BRM 504E

Business Research Methods

Independent University Bangladesh
Autumn 2021
 Customer Satisfaction
• What is Customer Satisfaction
• Why is Customer Satisfaction important
• How to measure the degree of Customer
satisfaction
• Nature of Customer Satisfactions surveys
• Developing Questionnaire for Customer Satisfaction
survey
• Example: Mobile phone services
• Summary
Sources of Customer Satisfaction
 Introduction
Customer satisfaction is vital for business
sustainability. If customers are satisfied with
service/product and feel good after use, then they
would involve in a repeat purchase and try to increase
line extension. So, improving the level of customer
satisfaction is essential for a business since satisfied
customers may bring many benefits for a business firm
such as sharing positive recommendations through
word of mouth. Moreover, satisfied customers would
be able to make long-term profitable relationship with
the brand.
 Satisfaction
• Conceptually, satisfaction is an outcome of
purchase and use resulting from the buyer's
comparison of the benefits and costs of the
purchase in relation to the anticipated
expectations.
• Operationally, satisfaction is similar to attitude in
that it can be assessed as the sum of the
satisfactions with the various attributes of the
product or service.
• Both cognitive and affective models may be
alternatives for describing satisfaction, however,
the primary distinction between satisfaction and
attitude derives from temporal positioning: attitude
is positioned as a pre-decision construct and
satisfaction is a post-decision construct.
What are factors that cause
Customer’s Satisfaction
BRAIN STROMING SESSION

Relevant factor
Significant
factor
 Sources of Customer
Satisfaction
• Product Features/Service Features
• Specific product or service features
• Product quality/Service quality
• Service : Experience with company staff and
officials
• Price
• After sales service
• No complaint about the product and the company
• Consumer perception
• Perceptions of equity and fairness
• Personal factors
• Situational factors
 Consumer Expectations
• Expectations reflect anticipated performance (of a
product/service).
• Consumers may use different "types" of
expectations when forming opinions about a
product's anticipated performance.
• Four types of expectations: Ideal, Expected,
Minimum tolerable and Desirable.
• Expectations about the nature of the product or
utility of the service.
• Expectations about the costs and efforts in in
obtaining benefits, and expectations of social
benefits or costs.
Service quality and Customer
Gap

• Service quality
is the
customer’s
judgment of
overall
excellence of
the service
provided in
relation to the
quality that
was expected.
 Equations
Satisfied Customer Un-satisfied Customer
• Consumer’s Perception > • Consumer’s Expectation >
Consumer’s Expectation Consumer’s Perception
• Value for money > Price • Price > Value for money
Causal Framework of CS / 1
Causal Framework of CS / 2
 Causal Framework of CS / 3
A student will try to suggest his own framework of
generating brand loyalty by way of customer
satisfaction
 Outcome of Customer
Satisfaction
• Low product complaint
• Low level of warranty claim
• Increased customer loyalty
• Improvement of brand image
• Positive word-of-mouth communications
• Growth in sales
• Increased revenues => Higher profit
 Outcome of Customer
Dissatisfaction
• Product complaints
• Repair of the product (Warranty claim)
• Replacement of the product
• Return of the product, Refund
• Discourage others to buy this product:
negative publicity
• Fall in sales
• Fall in profits
 Brand Loyalty
• Business needs a stable customer base.

• Customer satisfaction generates brand

loyalty.

• Dissatisfied customers turn away and

choose a different brand.
 Graphical Representation
Customer Satisfaction & Brand Loyalty
Desirable Customer base: Purple
 Why collect customer
feedback?
• Customer satisfaction surveys give you the
insights you need to make better decisions. In
fact, we’ve found that businesses who measure
customer satisfaction are 33% more likely to
describe themselves as successful than those
who don’t. Customer satisfaction surveys give
you the insights you need to make better
decisions. In fact, we’ve found that businesses
who measure customer satisfaction are 33%
more likely to describe themselves as
successful than those who don’t.
 What is a Customer
Satisfaction Survey?

An Instrument that consists of a series of

items that are designed to elicit customer
perceptions.
 Benefits of using Customer
Satisfaction Surveys

• Builds a strong relationship with

customers.
• Quantifies customer satisfaction levels
• Enables our organization to measure up to
customer expectations
Exploratory Research Process
• Planning of the research project
• Exploratory research
• Hypothesis/Hypotheses
• Questionnaire design
• Main survey: Meeting people and obtaining
their feedback
• Analysis and reporting
 Six Design Elements of any
Customer Satisfaction Research

1. What should be measured?

2. What do the measurements mean?
3. How should satisfaction be measured?
4. Who should be interviewed?
5. How should the interview be carried out?
6. How to use a customer satisfaction study
to greatest effect?
 Develop and Validate the
Instrument
• Develop items that will measure customer
requirements
• Use the critical incident approach
• Items should be declarative “close-ended”
questions
• Reliability and validity are two different but
interrelated issues
 Customer Satisfaction
Score (CSAT)
CSAT questions can be:

•How would you rate your satisfaction with our

product or service? (Answers can be Very
Satisfied, Unsatisfied, Somewhat Satisfied, etc.)
•Were you satisfied with our product or service?
(Yes/No)
•On a scale of 1-10, how satisfied are you with our
product/service?
 Customer Satisfaction Score
A scale of 0 to 10

Choose a number and indicate your level of

satisfaction with our product

                     

⓿ ❶ ❷ ❸ ❹ ❺ ❻ ❼ ❽ ❾ ❿
                     
 How to calculate customer
satisfaction score (CSAT)
1000 surveyed, 650 satisfied
 Interpreting Customer
Satisfaction Score
Customer What does it imply?
Satisfaction Score

Average scores of Market leader, excellent supplier

over 8 out of 10

Average scores of Adequate but needs attention

7 to 8 out of 10

Average scores of Serious cause for concern. Company will

below 7 out of 10 almost certainly be losing market share
(except for the score given to price – here
a high satisfaction score may mean that
the company is selling the product too
cheap)
 Carry out the Survey

• Make survey available to customers

• Test/retest approach to ensure valid and
reliable responses
 Open-ended Questions for
Focus Group
• What caused disappointment to you in relation
to your product / service?
• Which aspect/feature is most relevant to you?
• What do you like most about the product/
service?
• What do you dislike most about the product/
service?
• How should we improve your experience?
• How can we compensate for your
dissatisfaction?
 Identify Customer
Requirements
• Understanding customer expectations:
quality, service, and performance
• Examine documents that were established
when relationship with the customer began
• Interview customers to go over customer
wants
 Analyze the Results

• Data processing should be kept simple

• Use Pareto’s analysis when analyzing
open-ended questions
• Use advanced statistical analysis only
when necessary
 Focal Points of a
Research Question
What would be the focal point for mobile
phone services?

Write at least one question in Chat box. The

more the merrier.

We need at least 6 (six) GOOD questions.

 How will you compare customer
satisfaction from Taxi Cab
companies in your town?
• Taxi fare
• Comfort
• Reliability
• Responsiveness
• Quality of the vehicles
• Driving expertise of the drivers.
Taxi cab users can identify the
relevant and significant factors
 Critical factor

• Most important factor/

feature of a product or
service which is most
important to the customer
• Price is always a critical
factor
 A research on measuring customer
satisfaction-1

Download this article and examine the Table on page 708

How to organize data collected through
survey (Frequency)-1
How to organize data collected through
survey (Proportion)-2
 Tabulation of Survey Data:
Customer’s Response and His Occupation
 Understanding
Journal Articles
 A research on measuring customer
satisfaction-2

Download this article and examine formulation of

hypothesison page 314
Tabulation and Interpretation
 Overall Findings
• From the sample size of 110, 50% of the customers responded
that the range of products is good.
• It was found that 52.72% of the customers responded that the
quality of products is average.
• It was found that 44.54% of the customers are dissatisfied
towards the offers.
• It was found that 56.36% of the customers are highly dissatisfied
towards the speed of the cashier at the billing process.
• It was found that 75.45% of the customers responded that they
are not satisfied with the parking facility.
• By chi-square test, it is proved that the overall satisfaction of the
customers of food bazaar is independent of their gender
 Chi-Squared Test
• Degrees of freedom = (r-1)(c-1), = (2-1)(4-1), = 3
• Level of significance = 0.05 = 5%
• Chi-square x2 = ∑ (o-e) 2 /e, = 2.185
• The calculated value is 2.185. The chi-square table value
at 5% significance level is 7.81. (p-value=.05)
• Interference: the Calculated value is less than the Table
value. Hence, the null hypothesis is accepted. Thus, the
overall
• Therefore, Satisfaction of the Customers of Food Bazaar
is independent of their Gender.
 Association between Demographic
Characteristics of Customers and their
Online Customers Satisfaction
• Null Hypothesis: H0
• There is no significant association between demographic
characteristics (gender, age, qualification and occupation)
of customer and their satisfaction level towards online
shopping in Surat City.
• Alternative Hypothesis: H1
• There is significant association between demographic
characteristics (gender, age, qualification and occupation)
of customer and their satisfaction level towards online
shopping in Surat City.
 Chi squared Test
• Chi Squared Test is carried out for
hypothesis testing.
• Consult the Lecture note on this.
• SPSS will carry out this test once you feed
in data.
• P-value is the decisive factor. (Normally
mentind as Asymptotic significance)
Null Hypothesis rejected if p < .05
 TeleCom Sector
• For telecommunication service providers, it is crucial
to satisfy customers and increase their loyalty.
• Success of a mobile operators depends on the
long-term relationship with customers which is
determined by customer satisfaction and loyalty.
 How to design a research
Factors that Affect Customer Satisfaction
in Mobile Telecommunication Industry

BRAIN SOTRMNG SESSION

A Research Model for
Telecom Sector
 Developing Hypothesis

• Ho1: There is no correlation between service

quality and customer satisfaction
• Ha1: There is a correlation between service
quality and customer satisfaction
• Ho2: There is no relationship between service
quality and customer satisfaction
• Ha2: There is relationship between service
quality and customer satisfaction
 Developing Hypothesis
(contd.)
• Ho3: Attractiveness of alternatives does not play a
significant role in relationship between service quality
and customer satisfaction
• Ha3: Attractiveness of alternatives does play a
significant role in relationship between service quality
and customer satisfaction
• Ho6: Attractiveness of alternatives does not play a
significant role in relationship between perceived
value and customer satisfaction
• Ha6: Attractiveness of alternatives does play a
significant role in relationship between perceived
value and customer satisfaction
Check what the hypotheses are
as developed
in the following journal article
 Developing Customer
Satisfaction Surveys
• People are too busy to respond to feedback questions.
Structured questionnaires are necessary.
• In order to value the time, knowing the purpose of asking
feedback to customers is very important. Whether you want
to assess your client satisfaction or shape your product
roadmap, getting honest customer feedback is something
you need to do.
• Questions should be direct or specific. Your questions should
be tailored to the kind of service or product that you offer.
• Asking the right questions is the key trick to getting honest
and useful feedback.
• Open ended questions re more effective.
 Developing Customer
Satisfaction Questions
• 1. Overall Satisfaction Measure (Attitudinal)
Example question: Overall, how satisfied are you with “La Jolla
Grove restaurant”?
• 2. Loyalty Measurement (Affective, Behavioral)
Example question: Would you recommend “La Jolla Grove
restaurant” to your family and friends?
• 3. A series of Attribute Satisfaction Measurements (Affective
and Cognitive)
Example question: How important is “taste” in your decision to
select La Jolla Grove restaurant?
• 4. Intentions to Repurchase Measurements (Behavioral
Measures)
Example question: Do you intend to return to the La Jolla
Grove restaurant in the next 30 days?
 Some Research Findings on
Mobile Phone Services
(a) Network quality as one of the relevant factors in
terms of evaluating service quality in determining the
overall customer satisfaction.
(b) Poor network quality can lead to less customer
satisfactions on mobile phone operators, subsequently
that increases the number of complaints against the
operators.
(c) Low-quality network service leads to more
dissatisfaction among mobile phone subscribers and
increase the tendency to change to the other network
operators.
 Writing a Report on the basis of a
Customer Satisfaction Survey
Demographic Factors

• Sample size: Data has been collected successfully

from 1000 respondents which occupy 100% of
response rate.
• Gender: There are 540 male respondents and 460
female respondents out of 1000 respondents
• Education: 65% passed SSC, 40% passed HSC and
36% university graduate and above
• Occupation: Employed 25%, Business 10%, Students
35% and Housewives 20% and Others 10%
 A short Report
• Present research shows that, demographics of the customers’ are one of
the most important factors which influence using internet banking
services. It is found that highly educated, a person who are employees,
businessmen and belongs to higher income group and younger group are
using this service. However, remaining customers are not using this
services. These factors not only led to use internet banking but also
influence overall customers satisfaction in internet banking.
• Results also show that overall satisfaction of employees, businessmen and
professionals are higher in internet banking service; it means other users
are not happy with the internet banking services.
• There is significant difference in the customers’ perception in internet
banking services provided by the public and privates sector banks. Private
sector banks are providing better service quality of internet banking than
service provided by the public sector banks.