Realization of Customer Importance by Firms
MBUS INDIVIDUAL ASSIGNMENT:
Why many firms fail to recognize the importance of customers until they are faced with a crisis?
Done by Mohammed Fawas tp023152 word count:2149
Contents Introduction 3 Importance of Customers 3 Word of mouth 3 Feedback from customers 4 Link between loyalty and profitability 4 Reasons why companies fail to realize the importance of customers until they are faced with a crisis 5 An Example: Why U.S Internet giants like E-bay, Amazon, Google and Yahoo failed badly in China 6 Conclusion 9 References 10
Introduction
Customers play a key role in the functioning of any business. For a business to function smoothly they should ensure the satisfaction of their customers. Many researchers have looked into the importance of customer satisfaction. Kotler (2000) defined satisfaction as: “a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectations”. On the run many business organizations fail or neglect the role that customers play. The following essay highlights the importance of customers and the reasons why many business organizations fail to realize the same until they are faced with a crisis, with the help of illustrated examples
Importance of Customers
As the potential growth and success of a business lies on customers, the primary motive of a business should be to create satisfied and loyal customers. Don Peppers and Martha Rogers sum up the importance of customers eloquently as “The only value your company will ever create is the value that comes from customers- the ones you have now and the ones you will have in the future. Businesses succeed by getting, keeping and growing customers. Customers are the only reason you build factories, hire employees, schedule meetings, lay fibre-optic lines, or engage in any business activity. Without customers you don’t have a business”
A customer provides an organization
Why many firms fail to recognize the importance of customers until they are faced with a crisis?
Done by Mohammed Fawas tp023152 word count:2149
Contents Introduction 3 Importance of Customers 3 Word of mouth 3 Feedback from customers 4 Link between loyalty and profitability 4 Reasons why companies fail to realize the importance of customers until they are faced with a crisis 5 An Example: Why U.S Internet giants like E-bay, Amazon, Google and Yahoo failed badly in China 6 Conclusion 9 References 10
Introduction
Customers play a key role in the functioning of any business. For a business to function smoothly they should ensure the satisfaction of their customers. Many researchers have looked into the importance of customer satisfaction. Kotler (2000) defined satisfaction as: “a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectations”. On the run many business organizations fail or neglect the role that customers play. The following essay highlights the importance of customers and the reasons why many business organizations fail to realize the same until they are faced with a crisis, with the help of illustrated examples
Importance of Customers
As the potential growth and success of a business lies on customers, the primary motive of a business should be to create satisfied and loyal customers. Don Peppers and Martha Rogers sum up the importance of customers eloquently as “The only value your company will ever create is the value that comes from customers- the ones you have now and the ones you will have in the future. Businesses succeed by getting, keeping and growing customers. Customers are the only reason you build factories, hire employees, schedule meetings, lay fibre-optic lines, or engage in any business activity. Without customers you don’t have a business”
A customer provides an organization
References: Dean, A. (2004). Links between organisational and customer variables in service delivery: Evidence, contradictions and challenges", International Journal of Service Industry. King, W. (n.d.). Role of Customer Service in success of Business. O 'Rourke, J. (2007). The Business Communication Casebook: A Notre Dame Collection. R.Evans, J. (2008). Management & Control of Quality. Thomson Corporation. http://bigapplezlp.wordpress.com/2008/01/18/why-us-internet-giants-failed-badly-in-china-summary/ http://ezinearticles.com/?Why-is-Customer-Loyalty-Important-to-Your-Business?&id=2170553 http://www.moyak.com/papers/small-business-failure.html http://www.emeraldinsight.com/journals.htm?articleid=851795&show=html http://www.slideshare.net/alamsayeed/why-firms-fail