Marketing Mix Upon Consumer Satisfaction Marketing Essay

Marketing is the process of discovering and translating consumer wants into products and services and then in turn making it possible for them to enjoy the products and services. Consumer wants can be satisfied only with the help of marketing-mix. The purpose of marketing mix is to satisfy the needs and wants of the customers in most effective and economical manner. Marketing-mix is the combination of four inputs which constitute the core of a company’s marketing system which consists of 4 P’s which are product, price, promotional and placement (distribution).

The purpose of this literature review is to summarize the research that has been conducted concerning the Marketing-mix effects on consumer satisfaction, the different ways according to different researcher conducted research on customer satisfaction. A successful marketing-mix leads to competitive advantage which increases consumer satisfaction.

According to Christie Koontz in his research the 4-P Recipe for Customer Satisfaction focuses on. A true marketing mix strategy must be in place to optimize satisfaction of customer wants and needs. A true marketing organization pays attention not only to the communications, but also to the desired benefits of the product, its costs to the target audience, and where it will be available. Finally, the promotional messages must reach people.

The second relevant literature found regarding this topic is by McQuitty, Finn, Wiley Systematically Varying Consumer Satisfaction , he states three things: satisfaction is a function of expectations, perceived performance, and disconfirmation 2) intention to repurchase is a function of consumer satisfaction and switching barriers; and 3) choice is a function of expectations and intention to repurchase. It emphasizes satisfaction as a primary determinant of repurchase behavior.

According to José. M. Bloemer The complex relationship between consumer satisfaction and brand loyalty. In this article investigates the relationship between consumer satisfaction and brand loyalty. More specifically the moderator effect of elaboration upon the relationship between two different types of consumer satisfaction and true brand loyalty is investigated. First, a distinction is made between repeat purchasing behavior and brand loyalty.

Literature review:

The purpose of this literature review is to summarize the research that has been conducted concerning the Marketing-mix effects on consumer satisfaction, the different ways according to different researcher conducted research on customer satisfaction. A successful marketing-mix leads to competitive advantage which increases consumer satisfaction.

Modeling customer satisfaction in Telecom New Zealand

Peter J. Danaher (1996) links between service quality and customer satisfaction. With the realization that high service quality results in higher customer retention and increased market share. Marketing managers want to find out how to direct a quality improvement program with the aim of increasing customer satisfaction

Two approaches have been taken to finding the key factors which management can focus on to improve their overall customer satisfaction. The first is “gap analysis”, which measures the gap between customers’ expectations and perceptions of the service as an indication of service quality (Brown and Swartz, 1989; Parasuraman et al., 1985, 1988). The second approach uses linear regression to determine the relative importance of service attributes

The link between product quality and customer satisfaction is very important .it has a positive relation with each other. The paper concentrate on how to direct a quality improvement programme with the aim of increasing customer satisfaction, the higher the quality the higher the customer satisfaction. The results of the paper are presented from a customer satisfaction survey of people using a telephone directory service. It describes how a quality improvement strategy was put in place on the basis of a model which relates overall customer satisfaction to its various aspects. A questionnaire was designed to assess customers’ attitudes to their contact with International Directory. It was developed by Telecom market researchers and an outsource market research company who were also hired to do the interviews. Qualitative research (in the form of focus groups) was conducted to find the full range of factors which influence a customer’s view of overall quality . They have include these kind of questions which are, how long it took for the operator to answer or attend to your call, if they minimize the waiting time then they automatically gain customer satisfaction.

The effects of customer satisfaction and switching barrier on customer loyalty in Korean mobile telecommunication services

-Moon-Koo Kima,*, Myeong-Cheol Parkb, Dong-Heon Jeonga(2004) It states that the industry is changing its strategic focus away from attracting new customers, towards retaining existing customers through the promotion of customer loyalty. This paper tells how customer satisfaction and the switching barrier influence customer loyalty. The regulation effect of the switching barrier on customer satisfaction and customer loyalty is also analyzed because attracting new customers is considerably more expensive than retaining old customers (Reichheld & Schefter, 2000). Therefore, enterprises strive to increase their market share by maximizing customer retention (Tsoukatos & Rand, 2006).

Introduction of mobile number portability (MNP) all contribute to the a transition period in the mobile telecommunication services market, fall in the rate of increase in subscriber numbers suggests that the market may have now reached maturity. Earlier studies propose that customer loyalty provides the foundation of a company’s continued competitive edge, and that developing and increasing customer loyalty is a vital factor in companies’ growth and performance (Lee & Cunningham, 2001; Reichheld, 1996).

When the number of subscribers has reached its saturation point, creating and securing new customers is not only complex but also costly in terms of marketing. Best core marketing approach for the future is to try to retain existing customers by heightening customer loyalty and customer value.

This study has four objectives: first, to identify variables that comprise customer satisfaction and the switching barrier; second, to carry out an empirical analysis of the relative effects on customer loyalty of customer satisfaction and the switching barrier; third, to analyse the correction effect between customer satisfaction and customer loyalty that is produced by the switching barrier; and, fourth, to examine the strategic implications for mobile

carriers attempting to raise the level of customer loyalty.

The result shows that factors establishing service quality positively influence customer satisfaction, revealed that call quality, value-added services and customer support are

significant. This reinforces the fact that call quality of telephone service is the top concern that

directly creates customer satisfaction for mobile users. It also concentrate on continuing

growth of the importance of value-added services, which are mobile Internet, multimedia services,

Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China

-Zhaohua Denga, Yaobin Lua, Kwok Kee Weib, Jinlong Zhanga(2009) states that the

perceived service quality and customer value are supported as drivers of customer satisfaction . They perceive that the relationships may also be significant in China’s Mobile instant messaging context. Moreover, MIM users often select the providers they trust to manage with, which develops their satisfaction. Trust can also be seen as a critical factor for customers to build and maintain relationships with providers.

Customer satisfaction can be classified into two types: transaction-specific satisfaction and general overall satisfaction (Yi, 1991). Transaction-specific customer satisfaction

refers to the evaluation customers make after a specific purchase experience, and overall satisfaction means the customers’ rating of the brand based on their experiences (Johnson & Fornell, 1991)

If a service provider can fulfill the needs of the customer better than its competitors, it is easier to create loyalty. From this article we extracted 3 external factors service quality, network coverage and trust.

Trust has a positive effect on customer satisfaction. When customers trust the service provider, they will continually use the service and even recommend the service to others.in other words they are satisfied with the overall 4-p’s of marketing .if they trust their mobile service then they also happy with the price of the service or calls. They also trust the network coverage they get from their service provider. They also get to know the new promotions which are sale promotions etc. Providing a high level of service quality is very key for service providers to compete with other competitors. customer’s perception of service quality was the main factor predicting customer satisfaction. if you give good service with affordable rates and the outlets every where then the customer perception automatically increases. High service quality could draw new customers, retain existing customers, and even attract customers away from competitors whose service quality is perceived to be lower. Perceived service quality has a positive effect on customer satisfaction. service quality is the link between customer expectations and perceptions.

We explore two other aspects of customer value to assess mobile instant message services, including functional value and monetary value. Functional value refers to the practical or technical benefits that users can get from the service. In monetary value means how much the MIM service is satisfactory considering the cost. That mean they are satisfied with the price of the service wwhich they are using. They all have a positive effect on consumer satisfaction.

Determinants of subscriber churn and customer loyalty in the Korean mobile telephony market

-Hee-Su Kima, Choong-Han Yoonb(2004) states that if a service provider can cator the needs of the customer better than its competitors, it is easier to built loyalty. The results show that the probability a subscriber will switch service provider is significantly dependent on the level of satisfaction with various service attributes of that carrier (call quality, tariff level, availability, brand image), his income level, and subscription duration. Among these factors, brand image and duration of subscription provide attractive implications. According to the article Brand image is the most important of all other factors.

Customer satisfaction has a positive outcome on customer loyalty. It showed that customer retention, loyalty and satisfaction were interlinked and that mobile service price, mobile service benefit perceptions as well as lack of number portability have strong effects on customer retention. However, customer loyalty in this paper refers to recommend his company (or its service) to other people. This can be considered a stronger form of trust in that company

In mobile telecom industry customer satisfaction is highly dependent on all the service attributes which includes all the 4-p’s of marketing-mix like product as call quality, price as tariff level, promotion as brand image and placement as distributions. The best mix of these factors can achieve maximum satisfaction.

As with many other services or products, mobile consumers incline to stick with the present

service provider unless they find a serious flaw or experience strong dissatisfaction with the services offered by that company. They can use the number portability option which means you can change your service provider with your old cell number. Brand Image plays a very vital role in increasing their customers, It will remain important even after controlling other factors

affecting brand image such as call quality and handsets.

The relationships among service quality, perceived value, customer satisfaction and post-purchase intention in mobile value-added services

-Ying-Feng Kuo a,*, Chi-Ming Wub, Wei-Jaw Deng (2009) stated in this paper that the mobile value-added services are digital services additional to mobile phone networks other than voice services. These value-added services include games, icons, ringtones, messages, web browsing, SMS (short message service) coupons, utunes and electronic transaction. The key of corporate success and competitive advantage is the improvement of service quality, perceived value, and customer satisfaction.

Perceive value is the evaluation of the benefits of a product or a service by customers based on their service experience and their ex-post perceived performance. Perceived value is the difference between the highest price that consumers are ready to pay for a product or a service and the amount practically paid. According to the quality point of view, value is the difference between the money paid for a certain service and the quality of the product. Consumers with a higher level of satisfaction lean to have a stronger intention to repurchase and recommend the purchased product . In other words, when customer satisfaction is enhanced, repurchase can be more frequent.

If u giving more value-added services then your competitor then you obviously have a edge on your competitors. if you are providing mms or gprs facilities then consumer will be more incline to use your service. To achieve sustainable growth or retain your customer, the best way is to keep on adding value-added facilities and promote them through proper media selection. Few c

Perceived value has a positive influence on customer satisfaction. In other words, high perceived value can lead to higher customer satisfaction. Perceived value and customer satisfaction directly and positively inclined to post-purchase intention, where the effect of perceived value was the biggest, followed by that of customer satisfaction.

The 4-P Recipe for Customer Satisfaction

-Christie Koontz

According to this article consumer wants can be satisfied only with the help of marketing-mix. The purpose of marketing mix is to satisfy the needs and wants of the customers in most effective and economical manner. Marketing-mix is the combination of four inputs which constitute the core of a company’s marketing system which consists of 4 P’s which are product, price, promotional and placement (distribution).4p’s explained in full detail.

A true marketing mix strategy must be in place to optimize satisfaction of customer wants and needs. A true marketing organization pays attention not only to the communications, but also to the desired benefits of the product, its costs to the target audience, and where it will be available. Finally, the promotional messages must reach people.