StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Customer Satisfaction, Market Share, and Profitability - Essay Example

Cite this document
Summary
Business without customers has been equated to a book with no leaves in it because it simply refuses to be what it is meant to be (Cooperrider, Whitney, Stravos and Fry, 2008). The importance of customers to any business opening is seen in the fact that the financial inputs that…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Customer Satisfaction, Market Share, and Profitability
Read Text Preview

Extract of sample "Customer Satisfaction, Market Share, and Profitability"

School: W7 DISCUSSION MARKETING Lecturer: Topic: Explain the relationship between satisfaction scores and levels of profitability.Business without customers has been equated to a book with no leaves in it because it simply refuses to be what it is meant to be (Cooperrider, Whitney, Stravos and Fry, 2008). The importance of customers to any business opening is seen in the fact that the financial inputs that customers make to the business by way of patronizing products and services acts as one of the largest means of revenue and thus profits for the business (Campbell, Whitehead and Finkelstein, 2009).

Trompenaars (2013) has actually noted that customer participation through their patronage influences other areas of financial sourcing including shareholder investments into the business. This point is highly justified in the sense that no shareholder wants to invest where there is no patronage to bring about profitability.Meanwhile, the current global market is so competitive that customers are highly selective of the organizations or companies they would do business with. Because of this, the need for creating competitive advantage that targets customer participation is very important.

Meanwhile, Cooperrider, Whitney, Stravos and Fry (2008) in a recent study showed that because of the similarities that exists in classical modules of competitive advantage such as the emphasis on cost and quality, customers have started looking for something more than cost and quality, being assured that these two are likely to be found wherever they turn. In their new search, customers seem to have come to appreciate the place of customer satisfaction in selecting where to do business. Companies therefore have to have very high customer satisfaction scores in order to gain competitive advantage in the modern market.

By gaining competitive advantage to, a company can be assured of highly profitability as it means customers will bring in more revenue through their patronage of services (Campbell, Whitehead and Finkelstein, 2009).ReferencesCampbell, A., Whitehead, J., & Finkelstein, S. (2009). Why good leaders make bad decisions. Harvard Business Review, 87(2), pp. 60–66.Cooperrider, D. L., Whitney, D., Stravos, J. M. and Fry, R. (2008). Appreciative Inquiry Handbook: For Leaders of Market Change. San Francisco: Berrett-Koehler Publishers, Inc.

Trompenaars, F. (2013). Riding the waves of organisational culture. London: The Economist Books Ltd.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“W7 discusion Mareting Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
W7 discusion Mareting Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/marketing/1629254-w7-discusion-mareting
(W7 Discusion Mareting Essay Example | Topics and Well Written Essays - 250 Words)
W7 Discusion Mareting Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/marketing/1629254-w7-discusion-mareting.
“W7 Discusion Mareting Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/marketing/1629254-w7-discusion-mareting.
  • Cited: 0 times

CHECK THESE SAMPLES OF Customer Satisfaction, Market Share, and Profitability

Job Satisfaction-Job Performance Relation

'A Longitudinal Analysis of Satisfaction and profitability' by Bernhardt & et.... ‘A Longitudinal Analysis of Satisfaction and profitability' by Bernhardt & et.... Journal A: ‘A Longitudinal Analysis of Satisfaction and profitability' by Bernhardt & et.... Moreover, the assessment of the linkage between customer satisfaction, employee satisfaction and profitability can be observed as quite broad which becomes more complex with the inclusion of a large sample size including 342,308 consumers and 3,009 employees from 472 fast-food restaurants....
11 Pages (2750 words) Essay

Adopting a Simple Profit-Maximizing Perspective Can Have Positive Impacts for a Firm

Customer satisfaction, market share, and profitability: Findings from Sweden.... The Impact of Employee Satisfaction on Quality and profitability.... Maximizing the firm's market share can attain the positive impact for a firm.... The first model is the structure conduct performance model (SCP) that describes the extent of concentration in the industry, decides the behavior of the firm and its profitability (Stierwald, 2009)....
8 Pages (2000 words) Assignment

Measuring Customer Satisfaction with the Sporting Goods Trade

The paper "Measuring customer satisfaction with the Sporting Goods Trade" analyses customer satisfaction in sports retailing concentrating on Sportsdirect.... The research focuses on analysis of customer satisfaction in sports retailing concentrating on Sportsdirect.... The simple way to measure customer satisfaction is by taking surveys.... AIM & OBJECTIVES The aim and objectives of this research are to: Measure the customer satisfaction in sports retailing, focusing on Sportsdirect....
10 Pages (2500 words) Essay

The Role of Internet Advertising in Hong Kong

“Customer satisfaction, market share and profitability: findings from Sweden”.... In this journal article, the authors explore extensively issues regarding profitability, market share and customer satisfaction.... On market share, they extensively discuss advertising, including Internet marketing, and how it expands a firm's market share.... This journal article is relevant to this topic because it connects advertising and market share expansion....
7 Pages (1750 words) Research Paper

The Performance of the Global Marketing

The author of the paper states that to secure corporate-level influence, marketing must develop tools to quantify its contribution to firm growth and profitability.... o secure corporate-level influence, marketing must develop tools to quantify its contribution to firm growth and profitability.... "Customer Satisfaction, Market Share, and profitability: Findings from Sweden".... (1998) develop a conceptual framework of the marketing-finance interface which concerns with the task of developing and managing market-based assets such as customer satisfaction and brand equity with the objective of increasing shareholder value by accelerating and enhancing cash flows, lowering the volatility and vulnerability of cash flows, and increasing the residual value of them....
9 Pages (2250 words) Essay

The Role of Internet Advertizing in Shaping Purchasing Behaviors

'Customer satisfaction, market share, and profitability: findings from Sweden'.... The impact of advertising on customer behavior Previous studies show that advertising – directly or indirectly influences the purchasing behavior of consumers.... The aim of this inquiry 'The Role of Internet Advertising in Shaping Purchasing Behaviors' is to examine the role of internet advertising on the purchasing behavior of consumers in Hong Kong....
1 Pages (250 words) Assignment

Does Customer Satisfaction Have an Effect on Sales Performance

“Customer Satisfaction, market share and profitability: Findings from Sweden,” Journal of Marketing, 1994, 58 (2), 53-66.... “A Longitudinal Analysis of Satisfaction and profitability,” Journal of Business Research, 2000, 47, 161-171.... This dissertation describes customer satisfaction effect on sales performance.... This paper outlines the evaluation of the relationship between customers, approaches to achieve effective outcomes in the identified relationship and the role of employee satisfaction and expression of the level of customer satisfaction....
13 Pages (3250 words) Dissertation

The Influence of Customer Loyalty on Customer Lifetime Valuation

nderson e, Fornell c and Lehman D 1994 customer satisfaction, market share and profitability: findings from Sweden journal of marketing vol 58 (3) July pp 53-66 ... Helgesen 2000) described the interrelationships between satisfaction, loyalty and profitability as the customer relationship orientation.... elgesen (2000) in a study on the interrelationship between customer satisfaction, loyalty and profitability found that there exist a positive correlation between the satisfaction and customer loyalty....
7 Pages (1750 words) Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us