Some companies were so surprised initially by the sudden 'quality movement' of the 1990's that Cant (1992, p. 1) commented that
Businesses generally have a lethargic approach towards any kind of change. When TQM was still a newbie, some people thought that it could rescue businesses from 'flabby management techniques' and 'shoddy products', while others thought it to be 'too perfect' and that such management techniques cost more than they are worth. American firms could not truly embrace 'Quality Management' until they thought it made their shareholders more money than it did the seminar organizers, consultants and book publishers, who again, they thought, reaped the biggest quality rewards of the 1980s. Only those who had the patience and stuck to it reaped the rewards. Many, who did not, were wiped out in the competition.
Virtually every business depends on repeat business for survival. It's a common sense answer that for customers to come back they should be happy with what they got before. Earlier, professionals could count on their reputations and work contacts to provide a steady stream of work; however, as a result of de-regulation, an over-supply of professionals in many disciplines and a declining public image, this is no longer guaranteed.
A r "To maintain the competitive edge, organisations must move quickly to identify and then meet customer satisfaction." (Asher 1989, p. 1)
A research study done on legal advisors, where the sample consisted of 600 commercial business organizations drawn from 'Key British Enterprises' 1989 proved that "Clients with higher perceptions of service quality are likely to consider changing their legal advisers less often and expect to enjoy longer working relationships with their corporate legal advisers." (Morgan 2007, p. 38)
So, if you want to stay in business, make sure that the people who give you business (customers) are happy with what they get.
What is the Problem in Measuring Customer Satisfaction
Though we know that the relation between 'customer satisfaction' and 'profits' is quite obvious, there are 3 problems, as proposed by Wiele, Boselie and Hesselink (2002, p. 184) in measuring this relationship:
1. The time lag between measuring customer satisfaction and measuring profit improvements.
2. The number of other variables influencing company profits such as price distribution, competition, etc.
3. The fact that other variables should be included in the relationship because they explain the casualty between satisfaction and results.
How are Service Quality, Customer Satisfaction and Loyalty related
In the marketing language, service quality, customer satisfaction and customer loyalty are three different elements that firms offering services should strive for. Customer satisfaction or dissatisfaction results from experiencing a service and comparing that experience with the kind of quality of service that was expected. The quality of service