Ideal Consumers and Their Behaviors

Ideal Consumers and Their Behaviors

A key factor that influences consumersÐŽÐ' choice of retailers, and other service providers, is customer service. For example, many people choose to shop at certain stores, do their banking at a particular financial institution, stay at a specific hotel, eat at certain restaurants, or take their clothes to a particular dry cleaner, etc., based on the level of customer service provided by that establishment. This aspect of customer service encompasses such factors as the level of responsiveness, friendliness, reliability, and promptness of employees. Another key aspect of customer service that affects consumersÐŽÐ' choices of retailers and service providers is the manner in which the seller responds to customer complaints. Many times consumers make their choices based not only on the level of service provided at the time of sale, but also on their perception of the level of customer service they can expect to receive after the sale, should a problem arise (Blodgett 31-42).

This aspect of customer service is critical to the long-term profitability of a firm. Firms that develop a reputation for consistently remedying customer complaints are more likely to develop customer loyalty and, over time, may increase their market share. Conversely, firms that develop a reputation for not being willing to remedy their customersÐŽÐ' complaints may slowly lose many of their customers (Blodgett 31-42).

Complaints offer businesses an opportunity to correct immediate problems. In addition, they frequently provide constructive ideas for improving products, adapting marketing practices, upgrading services, or modifying promotional material and product information. While occasional problems with service of merchandise are, to some extent, inevitable, dissatisfied customers are not. Companies can learn to recover from mistakes. A good recovery can turn angry, frustrated customers into loyal ones (Blodgett 31-42). Recognizing the importance of responding fairly and efficiently to buyer disappointment in the marketplace, many businesses have established effective and innovative systems for resolving consumer complaints. Within any industry, those companies with a positive philosophy and a reputation for fair complaint-management have a competitive edge.

By talking back when they believe they have not received their money's worth, consumers give businesses an opportunity to correct the immediate problem and restore goodwill. Experience shows that consumers who complain about products and services continue to frequent the businesses and buy the products they complain about if they believe the complaint was resolved fairly. Research into complaint behavior reveals that only a fraction of dissatisfied consumers complains to business and, thereby, gives the company an opportunity to correct the problem (Blodgett 31-42). There is evidence that some consumers do not complain because they are skeptical about business's willingness or ability to resolve disputes fairly. Consumers simply withdraw their patronage and criticize the company or the product to others (Blodgett 31-42). Careful complaint management can save business unwanted costs. For example, negative word-of-mouth publicity from dissatisfied consumers means lost revenue and necessitates additional investment in advertising to attract replacement customers. Complaints and complaint trends tell business how to do its job better by alerting management to problems that need prompt attention and correction. Furthermore, they indicate long-range opportunities for product innovation and problem prevention.

The attached surveys reveal some insight into the minds and attitudes of management and employees of service providers. Many employees and management personnel have predetermined thoughts of what an ideal consumer is and consumer behavior. Management attitudes are reflected in the conduct of employees and the performance of the company (Blodgett 31-42). Top-level commitment to effective complaint management establishes the motive and incentives for all personnel to strive for consumer satisfaction. Management's responsibility begins with the preparation of written policies and procedures for speedy and fair complaint resolution. These policies and procedures should be put in writing and communicated to all appropriate departments, emphasizing the accountability of individual employees to resolve complaints courteously and fairly. Employees whose primary responsibility is sales or service, for example, may have difficulty resolving complaints objectively if they feel their performance rating could be adversely affected. If management establishes clear lines of authority, consumer problems should be solved quickly and effectively. Management should regularly review and, when necessary, find ways to improve complaint-management procedures, paying particular attention to refining communication and coordination between the complaint-management and operating departments.

Retailers and service providers should encourage customers who are dissatisfied to seek solution (i.e. ask for a refund, exchange, or repair) so that they will then have a chance to remedy those problems and retain those customersÐŽÐ' business. Retailers and service providers need to understand that some dissatisfied customers will not give the seller a chance to remedy the problem, either because they feel that the seller will not be willing to remedy the problem, or because they are reluctant to complain in general. Rather than seek redress, many of these dissatisfied consumers will instead exit and engage in negative word-of-mouth behavior. The end result for the retailer or service provider is lost sales and profits. Considering that it costs five times as much to attract a new customer as it does to retain a current customer, retailers and service providers should strive to create an atmosphere that encourages dissatisfied consumers to seek redress. At the same time, dissatisfied consumers who seek redress expect to receive a fair settlement and to be treated with courtesy and respect (Blodgett 31-42).

In recent years, an increasing number of businesses have recognized the benefits of establishing and nurturing ongoing relationships with their customers. Many have begun to shift their emphasis from discrete transactions toward shaping longer-term, mutually beneficial exchange relationships. Often referred to as ÐŽorelationship marketingÐŽ± or ÐŽorelationship management,ÐŽ± the foundation of this rapidly emerging business philosophy is the belief that strengthening ties with existing customers heightens customer satisfaction and businessesЎЇ abilities to serve customers. The value of customer relationships is particularly noteworthy in the service sector, for a variety of reasons.