Creating Customer Satisfaction & Loyalty

Creating Customer Satisfaction & Loyalty - Creating...

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The Concepts of Customer Satisfaction, Loyalty, and Quality Why Satisfaction and Loyalty are Important A) Customer satisfaction is a customer’s positive, neutral, or negative feeling about the value received from an organizations product in specific use situations. B) Customer loyalty refers to how often, when selecting from a product class, a customer purchases a particular brand. It is essential to the long-term survival of a typical organization. C) A large number of satisfied, loyal customers result in strong business performance because these customers: a) Provide sales to increase revenues a.1) The revenue stream from on lifetime customer can be tremendous. a.2) This importance of revenue generation is magnified by loyal customers influence on other buyers. a.3) Customer lifetime value (CLV): the amount of profit an organization expects to obtain over the course of a customer relationship. b) Have less concern about price b.1) Customer satisfaction has become a key to making sales at appropriate prices. b.2) Creating satisfied customers through service and experience is often more important and successful than trying to create satisfied customers through price. c) Help reduce the organization’s costs c.1) Customers affect cost structure, which is the amount of resources required to produce a specific amount of sales.
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Creating Customer Satisfaction & Loyalty - Creating...

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