After buying, consumers judge whether the product/service met their expectations. This post-purchase evaluation decides:
Modern businesses compete not only to sell once, but to retain customers through relationship marketing and good service quality.
You should be able to:
Customer satisfaction is a consumer’s overall evaluation of the product/service after purchase.
Satisfaction depends on the gap between expectations and performance:
Write as:
Exam tip: mention “over-promise vs under-deliver” as a key reason.
Service quality refers to how customers judge the excellence of service.
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After buying, consumers judge whether the product/service met their expectations. This post-purchase evaluation decides:
Modern businesses compete not only to sell once, but to retain customers through relationship marketing and good service quality.
You should be able to:
Customer satisfaction is a consumer’s overall evaluation of the product/service after purchase.
Satisfaction depends on the gap between expectations and performance:
Write as:
Exam tip: mention “over-promise vs under-deliver” as a key reason.
Service quality refers to how customers judge the excellence of service.
Often written as SERVQUAL dimensions:
Small table:
Loyalty is a customer’s commitment to repurchase and recommend a brand, even when alternatives exist.
Relationship marketing focuses on building long-term customer relationships rather than one-time transactions.
Relationship marketing uses CRM, personalised offers, loyalty programs, and consistent service.
Complaints are opportunities to build trust if handled well.
Good complaint handling should be:
Service recovery steps: Listen → Apologise → Solve → Follow-up
Online reviews affect:
Positive reviews can increase trial; negative reviews can cause avoidance. Firms should respond professionally and fix root causes.
Flow 1 (satisfaction): Expectations → Experience/Performance → Compare → Satisfied/Disappointed → Loyalty/WOM
Flow 2 (service recovery): Complaint → Acknowledge → Resolve → Follow-up → Retention
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From this topic
Satisfaction depends on the gap between expectations and perceived performance:
Thus, managing expectations and delivering quality both matter.
Difference:
Both together create strong long-term loyalty.
Customer retention means keeping customers buying from the firm over time. Retention is important because acquiring new customers is usually costlier than keeping existing ones.
Retention increases lifetime value and creates brand advocates through positive e-WOM.