MKT 300 Study Guide - Midterm Guide: Malcolm Baldrige National Quality Award, Statistical Process Control, Customer Satisfaction
Document Summary
Satisfied, loyal customers generate profits because they are responsible for a large percentage of sales and are less costly to develop than new customers. In addition, satisfied, loyal customers are less concerned about price and price increases and influence others to buy products. Customers form impressions about how well companies perform in relation to expectations. If performance falls short, then customers become dissatisfied. When customers are delighted, their expectations are likely to increase. Relationship marketing is emphasized today because customer needs and wants often can best be addressed through relationships. Relationships are built on empathy, trust, and commitment. Creating satisfaction requires paying close attention to various tastes and preferences. The variations in customer tastes and preferences are particularly challenging for large companies that want to gain high satisfaction scores. They still need to address each specific segment if they are to achieve high ratings. Quality can be assessed objectively and subjectively. Objective assessments indicate whether the product performs as designed.
