2 Customer Satisfaction

Republic of the Philippines
CAVITE STATE UNIVERSITY

GENERAL TRIAS CITY CAMPUS
Town Proper, City of General Trias, Cavite, 4107
 (046) 437-0693
cvsugeneraltrias@cvsu.edu.ph
BSHM100: Tourism and Hospitality Quality

Management System
BSHM 100: Tourism and Hospitality Quality Management System

Chapter II
Customer Satisfaction
Introduction
The most important asset of any organization is its customers. Increasingly, manufacturing and
service organizations are using customer satisfaction as the measure of quality. Customer
satisfaction is reflected in the Malcolm Baldrige National Quality Award and ISO 9000: 2005.
Total Quality Management (TQM) is an organizational obsession with meeting or exceeding
customer expectations. To attain this level, organizations must continually examine their quality
system to ensure it is responsive to ever-changing customer requirements and expectations.
What is Customer Satisfaction?

Customer satisfaction is defined as a measurement that determines how happy customers
are with a company’s products, services, and capabilities. Customer satisfaction
information, including surveys and ratings, can help a company determine how to best
improve or changes its products and services.
Who is the Customers?
External and internal customers are two distinct types of customers. External customers can be
defined in many ways, such as the one who uses the product or service, the one who purchases it,
or the one who influences the sale. An external customer exists outside the organization and
generally falls into three categories: current, prospective, and lost customers. Performance must
be continually improved to retain existing customers and gain new ones. An internal customer is
just as important, as each person in a process is considered a customer of the preceding
operation. All processes have outputs and inputs, which are used by internal or external
customers.

TQM is an unwavering focus on customers, both internal and external, with each employee
forming a link in the customer/supplier chain. Successful relationships start with asking their
internal customers three basic questions.
Customer Perception of Quality
The TQM philosophy is based on continuous process improvement, which implies that there is
no acceptable quality level due to customer needs, values, and expectations. Consumer
magazines rate product quality before making a major purchase, and an ASQ survey showed that
product quality was the most important factor, but service ranked above price in importance.
1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation
Performance

Performance involves “fitness for use”—a phrase that indicates that the product and ser-vice is
ready for the customer’s use at the time of sale. Other considerations are (1)availability, which is
the probability that a product will operate when needed; (2) reliability, which is freedom from
failure over time; and (3) maintainability, which is the ease of keeping the product operable.
Features
Identifiable features or attributes of a product or service are psychological, time-oriented,
contractual, ethical, and technological. Features are secondary characteristics of the product or
service. For example, the primary function of an automobile is transportation, whereas a car
stereo system is a feature of an automobile.
Service
An emphasis on customer service is emerging as a method to give the customer customer-added
value. Customer service is made up of many small things, all geared to changing the customer's
perception. Organizations that emphasize service never stop looking for and finding ways to
serve their customers better.

Warranty
The product warranty represents an organization’s public promise of a quality product backed up
by a guarantee of customer satisfaction. Ideally, it also represents a public commitment to
guarantee a level of service sufficient to satisfy the customer.
Price
In a highly-competitive environment, each customer's concept of value is continually changing.
Ongoing efforts must be made by everyone having contact with customers to identify, verify,
update each customers' perception of value in relation to each product and service.
Reputation
Customer satisfaction is based on the entire experience, not just the product. Customers are
willing to pay a premium for a known or trusted brand name and often become customers for
life. Marketing retention strategy can be achieved through using feedback from information
collecting tools.
Customer Service and Customer Satisfaction
Good service quality leads into customer satisfaction and, therefore, makes the firms more
competitive in the market. High service quality can be achieved by identifying problems in
service and defining measures for service performances and outcomes as well as level of
customer satisfaction.
Role of Leader and Frontline People
Frontline leadership combines the practical skills required to manage frontline workers and the
ability to make proactive decisions that will benefit the overall success of the organization. In
other words, frontline leadership describes the disposition supervisors need to bring the best out
of frontline employees.
Understanding the Kano Model
The Kano Model is a way of assessing the impact of services or product features on customer
satisfaction. The model says that a product or service is about much more than just functionality
it's also about customers' emotions.

all customers who buy a new car expect it to stop when they hit the brakes, but many will be
delighted by its voice activated parking-assist system.
The model represents three major areas of customer satisfaction: explicit requirements,
innovations, and unstated or unspoken requirements. Explicit requirements are easily identified,
expected to be met, and typically performance related. Innovations are often unexpected and
excite and delight the customer. Unspoken requirements are often vague and may not be known
to the customer.
Summary
The Malcolm Baldrige National Quality Award criteria and QualitySystem Certification
Standards are important for successful TQM implementation. Quality is defined from customer's
perspective and is determined by performance, service, warranty price and reputation.
Organizations must set up a feedback mechanism to measure customer satisfaction, such as
comment cards, questionnaires, focus group surveys, customer visits, report cards and internet
reviews or comments. Communication across the organization is essential to ensure service
quality, and front line people must be carefully selected and trained. The Kano model is useful in
conceptualizing customer requirements into dissatisfiers, satisfiers and delighters.

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Republic of the Philippines

CAVITE STATE UNIVERSITY

BSHM100: Tourism and Hospitality Quality

BSHM 100: Tourism and Hospitality Quality Management System

Total Quality Management (TQM) is an organizational obsession with meeting or exceeding

system to ensure it is responsive to ever-changing customer requirements and expectations.

What is Customer Satisfaction?

BSHM 100: Tourism and Hospitality Quality Management System

are with a company’s products, services, and capabilities. Customer satisfaction

improve or changes its products and services.

Who is the Customers?

just as important, as each person in a process is considered a customer of the preceding

BSHM 100: Tourism and Hospitality Quality Management System

internal customers three basic questions.

Customer Perception of Quality

BSHM 100: Tourism and Hospitality Quality Management System

Identifiable features or attributes of a product or service are psychological, time-oriented,

stereo system is a feature of an automobile.

An emphasis on customer service is emerging as a method to give the customer customer-added

serve their customers better.

BSHM 100: Tourism and Hospitality Quality Management System

by a guarantee of customer satisfaction. Ideally, it also represents a public commitment to

guarantee a level of service sufficient to satisfy the customer.

In a highly-competitive environment, each customer's concept of value is continually changing.

Customer Service and Customer Satisfaction

Understanding the Kano Model

it's also about customers' emotions.

BSHM 100: Tourism and Hospitality Quality Management System

delighted by its voice activated parking-assist system.

perspective and is determined by performance, service, warranty price and reputation.

Organizations must set up a feedback mechanism to measure customer satisfaction, such as

reviews or comments. Communication across the organization is essential to ensure service

conceptualizing customer requirements into dissatisfiers, satisfiers and delighters.

BSHM 100: Tourism and Hospitality Quality Management System

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