivated.
(1.02) OBJECTIVES.
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 1. Customers will be treated professionally, efficiently and with courtesy at all times. 2. All enquiries will be responded to the same day they are received. 3. Supply quality products at competitive prices. 4. Endeavour to dispatch all stock items within 24 hours, within the limits of Their viability. 5. Guarantee to give full attention to personal service and customer satisfaction. Hence by this the company can gain high level of customer satisfaction and can achieve the high profitability with increase in sales and also customer loyalty.
(1.03) SCOPE OF THE STUDY Customer satisfaction is very important a company can gain a high success by achieving customer satisfaction. A very satisfied customer is a loyal with that of companys product And can generate positive word of mouth and also can influence others to purchase. In this way the companys sales will also increase and there by there profitability. Customers are the main object of the business and hence there satisfaction is a need of hour in todays competitive environment. Todays customers are well educated and more conscious about the product which they buying. And hence to satisfy these customers is a very challenging task. Hence every company have to developed there own prompt customer service centre trough which they can provide highly effective service and also have to find out innovative strategies.
(1.04) RESEARCH METHODOLOGY USED FOR THE PROJECT

1. Primary data has been collected by visiting banks and meeting the concerned managers through a questionnaire. The format of questionnaire is provided in the project. 2. Secondary data has been collected from various books, magazines, journals & newspaper articles. Thus for this libraries like e-banking challenges and opportunities.
CHAPTER:-2 LITERATURE REVIEW.

(2.01) INTRODUCTION CUSTOMER A customer is the most important visitor on your premises; He is not dependent on us. We are dependent on him; He is not an interruption on our work; He is the purpose of it; He is not an outsider on our business; He is a part of it; we are not doing him a favors by serving him; He is doing us a favors by giving us an opportunity to do so. - Mahatma Gandhi A customer is someone who makes use of or receives the products or services of an individual or organization. The word historically derives from "custom," meaning "habit"; a customer was someone who frequented a particular shop, who made it a habit to purchase goods there, and with whom the shopkeeper had to maintain a relationship to keep his or her "custom," meaning expected purchases in the future.
Customer needs may be defined as the goods or services a customer requires to achieve specific goals. Different needs are of varying importance to the customer. Customer expectations are influenced by cultural values, advertising, marketing,
and other communications, both with the supplier and with other sources. Both customer needs and expectations may be determined through interviews, surveys,
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Conversations, data mining or other methods of collecting information. Customers at times do not have a clear understanding of their needs. Assisting in determining needs can be a valuable service to the customer. In the process, expectations may be set or adjusted to correspond to known product capabilities or service.
Thus, Groups or individuals who have a business relationship with the organization those who receive and use or are directly affected by the products and services of the organization. Customers include direct recipients of products and services, internal customers who produce services and products for final recipients, and other organizations and entities that interact with an organization to produce products and services.
Today, many companies find themselves in a rapid state of transition customers are giving these companies powerful wakeup calls-usually with their money as the alarm clock-that offering the else product, services or prices alone may not be enough to ensure loyalty. As a result, companies have tried to enough to ensure loyalty. As a result, companies have tried to programs accordingly. Often, we assume that customers are satisfied and sales will increase, but the concept and drive for satisfied customers generally have proven far less than satisfactory for Companies seeking higher sales and profits, greater quality levels and more cultural cohesion among staff.
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. SATISFACTION Kotler (2000) defined satisfaction as: a persons feelings of pleasure or disappointment resulting from comparing a product are perceived performance (or outcome) in relation to his or her expectations. Hence, The fulfillment or gratification of a desire, need, or appetite. Pleasure or contentment derived from such gratification. A source or means of gratification.
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. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. The overall attitude a person has about a product after it has been purchased Customer satisfaction is the key to success. Getting your customer to tell you whats good about your products or services, and where you need improvement, helps you to ensure that your business measures up to their expectations.
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Customer centered companies are adept at building customers, not just products; they are skilled in market engineering not just product engineering. Too many companies think that it is the marketing or sales departments job to acquire and manage customers, but Infact; marketing is only one factor in attracting and keeping customers.
The best marketing department in the world cannot sell products that are poorly made or fail to meet a need. The marketing department can be effective only in companies whose employees have implemented a competitively superior customer value-delivery system.
Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyers expectations. In general satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectations.
If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted.
The link between customer satisfaction and customer loyalty is not proportional. Suppose customer satisfaction is rated on a scale from one to five. At a very low level of customer satisfaction, customers are likely to abandon the company and even bad mouth it. At levels two or four customers
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. are fairly satisfied but still find it easy to switch when a better offer comes along. At level five, the customer is Very likely to repurchase and even spread good word of mouth about the company.
High satisfaction or delight creates an emotional bond with the brand or company, not jut a rational preference. Many companies found that completely satisfied customers are six times more likely to repurchase products over the following 18 months than its very satisfied customer. Customer satisfaction is the extent to which the desires and the requirements of the clients are met.
A service is considered satisfactory if it fulfils the needs and expectations of the customers. Measuring this satisfaction is an important element of providing better, more effective and efficient services. When clients are not satisfied with a service as provided, the service is neither effective nor efficient. This is especially important in relation to the provision of public services.
The level of customer satisfaction with services is an important factor in developing a system of service provision that is responsive to clients needs while minimizing costs and time requirements and maximizing the impact of the services on target populations.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. CUSTOMER PERCEIVED VALUE Customer perceived value (CPV) is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering relative to perceived alternatives.
From the time marketing came into existence, companies have faced the toughest challenge to attract customers. Today, the same companies face the challenge to convince the customers to take their wallet share. This can only happen if the customer perceives that the value of the product being sold to him is worth more than what he thinks of the product.
Example:-Assume the cost of producing product X (cost to manufacture) is C1 and the price the manufactures sells at is P1. Assume the customer perceives that the value of this product is P2 (P2>P1). Remember only if P2 is greater than P1 will the customer buy the product and the difference (P2-P1) will be termed as the customer perceived value. It is also called "customer surplus".
The difference (P1-C1) is the "manufacturer's surplus"
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. TOTAL CUSTOMER COST It is the bundle of cost that customers expect to incur in evaluating, obtaining, using and disposing of the given market offering.
For example: You, as a buyer for a large consumer durable company want to buy a color TV from X or Y. The competing salespeople carefully describe their respective offers. You would like the TV to deliver certain levels of reliability, durability, performance, and resale value.
You also perceive differences in the accompanying services- delivery, training and maintenance and decide that X provides better service and more knowledgeable and responsive personnel. Finally, you place higher value on Xs corporate image. You add up all the Values from these four sources product, service, personnel and image-and perceive X as delivering greater customer value.
Will you buy the Xs CTV?? Not necessarily.
You might also examine your total cost of transacting with X versus Y, which consists of more than the money. Total customer cost includes the buyers time, energy, and psychic cost. The buyer evaluates these elements together with the monetary cost to form a total customer cost
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Total customer cost is too high in relation to total customer value X deliver. If it is, then you might choose Ys CTV. You will buy form whichever source you think delivers the highest perceived customer value.
X can improve its offer in three ways: 1. It can increase total customer value by improving product, services, personnel and/or image benefits.
2. It can reduce the buyers monetary costs by reducing the time, energy, and psychic costs.
3. It can reduce its products monetary cost to the buyer. Buyers operate under various constraints and occasionally make choices that give more weight to their personnel benefit than to the companys benefit. However, customer perceived value is a useful framework that applies to many situations and yields rich insights.
Implications of Perceived Value: 1. First, the seller must assess the total customer value and total customer cost associated with each companys offer in order to know how his or her offer rates in the buyers mind. 2. Second, the seller who is at a customer perceived value disadvantage has two alternatives: To increase total customer or
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. To decrease total customer. The former calls for strengthening or augmenting the offers product, services, personnel and image benefits. The latter calls for reducing the buyers costs by reducing the price, simplifying the ordering and delivery process, or absorbing some buyer risk by offering a warranty
CUSTOMER EXPECTATIONS How do buyers form their expectations? From past buying experience, friends and associates advice and marketers and competitors information and promises. If marketers raise expectations too high, the buyer is likely to be disappointed.
However, if the company sets expectations too low, it wont attract enough buyers. Today, some of the companies are raising expectations and delivering performance to match. These companies are aiming for TCS- total customer satisfaction.
Here are six customer expectations that are the cornerstone of outstanding service and increased sales:
1.
Customers Expect Solid Information.
Providing your customers with tangible information lets them know that you value them and respect their ability to make sound decisions. When they feel that, theyre respected; they're more open and willing to do more business with your company. One way to ensure they receive beneficial information is to ask probing questions
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. during your conversations to uncover needs they may not have voiced. For instance, ask about the objectives they've set for their company, and the problems associated with attaining them.
2.
Customers Expect Options.
Customers don't want to be told that there's only one way or one solution. They'll respond positively when they're given options. Options are essential because they create dialogue and discussion. Open dialogue can lead to more sales.
3.
Customers Expect Single Source Service.
Customers don't want to be transferred to every unit of your business to have their problems solved. They want to be able to do business with you with the slightest amount of discomfort. You must be easy to do business with. This means taking ownership of our customers requests, problem, etc., and ensuring that their needs are met to their satisfaction.
4.
Customers Expect Superior Communication.
They may not be the best communicators, but they expect communication excellence from you. So, if you tell them that you will call them back at a certain time, make sure that you do. Your responsiveness will create a bond of trust, and a communication comfort level.
5.
Customers Expect Consulting.
As the expert on your business' products and services, you are your customer only contact to determining how to use your product and/or service to get the best RETURN ON INVESTMENT (ROI). You must take the time to ask pertinent
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. questions aimed at finding how your customer is using your product and/or service. This will demonstrate your ability and knowledge as well as your intent to spend the necessary time with them to meet their specific needs.
6.
Customers Expect A Seamless Relationship.
The best businesses are those that believe in going the extra mile for their customers. They know that they have to reinforce why it's in the customers best interest to continue doing business with them. Building a relationship with your customers built on mutual trust and respect takes time and effort, but remembers retention is the best method of building profit. Stay in touch with your customers by keeping them informed of new events, product updates, passing on information that may be of interest, calling to say hello, etc.
Meeting these six customer expectations will help you gain customer loyalty, and customer loyalty will keep you in business!
In short,
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. When I'm a Customer, I want . . . 1. To be taken seriously 2. Competent, efficient service 3. Anticipation of my needs 4. Explanations in my terms 5. Basic courtesies 6. To be informed of the options 7. Not to be passed around 8. To be listened to (and heard) 9. Dedicated attention 10. Knowledgeable help 11. Friendliness 12. To be kept informed 13. Follow-through 14. Honesty 15. Feedback 16. Professional service 17. Empathy 18. Respect
Hence we can conclude from this that Delivering quality service consistently gives a competitive edge to organizations. It requires an understanding of customer expectations and the types of expectations. Further, knowledge of factors influencing the desired service level, adequate service level, and zone of tolerance will help organizations consistently meet and exceed service expectations of customers.
While evaluating service offered by an organization, customers compare perceived quality of service with the expected quality of service.
Therefore, organizations should have knowledge about customer perceptions and the influence of factors such as service encounter, service evidence, image of the service organization, and price of the service on customer perceptions.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Organizations should also attempt to understand the various types of service encounters like remote, face-to-face, and phone encounters to be able to understand customer perceptions. They should examine the factors that influence customer satisfaction/dissatisfaction, like recovery, adaptability, spontaneity, and coping and innovate strategies to influence customer perceptions.
DELIVERING HIGH CUSTOMER VALUE As delivering greater customer value. The key to generating high customer loyalty is to deliver high customer value.
According to Michael Lanning, a company must deign a competitively superior value proposition aimed at a specific market segment, backed by the superior value-delivery system.
The value proposition consists of the whole cluster of benefits the company promises to deliver; it is more then the core positioning of the offering. CUSTOMER LIFETIME VALUE In marketing, customer lifetime value (CLV), lifetime customer value (LCV), or lifetime value (LTV) and a new concept of "customer life cycle management" is the present value of the future cash flows attributed to the customer relationship.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales
CALCULATING CUSTOMER LIFETIME VALUE Customer lifetime value has intuitive appeal as a marketing concept, because in theory it represents exactly how much each customer is worth in monetary terms, and therefore exactly how much a marketing department should be willing to spend to acquire each customer. In reality, it is difficult to make accurate calculations of customer lifetime value due to the complexity of and uncertainty surrounding customer relationships.
The specific calculation depends on the nature of the customer relationship. Customer relationships are often divided into two categories. In contractual or retention situations, customers who do not renew are considered "lost for good". Magazine subscriptions and car insurance are examples of customer retention situations. The other category is referred to as customer migrations situations. In customer migration situations, a customer who does not buy (in a given period or from a given catalog) is still considered a customer of the firm because she may very well buy at some point in the future. In customer retention situations, the firm knows when the relationship is over. One of the challenges for firms in customer migration situations is that the firm may not know when the relationship is over (as far as the customer is concerned).
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Most models to calculate CLV apply to the contractual or customer retention situation. These models make several simplifying assumptions and often involve the following inputs:
Churn rate the percentage of customers who end their relationship with a
company in a given period. One minus the churn rate is the retention rate. Most models can be written using either churn rate or retention rate. If the model uses only one churn rate, the assumption is that the churn rate is constant across the life of the customer relationship.
Discount rate the cost of capital used to discount future revenue from a
customer. Discounting is an advanced topic that is frequently ignored in customer lifetime value calculations. The current interest rate is sometimes used as a simple (but incorrect) proxy for discount rate.
Retention cost the amount of money a company has to spend in a given period
to retain an existing customer. Retention costs include customer support, billing, promotional incentives, etc.
Period the unit of time into which a customer relationship is divided for
analysis. A year is the most commonly used period. Customer lifetime value is a multi-period calculation, usually stretching 3-7 years into the future. In practice, analysis beyond this point is viewed as too speculative to be reliable. The number of periods used in the calculation is sometimes referred to as the model horizon.
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Periodic Revenue: The amount of revenue collected from a customer in the
period.
Profit Margin Profit as a percentage of revenue. Depending on circumstances
this may be reflected as a percentage of gross or net profit. For incremental marketing that does not incur any incremental overhead that would be allocated against profit, gross profit margins are acceptable.
USES OF LIFETIME VALUE Lifetime Value is typically used to judge the appropriateness of the costs of acquisition of a customer.
For example, if a new customer costs Rs.50 to acquire (CPNC, or Cost per New Customer), and their lifetime value is Rs.60, then the customer is judged to be profitable, and acquisition of additional similar customers is acceptable.
(2.02) CUSTOMER SATISFACTION-IMPORTANTS

Many researchers have looked into the importance of customer satisfaction. Kotler defined satisfaction as: a persons feelings of pleasure or disappointment resulting from comparing a product are perceived performance (or outcome) in relation to his or her expectations.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Hoyer and MacInnis said that satisfaction can be associated with feelings of acceptance, happiness; relief, excitement, and delight. There are many factors that affect customer satisfaction. According to Hokanson, these factors include friendly employees, courteous employees, knowledgeable employees, helpful employees, accuracy of billing, billing timeliness, competitive pricing, service quality, good value, billing clarity and quick service.
Fig.2.02-I
In order to achieve customer satisfaction, organizations must be able to satisfy their customers needs and wants (La Barbera andMazursky, 1983). Customers needs state the felt deprivation of a customer (Kotler, 2000).Whereas customers wants, according to Kotler (2000) refer to the form taken by human needs as they are shaped by culture and individual personality.
Effect of Customer Satisfaction on Profitability
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Customer satisfaction does have a positive effect on an organizations profitability. According to Hoyer and MacInnis (2001), satisfied customers form the foundation of any successful business as customer satisfaction leads to repeat purchase, brand loyalty, and positive word of mouth.
Coldwell: Growth Strategies International (GSI) performed a statistical analysis of Customer Satisfaction data encompassing the findings of over 20,000customer surveys conducted in 40 countries by Info Quest. The conclusion of the study was:
A Totally Satisfied Customer contributes2.6 times as much revenue to a company as a Somewhat Satisfied Customer.
A Totally Satisfied Customer contributes17 times as much revenue as a Somewhat Dissatisfied Customer.
A Totally Dissatisfied Customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer contributes to a business.
Zairi There are numerous studies that have looked at the impact of customer satisfaction on repeat purchase, loyalty and retention. They all convey a similar message in that:
Satisfied customers are most likely to share their experiences with other people to the order of perhaps five or six people. Equally well, dissatisfied
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. customers are more likely to tell another ten people of their unfortunate experience.
Furthermore, it is important to realize that many customers will not complain and this will differ from one industry sector to another.
Lastly, if people believe that dealing with customer satisfaction/complaint is costly, they need to realize that it costs as much as 25 percent more to recruit new customers.
Aaker said that the strategic dimension for an organization includes becoming more competitive through customer satisfaction/brand loyalty, product/service quality, brand/firm associations, relative cost, new product activity, and manager/employee capability and performance (Figure 2.2-II).
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Figure 2.02-II
Performance Measures Reflecting Long-Term Profitability CONSEQUENCES OF CUSTOMER SATISFACTION AND DISSATISFACTION The consequences of not satisfying customers can be severe. According to Hoyer and MacInnis, dissatisfied consumers can decide to: discontinue purchasing the good or service, complain to the company or to a third-party and perhaps return the item, or engage in negative word-of-mouth communication. Customer satisfaction is important because, according to La Barbera and Mazursky, satisfaction influences repurchase intentions whereas
dissatisfaction has been seen as a primary reason for customer defection or discontinuation of purchase. EFFECT OF CUSTOMER SATISFACTION ON CUSTOMER LOYALTY AND RETENTION However, Bowen and Chen said that having satisfied customers is not enough, there has to be extremely satisfied customers. This is because customer satisfaction must lead to customer loyalty.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Bansal and Gupta: Building customer loyalty is not a choice any longer with businesses: its the only way of building sustainable competitive advantage. Building loyalty with key customers has become a core marketing objective shared by key players in all industries catering to business customers. The strategic imperatives for building a loyal customer base are as: Focus on key customers Proactively generate high level of customer satisfaction with every interaction Anticipate customer needs and respond to them before the competition does Build closer ties with customers Create a value perception.
Sivadas and Baker-Prewitt said theres an increasing recognition that the ultimate objective of customer satisfaction measurement should be customer loyalty. Fornell said high customer satisfaction will result in increased loyalty for the firm and that customers will be less prone to overtures from competition.
This view was also shared by Anton who said that satisfaction is positively associated with repurchase intentions, likelihood of recommending a product or service, loyalty and profitability. Loyal customers would purchase from the firm over an extended time (Evans and Berman,).
Guiltinan, Paul and Madden said that satisfied customers are more likely to be repeat (and even become loyal) customers.
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Sivadas and Baker-Prewitt: Satisfaction also influences the likelihood of recommending a departmental store as well as repurchase but has no direct impact on loyalty. Thus satisfaction in itself will not translate into loyalty. However, satisfaction wills foster loyalty to the extent that it is a prerequisite for maintaining a favorable relative attitude and for recommending and repurchasing from the store. Once customers recommend a department store it fosters both re patronage and loyalty towards that store.
Thus the key to generating loyalty is to get customers to recommend a store to others. Also, customers are likely to recommend a department store when they are satisfied with that store and when they have a favorable relative attitude towards that store.
Evans and Berman Companies with satisfied customers have a good opportunity to convert them into loyal customers who purchases from those firms over an extended period.
Clarke said, a business that focuses exclusively on customer satisfaction runs the risk of becoming an undifferentiated brand whose customers believe only that it meets the minimum performance criteria for the category. Long-term customer retention uncompetitive markets require the supplier to go beyond mere basic satisfaction and to look for ways of establishing ties of loyalty that will help ward off competitor attack.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. According to Reichheld, 65 to 85percent of customers who defect to competitors brands say they were either satisfied or very satisfied with the product or service they left. Therefore, in order to ensure that customers do not defect, Bowen and Chenare correct to say that customers must to be extremely satisfied. As far as organizations are concerned, they want their customers to be loyal to them and customer satisfaction doesnt guarantee this.
According to Storbackaand Lentinen, customer satisfaction is not necessarily a guarantee of loyalty. They said that in certain industries up to 75% of customers who switch providers say that they were satisfied or even very satisfied with the previous provider. Customers may change providers because of price, or because the competitor is offering new opportunities, or simply because they want some variation (Storbacka and Lentinen,).
Clarke said that customer satisfaction is really no more than the price of entry to a category. For satisfaction to be effective, it must be able to create loyalty amongst customers.
McIlroy and Barnett: An important concept to consider when developing a customer loyalty programmed is customer satisfaction. Satisfaction is a measure of how well a customers expectations are met while customer loyalty is a measure of how likely a customer is to repurchase and engage in relationship activities.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Loyalty is vulnerable because even if customers are satisfied with the service they will continue to defect if they believe they can get better value, convenience or quality elsewhere. Therefore, customer satisfaction is not an accurate indicator of loyalty. Satisfaction is a necessary but not a sufficient condition of loyalty. In other words, we can have satisfaction without loyalty, but it is hard to have loyalty without satisfaction.
McIlroy and Barnett, in a business context loyalty has come to describe a customers commitment to do business with a particular organization, purchasing their goods and services repeatedly, and recommending the services and products to friends and associates.
Anderson and Jacobsen said customer loyalty is actually the result of an organization creating a benefit for a customer so that they will maintain or increase their purchases from the organization. They said that true customer loyalty is created when the customer becomes an advocate for the organization, without incentive.
Clarke: The notion of customer loyalty may appear at first sight to be outmoded in the era of the Internet, when customers are able to explore and evaluate competing alternatives as well as checking reports from others at the touch of a button. Yet the evidence shows that the old rules of successful and profitable management still hold good: customer retention is still a key to long-term profits, while on the other side of the coin there is a high costpenalty to low loyalty. Indeed, the very fact that customers can so readily
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. assess the competing services and products on offer and then so easily make the new purchase does in itself give added weight to the importance of building strong ties of loyalty with customers.
Bowen and Chen: It is commonly known that there is a positive relationship between customer loyalty and profitability. Today, marketers are seeking information on how to build customer loyalty. The increased profit comes from reduced marketing costs, increased sales and reduced operational costs. Finally, loyal customers cost less to serve, in part because they know the product and require less information. They even serve as part-time employees. Therefore loyal customers not only require less information themselves, they also serve as an information source for other customers.
Bansal and Gupta: Building customer loyalty is not a choice any longer with businesses: its the only way of building sustainable competitive advantage. Building loyalty with key customers has become a core marketing objective shared by key players in all industries catering to business customers. The strategic imperatives for building a loyal customer base are as: Focus on key customers Proactively generate high level of customer satisfaction with every interaction Anticipate customer needs and respond to them before the competition does Build closer ties with customers Create a value perception.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. McIlroy and Barnett said that loyalty cannot be taken for granted. They said that it will continue only as long as the customers feel they are receiving better value than they would obtain from another supplier.
Anton: When you can increase customer loyalty, a beneficial flywheel kicks in, powered by: Increased purchases of the existing product, Cross-purchase of your other products, Price premium due to appreciation of your added-value services, Reduced operating cost because of familiarity with your service system, Positive word-of-mouth in terms of referring other customers to your company. In order to ensure that there is customer loyalty, organizations must be able to anticipate the needs of their customers (Kandampully and Duffy,).
According to Kandampully and Duffy, customers interest in maintaining a loyal relationship is depended on the firms ability to anticipate customers future needs and offering them before anyone else. According to the study done by Bowen and Chen, it supported the contention that there is a positive correlation between loyal customers and profitability. Bowen and Chen: The result of our study supported the contention that there is a positive correlation between loyal customers and profitability. Loyal customers indeed provide more repeat business and were less likely to shop around for the best deals than non-loyal customers.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Day said that the identification and satisfaction of customer needs leads to improved customer retention. Clark: Customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in todays ever increasing competitive environment. It is vitally important to understand the factors that impact on customer retention and the role that it can play in formulating strategies and plans.
Conclusion Based on the views and research done by numerous researchers and academicians, it can be concluded that customer satisfaction is very important. Thus, though customer satisfaction does not guarantee repurchase on the part of the customers but still it plays a very important part in ensuring customer loyalty and retention.
(2.03) THEORIES OF CUSTOMER SATISFACTION

(2.03-A) CUSTOMER SATISFACTION MODEL (KANO)
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Customer satisfaction model:The customer satisfaction model from N. Kano is a quality management and marketing technique that can be used for measuring client happiness.ustomer satisfaction model. The Kano Model of Customer (Consumer) Satisfaction classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction. These classifications are useful for guiding design decisions in that they indicate when good is good enough, and when more is ter.
Fig.2.03 -I
KANO Model
Project activities in which the Kano Model is useful: 1. Identifying customer needs
34
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 2.
3.
Determining functional requirements Concept development Analyzing competitive products Other tools that is useful in conjunction with the Kano Model:
4.
1. 2. 3. 4.
Eliciting Customer Input Prioritization Matrices Quality Function Deployment Value Analysis
The Kano Model of Customer satisfaction divides product attributes into three categories: threshold, performance, and excitement. A competitive product meets basic attributes, maximizes performances attributes, and includes as many excitement attributes as possible at a cost the market can bear.
Threshold Attributes Threshold (or basic) attributes are the attributes provides diminishing returns in terms of customer satisfaction, however the absence or poor performance of these attributes results in extreme customer dissatisfaction. Threshold attributes are not typically captured in QFDs (Quality Function Deployment)or other evaluation tools as products are not rated on the degree to which a threshold attribute is met, the attribute is either satisfied or not.
Performance Attributes
35
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Performance attributes are those for which more is generally better, and will improve customer satisfaction. Conversely, an absent or weak performance attribute reduces customer satisfaction. Of the needs customers verbalize, most will fall into the category of performance attributes. These attributes will form the weighted needs against which product concepts will be evaluated. The price for which customer is willing to pay for a product is closely tied to Performance attributes. For example, customers would be willing to pay more for a car that provides them with better fuel economy.
Excitement Attributes Excitement attributes are unspoken and unexpected by customers but can result in high levels of customer satisfaction, however their absence does not lead to dissatisfaction. Excitement attributes often satisfy latent needs real needs of which customers are currently unaware. In a competitive marketplace where manufacturers products provide similar performance, providing excitement attributes that address unknown needs can provide a competitive advantage. Although they have followed the typical evolution to a performance then a threshold attribute, cup holders were initially excitement attributes.
Other Attributes Products often have attributes that cannot be classified according to the Kano Model. These attributes are often of little or no consequence to the customer, and do not factor into consumer decisions. An example of this type of attribute
36
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. is a plate listing part numbers can be found under the hood on many vehicles for use by repairpersons.
Application of the Kano Model Analysis: A relatively simple approach to applying the Kano Model Analysis is to ask Customers two simple questions for each attribute: 1. Rate your satisfaction if the product has this attribute? And 2. Rate your satisfaction if the product did not have this attribute?
Kano Model Analysis Customers should be asked to answer with one of the following responses: A) Satisfied; B) Neutral (Its normally that way); C) Dissatisfied; D) Dont care. Basic attributes generally receive the Neutral response to Question 1 and the Dissatisfied response to Question 2. Exclusion of these attributes in the product has the potential to severely impact the success of the product in the marketplace.
Eliminate or include performance or excitement attributes that their presence or absence respectively lead to customer dissatisfaction. This often requires a trade-off analysis against cost. As Customers frequently rate most attributes or functionality as important, asking the question How much extra would you be willing to pay for this attribute or more of this attribute? will aid in trade-off
37
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. decisions, especially for performance attributes. Prioritization matrices can be useful in determining which excitement attributes would provide the greatest returns on Customer satisfaction.
Consideration should be given to attributes receiving a Dont care response as they will not increase customer satisfaction nor motivate the customer to pay an increased price for the product. However, do not immediately dismiss these attributes if they play a critical role to the product functionality or are necessary for other reasons than to satisfy the customer.
The information obtained from the Kano Model Analysis, specifically regarding Performance and excitement attributes, provides valuable input for the Quality Function Deployment process.
STEPS IN THE CUSTOMER SATISFACTION MODEL Kano developed a questionnaire to identify the basic, performance and excitement factors as well as the other three additional factors. 1. For each product feature a pair of questions is formulated to which the
customer can answer in one of five different ways.
2.
The first question concerns the reaction of the customer if the product
shows that feature (functional question);
38
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 3. The second question concerns the reaction of the customer if the
product does NOT show this feature (dysfunctional question).
4. factors.
By combining the answers all attributes can be classified into the six
39
(2.03-B) SIX SIGMA AIMS TO MAXIMIZE

Customer satisfaction and minimize defects. 1. What is six sigma? 2. How do six sigmas work? 3. Process improvement in what is six sigma? In statistical terms, the purpose of Six Sigma is to reduce process variation so that virtually all the products or services provided meet or exceed customer expectations. This is defined as being only 3.4 defects per million occurrences. Six Sigma was developed by Motorola in the 1980s but has its roots in Statistical Process Control (SPC), which first appeared in 1920s. Six Sigma was developed by Motorola in the 1980s but has its roots in Statistical Process Control (SPC), which first appeared in 1920s.
HOW DOES SIX SIGMA WORK? There are three basic elements to Six Sigma: Process improvement Process design/re-design Process management Each of the above three elements is examined in more detail below.
Process improvement The purpose of process improvement is to eliminate the root causes of performance deficiencies in processes that already exist in the organization. These performance deficiencies may be causing real problems for the organization, or may be preventing it from working as efficiently and
40
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. effectively as it could. To eliminate these deficiencies a five-step approach is used.
DEFINE a serious problem is identified and a project team is formed and
given the responsibility and resources for solving the problem.
MEASURE data that describes accurately how the process is working
currently is gathered and analyzed in order to produce some preliminary ideas about what might be causing the problem.
ANALYSE based upon these preliminary ideas, theories are generated as to
what might be causing the problem and, by testing these theories, root causes are identified.
IMPROVE root causes are removed by means of designing and
implementing changes to the offending process.
CONTROL new controls are designed and implemented to prevent the
original problem from returning and to hold the gains made by the improvement.
Process design/re-design Sometimes simply improving existing processes is not enough, and, therefore, new processes will need to be designed, or existing processes will need to be re-designed. There are several reasons why this could be necessary:
41
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 1. An organization may choose to replace, rather than repair, one or more
of its core processes.
2.
An organization discovers, during an improvement project, that simply
improving an existing process will never deliver the level of quality its customers are demanding.
3.
An organization identifies an opportunity to offer an entirely new
product or service.
4.
As with process improvement, a five-step approach is used to
design/re-design a process:
DEFINE identify the goals for the new process, taking into account the
customer requirements.
MATCH develop a set of performance requirements for the new process that
match these goals.
ANALYSE carry out an analysis of these performance requirements for the
new process, and based upon this produce an outline design for the new process.
DESIGN & IMPLEMENT work this outline design up into a detailed design
for the new process, and then implement it.
42
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. VERIFY make sure the new process performs as required and introduce
controls to ensure it keeps performing that way.
Process management Because it requires a fundamental change in the way an organization is structured and managed, process management is often the most challenging and time-consuming part of Six Sigma. In general, process management consists of:

Defining processes, key customer requirements, and Process owners. Measuring performance against customer requirements and key performance
indicators.
Analyzing data to enhance measures and refine the process management
mechanisms.
Controlling process performance by monitoring process inputs, process
operation, and process outputs, and responding quickly to problems and process variations.
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(2.04) SATISFACTION MEASUREMENT: OVERALL MEASURES OF SATISFACTION

Satisfaction measures involve three psychological elements for evaluation of the product or service experience: cognitive (thinking/evaluation), affective (emotional-feeling/like-dislike) and behavioral (current/future actions).
Customer satisfaction usually leads to customer loyalty and product repurchase. But measuring satisfaction is not the same as measuring loyalty. Satisfaction measurement questions typically include items like: An overall satisfaction measure (emotional): Overall, how satisfied are you with "X PRODUCT"? Satisfaction is a result of a product related experience and this question reflects the overall opinion of a consumer's experience with the product's performance. Note that it is meaningful to measure attitudes towards a product that a consumer has never used, but not satisfaction for a product or brand that has never been used.
A loyalty measure (affective, behavioral): Would you recommend "X" to your family and friends?
A series of attribute satisfaction measures (affective and cognitive): How satisfied are you with the "taste" of X? How important is "taste" to you in selecting X? Satisfaction and attitude are closely related concepts. The psychological concepts of attitude and satisfaction may both be defined as the evaluation of an object and the individual's relationship to it. The distinction is that
44
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. satisfaction is a "post experience" evaluation of the satisfaction produced by the product's quality or value.
Intentions to repurchase (behavioral measures): Do you intend to repurchase X? Satisfaction can influence post-purchase/post-experience actions other than usage (such as word of mouth communications and repeat purchase behavior). Additional post-experience actions might include product or
information
search
activity,
changes in shopping behavior and trial of associated products. As shown in Figure 2.04-I customer satisfaction is influenced by perceived quality of product and service attributes, features and benefits, and is moderated by customer expectations regarding the product or service. Each of these constructs that influence customer satisfaction need to be defined by the researcher. Fig.2.04-I: - Satisfaction measurement
45
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Satisfaction Measurement: Affective Measures of Customer Satisfaction A consumer's attitude (liking/disliking) towards a product can result from any product information or experience whether perceived or real. Again, it is meaningful to measure attitudes towards a product or service that a consumer has never used, but not satisfaction.
Satisfaction Measurement: Cognitive Measures of Customer Satisfaction A cognitive element is defined as an appraisal or conclusion that the product was useful (or not useful), fit the situation (or did not fit), exceeded the requirements of the problem/situation (or did not exceed). Cognitive responses are specific to the situation for which the product was purchased and specific to the consumer's intended use of the product, regardless if that use is correct or incorrect.
Satisfaction Measurement: Behavioral Measures of Customer Satisfaction It is sometimes believed that dissatisfaction is synonymous with regret or disappointment while satisfaction is linked to ideas such as, "it was a good choice" or "I am glad that I bought it." When phrased in behavioral response terms, consumers indicate that "purchasing this product would be a good choice" or "I would be glad to Purchase this product." Often, behavioral measures reflect the consumer's experience individuals associated with the product (i.e. customer service representatives) and the intention to repeat that experience.
46
Fig.2.04-II
Satisfaction Measurement: Expectations Measures Many different approaches to measuring satisfaction exist in the consumer behavior literature. Leonard Berry in 2002 expanded previous research to refine ten dimensions of satisfaction, including: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. Berry's dimensions are often used to develop an evaluative set of satisfaction measurement questions that focus on each of the dimensions of customer satisfaction in a service environment.
47
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. A diagnostic approach to satisfaction measurement is to examine the gap between the customer's expectation of performance and their perceived experience of performance. This "satisfaction gap" involves measuring both perception of performance and expectation of performance along specific product or service attributes dimensions.
Customer satisfaction is largely a reflection of the expectations and experiences that the customer has with a product or service. However expectations also reflect that influences the evaluation of the product or service. When we make major purchases, we research the product or service and gain information from the advertising, salespersons, and word-of-mouth from friends and associates. This information influences our expectations and ability to evaluate quality, value, and the ability of the product or service to meet our needs.
Types of Customer Expectations that Influence Satisfaction Customer performance expectations for attributes, features and benefits of products and services may be identified as both explicit and implicit expectation questions.
Explicit expectations are mental targets for product performance, such as well identified performance standards. For example, if expectations for a color printer were for 11 pages per minute and high quality color printing, but the product actually delivered 3 pages per minute and good quality color printing, then the cognitive evaluation comparing product performance and expectations
48
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. would be 11 PPM 3 PPM + High Good, with each item weighted by their associated importance.
Implicit expectations represent the norms of performance that reflect accepted standards established by business in general, other companies, industries, and even cultures.
Static performance expectations address how performance and quality for a specific application are defined. Each system's performance measures are unique, though general expectations relate to quality of outcome and may include those researched by Berry, or others such as: accessibility, customization, dependability, timeliness, and accuracy, tangible cues which augment the application, options, cutting edge technology, flexibility, and user friendly interfaces. Static performance expectations are the visible part of the iceberg; they are the performance we see and often erroneously assume are all that exist.
Dynamic performance expectations are about how the product or service evolves over time and includes the changes in support and product or service enhancement needed to meet future business or use environments. Dynamic performance expectations may help to "static" performance expectations as new uses, integrations, or system requirements develop.
Technological expectations focus on the evolving state of the product category. For example, mobile phones are continually evolving. Mobile
49
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. service providers, in an effort to deal with the desire to switch to new technology phones, market rate plans with high cancellation penalties. The availability of low profile phones with email, camera, MP3, email, and blue tooth technology changes technology expectations as well as the static and dynamic performance expectations of the product. These highly involving products enhance perceptions of status, ego, self-image, and can even invoke fear when the product is not available.
Interpersonal expectations involve the relationship between the customer and the product or service provider. Person to person relationships are increasingly important, especially where products require support for proper use and functioning. Expectations for interpersonal support include technical knowledge and ability to solve the problem, ability to communicate, time to problem resolution, courtesy, patience, enthusiasm, helpfulness, understood my situation and problem, communication skills, and customer perceptions regarding professionalism of conduct, often including image, appearance.
For each of these types of expectations that when fulfilled result in customer satisfaction (or when not delivered, result in dissatisfaction and complaining behavior), the perceived quality and value are critical and directly influence intention to repurchase and loyalty.
Satisfaction Measurement: Perceived Quality Measures Perceived quality is often measured through three measures: overall quality, perceived reliability, and the extent to which a product or service meets the
50
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. customer's needs. Customer perceptions of quality are the single greatest predictor of customer satisfaction.
Satisfaction Measurement: Perceived Value Measures Perceived value may conceptually refer to the overall price divided by quality or the overall quality divided by price. Perceived value is measured in many ways including overall evaluation of value, expectations of price that would be paid; the consumer behavior literature shows that price is a primary indicator of quality when other attributes and benefits are relatively unknown. However when repeat purchases are made in some product categories, price may be reduced in importance.
Satisfaction Measurement: Customer Loyalty Measures Customer loyalty reflects the likelihood of repurchasing products or services. Customer satisfaction is a major predictor of repurchase, but is strongly influenced by explicit performance evaluations of product performance, quality, and value.
Improving Customer Satisfaction Once a Customer Satisfaction Measurement Program Is in Place Customer satisfaction research is not an end unto itself. The purpose, of course, in measuring customer satisfaction is to see where a company stands in this regard in the eyes of its customers, thereby enabling service and product improvements which will lead to higher satisfaction levels. The research is just
51
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. one component in the quest to improve customer satisfaction. There are many others, including:

Top management commitment, Linking of Customer Satisfaction scores with employee and management
monetary incentives,

Recognition of employees who contribute to customers' satisfaction, Identification, measurement, and tracking of operational variables which drive
satisfaction scores,

Customer-based improvement goals, Plans for improving operational variables, Incorporation of customer satisfaction skills into employee training programs, Measurement of and plans for improvement of employee satisfaction, Changes in corporate hiring practices. We will touch on each of these issues briefly.
Top Management Commitment Top management, through its actions, must show that customer satisfaction is important to it. This can be done in several ways.

Acknowledging areas where the company needs to improve, Allocating appropriate resources to the improvement of customer satisfaction, Involvement of management and employees in the development of plans for
customer satisfaction improvement,

Linking management bonuses to satisfaction scores, Clear and frequent communication of what is being done to improve customer
satisfaction.
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Linking of Customer Satisfaction Scores with Employee and Management Monetary Incentives This really is just a case of having management put its money where its mouth is. Monetary incentives for improving customer satisfaction scores should reach all levels of the organization, from top management to front-line employees and suppliers.
Incentive programs can be structured so that all employees in an organizational unit receive compensation if the unit's customer satisfaction goals are met. Additionally, exemplary service on the part of individual employees can be rewarded on an ad hoc basis. Management incentives do not have to result in incremental expenditures; a reallocation of current incentives will suffice. For example, if 100% of a manager's bonus is dependent upon meeting operational and sales goals, the mix could be changed to include customer satisfaction goals.
Recognition of Employees Who Contribute to Customers' Satisfaction This is an inexpensive way to foster customer satisfaction. The keys to success are:
Making sure that all employees are aware of why a particular employee is
being recognized,
Making sure that each employee being recognized is worthy of recognition.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Identification, Measurement, and Tracking of Operational Variables Which Drive Satisfaction Scores:-The results of a customer satisfaction survey need to be evaluated to determine what needs to be improved. For example, a survey may find that customer waiting times need to be reduced. The next step should be to quantify actual customer waiting times, and to set goals and strategies for reducing them. Goals should be as specific as possible. It is better to say "we want to reduce wait times during peak periods from an average of twenty minutes to fifteen minutes by the end of June," than to say "we need to reduce customer waiting times."
Customer-Based Improvement Goals These ties directly to the previous point. Once you have identified what needs to be improved, you need to develop a plan for improving each identified area. Such plans need to be based on what customers really need, rather than what management believes to be a good goal.
Using the previous example, if customers really desire wait times of ten minutes or less, having management dictate that wait times must be reduced to fifteen minutes will have limited appeal with customers. You may need to do a separate survey with customers to actually set appropriate goals. If this is not economically feasible, at least talk to a number of customers and gain their input before setting a goal. Plans for Improving Operational Variables
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Once you have established what needs to be improved, and how much it needs to be improved, plans need to be developed to make improvement happen. The keys to successful planning are to:

Involve front-line employees and management in the planning process, Make sure plans are specific, Evaluate the success of plans once they have been put into place. This is done
by measuring actual improvement in operations and customer satisfaction.
Incorporation of Customer Satisfaction Skills into Employee Training Programs Employee training programs should be modified to include:

A description of the importance of customer satisfaction to the company, Descriptions of what keeps customers satisfied, A description of customer satisfaction measurement programs, recognition
programs, and incentive programs,
Specific employee-performance expectations with regard to keeping customers
satisfied.
Measurement of and Plans for Improvement of Employee Satisfaction Unhappy employees will have difficulty in keeping customers happy. You should consider measuring the satisfaction levels of employees, and then developing action plans to improve employee satisfaction. Changes in Corporate Hiring Practices Certain types of people will do a better job of satisfying customers than will other types of people, regardless of the quality of training, reward, and
55
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. recognition programs. Once you have determined the types of employee behaviors are important to customers, you should incorporate this knowledge into your hiring practices.
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(2.05) 26 Inventive Principles In Customer Satisfaction Enhancement

Continuing to search for non-technical applications of 40 Inventive Principles in various spheres, preferably those related to Quality Management, the tried to presents collection of examples in the field of Customer Satisfaction. Principle 1. Segmentation A. Divide an object or system into independent parts. 1. Utilize customized marketing approach for complete market segmentation:
cluster prospective buyers into groups that have common needs. 2. 3.

4.
Divide the market by regions and establish autonomous region sales centers. Split major sales between several business customers. Five steps of Six Sigma improvement approach: Define, Measure, Analyze,
Improve, and Control (DMAIC).

5.
Five steps of '5S' continuous improvement technique: Sort, Set in order, Shine,
Standardize, Sustain. B. Make an object or system easy to disassemble. 6. Institute fast response team for handling urgent customer issue. C. Increase the degree of fragmentation or segmentation. 7. Mass customization: each customer is a market. D. Transition to micro-level. 8. 9. Use mini-kits for product advertisement. Describe product differentiation in advertisement on molecular level.
57
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Principle 2. Taking Out
Separate discounted goods.
Principle 3. Local Quality A. Select market segments on which organization will focus. 1. Develop different strategy for each market segment. 2. Hire different marketing professionals for each market segment. 3. Use different (individual) marketing approach, advertising and promotions for each customer sector. 4. Customize marking, packaging, labeling, etc. 5. Provide benefits, bonuses and extra service for the most valuable customers.
6. Weigh importance of customer needs in Quality Functional Deployment
(QFD).
7. Use Pareto diagram for customer feedback analysis.
8. Emphasize product or service advantages in advertisement. 9. Address advertising by the use of customer perceived needs (image, prestige, etc.) for each customer stereotype. B. Make each part of an object or system function in conditions most suitable for its operation. C. Make each part of an object or system fulfill a different and useful function. 10. 11. 12. Locate distribution centers near customers. Hire local people to acquire cultural knowledge of local customers. Use stratified sampling for heterogeneous customer population survey.
58
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 13. Target sales for purchase occasion (routine Use focus groups for customer
preferences study.
14.
Use, present, season, weather, vacation, hobby, etc.
Principle 4.Try to Follow, Rule No.1: 'Customer is always right.' Rule No.2: 'If customer is ever wrong, re read rule No.1' A happy customer will tell only five people about his good experience. An unhappy customer will tell ten or more people about his bad experience.
Principle 5. Merging 1. 2. Make operations contiguous or parallel; bring them together in time. Combine product quality with service quality to enhance customer
satisfaction. 3. alliance. 4. 5.
6.
Strive for business synergism with customers: partnership, merger,
Bring customers into design loop. Create network of sales intermediaries. Offer discount Choose shop or service location at heavily popular mall
center. 7. 8. Exchange discount coupons with neighborhood shops and services. Promise bounty for serial labels collection (e.g., film heroes, sport teams).
59
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Principle 6. Benchmark 1. Benchmark the best in class leaders. 2. Advertise by media, movies, video, stories, concerts, sport games. 3. Use endorsement by high-profile celebrities in advertising: 'Champion customer always buys our product
Principle 7. Preliminary Action A. Perform, before it is needed, the required change of an object or system (either fully or partially). 1. 2. 3. 4. Preliminary market research, before the product or service is designed. Start advertising at the stage of product or service development. Preliminary send questionnaire before survey interview. Use introductory questions for customer priming at survey interview. B. Pre-arrange an object or system such that they can come into action from the most convenient place and without losing time for their delivery.
1.
Arrange organization system for Just-In-Time (JIT) delivery. Prepare presentation before customer visit.
2.
Principle 8 (inverted). Afterwards Action 1. 2. 3. 4. 5. Offer post-paying. Provide after-sales service. Present bounty or keepsake (token for memory) after purchase or service. Provide rebate coupon for next purchase or service. Arrange lottery with partial price reimbursement.
60
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Principle 9 (inverted). Potentiality Gap 1. Build entrance barriers for competitors by enhancement of product or service advantages.
Principle 10. Dynamics A. Allow (or design) the characteristics of an object, process, system or external environment to change to be optimal or to find an optimal operating condition. 1. Adapt to highly competitive business environment with dynamic customer needs and steadily increasing expectations. 2. Steady increase versatility of products or services. 3. 4. 5. Match business to individual customer demands. Utilize flexible policy for price vs. purchased quantity. Set adjustable season prices. B. Divide an object or system into parts capable of movement relative to each other. C. If an object, process or system is rigid or inflexible, make it movable or adaptive.
Principle 11(inverted). Static State 1. 'Reduce variation' (W.E. Deming) to keep it within customer specified limits.
61
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Principle 12. Partial or Excessive Action 1. Under-promise and over-deliver to avoid customer dissatisfaction. 2. Nurture customer needs using 'Saturation' advertising by all media techniques. 3. Slightly embellish product or service features in advertisement. 4. Compromise at conflict resolution. 5. Quote more to allow price reduction during negotiations. 6. Use 9, 99, 999, etc. price figures. 7. Use discounts. 8. Provide extra product quantity or extra service as a bounty.
Principle 13 (inverted) 1. 2. 3. 'All or Nothing' (W.E. Deming) Establish 'Six Sigma,' 'Zero Defects' (P.B.Crosby) quality goals. Set zero prices for overdue delivery (Pizza Hut). .
Principle 14. Periodic Action A. Instead of continuous action, use periodic or pulsating actions. 1. Periodically repeat advertisement for stable business image support. B. If an action is already periodic, change the periodic magnitude or frequency. 2. Institute monthly and weekly customer communication in addition to
annual survey. 3. Launch lot by manufacturing small customized series. C. Use pauses between impulses to perform a different action.
62
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 4. 5. 6. Apply synchro-marketing for periodical or season demand. Fill pauses during negotiations. Use pauses and breaks in TV and radio programs for advertisement.
Principle 15. Continuity of Useful Action A. Carry on work continuously; make all parts of an object or system work at full load, all the time. 1. 2. 3. 4. 5. 6. Strive for continual survival at the marketplace. Create organization trademark and preserve brand image. Establish long-term business alliances with customers. Strive for customer retention. Nurture customer loyalty. Be aware that satisfaction of customer wants, needs and expectations is a
never ending challenge. 7. 8. 9. Use customer stereotype. Create customer standards based on tradition. Provide 24 hours per day service. B. Eliminate all idle or intermittent actions or work. 10. demand. 11. Employ multi-skilled personnel at bottleneck functions to avoid breaks or Operate re-marketing and supporting marketing for steady customer
delays in service.
63
Principle 16. "Blessing in Disguise" 1. Use customer dissatisfaction source as a valuable feedback and
opportunity for improvement 2. Customers whose complaints are handled properly are more loyal than
customers who never had a complaint. 3. met. 4. Eliminate fear of change by introducing fear of competition. The most loyal customer is a dissatisfied customer who later has all of his needs
Principle 17. Feedback A. introduce feedback (referring back, cross-checking) to improve a process or action.
1.
Listen to 'Voice of the Customer' in multiple ways (survey, visit, report,
focus group, interview, mail, satisfaction feedback form, etc.). 2. 3. 4. 5. Institute customer complaints resolution and response system. Establish product returns and field failures analysis system. Enlist customers into design process. Utilize organization guarantees to get feedback data on how products or
services fail to meet customer needs. B. If feedback is already used, change its magnitude or influence. 6. 7. website. Establish toll-free telephone numbers for consumer communication. Introduce feedback buttons and site visitor counting on advertisement
64
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 8. Utilize barcodes system to gather information for future marketing
decision making.
Principle 18 (inverted). Feed-forward 1. 2. 3. 4. prediction. 'Predict and compare' (W.E.Deming). Hire experts for marketing research and forecasting. Anticipate customer future needs the ideal basis for customer loyalty. Utilize Anticipatory Failure Determination (AFD) for product reliability
Principle 19. Intermediary A. Use an intermediary carrier article or intermediary process. 1. 2. 3. 4. 5. Regional sales offices. Intermediate customers: wholesaler, distributor, retailer. Export/import, transportation and delivery agencies. Distribution systems (e.g., FedEx, UPS, DHL). External certification bodies (e.g., BSI, UL). B. Merge one object or system temporarily with another (which can be easily removed). 6. 7. 8. Hire the best professional consultant for marketing or advertising. Use neutral third party (arbitrator) during difficult negotiation. Introduce moderator to a focus group.
65
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Principle 20 (inverted). Direct Contact 1. 2. 3. Online web marketing and sales. Survey without interviewer (mail, email, website). Customer visit by CEO.
Principle 21. Mechanics Substitution A. Replace a mechanical means with sensory (optical, acoustic, taste or smell) means. B. Use electric, magnetic and electromagnetic fields to interact with the object or system. C. Change from static to movable fields, from unstructured fields to those having structure. 1. 2.
3.
Electronic communication. Electronic trade. Electronic tagging. Electronic cards for demographic data collection with market research. Telemarketing. Computerized interview. Website attendees counting. Use of multiple media techniques (photo, audio, video, TV, etc.) for
4. 5. 6. 7. 8.
customer presentation.
Principle 22. Color Changes A. Change the color of an object, system or external environment. 1. Create a strong brand image through use of 'corporate colors.'
66
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 2. Utilize different colors in mistake-proofing to prevent unintended use. B. Change the transparency of an object, system or external environment. 3. delivery. 4. Make packaging transparent to enable product self-advertising. Get customer to make stock inventory transparent for Just-In-Time
Principle 23. Homogeneity A. Make objects interact with a given object of the same material (or material with identical properties). 1. 2. 3. 4. Hire local people to acquire cultural knowledge of local customers. Use the same brand name for homogeneous product group. Divide customers to homogeneous sectors (clusters). Include customers (consumers) from the sector being surveyed into focus
groups for survey.
Principle 24. Recovering 1. Warranty commitment of manufacturer to repair or replace any part that
fails during the life of product.
Principle25. Parameter Changes A. Change an object's or system's physical state (e.g., to a gas, liquid or solid). 1. 2. Establish virtual shopping. Institute online catalogs. B. Change the concentration or consistency.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. C. Change the degree of flexibility. 1. Use special offers for sales or service promotions. D. Change the temperature. Initiate new challenges for the customer service team. E. Change other parameters. 2. 3. Switch marketing of product or service to non-traditional customers. Change traditional names (e.g., the quality department in Samsung is
called 'Customer Satisfaction Team'). 4. Sell non-material attributes (e.g., satisfaction of cultural needs, image, self-
esteem, etc.).
Principle 26. Boosted Interactions 1. Introduce obsession with customer-perceived quality and desire to delight
customers into the organization. 2. customer.' 3. Get customers excited about a product or service by giving them Hire highly creative individuals who understand 'The voice of the
ownership of the change. 4. Achieve 'Wow!' effect by exceeding customers' expectations and providing
them with advantage over their competitors. 5. Overcome reluctance of dissatisfied customers to complain.
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(2.05) MAGICAL WORDS CREATE CUSTOMER SATISFACTION

Man does not live by words alone, despite the fact that sometimes he has to eat them. -Adlai Stevenson 1."That's not my job," stated the clerk flippantly with a touch of body language to exasperate the situation even further. The customer stood there with her mouth half open. You could almost see the steam coming out of her ears. It was certainly not the response she wanted to hear! How many times have you walked into a store or called a company and received a response that turned up the hair on the nape of your neck? Words are powerful. They can hurt or soothe. Some combination of words creates an immediate negative reaction or image for the receiver of the communication.
We can hurt our customers and potential customers or have them walk away happy and glad they either called or came into our business simply by using words with a positive twist. It is how we combine and state our words and the voice and body inflection we use that can turn a frustrated customer into a happy one.
Let us look at some of the frustrating statements you have heard and discover how, through simple rephrasing, a negative can be turned into a positive.
2. Hold please! The phone immediately clicks and the operator is gone, leaving the client stranded and frustrated. The tone of the operator's voice indicates she is hurried and really does not have time for one more
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. interruption. The customer feels as though they have never had control of the situation and are angered by receptionist's lack of response to their needs. What if this had been an emergency? A simple "Would you hold please?" would have resolved the situation. Put the request in the form of a question. It allows the customer to feel in control and make a choice.
3. Well, who is this? My gut feeling is to respond by saying "none of your business!" A better question to ask is "May I tell him who's calling?" This places the caller in control of the situation and they can choose whether to disclose their name.
4. Whats this about? This confrontational question can be restated in a nonthreatening manner. "May I tell her what this is regarding?" is a much more pleasant question and places the caller at ease. The caller is once more in control of the conversation.
5. Just a minute and I'll be right back. The customer is placed in a situation where they have no choice. Whenever possible, give the customer options or ask for permission to take your next action. Try "It might take me a few minutes (or however long it may really take) to find that information. Would you like to hold or can I call you back?"
6. Well that department is wrong! This statement places blame on another section or person within the business. It does not represent your company well and is a technique for passing the buck or placing the blame elsewhere.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. The customer does not care who is wrong, they just want the situation corrected regardless of where the mistake was made. "Let me see how I can fix this for you," shows a willingness to rectify the situation and places the customer at ease. It is an immediate tension reliever and begins to dissipate a customer's angry feelings.
7. Its back there someplace, is not the response a customer wants when they ask where they can find an item. Maybe the customer has just walked the aisle five times and still can not find the product they want. Or maybe this is the first...and quite possibly the last...time they have been in your store and they have no idea where the different departments are located. You have three choices when asked the location of a product. The first and best response is "let me show you." If however you are unable to take the customer to the item, then give them a complete description of where the item can be found, "it's on aisle 5, about halfway back, right side, lower shelf." If you do not know the location then be honest and find out. "Good question. Let me get someone who can show/tell you."
8. We can't do that, will put a wall of defensiveness up as fast as any statement. Remember to tell the customer what you can do, not what you can't. "That's a great question. We can..." is more pleasant to hear and gives the customer alternatives to select from.
09. its the company policy. Customers do not care what the organizational policies or rules are. Remember, 95% of the policies are made for 5% of the
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. customers that will always ask for the exception. "Normally we don't do that.
10. In your case, I'll gladly make an exception." This really makes the client feel special. It lets them know it is not the normal company policy and yet there are always exceptions to the rules and a willingness to satisfy the customer's needs.
11. its not my job. The customer really doesn't care whose job it is. They just want a situation rectified. "I'll be glad to help you," or "let me get someone from that department to help you" indicates willingness on your part to either help or get assistance for the individual.
12. That can't happen is like telling the customer they are lying. Even though you believe the situation did not occur, you will never have exactly the same experience as the customer. We all experience a given situation differently. No two experiences will ever be the same because of our past and our perceptions. To place the customer at ease, try "I apologize you had that experience. Let me see how I can fix it."
13. You have to have... is a demand, not a request. A better way to approach a request is, "We want to help you. Can you provide us with??" If the customer's response is no, then begin to explore alternatives or other avenues for obtaining the information.
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14. its the computers fault. The individual who does the data entry is not a computer. So who really made the mistake, the computer or the person? When blame is placed on an object, it is just as bad as blaming another person or department. The customer wants resolution to the problem. Apologize and move on. "I'm sorry you had this experience. Let me see how I can correct it."
Hence, Words can send an upset customer into orbit. When sincerely stated, words can also soothe and express that you are ready to help and serve. Review some of the words and phrases you use when speaking with a customer. Are your words magic to their ears or do they come crashing down leaving the customer frustrated, defensive and angry? Select your words and phrases wisely and you too will calm the raging client and win loyal customers.
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CHAPTER 3 CASE STUDY

I have conducted the survey of 60 consumers who are using color TV of LG, VIDEOCON & PHILIPS to study the consumer satisfaction in consumer durables. This survey also helped me to study what are the most important strategies that each company must take, to increase customer satisfaction, which further increase companys profitability along with good corporate image. This survey was conducted in questionnaire form, as follows.The results of the CUSTOMER SATISFACTION SURVEY are denoted in the graphical format as follows: 1. Ease of access to the dealer
2.
Quality of information available online to the customer
3.
The courtesy and patience shown by company/helpline
4.
Ease of access to helpline
5.
Ability to resolve problems on first call
6.
Clarity in providing service related information
7.
Skills of helpline personnel

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: LG:Questions Quality of information available Excellent Very 1 good 10 5 4 5 6 5 Good Poor Bad Total 5 8 10 5 2 5 4 3 1 0 0 3 0 2 0 0 0 1 20 20 20 20 20 20
online The courtesy and patience shown by 2 company Ease of access to helpline 5 Ability to resolve the problem on first 10 call Clarity in providing service related 12 information Skills of helpline personnel 6
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q u a lit y oTf h e c o u r t e sE a s e o f A b ilit y t o C la rit y in s k ills o f y in fo rm a t ioann d p a t ie n a c c e s s t ore s o lve t h ep ro vid in g h e lp lin e ce a va ila b le s h o w n b y h e lp lin e p ro b le m o n s e rvic e p e rs o n n e l o n lin e c o m p a n y fir s t c a ll re la t e d in fo r m a t io n
bad poor good ve ry g o o d e x c e lle n t
VIDEOCON:
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Questions Excellent Very good 10 5 8 5 9 2 Good 15 20 18 17 15 18 Poor 1 3 1 7 0 6 Bad 0 0 0 0 0 2 Total 30 30 30 30 30 30
Quality of information available 4 online The courtesy and patience shown 2 by company Ease of access to helpline 3 Ability to resolve the problem on 1 first call Clarity in providing service related 6 information Skills of helpline personnel 2
information
access to
Quality of
PHILIPS
Clarity in
providing
Ease of
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Bad Poor Good Very good Excellent
76
Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Questions
100%
Excellent Very good 1 1 2 2

Clarity in providing
Good 6
Bad
Poor 3 2
Bad Total 0 0 0 0 0 0 10 10 10 10 10 10
90% Quality of information available 0 80% 70% online 60% The courtesy and patience shown 50% 40% company 30% Ease of access to helpline 20% Ability to resolve 10% problem the 0% information Quality of
by 1 0 on 1
access to Ease of
6 Poor
Good Very good
5Excellent 3 6 1 6 5 1 2
first call Clarity in providing service related 1 information Skills of helpline personnel 1
2 2
1. LG
How would you rate your level of satisfaction?
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level of satisfaction VEDIOC ON VIDEOCON

10% 3% 27%
23% 37% extermly satisfied dissatisfied satisfied extermly dissatisfied somewhat satisfied
PHILIPS
2. How would you rate the overall quality of product? [Considering all your experience]
OVERALL QUALITY OF LG
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OVERALL QUALITY OF VIDEOCON
OVERALL QUALITY OF PHILIPS
3. How did you know about the product?
79
AWARENESS OF LG
AWARENESS OF VIDEOCON
AWARENESS OF PHILIPS
4. How would you rate the product to a friend/ relatives?
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LG
LG
5% 0% 20%
25%
50%
Exellent
Very good
G ood
Poor
Bad
VEDIO N CO
0% 0% 30%
VIDEOCON
20%
50%
Exellent
Very good
G ood
Poor
Bad
PHILIPS
PHILIPS
0%
10%
10%
30% 50%
Exellent
Very good
G ood
Poor
Bad
5. What you look for in order of importance when selecting products? LG

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L G
1% 5
2% 5
4% 0
2% 0
Qa u lity
C st o
B n nm ra d a e
F m rity a ila
VIDEOCON
V D C N E IO O
2 3%
2 7%
3% 3
17 %
Qa u lity
C st o
B n na e ra d m
Fa ilarity m
PH ILIPS
PHILIPS
10% 30%
40% 20%
Q uality
C ost
Brand nam e
Fam ilarity
CHAPTER:-4
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CONCLUSION
(4.01) OBSERVATIONS FINDINGS By conducting a CUSTOMER SATISFACTION SURVEY in 3 best consumer durables company LG, VIDEOCON & PHILIPS & by evaluating its analysis I came to know that, though this three companies are following the best customer service & satisfaction strategies tactics.
there is some amount of dissatisfaction among there consumers because of neglecting or by not employing genuine efforts in some areas like Quality of information available online, Ability to resolve the problem on first call, The courtesy and patience shown by company, Ease of access to helpline, Skills of helpline personnel In some or more numbers.
In todays cut-throat competition world the above factors are help the company to distinguish it from its competitors. And hence every company has to deal with these key factors with more genuine efforts.
The charts and graphs explain the overall satisfaction among the customers of LG, VEDIOCON & PHILIPS in various aspects. The areas about which Ive asked the peoples are as follows along with some suggestions:-
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 1. OVERALL LEVEL OF SATISFACTION about the companys product i.e. COLOR TELIVISION. To increase there overall satisfaction the company should give Important to the consumer. They should have to welcome the complaints in pretty manner and should act quickly so that dissatisfied customer will turn to satisfied customer and will increase the loyal customers. 2. SATISFACTION LEVEL OF QUALITY. Quality is very important factor which leads to satisfaction. I found that these all companies are giving good attention on maintaining the quality of the TV.
Hence every customer has its own definition of quality according to his/her own experience and perceptions.
Many of the consumers said that they like the
LG TV because of its quality. VIDEOCONE customers like the TV because of its clarity and good audio
system Many of the PHILIPS customers are find that there TV is very attractive
and also having a nice sound system.
Hence LG, VIDEOCONE & PHILIPS should have to developed there product (TV) in such a manner that it will have all the aspects like attractiveness, good sound system, audio-visual excellence and other similar aspects.
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3. Companys efforts to market its brand of TV i.e. PROMOTIONAL
STRATEGIES. Advertising is all time favorite mode of communication of all this three companies all three are using this mode in a very aggressive and good manner and has become successful in creating the wide awareness about there TVs.
Also conducting trade fares in which they shows the demonstration and try to solve there doubts about product by clarifying there doubts at the same place. In this along with trade fears, advertisings word of mouth also pays a very important role.
Positive word of mouth about companys quality of television and other aspects will increase the sales and also satisfaction.
In the promotion of goods salesman also playing a very vital role. because they establishes the direct contact with the consumer ,maintains friendly relation with the consumers, and hence leads to high consumer satisfaction hence consumer durables companies has to give a very wide attention in overall development and has to increase the skills of there sales person so that they will act with the consumer in more skillful manner.
Hence promotion is the too which all this 3 companies can use effectively and can achieve customer satisfaction along with profit.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. 4. RATING OF PRODUCT TO THERE FAMILY AND FRIENDS:Again word of mouth comes over here. If the consumer rates the products in good manner then his/her friend or relative will also attract to buy the product.
Many of the consumer said that they will rate there color TV in very good to good range only few consumer said excellent. and hence its a responsibility of the company to create friendly & prompt customer service, maintains the quality and other important aspects so that there present customer will turn companies potential customers into actual ones.
5. IMPORTANTS OF FACTORS (BRAND, FAMILARITY, COST,
AND QUALITY) WHILE SELECTING THE TV:Here I have asked that on what basis the customers select the TV of particular company. Many consumers of LG, VIDEOCON & PHILIPS said that they attracted towards brand name. Then cost, quality and then familiarity. Many consumers are very loyal to the company that they using only one brand over the years. Some changes the product on the basis of costs, and there pat experience about the quality of the TV,
Hence I found that many customers are very careful and look and try to examine the entire factors starting from bran to familiarity before final purchasing.
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(4.02) SUGGESTION
Hence I would like to suggest all 3 companies that they have to develop a well equipped prompt customer service by employing skill and trained work force. This will enhance their quality of service and ultimately the customer satisfaction Also they should developed there websites in such a way that customers will not fond it difficult to access and have to achieve the ability to resolve the problem on its first call. To improve there quality of service these companies can benchmark the activities of best player in market.
Also Under-promise and over-deliver should be avoided to decrease customer dissatisfaction.
Try to find out some innovative strategies time to time like giving discounts, Warranty (commitment of manufacturer to repair or replace any part that fails during the life of product.)
The companies should create a self explanatory and very effective advertisement so that more consumer i.e. both rural as well as urban customers will attract to buy your product.
Also companies should have to segment the market properly by adopting different strategy for different market so that selling the product will be effective and efficient.
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. Also if these companies give the opportunity to customers for participation in designing and improving of other aspects by giving Importants to their views & expectations in mind then this will also create a satisfaction among the customers.
And also have to keep a continuous contact with the customers to find out the number of satisfied and dissatisfied customers. For this customer satisfaction survey will play an important role. Also the companies have to carry market research to find out expectations, current market trend and the competitors position in market.
88
CONCLUSION
Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires.
Gaining high levels of customer satisfaction is very important to a business because satisfied customers are most likely to be loyal and to make repeated orders and to use a wide range of services offered by a business.
The need to satisfy customer for success in any commercial enterprises is very obvious. The income of all commercial enterprises is derived from the payments received for the products and services to its external customers. Customers are the sole reason for the existence of commercial establishments.
Since sales are the most important goal of any commercial enterprise, it becomes necessary to satisfy customers. For customer satisfaction it is necessary to establish and maintain certain important characteristics like: a. Quality b. Fair prices c. Good customer handling skills d. Efficient delivery. e. Serious consideration of consumer complaints. Satisfaction is the feeling of pleasure or disappointment attained from comparing a products perceived performance (outcome) in relation to his or her expectations.
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If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted.
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BIBLIOGRAPHY
1. Marketing management -Rajan Saxena
2.
Marketing management -Philip Kotler
3.
Basic marketing -A global managerial approach -William Perrealt & Jr.E.Jerome McCarthy
WEBSITES
4. www.google.com
5.
www.wikipedia.com
6. www.yahoo.co.in
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ANNEXURE Consumer satisfaction in consumer durables. -A case study on LG, VIDEOCON & PHILIPS.
CONSUMER SATISFACTION SURVEY Please take a few minutes to complete this survey. Your views are extremely important in context of the findings and interpretations. Pls. Tick mark () on the given appropriate options.
Name:Gender:Age:Occupation:What is your annual income? More than 1 lacks-3 lakhs More than 3 lakhs.
Less than 1 lakhs.
Which brand of color TV you are using? LG VIDEOCON PHILIPS
Please rank, what you look for in order of importance when selecting
products.
Quality
Cost
Brand name
Familiarity
Any other
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1.
Please list any top 3 reasons if you are satisfied with the companys product. A. B. C.
2.
Please list any top 3 reasons if you are Dissatisfied with the companys
product. A. B. C. 3. How did you know about the product?
Advertisements Friends/relatives Salesman 4.
Trade fairs
Any other
How long have you been a customer of company? Less than 1 year 1-3 year How would you rate your level of satisfaction? Extremely satisfied Satisfied Somewhat satisfied More than 3 years
5.
Dissatisfied Extremely dissatisfied
6. How would you rate the overall quality of product? [Considering all your experience] Very high quality High quality Average Low quality Very low quality
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7.
How would you recommend the product to a friend/ relatives? Excellent Very good Good Poor Bad
8. i.
How do you rate the following aspects? Ease of access to the dealer Excellent Very good Good Poor Bad
ii.
Quality of information available online to the customer Excellent Very good Good Poor Bad
iii.
The courtesy and patience shown by company/helpline Excellent Very good Good Poor Bad
iv.
Ease of access to helpline Excellent Very good Good Poor Bad
v.
Ability to resolve problems on first call Excellent Very good Good Poor Bad
vi.
Clarity in providing service related information Excellent Very good Good Poor Bad
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS. vii. Skills of helpline personnel Excellent Very good Good Poor Bad
9.
Would you like to continue your relationship with the same company? Yes No
Signature:-
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Consumer satisfaction in consumer durables -A case study on LG, VIDEOCON & PHILIPS.

CONSUMER SATISFACTION IN CONSUMER DURABLES-A CASE STUDY ON LG ,VIDEOCON & PHILIPS

Strategies for improving customer satisfaction.

04-19 20-30 31-40 41-53 54-65 66-70 71-79

80-83 84-87 88 89-92

CHAPTER 1 ABOUT THE PROJECT

Better determination of customer uses and needs.

Identification of problems with customer services.

A sharper focus on areas having the greatest need for improvement.

Gaining insight for new products and/or service offerings.

(1.04) RESEARCH METHODOLOGY USED FOR THE PROJECT

CHAPTER:-2 LITERATURE REVIEW.

The difference (P1-C1) is the "manufacturer's surplus"

Will you buy the Xs CTV?? Not necessarily.

Customers Expect Solid Information.

Customers Expect Options.

Customers Expect Single Source Service.

Customers Expect Superior Communication.

Customers Expect Consulting.

Customers Expect A Seamless Relationship.

Periodic Revenue: The amount of revenue collected from a customer in the

Profit Margin Profit as a percentage of revenue. Depending on circumstances

(2.02) CUSTOMER SATISFACTION-IMPORTANTS

Effect of Customer Satisfaction on Profitability

(2.03) THEORIES OF CUSTOMER SATISFACTION

customer can answer in one of five different ways.

shows that feature (functional question);

product does NOT show this feature (dysfunctional question).

(2.03-B) SIX SIGMA AIMS TO MAXIMIZE

DEFINE a serious problem is identified and a project team is formed and

given the responsibility and resources for solving the problem.

MEASURE data that describes accurately how the process is working

ANALYSE based upon these preliminary ideas, theories are generated as to

IMPROVE root causes are removed by means of designing and

implementing changes to the offending process.

CONTROL new controls are designed and implemented to prevent the

of its core processes.

An organization discovers, during an improvement project, that simply

An organization identifies an opportunity to offer an entirely new

As with process improvement, a five-step approach is used to

match these goals.

ANALYSE carry out an analysis of these performance requirements for the

for the new process, and then implement it.

controls to ensure it keeps performing that way.

Analyzing data to enhance measures and refine the process management

Controlling process performance by monitoring process inputs, process

(2.04) SATISFACTION MEASUREMENT: OVERALL MEASURES OF SATISFACTION

customer satisfaction improvement,

Making sure that each employee being recognized is worthy of recognition.

by measuring actual improvement in operations and customer satisfaction.

programs, and incentive programs,

Specific employee-performance expectations with regard to keeping customers

(2.05) 26 Inventive Principles In Customer Satisfaction Enhancement

cluster prospective buyers into groups that have common needs. 2. 3.

Improve, and Control (DMAIC).

Separate discounted goods.

Use, present, season, weather, vacation, hobby, etc.

Strive for business synergism with customers: partnership, merger,

Listen to 'Voice of the Customer' in multiple ways (survey, visit, report,

groups for survey.

fails during the life of product.

(2.05) MAGICAL WORDS CREATE CUSTOMER SATISFACTION