Increase in Customer Influence on Businesses and its Resultant Effect on Workers and Managers
Introduction
So many factors have come together to make today’s business environment very competitive and flexible at the same time. Customers now play a significant role in the production and delivery of both goods and services in the global market. Globalization has also made it possible for comparisons to take place between and amongst different markets, giving the customers knowledge (power) to make choices and demanding more value for their money. This stance of the customer goes a long way to determine the performance of organizations; this is because without the existence of customers to patronize the goods and/or services offered by businesses, there will be no need for these businesses to exist.
Customer influence on businesses
More often than not, studies have examined the relationship behaviour between businesses and their customers from the business perspective with little or no attention to the customers’ perspective. As stated by Keillor et al (1999), for businesses to succeed in a highly competitive market environment, they must fundamentally understand and satisfy customer needs. Heskett et al (1993, 2003) as sited by Maxham J.G et al (2008) posited that the profit and revenue growth of an organization are a function of customer loyalty which stems from customer satisfaction. The key demands from customers as stated by Heskett and his colleagues are high quality goods/services and satisfactions.
For customers to remain loyal to an organization, they must experience good value for their money and satisfaction. Akin to the performance and productivity level of an organization is the performance of the manager...
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...he highest achievable grade and letter “F” representing the lowest grade achievable (Wohlstetter et. al, 2008). Much like the first two studies this study also lacks in the representation of various groups espondent pool. Because this study was conducted online and was only available in two languages it is difficult to determine if all ethnic groups affected had a voice. An additional recommendation for study 3 would be to have all surveys be similar in length and wording. While all three articles show differences in sample sizes, the population sampled, and hypotheses presented, the fact that customer satisfaction is of utmost importance to have a successful business can not be argued. Managerial style does have an effect on the employees. One would have to contend that happy employees yield happy customers and happy customers yield high business volumne.
The goal of this study is to stipulate that store level transformational leadership impacts service employees’ customer orientation through supervisor and coworker support; and looks at the possibility of how customer orientation leads to positive service experienced by customer’s and perceived employee service performance.
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Close to the Customer: Customer satisfaction is very important throughout all the roles that the business plays. Many companies forget about their customers, whereas successful companies have an obsession with their customers. Excellent product quality and reliability will make a satisfied customer. Great service will keep the customer coming back.
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Many scholars believe that customer satisfaction has a crucial role in the success of a business, and is pivotal in increasing the overall profitability of the business (Kotier, 1991). Customer value is gained through the experience they receive from the goods or purchases they have obtained from a certain business. Customer value has various definitions and concepts, Holbrook (1999) stated that it is a kind of “interactive, mutual, and preferred experience”; but simply said, “the term customer value has many meanings.”
The more profitable firms are those that are able to maintain their most valued customers throughout time. To satisfy a customer means to make him faithful and customer satisfaction becomes the index that measures the ability of the firm to produce income for the future.
The nature of the organization pays a large roll within the satisfaction of its employees, Brown and Lam (2009) divide organizations into two service categories, one being a service you provide for/on a person (example a spa) and two being service you provide on a possession (example a hotel room and the cleanliness of it). If the organization is concentrated more on delivering a personal experience to the guest, have a higher customer satisfaction based on employee satisfaction, where as when the service is more concentrated on a service to a possession, employee satisfaction is less of a factor in the overall customer satisfaction and the guests experience with the organization.
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As a result of the above they were giving less importance to customer satisfaction and customer relationship building. This form of strategy conformed to short term business motives. In a globalised and highly competitive world, modern marketing is about concentrating ...
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As Peter Duckers has put it, "The ultimate aim of all business organisation is - to create a customer". These days, for most products and services, the market belongs to the buyer. The customers e...
When organization always provide high-quality products and good services, customer will create their satisfaction and increased customer loyalty.
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