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Figure 2.2 The Elements in Retail Marketing Mix
Source: Levy Weitz 2012:20
E. Customer Satisfaction
1. Customer Satisfaction Definition
According to Kotler and Keller 2009:164, satisfaction reflects a persons judgments of a products perceived performance or outcome in
relationship to expectation. That means satisfaction is a feeling of pleasure or disappointment resulting from comparing product performance against
their expectations. If performance fails to meet expectations, then the customer becomes dissatisfied. If the performance in line with
expectations, then the customer becomes satisfied. If performance exceeds expectations, the customer was very satisfied.
Retail Strategy
Customer service
Store design and
display
Communica tion mix
Location Merchandis
e assortments
Pricing
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Usually satisfied customers tend to be more loyal to the products offered then will tell to others about the company and products that satisfy them,
more or less attention to competitors products, less price sensitive, and willing to offer ideas to the companys products or services. High
satisfaction or pleasure will cause consumers to behave positively and the emotional attachment to the brand.
Expectation values formed through past experiences, comments or suggestions from customers and information from competitors. The
perception of value is a companys ability to serve customers in an effort to satisfy consumers. Soelasih stated in Wijaya in Wahono Subagio,
2013: 4 While the definition of customer satisfaction by Zeithaml, Bitner and
Dwayne stated in Logiawan and Subagio, 2014:5 is customer’s
evaluation of a product or service in terms of whether that product or service has met the customer’s needs and expectations. Where they think
customer satisfaction is the customer’s valuation of the products or services in terms of judging whether the product or service has met the
customers needs and expectations. The retail business which always directly related to the consumer
requires constant change in order to satisfy its customers. With more and more manufacturers are engaged in fulfilling the needs and desires of
consumersthereby causing every business entity must put orientation on customer satisfaction as a primary goal. To that required variables that
affect customer satisfaction that is the retail mix.
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According to Kolter and Keller 2009:166, there are methods exist to measure customer satisfaction. Periodic surveys can track customer
satisfaction directly and also ask additional questions to measure repurchase
intention and the respondent’s likelihood or willingness to recommend the company and brand to others. Beside conducting periodic
surveys, companies can monitor their customer loss rate and contact customers who have stopped buying or who have switched to another
supplier to find out why. Finally, companies can hire myestery shoppers to pose as potential buyers and report on strong and weak points experienced
in buying the company’s and competitor’s product. According toLupiyoadi stated in Akmal et al., 2012:2 factors that
determine customer satisfaction are: a. Product Quality
Customers will be satisfied if the evaluation results showed that the products they use have good quality.
b. Service Quality Customers will be satisfied if they receive good quality of service
or in accordance with their expectation. c. Price
Product with the same quality but set the relatively cheap price, will give a higher value to its customers.
d. Emotional Factor
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Customers will feel proud and have the belief that other people would be amazed to him when using a product with a particular
brand and will tend to have a higher level of satisfaction. e. Costs and the ease of obtaining goods or services.
Customers do not need to spend additional costs and no need to waste time tend to be more satisfied with the product or service.
While, according to Dutka stated in Melinda in Saidani Arifin, 2012: 6, there are three dimensions in measure of customer satisfaction
universally that are a. Attributes related to the product that is the dimension of
satisfaction associated with the attributes of the product such as the determination of the values obtained with the price, the ability of
the product determines satisfaction, the benefits of these products. b. Attributes related to service that is the dimensions of satisfaction
associated with the attributes of the service for example with the promised warranty, service fulfillment or delivery process, and the
process of resolving the given problem. c. Attributes related to purchase, that is the dimensions of satisfaction
associated with the attributes of the decision whether to buy or not from manufacturers such as ease of information received, courtesy
of employees and also the influence of the companys reputation. According to Kennedy and Young stated in Lustinayanti, 2011:25,
there are six dimensions of customer satisfaction measurement in services, namely:
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a. Satisfaction with process Customers are satisfied with the whole process obtained from the
customer receives services from the beginning to leave the place of service.
b. Satisfaction with personal treatment Customer satisfaction with the services provided by all those
involved in the process from the beginning penmberian services receive services to leave the place of service.
c. Satisfaction with waiting time Satisfaction with queuing time customers need to do while waiting
to get service from a provider. d. Satisfaction of the place
Customer satisfaction towards the place where the transfer of services, the entire room that is able to give the impression of a
clean and convenient to the customer. e. Overall Satisfaction
Perceived level of customer satisfaction overall. Consumer satisfaction depends on the performance offered associated
with the consumer rewards. Satisfaction is a function of which perceived and expected. Consumers hope are influenced by previous experience, a
friend or relative, and appointments and information provided by
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marketers and competitors, consumer satisfaction problem is the personal problems which has subjective nature, because satisfaction of a person is
not necessarily same with the satisfaction perceived by others.
Figure 2.3 Customer Satisfaction Concept
Source: Tjiptono stated in Anindita, 2012:23
Company Objectives Customers
Needs Wants
Customer’s Expectation Towards
GoodsService Products
GoodService
The Value of GoodService
For Customers
The Level of Customer Satisfaction
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Most of the companies make a huge mistake, when they are not paying enough attention to their customer satisfaction. Keeping customers
satisfied is the bestcompetitive advantage against competitors. Customers are loyal, prepared to pay more and are excellent external marketers. Here
is a list of the reasons for developing long-term relationships with customers:
a. Acquiring new customers can cost 5 to 10 times more than the costs involved in satisfying and retaining current customers.
b. Loyal customers tend to spend more and cost less to serve. c. Satisfied customers are likely to recommend your products and
services. d. Advocates of a company are more likely to pay premium prices to
a supplier they know and trust. e. Retaining exiting customers prevents competitors from gaining
market share. f. A 5 percent reduction in the customer defection rate can increase
profits by 25 to 85 percent, depending on the industry. Cook stated in Mattsson, 2009:11
Exceeding the value offered by competitors is the key to marketing success. Consumers decide upon purchases on the judgements about the
values offered by suppliers. Once the product is bought, customer satisfaction depends upon its perceived performance compared to the
buyer’s expectations. Customer satisfaction occurs when perceived performance matches or exceeds expectations. Expectations are formed
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through post-buying, experiences, and discussions with other people, and suppliers marketing activities. Companies need to avoid the mistake of
setting customer expectations too high through exaggerated promotional claims since this can lead to dissatisfaction if performance
falls short of expectations. Jobber stated in Mattsson, 2009:12 Customer satisfaction research is focused on company’s current
customers to clear up functionality in proportion to customer’s expectations. Amount of -
or repeatedly happening purchasing doesn’t alway
s tell about customer’s satisfaction. Customer may buy product, because there is not better available, or he she doesn’t know any other
alternatives. In this kind of case, customer is not committed to a company or a product, but moves over to another alternative as soon as it will be
available. Research measures total customer satisfaction and also divisions of it,
e.g. products, price, quality, customer service etc. Most important is that research is reliable, repeated often, results are analysed and problematic
points are solved. Bergström,Leppänen, Yrityksen Asiakasmarkkinointi stated in Mattsson, 2009:12
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F. Previous Research
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