MSG Team's other articles

12676 Category Management

The mechanism of selling merchandise in small quantities from a fixed location directly to the individuals for their end use is called as retailing. The fixed location can be anything like super market, hyper market, department stores and so on. Merchandise – Merchandise refers to the various products available at the store for sale to […]

9103 Electronic Relationship

Introduction The rise of the internet and electronic commerce has changed the way in which customer and company interact with each other. The electronic commerce brings together more consumer and supplier, but it eliminates any form of direct and face to face interactions. For this specific reason electronic relationship are considered a formidable challenge for […]

8825 Understanding Retail – What is Retail ?

Before understanding the concept of retail, let us first go through few terminologies. Market – Any system or place where parties are engaged in exchange of either goods or services is called as market. The parties are often called as buyers and sellers. The seller offers his goods or services to the buyer who in […]

12567 Analyzing Business Markets and Business Buying Behaviour

A market consists of two parts consumer market and business market. Companies manufacture products for consumer market but business market is equally large and strong. Typical business markets consist of manufacturing plants, machinery, industrial equipments, etc. Companies need to study and analyze factors affecting business markets and business buying behaviour. In a business market, organizations […]

11952 Why Dissatisfaction in Customers?

When the suppliers are unable to entertain customers or their business strategies fail to build a good relationship with customers, they probably end up with customers’ dissatisfaction. Their can be many reasons for the customers to become dissatisfied. Some of these reasons are: Taking example of India, most of the population here are vegetarian. They […]

Search with tags

  • No tags available.

Most of the organizations have murkiness in considering customer loyalty and satisfaction. They feel that both are same and a satisfied customer is always loyal to them. But this is not true as the customer can be delightfully satisfied but he may be or may not be loyal. This is because satisfaction an emotional and slushy feeling over the job done. But loyalty is related to the action taken by the customer future. There can be following two combinations of aspect when satisfaction and loyalty are treated together:

  1. Satisfied but disloyal customers: A customer can be fully satisfied but may not be loyal due to following reasons:

    1. Entrepreneur Customer: These types of customers like to experiment a lot and hence try to create various options for them to get more benefits. So even if they are satisfied they diverge to other options available in the market.
    2. Pressure from Competitors: Due to the pressure in market the customer tends to follow the competitors path and divert from the existing supplier to remain sustain in the global marketplace.
    3. Outdated Suppliers: The customer may be satisfied with the existing customers but sometimes feel that the product and services he is using are outdated in market. Due to the changing technology there is always a need to update the technical aspects and product features even if the old products and services are satisfactory. Focusing on these facets the customers normally go to other suppliers for his new requirements.

  2. Unsatisfied but loyal customers: The other abnormal situation is when the customer is loyal but is unsatisfied. The reasons for this are following:

    1. Lack of available options: There can lack of options available for customers. This situation arises when the existing supplier is having a monopoly in a particular segment of products or when all other competitors are worse then the existing supplier. The customer feel trapped in this type of situation and is forced to be loyal to the supplier but at the end of the day he will be an unsatisfied customer.
    2. Improved Supplier: In another situation the suppliers may take the customers in confidence by convincing them to provide improved products and services in the coming future. This is an important tactic that supplier implement in their marketing strategy to become customer centric and to have customers stick to them and be loyal. To remain in a healthy relationship the customers also remain loyal but have a feeling of dissatisfaction beneath. But finally if the supplier continuously supply degraded products and services the customer could easily divert from them in search of better prospects.
    3. Customer Inertia: There are some customers who afraid to change the supplier. Even if they have bad experience with the supplier, they continue to have business with them. This may be due to the emotional and business attachments or bonding of customers with those particular suppliers. Their could be many others reason for this like, the customers’ feel reluctant to face the complexity of the process of changing their way to other suppliers and prominently when they already have a long term relationship with their suppliers. Under this situation the customer tries to ignore the feelings of being unsatisfied and remain loyal to them.

For an organization to be in business and make profit it is a very important aspect for them to gain customer loyalty. Even if high satisfaction may not guarantee loyalty but it can be literally a prerequisite for it.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

What is Customer Satisfaction ?

MSG Team

Customer Acquisition Cost

MSG Team

Customer Acquisition – Meaning and its Process

MSG Team