Jones & Sasser: Why satisfied customers defect

9 important questions on Jones & Sasser: Why satisfied customers defect

When competition is intens, the level of customer satisfaction is very important. Degree of satisfaction is very important for the deree of loyalty. Which 2 types of loyalty are there and explain them? (Jones)

1 True long-term loyalty
2 False loyalty
Sometimes customers seem loyal, but they are not. There are factors that generate these false loyalty: government regulations that limit competition, high switching costs, proprietary (gepatenteerd) technology, strong loyalty promotion programs, such as frequent flier plans.

Which four elements affect customer satisfaction? (Jones)

1 The basic elements of the product/service that customers expect all competitors deliver
2 Basic support services such as customer assistance or order tracking that make the product/service incrementally more effective/easier to use.
3 A recovery process for counteracting bad expierences
4 And extraordinary services that so excel in meeting customers' personal preferences, in appealing to their values/in solving their particular problem, that they make the product/service seem customized (uitblinkende buitengewone diensten)

What is the disadvantage of customer-satisfaction surveys? (Jones)

It's an important indicator, but relying solely on them can be fatal. The surveys can't supply the breadth/depth of information about customers needed to guide the company's strategy and product-innovation process.
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What did Jones discovered about the 'linear relationship' between customer satisfaction and loyalty?

The relation isn't linear. Because completly satisfied customers are relativly more loyal than merely satisfied customers. When competition is intens there was a tremendous difference between the loyalty of satisfied and completely satisfied customers. In both manufacturing as service providing organisations.

The key is to understand what customers are saying when they provide various responses. Describe the three-phase approach fo Jones to increase customer satisfaction:

1 To make the measurment of satisfaction/loyalty a priority and to ensure that the process is unbiased/consistent/broadly applied/able to capture and store information on individual customers
2 To create a curve by plotting individual customer responses. Managers should compare their curve with those shown in the industries surveyed and consider the factors that shaped their own curve.
3 To determine the most appropriate stratgies for raising customer satisfaction.

At the heart of any succesfull strategy to manage satisfaction is the ability to listen to the customer. According to Jones there are 5 major categories of approaches that companies can use to listen to their customer. Which one?

1 Customer-satisfaction indices (index): surveying customers about their satisfaction and plot the results: make it a useful tool
2 Feedback: its important to review the company's approach to solliciting feedback
3 Market research: customers should be interviewed both at the time of arrival and at departure
4 Frontline personnel: employees who have direct contact with customers provide superb means of listening
5 Strategic activities

Which 3 major categories of loyalty measurement are there? (Jones)

1 Intent to repurchase
2 Primary behavior (recency, frequency, amount)
3 Secondary behavor (like spreading the word)

What is the overall conclusion of Jones about customer satisfaction and loyalty in 5 different markets?

The overall lesson is the customers are reasonable, but they want to be completely satisfied; if they aren't and have a choice, they can be gone easily. So its essential to understand what portion of customers' seeming loyalty is true loyalty based on a company's delivery of superior value and what part is artificial (why customers don't say they weren't satisfied: customers of reasonably good companies, tend to find it difficult to respond negatively to surveys)

What is according to Jones customer loyalty?

The feeling of attachment to or affection for a company's people, products or services.

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