Customer value, satisfaction and quality

Customer Value, Satisfaction and Quality:

Customer Value: The difference between the values the customer gains from owning and using a product and the costs of obtaining the product.

e.g. 

McDonald's is an well known brand for it's fast paced service. For buying McDonald's food, customer will think about food content, and the values against the money, effort and compare McDonald's with BurgerKing and Subway - and select the one that gives them the greatest delivered value.

Customer Satisfaction: The extent to which a product's perceived performance matches a buyer's expectations. Customer might be dissatisfied or satisfied.

-         If the product's performance falls short of expectations, the buyer is dissatisfied. 

-         If performance matches or exceeds expectations, the buyer is satisfied or delighted.

Customer satisfaction depends on a product's perceived performance in delivering value relative to a buyer's expectation. Smart companies aim to delight customers by promising only what they can deliver, then delivering more than they promise.

e.g.

A customer of McDonald's expects quality food within short period of time after placing their order. If they get their food in hand within their expected time then they become satisfied. Otherwise, dissatisfied.

Total Quality Management: Programs designed to constantly improve the quality of products, services, and marketing processes.

  

A company achieves total quality only when its products or services meet or exceed customer expectations. Thus the fundamental aim of today's total quality movement has become total customer satisfaction. Quality begins with customer needs and ends with customer satisfaction.