Service quality and price on customer satisfaction Essay Example

customer's emotional reaction to a product or service and the variance between their expectations and the actual performance. Furthermore, research on customer satisfaction has mostly been conducted within an economic context. For example, Anderson et al. (1994) characterized customer satisfaction as the "overall assessment derived from the complete experience of purchasing and using a product or service over time." Numerous studies now focus on this comprehensive evaluation of satisfaction, which contributes to improving overall customer experience in business operations.

In customer satisfaction theory, the importance of product quality in determining customer satisfaction is widely acknowledged. According to Zeithaml (1991) and Dawar (1999), product quality refers to the superiority or excellence of a product. Juran (1989) further expands this definition by stating that quality is the fitness for use, taking into consideration both customer-design product features and freedom from deficiencies.

Contrarily, Garvin (1987) argues that quality should not only focus on protecting customers from annoyances but also on pleasing them. Garvin proposes a strategic approach that encompasses eight dimensions of quality for products: performance, features, reliability, conformity, durability, serviceability, aesthetics, and perceived quality. The automobile industry is a prime example of how Garvin's theory applies (See Figure 1).

In addition, Garvin created a practical definition of quality for products (Figure 2). The process flow chart illustrates the system of product quality dimensions and defines product quality from the perspective of customers. The flow chart reveals that Garvin highlighted the significance of quality dimensions for customer satisfaction. He also acknowledged that customers and manufacturers have different perspectives on the quality process, implying that customers may not perceive the quality process from the manufacturer's viewpoint. Garvin proposed that products of varying

degrees should adhere to different dimensions, as each product may require a unique application. Therefore, manufacturers should gather information from their customers to ensure the appropriate quality dimensions are applied to each product.

In terms of product quality, Quality function deployment (QFD) is implemented to enhance customer satisfaction in various industries. QFD, which was initially introduced in Japan in 1966 by Akao, is an approach to designing new product development (NPD). Akao describes customer satisfaction as the core of QFD, where it provides specific methods to ensure quality throughout the product development process. These methods start from the design stage and aim to satisfy customers by translating their requirements into design objectives and key points. This ensures quality during the production stage.

There are multiple definitions of Quality Function Deployment (QFD) with various perspectives. However, according to Maddux et al. (1991), these definitions share similar objectives – identifying customers, understanding their desires, and providing ways to meet their needs. QFD essentially translates customer desires, also known as the voice of the customers, into technical requirements for products. Akao (1990) states that it aims to respond to the customers' wants and needs. QFD involves two key questions: "WHAT" denotes customer requirements and "HOW" pertains to how these requirements are fulfilled (Hauser & Clausing, 1998). It comprises three core components: a facilitator (a cross-functional team), a tool (a series of matrices), and a goal (achieving customer satisfaction targets).

According to Brown (1991), QFD offers several benefits such as superior product design, increased potential for innovation, and reduced project and product costs. These benefits ultimately result in higher customer satisfaction with the products. Raynor (1994) demonstrated how QFD can enhance customer

satisfaction by focusing on an organization's processes and how they contribute to creating customer satisfaction. Kano (1984) and other researchers have developed a helpful model for understanding customer satisfaction. According to this model, higher product performance leads to higher customer satisfaction. The model categorizes product features into three types, each impacting customer satisfaction differently (see Fig 3).

Must-be attributes refer to essential features that customers expect, such as a new car being free of scratches. However, customers can be dissatisfied if their needs are not adequately met by the product they purchase. One-dimensional attributes result in either satisfaction or dissatisfaction based on whether they are fulfilled or not. Customers are more satisfied when these attributes are improved. Attractive attributes lead to higher customer satisfaction when they are strongly achieved.

The Kano model provides a clear understanding of how customer satisfaction is related to the performance of a product. This relationship varies for different types of attributes: must-be, one-dimensional, and attractive. In addition, the Kano model offers a method for categorizing customer attributes. Matzler et al. (1998) and Vasilash (1995) have also delved deeper into discussing the Kano model.

Based on the Kano model, direct implementation in product development is crucial for customer satisfaction. In the car market, customers often face difficulty in making decisions as there are many similar products with comparable features and models. As a result, firms may struggle to meet their customers' basic needs and desires, which is necessary to exceed customer expectations. Therefore, surpassing customer expectations becomes essential in order to satisfy and retain customers. This can be achieved through high-quality products that not only meet customer requirements but also exceed their satisfaction.