The research proposal below evaluates the various techniques that businesses use to increase their consumer satisfaction to retain their current customers and attract new ones. Understanding the importance of consumer satisfaction and finding the correct ways of implementing and fulfilling the customer’s desires helps the business make decisions on critical issues. Essential matters that require intervention include resource allocation, buyer’s query response, and other influential aspects that maintain the current market base to attract new ones. Below are the findings on the importance of consumer satisfaction and a proposal on how businesses may embrace different techniques to improve their clientele contentment.
Importance of Consumer Satisfaction
Consumer satisfaction is a critical aspect for many enterprises since it improves the customer experience while acquiring goods or services. Many firms need to consider enhancing consumer satisfaction in their operations to create an enabling environment for increased profitability and control of the brand reputation. Consumer satisfaction helps the businesses in different ways, including increased brand credibility, improved popularity, growth of the current market base, and enlarged customer loyalty to the firm. Companies experience an increment in their credibility since buyers gain confidence in the brand and recommend it to others. Protective customer satisfaction helps boost the trust between the customers and the brand, improving the business’s image and protecting its reputation. An excellent reputation translates to improved profits in the long run since the company attracts more customers. Therefore, companies must ensure that consumer satisfaction in their service and the product delivery is subject to their goals and objectives.
Another importance of repetitive customer satisfaction in businesses is increasing the brand’s popularity. Brand credibility and fame are dependent on the number of times people mention the name of a company in their daily engagements at the workplace or home. The more people say the brand name, the more famous the company becomes. The best way to ensure that the firm is favored is by delivering the desired consumer satisfaction. Improving the level of contentment provides that customers recommend the company to others hence aiding in the advertisement process. Treating customers well provokes them to share information about the business with other people, thus increasing the popularity of the company name and what line of products or services it offers. Therefore, every business must ensure that its customers receive appropriate treatment to aid in promotion services.
Additionally, firms build their customer base by creating platforms that ensure consumer satisfaction. The continued referral of the company to other potential customers eventually boosts the market size of the firm. A productive consumer satisfaction scheme encourages the current consumers to share details of where they obtain their products and services, hence advertising the company. The process improves the number of people seeking products and services from the firm by attracting new customers to the market. A protective customer satisfaction unit encourages business growth and development by increasing customer flow into the company. Firms should improvise on means to improve the customer’s contentment, enhance the brand image, and attract more buyers and stakeholders.
Brand loyalty is another benefit forthcoming from improving the clientele’s pleasure. The increase in the level of consumer happiness enhances loyalty to the brand. Consumers are always willing to spend their money on a company’s products that meet their demands fully (Ali et al., 2018). The buyers prefer to consume a specific firm’s products continuously as long as they complete their needs. It is competent for customers to keep recurring purchases for particular brands when they admire the utility level they offer. A severe business will always treat its customers right and provide them with quality products that attract them back.
Proposal on How Businesses may Improve Consumer Satisfaction
Many businesses aim to improve the consumer’s buying experience to ascertain that they are content with the underlying conditions in the purchasing and consumption processes. The prosperity of the businesses immensely relies on the level of utility that a consumer obtains from the product. Therefore, it is the mandate of the company to run all the possible activities in their operations to ensure that the customers receive highly satisfying products. Some of the business’s activities include understanding the client’s expectations, training the teams involved in the delivery of the product or service, connecting with the agents involved in the purchasing process, appropriate customer treatment, reducing the wait time, and listening to the customers. A business that adheres to these protocols when serving customers obtains the best shopper’s experience and attracts them.
A business may understand its customers by critically evaluating their demands and appropriately handling their orders. Consumer understanding involves listening to their needs and using all means available to maintain a good relationship with them (Lie et al., 2019). The understanding aspect is relevant for businesses since it helps them gain information from the customers that helps them make current and future decisions. Understanding the customers consists of listening to their various proposals on how they may deliver their payments and what they expect of the business. The process creates flow in the industry by removing all the constraints that may ruin its reputation and relationship with the customers.
The firms may consider connecting with the agents that enable transactions between customers and firms. These agents may be retailers, wholesalers, brokers, and other intermediaries facilitating easy trading between the parties. The firm should hold consultative meetings with the agents to obtain information regarding the consumer response to the quality of goods. These interactions help the business identify areas that it needs to concentrate its efforts on, transforming its product quality to meet consumer satisfaction. The firm should, in addition, offer training to the agents and other team players like the customer cares desk to equip them with the necessary skills to manage customers and maintain an excellent product image.
The company may reduce the wait time between the purchase and reception of the commodities that the customers buy. Proper time management to reduce the time a customer takes to receive their assets helps the business to serve a broad audience and meet the consumer’s desires, simultaneously increasing profitability. Companies must embrace time management policies to control the employees’ actions and safeguard customer satisfaction.
Proposed Data Type and Collection Techniques
Various types of data exist in the research field, and each has a collection technique that favors its accuracy. These data types are nominal, ordinal, discrete, and continuous data. These data types vary in the way they display relevant information. Nominal data is that which is categorizable into mutually exclusive categories that are within a specific variable. Nominal data is collectible using question-based techniques, for instance, questionnaires (Ali et al., 2018). On the other hand, ordinal data adheres to a specific order of natural ratings in the form of categories and may be collected through visualization tools such as tables and bar graphs. Discrete and continuous data are information that can pick unique numerical values. However, the difference between the two is that discrete numerical values are concrete and fixed, whereas those of continuous data are not fixed (Song, Mao, and Liu, 2019). Discrete data is collectible by counting, while constant information is collected by recording the frequency, duration, latency, and related analysis methods such as line graphs and skews.
The proposed methodology of collecting information regarding consumer satisfaction and the approaches to improving it is questionnaires and surveys to evaluate how customers perceive the respective product (Coe et al., 2021). The methodology used is critical since it provides information used in decision-making and must be as accurate as possible. Besides using these inquisitive methods to obtain customer feedback, the researching firm may use peer-reviewed journals to evaluate the market structure and the most effective ways of improving the buyer’s experience.
Scatter Diagram for the Data and Interpretation
Sample Correlation Coefficient for the Data
|DJIA (x)||S&P (y)||x-ẋ||y-ẏ||(x-ẋ) (y-ẏ)||(x-ẋ) ²||(y-ẏ) ²|
|ẋ 10485||ẏ 1423.3||10||0||268017.1||1794024||47582.1|
Correlation coefficient = Ʃ(x-ẋ) (y-ẏ) ̸ √Ʃ (x-ẋ) ² Ʃ (y-ẏ) ²
= 268017.1 ̸ √ (1794024) (47582.1)
= 268017.1 ̸ 292170.21
The calculations above indicate that the two elements are strongly correlated since the correlation coefficient is greater than 0 and closer to 1. Therefore, an increase in x increases y hence a close relation. A positive correlation indicates that the value of the variables is headed in a similar direction. An increase in the value of one of the variables indicates an equal improvement in the other one. Conversely, if the two elements are moving in different directions, the values that they generate are negative. A zero correlation occurs when the two aspects in comparison are not related in any manner, and thus the value is zero since an impact on one of them does not affect the other. 0.917 from the calculations implies that the two variables are correlated and have much information in common.
Least Square Estimation Regression Equation
The mean points = (10485, 1423.3)
The slope of the graph = Ʃ(x-ẋ) (y-ẏ) ̸ Ʃ (x-ẋ) ²
= 268071.1 ̸ 1794024
y = mx + c where c is the y intercept
1423.3 = (0.1494) 10485 + c
Therefore c = 1423.3 – 1566.46 = -143.16
The least square estimation regression equation is y = 0.1494x – 143.16.
Coefficient of Determination
The coefficient of determination is the square of the correlation coefficient; hence it is 0.917² = 0.8409. In percentage form, the coefficient of determination is 84.09% and indicates that every variation in the Done Jones Industrial Average (DJIA) accounts for an 84.09% change in the interpretation of the value of Standard and Poor (S&P). This informs the researcher that 84.09% of the information they seek about Standard and Poor company is already chattered for by the information in Done Jones Industrial Average. A high coefficient of determination closer to 1 indicates a significant relationship between the dependent and the independent variable.
Yes, I would recommend the regression model for purposes of estimation. The regression model has two main reasons why it is suitable for analysis. First, the regression model indicates the relationship between two variables (the dependent and independent variable) when one of the items has its information available (Armstrong, 2019). The regression model is significant and indicates the extent to which the elements relate (Chicco, Warrens, and Jurman, 2021). It has a minimum margin that is easy to determine the level of the relationship between the variables. It uses a margin of -1≤n≥1, where n is the number indicating the relationship between the elements. If the two variables are not correlated, the value is always less than 0 but greater or equal to -1. Still, if the relationship is closely related, the value obtained is greater than 0 but less or equal to 1.
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Armstrong, R.A. (2019) ‘Should Pearson’s correlation coefficient be avoided?’, Ophthalmic and Physiological Optics, 39(5), pp. 316-327.
Chicco, D., Warrens, M.J. and Jurman, G. (2021) ‘The coefficient of determination R-squared is more informative than SMAPE, MAE, MAPE, MSE and RMSE in regression analysis evaluation’, PeerJ Computer Science, 7, p. e623.
Coe, R., Waring, M., Hedges, L.V. and Ashley, L.D. eds. (2021) Research methods and methodologies in education. Sage. Web.
Lie, D., Sudirman, A., Efendi, E. and Butarbutar, M. (2019) ‘Analysis of mediation effect of consumer satisfaction on the impact of service quality, price and consumer trust on consumer loyalty, International Journal of Scientific and Technology Research, 8(8), pp. 412-428. Web.
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