Abstract

Customer satisfaction programs are harmed by misperceptions. Satisfaction is not objective. Instead, it is an attitude that requires indirect and careful analysis. Measuring it is not simple or one-dimensional. Instead, satisfaction is complex and affected by many factors like expectation, perception of quality, and brand loyalty. Measurement accuracy and precision are difficult to attain, especially because of biased rating scales and high variability among customers. Instead of mean ratings, it is more useful to employ weighting schemes and percentages of highly satisfied and dissatisfied customers. Customer satisfaction is not quickly or easily improved, thus making satisfaction a lagging indicator. Instead, companies should be aware of customer inertia. This calls for continuous monitoring and feedback programs. Customer identification is not straightforward, and companies might ignore the variety of customer needs and expectations. Instead of emphasizing satisfaction, companies first should learn who their customers are. Therefore, customer involvement must precede customer satisfaction through: identification of customers and their concerns; root cause analysis and subsequent improvements; evaluation of these actions; and ongoing analyses.