Customer Satisfaction

Introduction
• Customers are the most important asset of an organization

• How many customers it has, how much they buy, and how often they buy

• Customer satisfaction is an important measure of quality

• Quality means meeting or exceeding the customers’ expectations

• Satisfied customers will lead to increased profits

• People’s opinions and their satisfaction level are highly subjective

• Customer’s views should be viewed in comparison of competitor’s offering

 Customer Perception of Quality
• According to American Society for Quality (ASQ), following
factors influenced purchases (rank wise)

1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation
 Customer Perception of Quality
• Performance (availability, reliability, maintainability)

• Service (look ways to serve customers better even if they are not
complaining)

• Warranty (authentic feedback on product and service, force organization to

develop corrective plans, encourages customers to buy a product)
 EMPLOYEE INVOLVEMENT
• Employee involvement is an approach that improves quality and
productivity

• It boosts employees’ motivation to do their job and help in achieving

organizational goals

• Two motivational theories:

1. Maslow’s hierarchy of needs
2. Herzberg’s two factor theory
Maslow’s Hierarchy of Needs
 Maslow’s Hierarchy of Needs
Level 01 (Survival)
• It includes food, clothing and shelter. In organizations, it means pay for
work, proper place to perform work, proper lightening, ventilation and
other necessities

Level 02 (Security)
• Job security, safe place to work, safety measures to perform work, lockable
storage for personal items, ergonomics

Level 03 (Social)
• Giving individual opportunities to be part of a group as an important
member. Providing cafeteria, conference rooms etc
 Maslow’s Hierarchy of Needs
Level 04 (Esteem)
• Relates to pride and self-worth. Every employee, regardless of designation,
wants to be recognized as a valuable member. Wherever possible,
employees should be recognized and rewarded. Business cards, workspace
size, seeking their advices and giving employees control and freedom of
their job are few examples

Level 05 (Self-actualization)
• Giving employees full opportunities to go as far as their abilities will take
them
• In personal life, achieving personal targets like entrepreneurship, charity
work, inner creativity etc
 Herzberg’s Two Factor Theory
• He extended the general work of Maslow by using empirical research to develop his theory
on “employee motivation”
• He found that:

 Employees were motivated by recognition, giving responsibility, achievements and work

itself. These factors were labeled as motivators

 Employees were dissatisfied and had bad feelings due to low salary, minimal fringe benefits,
poor working conditions, ill-defined organizational policies and mediocre technical
supervision. These actors are called dissatisfiers or hygiene factors

 Dissatisfiers are often extrinsic in nature whereas motivators are intrinsic

 The presence of dissatisfiers doesn’t necessarily motivate the employees, however their
absence dissatisfy employees

 Absence of motivating factors doesn’t dissatisfy employees, however their presence motivate
employees that result in good job performance

 Dissatisfiers must be taken care before actuating motivators

Herzberg’s Two Factor Theory