The Concept Of Customer Satisfaction Marketing Essay

Published Date: 23 Mar 2015

In Sweden, nature and the home both play a big part in peoples lives. In fact, one of the best ways to describe the Swedish home furnishing style is to describe nature - full of light and fresh air, yet restrained and unpretentious. In Sweden, nature and the home both play a big part in peoples lives. In fact, one of the best ways to describe the Swedish home furnishing style is to describe nature - full of light and fresh air, yet restrained and unpretentious. Then, IKEA shows up, then the life is different. In IKEA, a customer will get a wide range, or good design and function, or low prices.

This part aims to make an general literature review on how companies create products, market them, and also innovate new products through a "value based" approach" and how this approach is communicated to the customers to sustain a business over a long period, then the main view is the customer satisfaction and loyalty, and their relationship with business success in current economy environment around the world.

The concept of customer satisfaction originated from Japanese company's customer satisfaction strategy for the first time, it is proposed based on the following two different meaning: based on the personal view, customer satisfaction is an emotional reflection of customers from the consumption of a product or service experience, this satisfaction is not only reflected in a service on a product, but also reflected the expression of satisfaction on a system or regulations; from the enterprise perspective, customer satisfaction is a set of customer-oriented indicators, which provides all consumer experience evaluation of the actual and expected in the course of product or service condition provided by a enterprise ( Srini S. Srinivasan. 2002). Customer Satisfaction generation is a necessity of business management concepts changes, from the "value-centric theory" to "sales-centric theory" to "profit-centric theory" to "market-centric theory", then "Customer-centric theory", then entering into the "Customer-centric Satisfaction theory" stage( L Bennington. 2000).

Customer loyalty concept is originated from the concept of customer satisfaction, it refers to a psychological tendency of customer to trust in the company's product, company brand, and repeat purchase after customer satisfaction. In fact, customer loyalty actually is the state of continuity of customer behavior, including emotional and behavior these two components. Affective component refers to customer attitudes on the enterprises and their employees, and behavior component means that customer buying behavior and word of mouth (Anderson Fornell. 1994). With the increasing market competition, customer loyalty has become a determining factor affecting enterprise long-term profits (Belly Llun. 1977). Customer loyalty will help the enterprises to consolidate existing markets; Customer loyalty is conducive to reducing marketing costs; Customer loyalty makes it possible to better protect enterprise in the fierce competition; Customer loyalty can help enterprise to enhance the core competitiveness and improve the long-term business performance.

In most cases, customer satisfaction and customer loyalty is not a simple linear relationship. This shows that there are some other moderating factors between the customer satisfaction and customer loyalty these two variables. These variables and their role in regulating intensity differ with its industry. Research has identified the following moderating factors and the empirical research.

The quality of products and services provided by the enterprises is the key factor to determine customer satisfaction and customer loyalty at last (Ander G. 2003). Customer loyalty on product has cyclical characteristics, a single product would not catch the eye of customer for a long time, the customers will soon be attracted by new products, thus maintaining customer loyalty permanently is very difficult to a brand (Jones Sasser. 1995).

IKEA always pursues customer's actual needs as the starting point, always customer-focused, it is a unique marketing concept of IKEA and is IKEA 's exclusive tip to win customers and market in the world. In the early 50th of twenty century, IKEA found itself embroiled in price wars and competition with competitors, then came up with a way to open furniture showroom with a three-dimensional way, which has become the most important marketing methods of IKEA (Neil A. Morgan. 2008). Gradually, IKEA's brand image gradually gets into the minds of customers, although no direct economic benefits, but its long-term benefits can be expected. IKEA furnishings are constantly changing ways, and forms a significant feature with competitors, and it is difficult to imitate( Eddie Tang. 2001). IKEA has not sales personnel of follow suit, customers are free to choose whatever products they want. IKEA labels all goods with size information. And then, IKEA turns the problem into an opportunity, creates a precedent for flat packaging model. In addition IKEA product line is smooth, simple, practical, adhering to a focus on function, the pursuit of rational typical Scandinavian style (Hsin-Hui Lin. 2000). This is because IKEA's design department can make a good combination between the arts and the market, develops products in consistent with IKEA style and to meet customer requirements.

With the progress of material civilization, people's living standards and consumer demand are also escalating. People are more concerned about the quality of life, concerned about their psychological and spiritual satisfaction. In experience economy, enterprises no longer just provide commodity or service, also offer the ultimate experience (AG Woodside. 1989), through the power of emotions to delight customers, consumer spending is no longer tangible goods, and is a spiritual experience. IKEA as the star enterprise in furniture manufacturing industry, will not only provide consumers with high quality products, but also through a better experience to meet the spiritual needs of the consumers (Ajzen Fishbein.1972). In IKEA, the consumers are free to choose their favorite products, and relax and comfortable shopping environment is the typical feature of IKEA store. IKEA strongly encourages consumers to have a full experience.

Customers are the source of business life, the customers' need is the starting point of business marketing. Attaining customers means the company has the basis to survive in the market competition, and attaining and retaining customers by any methods is the momentum for enterprise to embark the sustainable development road. Service quality management can bring a large scale of customer satisfaction, then gradually more and more customer will keep loyalty in IKEA by IKEA's specific marketing and management strategies. In the future the IKEA should pay more attention on the study of the relationship between customer satisfaction and loyalty to formulate more effective marketing and management strategies to gain more global customer satisfaction and loyalty in the future.