Customer Satisfaction

Customer satisfaction plays an important role in market because higher customer satisfaction leads to greater customer loyalty which in turn gives more new customer and higher profits.

For example: a mobile company launch its first mobile phone and customers are satisfied with that phone so the existing other brand mobile phone users might also want to purchase that phone by seeing that the current user of those phone are satisfied.

Also, price plays a important role in determining profitability. an interesting question is if there are some factors which might allow companies to charge more for their products or services. One possibility is that when customers are satisfied, they might be willing to pay more for the product or service ( a good example would be I phone X which sells at around 90,000 Rs. But customers are still buying it for the quality and the services provided by apple)

Like the above example: existing other mobile phone users paid for mobile is Rs. 25,000 but new mobile company launch its product at Rs. 30,000 with more functions. So if customer is satisfied they will pay more for that product.

If product satisfies the customer, customer is willing to pay more for that product.

Willing to buy and customer satisfaction plays a key role in the market. Market basically depends on the customer satisfaction and their willingness to pay.

Credits - www.acrwebsite.org