How Customer Satisfaction and Dissatisfaction Influences Marketing

 The success of any business is determined by the ability of the management and the workers to meet the market demand and compete intensively with other companies that offer similar products or services. However, customers need to be satisfied with the product and service provided for the company to meet its mission ad vision (Otto et al., 2020). According to previous Hill and Alexander (2017), the customer satisfaction is hypothesized to be determined by customer expectations, performance, corporate reputation, and perceived trust. Disconfirmation paradigm (DP) theory proposes that customer dissatisfaction occurs when the underlying organization does not meet the expected services (Hill and Alexander, 2017). Thus, the paper critically analyses the empirical research on customers’ experience when they come in contact with the product and services and how their behaviour affects company goals, profits and customer retention.

Lee et al. (2018) denote that the satisfaction of the customers is the key to a successful business and is influenced greatly by the frontline members of an organization. It indicates how customers vary in their needs and preference and it is important for an organisation to treat customers as an asset. Analysis of the study employed the Taiwan Customer Satisfaction Index model to understand customer loyalty. It focused on the tourism industry where 242 customers were studied and to understand the theoretical model, a partial least square was applied. Research findings indicate how the perceived quality of the specific customers greatly determines customer satisfaction and dissatisfaction. The impact of the dissatisfied and satisfied customers directly affected the loyalty of the 242 customers in the tourism industry. Some researchers argue that customer retention is influenced by the cost of the product or service, and the more affordable the product, the higher the customer retention rate. However, the claims have been dismissed by recent research by Budur and Poturak (2021), which shows that 95% of the customers go for quality over price in the tourism and manufacturing industries. Thus, the customer’s perceived quality is directly related to customer satisfaction and dissatisfaction, which determines customer loyalty to the product or service.

Customer satisfaction can be understood through five factors of business that interact with one another. The study by Almohaimmeed (2019) shows how the customer satisfaction, management relationship, the loyalty of the customers, profitability and retention are related. The study applied 497 questionnaires to managers and their employees in Saudi Arabia, Riyadh. Findings indicated how the satisfaction level influences with an understanding of customer loyalty and profitability. When customers are dissatisfied, they tend to move away from the service provided by the organization. According to Kolter’s consumer behaviour theory, the customers will recognize the problem of poor management from the organization and seek more information as they proceed to have an alternative behaviour (Hill and Alexander, 2017). Customer satisfaction in restaurants in Saudi Arabia due to a good relationship with the frontline management increases purchase behaviour and profitability. However, few researchers have presented an argument that the management relationship does not translate to high profitability as purchasing power determines profits. The argument has been dismissed by Aburayya et al. (2020), where empirical evidence shows that satisfied customers are a product of strong rapport with the frontline workers in an organization. Hence, satisfying customers is achieved through the professional experience of customers with the management team in an organization.

Barusman et al. (2019) analyses the customer antecedent in terms of customer satisfaction. The behaviour of domestic and foreign customers in Indonesia Lampung Province is understood using the Structural Equation Model where latent variables in the study were used to understand service quality (SQ), customer satisfaction (CS), customer retention (CR) and customer relationship management (CRM) as summarized in Appendix A. Marketing goals can be structured in a manner that helps in understanding customer behaviour. Increase the customer value and extend the customer base as part of the marketing strategy. Customers, when satisfied, tend to initiate referrals for the service and product provided by the given organization (Hill and Alexander, 2017). Most business in Indonesia which has expressed a high level of customer satisfaction has equal reciprocated energy for acquiring new customers allowing the organization to establish authority in the market. However, some researchers argue that acquiring new customers is possible through good marketing strategies such as promotions and advertisements. The argument has been refuted by recent research done by Soliha et al. (2021) showing how customer satisfaction and dissatisfaction play an important role in determining if the company expands or closes down due to the customer reputation carried by word of mouth and online reviews.

The image of the product affects the level of satisfaction of the customers. According to Dam et al. (2021), customers are greatly attracted by the brand image established by the company. Dam et al. (2021) evaluate how brand image is related to service quality and customer dissatisfaction and satisfaction levels. The study provides empirical evidence from 299 consumers who purchased products from Vietnam supermarkets. A comparison with previous studies using the conceptual model was done where PLSE –SEM was applied to establish the relationship with the conceptual model. Convenient sampling was the core approach used in understanding the customers’ behaviour on the grounds of brand image and how the service contributed to the satisfaction and dissatisfaction levels of the customer. It is found that customers rely on the brand image to make purchases. Major marketing goals of an organization will focus on increasing the revenue influenced by the brand image. As such, customer satisfaction from the brand image is directly linked to customer loyalty, which originates from the brand’s image (Hill and Alexander, 2017). However, some researchers claim that companies do not rely on customer loyalty to meet marketing goals such as increased revenue and profitability. These claims have been dismissed by recent research done by Aditya et al. (2021), which has indicated that the high revenue expansion of companies like Apple and Microsoft is due to customer retention due to a reputable brand image of the service and products of the two companies.

Current market has experienced frequent changes in the products targeting the new market base for every business organization. Arslan (2020) shows how consumer demands and expectations shift daily due to changes in their preference for products and services available in the market. The study undertakes the literature review on how business marketing goals are influenced by consumers who are not satisfied in the market. Interaction and experience of the new consumers determine the product’s value as part of the marketing goals. Arslan (2020) shows how the relationship of dissatisfaction experience of consumers undermines the purchase and loyalty to any new product in the market. Findings in the meta-analysis indicate that the value of the business retained or at hand is equivalent to customer loyalty and business continuity over many years. However, some of the research presents an argument that low continuity of the business is not associated with high dissatisfaction experience of the customers, but the revenue gathered over the years. This argument is dismissed by Cetin (2020), who has shown that the multiple oldest and most successful businesses worldwide have retained their customers and passed the loyalty from one generation to another. Therefore, the customer’s high dissatisfaction rate directly undermines the continuity of the business, which is due to a lack of solid customer retention.

Nobar and Rostamzadeh (2018) show how dissatisfaction affects customer loyalty due to lack of trust in the products. Most customers do not patronize brands that have no good reputation in hotel industry. Companies in Europe that have not invested much of their marketing strategies in improving the brand reputation are prone to closure within the first 5 to 10 years of their operation. They have the least competitive advantage in the market as most European companies have focused on branding and retaining customers from the first purchase or contact with their service (Hill and Alexander, 2017). The result of dissatisfaction is low revenue and profits as the sales are minimal. Technology change has been the leading factor that decreases customer dissatisfaction when not incorporated into the business operating in Europe (Hill and Alexander, 2017). Marketing goals, such as increase of sales and creating an expansion in revenue, are not well manifested in companies that limit the satisfaction rate of the customers. However, some researchers argue that the dissatisfaction of the customers does not affect the revenue and sales as most companies don’t focus on the customers’ experience but expand the awareness of the product to meet high revenue. The argument has been refuted by recent research by Javed et al. (2021), which indicates that dissatisfaction affects customer purchase behaviour, which has a widespread impact on the grand revenue. Therefore, dissatisfaction undermines the sales and revenue of the company due to changes in customers’ purchase behaviour.

In conclusion, customer satisfaction and dissatisfaction influence marketing goals, customer retention and profitability. Customers’ perceived quality affects their satisfaction level, which translates to the impact of customer loyalty. Good management relationship with customers increases purchase behaviour, which helps increase sales and revenue. Brand image, expectations of the customers and lack of trust directly impact customer retention and profitability. The more the customers are satisfied, the high the retention and vice versa. Profit and continuity of any organization are related to the loyalty of the customer and the expansion of the market share. Thus, satisfaction and dissatisfaction are influenced by the quality and experience of the customers when they come in contact with the product or service of the company.