Customer Satisfaction

CUSTOMER SATISFACTION
Customer satisfaction, as a construct, has been fundamental to marketing for over three
decades. As early as 1960, Keith (1960) defined marketing as “satisfying the nees an esi!es
"f the #"ns$%e!”. &$nt (19'() reorted that by the 19!0s, interest in customer satisfaction had
increase to such an e"tent that over #00 studies $ere ublished. %his trend continued and by
199&, 'eterson and (ilson estimated the amount of academic and trade articles on customer
satisfaction to be over 1#,000.
)everal studies have sho$n that it costs about five times to gain a ne$ customer as it does to
kee an e"isting customer (Na$%ann, 199)) and this results into more interest in customer
relationshis. %hus, several comanies are adoting customer satisfaction as their oerational
goal $ith a carefully designed frame$ork. *ill and Ale"ander +&000, $rote in their book that
“comanies no$ have big investment in database marketing, relationshi management and
customer lanning to move closer to their customers”. -ones and )asser +199#, $rote that
“a#hie*ing #$st"%e! satisfa#ti"n is the %ain g"a+ f"! %"st se!*i#e fi!%s t"ay”.
.ncreasing customer satisfaction has been sho$n to directly affect comanies/ market share,
$hich leads to imroved rofits, ositive recommendation, lo$er marketing e"enditures
+0eichheld, 19961 *eskett et al., 199!,, and greatly imact the cororate image and survival
+'i2am and 3llis, 1999,.
'arker and 4athe$ +&001, e"ressed that there are t$o basic definitional aroaches of the
concet of customer satisfaction. %he first aroach defines satisfaction as a rocess and the
second aroach defines satisfaction as an outcome of a consumtion e"erience. %hese t$o
aroaches are comlementary, as often one deends on the other.
Customer satisfaction as a rocess is defined as an e*a+$ati"n ,et-een -hat -as !e#ei*e an
-hat -as e./e#te (O+i*e!, 1900, 19'11 O+s"n an 2"*e!, 19091 Tse an 3i+t"n, 19''),
e%/hasi4ing the /e!#e/t$a+, e*a+$ati*e an /sy#h"+"gi#a+ /!"#esses that #"nt!i,$te t"
#$st"%e! satisfa#ti"n (5a*!a, 1990, /6 7)6
'arker and 4athe$s +&001, ho$ever noted that the rocess of satisfaction definitions
concentrates on the antecedents to satisfaction rather than satisfaction itself.
)atisfaction as a rocess is the most $idely adoted descrition of customer satisfaction and a lot
of research efforts have been directed at understanding the rocess aroach of satisfaction
evaluations +'arker and 4athe$s, &001,. %his aroach has its origin in the discreancy theory
+'orter, 1961,, $hich argued that satisfaction is determined by the ercetion of a difference
bet$een some standard and actual erformance.
Cardo2o +196#,1 and *o$ard and )heth +1969, develoed the contrast theory, $hich sho$ed that
consumers $ould e"aggerate any contrasts bet$een e"ectations and roduct evaluations.
5lshavsky and 4iller +19!&,1 and 5lson and 6over +19!9, develoed the assimilation theory,
$hich means that erceived 7uality is directly increasing $ith e"ectations. Assimilation effects
occur $hen the difference bet$een e"ectations and 7uality is too small to be erceived.
Anderson +19!8, further develoed this theory into assimilation9contrast theory, $hich means if
the discreancy is too large to be assimilated then the contrast effects occur. %he assimilation9
contrast effects occur $hen the difference bet$een e"ectations and 7uality is too large to be
erceived and this difference is e"aggerated by consumers.
According to 'arker and 4athe$s +&001,, the most oular descendant of the
discreancy theories is the e"ectation disconfirmation theory +5liver, 19!!, 19:1,, $hich stated
that the result of customers/ ercetions of the difference bet$een their ercetions of
erformance and their e"ectations of erformance. 'ositive disconfirmation leads to increased
satisfaction, $ith negative disconfirmation having the oosite effect. ;i +1990, e"ressed that
customers buy roducts or services $ith re9urchase e"ectations about anticiated
erformance, once the bought roduct or service has been used, outcomes are comared against
e"ectations. .f the outcome matches e"ectations, the result is confirmation. (hen there are
differences bet$een e"ectations and outcomes, disconfirmation occurs. 'ositive
disconfirmation occurs $hen roduct or service erformance e"ceeds e"ectations. %herefore,
satisfaction is caused by ositive disconfirmation or confirmation of customer e"ectations, and
dissatisfaction is the negative disconfirmation of customer e"ectations +;i, 1990,.
(hile several studies suort the disconfirmation aradigm, others do not. <or instance,
Churchill and )urrenant +19:&, found that neither disconfirmation nor e"ectations had any
effect on customer satisfaction $ith durable roducts.
(einer +19:0, and 19:#,1 and <olkes +19:=, roosed the attribution theory, $hich stated that
$hen a customer urchases a roduct or service, if the consumtion is belo$ e"ectation, the
customer is convinced that the sulier causes the dissatisfaction. %he comlaining customer is
focused on restoring >ustice and the satisfaction outcome is driven by erceived fairness of the
outcome of comlaining.
(estbrook and 0eilly +19:8, roosed the value9ercet theory, $hich defines
satisfaction as an emotional resonse caused by a cognitive9evaluative rocess, $hich is the
comarison of the roduct or service to one?s values rather than an e"ectation. )o, satisfaction is
a discreancy bet$een the observed and the desired.
<isk and ;oung +19:#,1 )$an and 5liver +19:#, roosed the e7uity theory, $hich stated
that individuals comare their inut and outut ratios $ith those of others and feel e7uitable
treated. 37uity >udgement is based on t$o stes1 first, the customer comares the outcome to the
inut and secondly, erforms a relative comarison of the outcome to the other arty.
'i2am and 3llis +1999, reorted that there are t$o additional distinct theories of customer
satisfaction aart from the seven aforementioned ones and these include@
1. Comarison9level
&. Aenerali2ed negativity1 and
%he outcome aroach of the customer satisfaction is defined as the end9state satisfaction
resulting from the e"erience of consumtion. %his ost9 consumtion state can be an outcome
that occurs $ithout comaring e"ectations +5liver, 1996,1 or may be a cognitive state of
re$ard, an emotional resonse that may occur as the result of comaring e"ected and actual
erformance or a comarison of re$ards and costs to the anticiated conse7uences +Bavra, 199!,
. =,.
<urthermore, 'arker and 4athe$s +&001, e"ressed that attention has been focused on
the nature of satisfaction of the outcome aroach $hich include@
1. 3motion 9 )atisfaction is vie$ed as the surrise element of roduct or service urchase and or
consumtion e"eriences +5liver, 19:1,, or is an affective resonse to a secific consumtion
e"erience +(estbrook and 0eilly, 19:8,. %his ackno$ledges the inut of comarative cognitive
rocesses but goes further by stating that these may be >ust one of the determinants of the
affective “state” satisfaction +'ark and 4athe$s, &001,.
&. <ulfillment C%he theories of motivation state that eole are driven by the desire to
satisfy their needs +4aslo$, 19=8, or by their behaviour aimed at achieving the relevant goals
+Broom, 196=,. *o$ever, satisfaction can be either $ay vie$ed as the end9oint in the
motivational rocess. %hus “#"ns$%e! satisfa#ti"n #an ,e seen as the #"ns$%e!8s f$+fi++%ent
!es/"nse9 (R$st an O+i*e!, 1997, /6 7)6
8. )tate C 5liver +19:9, e"ressed that there are four frame$ork of satisfaction, $hich
relates to reinforcement and arousal. “)atisfaction9as9leasure” results from ositive
reinforcement, $here the roduct or service is adding to an aroused resting state, and
“satisfaction9as9relief” results from negative reinforcement ..n relation to arousal, lo$ arousal
fulfillment is defined as “satisfaction9as contentment”, a result of the roduct or service
erforming ade7uately in an ongoing assive sense. *igh arousal satisfaction is defined as
“satisfaction as either ositive +delight, or negative surrise” $hich could be a shock +0ust and
5liver, 199=,.
%he other customer satisfaction definitions include@ )atisfaction is “the cognitive state of
the buyer about the aroriateness or inaroriateness of the re$ard received in e"change for
the service e"erienced +*o$ard and )eth, 1969, . 1=#,1 the evaluation of emotions +*unt,
19!!, . =60,1 the favorability of the individual?s sub>ective evaluation +(estbrook, 19:0, . =9,1
a ositive outcome from the outlay of scarce resources +Dearden and %eel, 19:8a, . &1,1 an
overall customer attitude to$ards a service rovider +Eeves7ue and 4c6ougall, 1996, .1=,1 is
a >udgment that a roduct or service feature, or the roduct or service itself, rovided +or is
roviding, a leasurable level of consumtion9related fulfillment, included levels of under9 or
overfulfillment +5liver,199!, . 18,1 is an e"erience9based assessment made by the customer of
ho$ far his o$n e"ectations about the individual characteristics or the overall functionality of
the services obtained from the rovider have been fulfilled +*omburg and Druhn, 199:,1 the
fulfillment of some need, goal or desire +5liver, 1999,1 an emotional reaction to the difference
bet$een $hat customers anticiate and $hat they receive +Fineldin, &000,1 is based on a
customer/s estimated e"erience of the e"tent to $hich a rovider/s services fulfill his or her
e"ectations +Aerott et al. &001,”.
<or this study, customer satisfaction definition used is that of *omburg and Druhn +199:,
$hich is “an e"erience9based assessment made by the customer of ho$ far his o$n e"ectations
about the individual characteristics or the overall functionality of the services obtained from the
rovider have been fulfilled”.
%he relevance of this definition to this study is that it indicates that customers assess the
mobile services based on e"erience of use and the rating is done in accordance $ith the mobile
services attributes. .n this study, customer satisfaction $ith the Gigerian mobile services $ill be
evaluated based on customers e"erience of net$ork 7uality, billing, validity eriod and
customer care suort.
INTERNA: SATISFACTION
0esearch $orks have sho$n the imortance and the link of internal +emloyee, satisfaction to
the e"ternal +customer, satisfaction. *ill and Ale"ander +&000, stated that there is a ositive
relationshi bet$een emloyee satisfaction and customer satisfaction and this is achieved in
comanies that ractice emloyee motivation and loyalty. %hey reorted that “emloyees that are
more motivated to achieve customer satisfaction tend to be more fle"ible in their aroach to
their $ork, make fe$er mistakes and use more initiative”. <eHikovI +&00=, conducted studies on
the inde" method for customer satisfaction measurement $ith chairs in )lovakia and reorted
that the satisfaction of internal customers is one of the basic factors to satisfy the e"ternal
customer. %hus, she suggested that emloyee motivation and loyalty can be achieved through@
• 6aily leadershi C %o management officials motivate others through their erformance.
• %o management communicates their e"ectations to the emloyees.
• 6eveloment of cometencies C feedback on emloyees erformance, $ork efforts,
oortunity for develoment and imrovement of cometencies.
• Cororation and emloyee retention, and
• Aood $orking conditions
2EMO;RA<&ICS AN2 CUSTOMER SATISFACTION
%he social identity theory roosed that attitudes are moderated by demograhic,
situational, environmental, and sychosocial factors +*aslam et al., 19981 -ackson et al., 19961
'lato$ et al., 199!,. According to the social sychological theories, consumers/ evaluations are
moderated, or in some cases mediated, by ersonal feelings of e7uity in the e"change,
disconfirmation bet$een desires and outcomes, individual references, social comarisons, and
other comle" henomena. %hese theories strongly suggest that differences in these henomena
among consumers influence their attitudes +(illiams et al., 199:,.
)everal emirical findings that have sho$n the relationshi bet$een demograhic variables and
satisfaction include@
Dryant et al. +1996, conducted a study on =00 comanies using the American Customer
)atisfaction .nde" +AC)., and demonstrated that there is significant relationshi and consistent
differences in the levels of satisfaction among demograhic grous@ )e" C ositively related to
satisfaction and female customers are more satisfied than the male customers. <emale of all ages
are more satisfied than the male. (omen are more involved $ith the rocess of urchase and
ossibly use the mobile hone more for relational uroses +social net$ork device, $hile men
use it for functional uroses +businesses, sales, etc,. Age C ositively related to satisfaction but
the relationshi is not a straight line. )atisfaction increases $ith age. %he ma>or increase in
satisfaction is seen $ithin the age ## and over. .ncome C the higher the income, the lo$er the
satisfaction level. Eocation +tye of area, C ositively related to satisfaction. Customers living
$ithin metroolitan areas +central city and suburban areas, are less satisfied than those customers
in non9metroolitan areas.
'alvia and 'alvia +1999, found out that age is a significant determinant of satisfaction
$ith information technology industry. 5ye$ole +&001, in his research on customer satisfaction
$ith airline services reorted also that gender, occuation, education, and marital status have
significant influence on customer satisfaction, $hile age and household income had no
significant influence. *omburg and Aiering +&001, conducted a study on Aerman car
manufacturers using E.)03E notation and demonstrated that it is imortant to study
demograhic variables as determinants of customer behaviours. %he results of their study sho$ed
that gender has significant moderating effect on satisfaction9 loyalty relationshi. (omen are
satisfied $ith sales rocess $hile men are satisfied $ith the imact of the roduct. Age sho$ed a
ositive moderating effect and income had moderating influence $ith high income sho$ing
$eaker effect and lo$ income, high effect. -essie and )heila +&001, in their emirical $ork on
atients/ assessment of satisfaction and 7uality using factor analysis and regression, reorted that
age, beneficiary grou, location, rank, service affiliation, education, marital status, race, gender,
health status and number of visits +sociodemograhic variables, have minimal influence on
satisfaction.
Ahmad and Jamal +&00&, conducted a study on a commercial bank using a ste$ise regression
and demonstrated that there is negative significance bet$een age and satisfaction. (hen age
goes u, satisfaction levels are likely to go do$n. *o$ever, occuation and income levels are
ositively related to satisfaction. Eightner +&008, in his study on online e"erience using
regression, e"ressed that age is an imortant factor in determining satisfaction levels and
technology ercetions. BanAmburg +&00=, conducted a study on &00 comanies using the
American Customer )atisfaction .nde" +AC)., and demonstrated that age has a significant effect
on satisfaction. ;ounger age grous are less satisfied than older age grous across all roducts
and services industries.
Benn and <one +&00#, conducted a study on atient satisfaction $ith general ractitioner services
in (ales using logistic regression and reorted that satisfaction varied $ith age, gender,
emloyment status, and marital status. %he results obtained indicated that higher satisfaction is
significantly related $ith increasing age, female gender, unemloyed +those at home, disabled
and retired,, and married atients. *o$ever, unemloyed 9 students and those seeking $ork,
reorted lo$er satisfaction.
%urel and )erenko +&006, in their study on customer satisfaction $ith mobile services in Canada
using AC)., reorted that age has a significant influence on customer satisfaction and lo$er
satisfaction level is found among young adults.
<rom this literature revie$, it is suggested that consumers differ in behaviors and attitudes and
one of the factors resonsible for this difference is demograhics. .t is therefore necessary to
investigate the imact of demograhic factors +age, gender, tye of emloyment and location, on
customer satisfaction of Gigerian mobile telehone industry. %his investigation is necessary
basically for three reasons@
• .t is the first academic study on Gigerian customers
• 6emograhic factors are imortant factors in the society and greatly affect attitudes,
lifestyle, standard of living, etc. %his study intends to investigate the imact of these
factors on customer satisfaction $ith mobile services in Gigeria.
• .t hels to investigate the different market segments so as to better understand the needs
of different customers.
Consumer satisfaction, according to Aen 4urat 5re , K.% America, is defined as@
“4eeting secification@ on9time delivery1 roviding value, not >ust rice1 and making a
commitment to the industry/s future.”
6onnelly said, “%he first ste is to believe in the crisis. %hen >oin in and tackle it head9
on. 3mbrace change, be ersistent and learn to oerate in a system $ith a clear aim of adding
value to the customer.
%he standards for customer satisfaction kee changing, “says (armness, “(hich makes
customer satisfaction a moving target. (hat meet e"ectation today may not measure u
tomorro$L”
Adrian %homson says “Customer service, like any asect of business, is a racticed art
that takes time and effort to master. All you need to do to achieve this is to sto and s$itch roles
$ith the customer. (hat $ould you $ant from your business if you $ere the clientL *o$ $ould
you $ant to be treatedL %reat your customers like your friends and they/ .. al$ays come back”.
A $hile ago, . $as struggling $ith bad breath. . tried different toothastes, but none $ere
$orking. %hen, l remembered my mom al$ays had fresh breath, so . talked to her about $hat she
$as using. )he has al$ays used close u loves it. . tried it and love it so muchM . E5B3 that
cinnamon flavor so much. . really feel like it leaves me feeling fresh for so much longer.
%his is the only toothaste that . buy. At first . $as a little sketical in buying this
toothaste for the time. . have al$ays used Colgate but . $anted to try to find toothastes that
made my mouth feel fresh and that $as cheaer.
Consumer behavior has been al$ays of marketers. %he kno$ledge of consumer behavior
hels the marketer to understand ho$ consumers think, feel and select from alternatives
roducts, brands and the like and ho$ the consumers are influence by their environment, the
reference grous, family, and saleserson and so on. A consumer/s buying behavior is influenced
by cultural, social, ersonal and sychological factors. 4ost of these factors are uncontrollable
and beyond the hands of marketers but they have to be considered $hile trying to understand the
comle" behavior of the consumers. .n this study, the researcher emhasi2es the imortance of
lifestyle and its imact on the buyer behavior
%here are t$o factors mainly influencing the consumers for decision making. 0isk
aversion and innovativeness. 0isk aversion is a measure of ho$ much consumers need to be
certain and sure of $hat they are urchasing +2"nah$e an ;i++i+an, 1996,. *ighly risk
adverse consumers need to be very certain about $hat they are buying. (hereas less risk adverse
consumers can tolerate some risk and uncertainty in their urchases. %he second variable,
innovativeness, is a global measure $hich catures the degree to $hich consumers are $illing to
take chances and e"eriment $ith ne$ $ays of doing things +2"nah$e an ;i++i+an, 1996,.
%he shoing motivation literature is abound $ith various measures of individual characteristics
+e.g. innovative, venturesome, cosmoolitan, various seeking,, therefore, innovativeness and risk
aversion $ere included in this study to cature several of these traits. 4easures by 2"nah$e an
;i++i+an (1996, $ere user to measure innovativeness and risk aversion.
'ercetion is a mental rocess, $hereby an individual selects data or information from
the environment, organi2es it and then dra$s significance or meaning from it.
'erceived fit is attitudinal measure of ho$ aroriate a channel of distribution is for a
secific roduct. M"!!is"n an R",e!ts (199', four that consumer/s ercetion of the fit
bet$een a servicesN roduct and a channel is very influential in determining $hether they $ill
consider using that channel for secific. .n fact, erceived fit $as found to be more imortant
than consumer/s references for the distribution method or services
'roduct class kno$ledge is a measure of consumers ercetions of ho$ much they kno$
about a secific class of roducts +eg.cars,%his tye of measure is consistent $ith $hat =$#>s
(19'),called sub>ective kno$ledge, that is, consumers self9ercetions of kno$ledge levels. %his
is often contrasted $ith ob>ective kno$ledge, $hich is $hat consumers actually kno$. <a!> an
:essing (19'1, 'roosed that sub>ective kno$ledge rovides a better understanding of
consumers decision making rocesses because consumers level of confidence in their search and
decision making behavior, indeendent of their ob>ective kno$ledge.
'ast research indicates that consumers urchase and channel decisions might be
influenced by the tye of roduct being investigated +C". an Ri#h 1967? :$%/>in an
&a-es 19')1 M"!!is"n an R",e!ts 199'? <a/a"/"$+"s 19'0? <!asa 190)? Sheath?
Th"%/s"n 1901,. .n 'articular, these authors state that certain rovide might be aroriate for
one or another, $ith ultimately influences consumers channel reference and choice.
.t is our aim to rovide the best roduct for the consumer and $e believe that if the
roduct that if the roduct have 7uality the consumer $ill ay the rice, says Ama ar manic,
regional business director. 5ral9D
'ackaging establishes a direct link $ith the consumer at the oint of urchase as it can
very $ell change the ercetion they have for a articular brand. A roduct has to dra$ the
attention of the consumer through an outstanding ackaging design. 3arlier ackaging $as
considered only a container to ut a roduct in, but today, research in to the right ackaging is
beginning at the roduct develoment stage itself. 'ackaging innovation has been at the heart of
6abur/s attemt to ra $ith the urban consumers. .t sends large sums annually on ackaging
research, “(e have been laying emhasis on aesthetics, shelf aeal and convenience for
consumers” manager ackaging develoment.
According to Resiste! an /!ey (19'0,, brand a$areness recedes all other stes in the
buying rocess. A brand attitude cannot be erformed, unless a consumer is a$are of the brand.
.n memory theory, brand a$areness is ositioned as a vital first ste in building the bundle of
associations $hich are attached to the brand in memory +st">es, 19'))6
A family e"erts a comle" influence on the behaviors of its members. 'rior family
influence research has focused on intergenerational rather than intergenerational influence in
consumer generationalisation. As has been comellingly demonstrated, arents influence
children +M""!e, 3i++>ie, an :$t4(00(1 MOs #his 19'0,.yet, consumtion domains clearly
e"ist $here sibling efforts may also be e"erted.
)hoing motives are defined as consumer/s $ants and need as they relate to outlets at
$hich to sho. %$o grous of motives, functional and nonfunctional, have been roosed by
sheath (19'@,. <unctional motives are associational $ith time, lace, and ossession need and
refer to rational asects of channel choice. (hereas nonfunctional motives relate to social and
emotional reasons for atronage. %he functional motives included@ convenience, rice
comarison, merchandise assortment. %he nonfunctional motives entail@ recreation. %he urose
of the study is
i. %o e"amine the e"ternal factors influencing urchase decisions
ii. %o e"amine the consumer a$areness of toothaste
iii.%o find out ho$ romotional schemes are influencing the consumers
iv. %o e"amine ho$ the roduct attributes influencing the consumer buying toothaste

&"+t, 2"$g+as =6 3hy 2" =!ans Ca$se T!"$,+eA A 2ia+e#ti#a+ The"!y "f C"ns$%e!
C$+t$!e an =!aning ((00()?
Drands are today under attack by an emerging countercultural movement. %his study
builds a dialectical theory of consumer culture and branding that e"lains the rise of this
movement and its otential effects. 0esults of an interretive study challenge e"isting theories of
consumer resistance. %o develo an alternative model, first trace the rise of the modern cultural
engineering aradigm of branding, remised uon a consumer culture that granted marketers
cultural authority. .ntrinsic contradictions erased its efficacy. Ge"t the current ostmodern
consumer culture, $hich is remised uon the ursuit of ersonal sovereignty through brands.
%he details of five ostmodern branding techni7ues that are remised uon the rincile that
brands are authentic cultural resources. 'ostmodern branding is no$ giving rise to ne$
contradictions that have inflamed the antibranding sentiment s$eeing (estern countries.
Cha!+es A6 Ingene, Ma!> E6 <a!!y A N"te "n M$+tiBRegi"na+ Ma!>eting Manage%ent
S#ien#e (199))?
%his aer e"amines the rofit ma"imi2ing behavior of a vertically integrated firm that
oerates in OnO geograhically distinct regions. A air of alternative managerial decision
scenarios is considered. .n one scenario, all marketing mi" variables are maniulated at the
regional level, so that each region may choose different levels of each marketing variable. .n the
second scenario, one marketing variable is maniulated Oglobally,O so that its level is identical in
all regions. %he first scenario generates an n9region version of the O6orfman9)teinerO first9order
conditions for rofit ma"imi2ation. *o$ever, under some cost structures the rofits associated
$ith this 6orfman9)teiner scenario are dominated by those associated $ith the second, OAlobal9
0egionalO scenario. %his second scenario yields an otimal solution in $hich the global
marketing variable may have a negative marginal imact on sales in some regions. As a result,
some managerial imlications of the second scenario differ strikingly from those of the 6orfman9
)teiner scenario.
3i++ia% T6 R",ins"n, Ma!>eting Mi. Rea#ti"ns t" Ent!y Ma!>eting S#ien#e (19''),
.nitial roduct, distribution, marketing e"enditure, and rice reactions by incumbents are
e"amined for 11# entrants into oligoolistic markets. %he most common reaction attern is either
no reaction or only a single reaction. .t is very unusual for entrants to face reactions across the
entire marketing mi". 0eactions in the first t$o years after entry are e"lained as a function of
the entrant?s strategy, incumbent characteristics, and industry characteristics. %he e"lanation
rovides insights into $hy marketing mi" reactions to entry are often limited.
%here are t$o factors mainly influencing the consumers for decision making. 0isk aversion and
innovativeness. 0isk aversion is a measure of ho$ much consumers need to be certain and sure
of $hat they are urchasing +2"nah$e an ;i++i+an, 1996,. *ighly risk adverse consumers
need to be very certain about $hat they are buying. (hereas less risk adverse consumers can
tolerate some risk and uncertainty in their urchases. %he second variable, innovativeness, is a
global measure $hich catures the degree to $hich consumers are $illing to take chances and
e"eriment $ith ne$ $ays of doing things +2"nah$e an ;i++i+an, 1996,. %he shoing
motivation literature is abound $ith various measures of individual characteristics +e.g.
innovative, venturesome, cosmoolitan, various seeking,, therefore, innovativeness and risk
aversion $ere included in this study to cature several of these traits. 4easures by 2"nah$e an
;i++i+an (1996, $ere user to measure innovativeness and risk aversion.
'ercetion is a mental rocess, $hereby an individual selects data or information from
the environment, organi2es it and then dra$s significance or meaning from it.
'erceived fit is attitudinal measure of ho$ aroriate a channel of distribution is for a
secific roduct. M"!!is"n an R",e!ts (199', four that consumer/s ercetion of the fit
bet$een a servicesN roduct and a channel is very influential in determining $hether they $ill
consider using that channel for secific. .n fact, erceived fit $as found to be more imortant
than consumer/s references for the distribution method or services
'roduct class kno$ledge is a measure of consumers ercetions of ho$ much they kno$
about a secific class of roducts +eg.cars,%his tye of measure is consistent $ith $hat =$#>s
(19'),called sub>ective kno$ledge, that is, consumers self9ercetions of kno$ledge levels. %his
is often contrasted $ith ob>ective kno$ledge, $hich is $hat consumers actually kno$. <a!> an
:essing (19'1, 'roosed that sub>ective kno$ledge rovides a better understanding of
consumers decision making rocesses because consumers level of confidence in their search and
decision making behavior, indeendent of their ob>ective kno$ledge.
3i++ia% C6 M#E-en an C"hn &6 F+e%ing +&000,<or several decades, marketers have been
tirelessly searching for a highly coveted but aarently elusive ri2e@ customer satisfaction. %he
roblem is, they/ve been ursuing the $rong goal.
%hat/s right. 0egardless of ho$ high a comany/s customer satisfaction levels may
aear to be, satisfying customers $ithout creating an emotional connection $ith them has no
real value. Gone at all.
As (erner 0einart and B. Jumar noted in a Harvard Business Review article last year,
“%o identify the true aostles, comanies need to >udge customers by more than >ust their
actions.” 5thers echo their sentiments. (harton/s 'eter <ader states, “.t is hard to diagnose ast
behavior to understand $hy eole did $hat they did. *istorical behavioral data is rich and
interesting, but it has its limits as a guide to the future.”
Customer satisfaction assessment $as heralded some time ago as the obvious solution to
the need for more meaningful customer measures. )atisfaction, it $as claimed, rovides insight
into the reasons $hy customers behave as they do and is not merely a reflection of reeated
behavior that may have been earned P or “urchased”Pby the comany.
Rhea Ing!a%, Ste*en C6 S>inne!, 5a+e!ie A6 Tay+"!, C"ns$%e!s8 E*a+$ati"n "f Unethi#a+
Ma!>eting =eha*i"!s? The R"+e "f C$st"%e! C"%%it%ent ((00)),
(hile there is a significant amount of research investigating managerial ethical
>udgments, a limited amount e"amines consumer >udgments of unethical cororate behavior and
its imact on the marketlace. %his study e"amines ho$ consumers? commitment to a comany
imacts not only their ethical >udgment of cororate behavior but also the outcomes of that
>udgment. %he authors test hyotheses $ith data from 88= consumers and find that consumers?
level of commitment attenuates the level of erceived fairness. 4ore secifically, highly
committed consumers may forgive comanies for behaviors $hen erceived harm is lo$, but
become rogressively dissatisfied as the level of erceived harm increases. 0esults of the study
oint to the imortance of considering ethical behavior from a consumer ersective. .f cororate
actions are erceived as unethical, the comany stands to lose favor $ith their most committed
customers. Considering that more time, effort and investment is re7uired to gain a ne$ customer
as to retain an old, this study sho$s that engaging in behavior erceived as unethical by
consumers risks alienating the most committed customers.
=a!,a!a C6 <hi++i/s ,Thin>ing int" It? C"ns$%e! Inte!/!etati"n "f C"%/+e. A*e!tising
I%ages (1990)
%he 7ualitative study reorted is based on a ne$ concetuali2ation that characteri2es
comle" advertising images as figures of rhetoric from $hich consumers infer advertising
messages. .nformants interreted the meanings of si" ads containing ictorial metahors. %he
interretations indicated that shared strong imlicatures as $ell as multile $eak imlicatures
$ere dra$n from images in the ads. .n general, consumers? interretations matched the intentions
of the ads? roducers. .nformant resonses also suggested that consumers use cultural, roduct,
and advertising kno$ledge to infer meaning from advertising images.