By: Shawn Cox
Submitted: 2010-04-15 15:32:40 | Word Count: 476
Customer satisfaction leads to customer retention. This notion has been marketing managers’ belief for many years. Whether it is true or false is what this essay intends find out. Companies attract customers, and then satisfy them with the aim to retain them.
In order to retain customers number of factors plays a role. One such factor is brand image. Brand image: Customers usually have relationships with brand because specific brand can develop associations with some people or even other products. A brand can be designed to appeal to some group of people like the Verizon cell phone has been designed to fit the elite group of people. And likewise the 20th century movie appeals to the young generations. In this case a customer may patronize a product because of status or association but not due to satisfaction.
Brand attitude is another factor that leads to customer retention without consideration to satisfaction. Some customers have relationships with brands because of the like-dislike feeling towards a brand. A customer might like a product or dislike it. For example young generations of people prefer the 20th century movie not because of satisfaction but because of attitude.
Brand loyalty: Some customers may be extremely loyal, buying from a competitor only rarely if at all. Some customers recommend specific product which they are buying and those of other competitors are there. For these customers the goal is maintaining their loyalty and reduces the likelihood that they are to share their purchases with other brands. For example customers of Verizon have remained very loyal to Verizon Company. This sows that loyalty can play a major role that is separate from satisfaction.
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Superior services: Some customers have developed relationships with brands because products can be copied but service is the most important sustainable differential advantage. The physical features of a product can be copied but a brand of a product cannot be copied. For example Verizon services have been highly regarded by customers because its competitor can only imitate or try to offer similar services but they can not offer the same hence its brand remains. This at times can be attributed to satisfaction but looking at it critically customer may be unsatisfied but chooses a product due to superior services probably associated with his social setting.
Customers who are looking for differentiation will not consider issues of satisfaction. Differentiation is what branding is all about. A brand is the product or service of a particular supplier which is differentiated by its name and presentation. Hence customers have relationships to specific brands.
Some brand has exploited new technology: Customers have relationships’ to brands especially those exploiting modern technology. Customers’ wont benefit from what is looking new, current and up to date hence they have relationships to some brands. For example the young people like movies of 20th century.
