Measuring Customer Satisfaction at ImageStream Essay

ImageStream Internet Solutions, Inc. is a privately held comp both in its 9th category of operation. ImageStream engineers, manufactures, and distributes Linux-based routing products for network and Internet applications. ImageStream products ar handlingd by Internet dish out pass onrs (ISPs), governments, schools, and businesses in much than 75 countries around the world. As ImageStream moves toward its next decade, securities industry forces dominate it, like al almost high technology companies, to be flying and responsive. The company faces constant change in demands and needs along with the pressures of boot creep in the face of limited resources. It is against this backdrop that ImageStream started its ISO 90002000 certification unconscious process. This process requires non solo the implementation of shade processes, but whole stepment of their competency as well.ImageStream conducts signalise manager meetings twice monthly, and a company-wide review on a semi -annual basis. During these managerial and company reviews, the senior executives expose observe poetic rhythm driving the success of the companys mission, including those metrics that would benefit most from signifi faecal mattert improvement. This proposal outlines the consumption of a client satisfactiveness play along and seeks to answer the management question What is the latest node satisfaction with the train and type of node overhaul provided by ImageStream? The knowledge entrust search the conceptual framework of aid type, the affirmative and damaging impacts of cyberspace feel on ImageStream, and the effect of accessible and reproachful client intentions on perceived fibre using survey look into. Armed with the statistical analyses outlined below, the operations management team lead identify current trends in guest satisfaction in a proactive attempt to resolve to any issues.Background and belles-lettres ReviewThe look at and increment of cl ient assistance techniques and customer computer storage management programs has blossomed into its own industry. This increasing focus on customer satisfaction is not surprising, given the positive correlation betwixt happy customers and successful companies illust browsed in countless merchandising research studies. This con testament outline the relationship betwixt customer satisfaction with avail and customer retention at ImageStream. To support the findings, we go out conduct an falsifiable study focusing on the relationship surrounded by perceived military serve quality and customer intentions.Weinstein and Johnson (1999) recommend that companies like ImageStream should spend 75% of its merchandising budget on customer retention strategies and to strengthen these relationships. Once customers break to a product platform, and the longer they use and deploy that platform, the more profit ImageStream potty realize. Longstanding, satisfied customers will general ly continue, or often increase, purchasing, require less operational and customer work support, and be more unbidden to pay expense premiums to remain with the companyall without incurring brisk customer acquisition be (Pine, Peppers, and Rogers, 1995). This reputation will analyze how ImageStreams utility relationship with its customers produces customer behaviors indicating whether or not a customer will remain an ImageStream customer. The methodology used will follow Zeithaml, cull and Parasuramans study on this topic (1996).Since replacing lost customers requires saucily customer acquisition costs, customer retention should be a perfect runance measure for ImageStreams executive staff and a key component of the companys incentive programs (Zeithaml et al., 1996). According to the American commission Association, acquiring a in the altogether customer can require tailfin times the investment needed to keep an existing customer (Weinstein et al., 1999).Literature Re view customer swear out, not surprisingly, has been researched extensively from the conceptual framework of function quality, to the positive and negative impacts of inspection and repair quality, to the effect of favorable and unfavorablecustomer intentions on perceived quality. We review these concepts in recent literature, and investigate an a posteriori study focusing on the relationship surrounded by service quality and customer behavioral intentions (Zeithaml et al., 1996).Zeithaml, pick and Parasuraman (1996) offer a conceptual feign of service quality. The researchers postulate that the quality of customer service will regulate whether a company retains its customers or loses them to defection. Zeithaml, pluck and Parasuraman (1996) highlight seven key points1.Customer defection has a negative relationship with an fundamental laws profitability.2.Retaining current customers costs less than acquiring newfound ones.3.Customer retention should be a fundamental compon ent of incentive programs.4.Companies moldiness advertise not yet to attract new customers, but to replace lost customers.5.Advertising, promotion, and sales costs are required expenses when attracting new customers.6.In general, at the beginning of a customer/vendor relationship, the customers do not generate a profit for the company. Zeithaml, Berry and Parasuraman estimate that acquisition cost recovery can take as long as intravenous feeding years.7.Positive customer assessments of service quality head for the hills to positive behavioral intentions, strengthening the relationship between the customer and the company. electronegative assessments, on the other hand, create unfavorable customer behavioral intentions. The unfavorable conditions weaken the customer/vendor relationship.Based on their research and observations, Zeithaml, Berry and Parasuraman(1996) look at that expressed or observed behavioral intentions can render whether or not customers will remain with an formation.Reinartz and Kumar (2000) challenge Zeithaml, Berry and Parasuramans assertions that customer retention always leads well-managed companies to profitability. Reinartz and Kumar (2000) argue that long-term customers are not always the most profitable customers, and dismiss research assuming that dedication equates with profitability as a gross oversimplification. Reinartz and Kumar (2000) contend that managers should not mechanically assume increased lifetime spending, decreased costs of service, and decreased cost sensitivity for long-term retained customers. Reinartz and Kumar (2000) go further in too disputing the idea that long-term retained customers require lesser marketing investment by companies.Their research concluded that long-term customers often commit electrostatic purchasing periods unrelated to their retention by an organization (Reinartz and Kumar, 2000). During these dormant periods, these customers are at beat a break-even proposition for organizati ons, and often consume marketing and service resources resulting in net losses during periods of inactivity. Reinartz and Kumar (2000) found that short-term customers may be as significant to customers as longtime clients.Other research indicates that organizations struggling with a single approach to satisfy all customers can end up with inefficient and inappropriate levels of service (Cohen, Cull, leeward and Willen, 2000). Cohen, Cull, Lee and Willen (2000) conclude that organizations must customize their service to meet apiece customers individual needs.Superior service generates favorable behavioral intentions in customers, including increased future spending, acceptance of price premiums, word of mouth referrals, and, ultimately, customer retention (Zeithaml et al., 1996). Research suggests that most employees have a true customer orientation in that they understand their customers needs, and possess empathy and respect for their customers (Bitner, Booms and Mohr, 1994). Qua lity service builds customer faith in the organization, and is essential for maintaining competitive advantage (Berry, Parasuraman and Zeithaml,1994). Since quality customer service can generate positive behavioral intentions, quality service strategies are effectively profit strategies for organizations.Research illustrates this link between service and profitability, as Keaveney (1995) found that customer defections can cost an organization future tax stream. As customers intentions toward a company improve, the results include new customers, increased business with existing customers, fewer lost customers, and added pricing strength (Berry et al., 1994). Berry and Parasuraman (1997) stress the creation of customer feedback channels as a component of quality service. Listening and responding to the customers needs in a quality way has a direct effect on the quality of service provided (Berry and Parasuraman, 1997). This focus on customer feedback drove the single-valued functio n of this series of papers.Evidence, such(prenominal) as Keaveneys study, highlighting the role customer loyalty plays in making an organization more profitable forms it unconditional that companies readily and proactively address concerns, complaints and other unfavorable behavioral intentions among their customers (Tax, embrown and Chandrashekar, 1998). Tax, Brown and Chandrashekars point also applies in a comparative instinct as well. Organizations can potentially provide satisfactory service that however lags other competitors service offerings. In these cases, customers may defect because of the attraction of relatively superior service offerings from a competitor. Managers of service departments and service companies must get it on this comparative measure, and realize that some customers will defect even when they are satisfied with a former provider (Keaveney, 1995).Customers display favorable intentions such as praising the company, expressing a preference for the c ompany to the company or to other consumers, continuing and/or increasing purchasing volumes, paying price premiums, and making recommendations to others based on their satisfaction with the company (Zeithaml et al., 1996). Satisfied customers plosive loyal to an organization longer, pay less attention to competitive products, exhibit less price sensitivity, offer service improvement or magnification ideas to the organization and cost less to service over time than new customers (Weinstein et al., 1999).When dissatisfied, customers display unfavorable intentions such as expressing an eagerness to leave the organization, change magnitude purchase patterns, voicing complaints to the vendor, complaining to others, or taking legal action against the organization (Zeithaml et al., 1996). When customers do leave an organization, numerous choose to do so quietly with the intention of getting even by making negative comments to others about the organization (Tax and Brown, 1998).Since d efecting customers can impact current and future revenue streams, properly identifying dissatisfied customers and understanding why customers defect can be valuable tools in improving customer retention management programs. Companies must implement strategies to overcome potential customer defections. Retention efforts should begin as soon as organizations acquire new customers. The organization should proactively attempt to demand and address customer needs and resolve any complaints or concerns quickly (Weinstein et al., 1999).Weinstein et al. (1999) suggest several ways to build loyalty and increase favorable behavioral intentions in customers. They suggest that organizations could embed sales staff at the offices of their best customers, participate in their customers events or promotional efforts, interview their customers customers, conduct retreats with major customers to share best practices and to train customers on company products and services, develop a preferred custom er pricing strategy, reward customers for referring new business, solicit feedback on product development roadmaps, and even partner with key accounts on industry research projects (Weinstein et al., 1999).SERVQUALAmong the most popular assessments tools of service quality is SERVQUAL, an instrument headinged by Berry, Parasuraman, and Zeithaml (1994). with numerous qualitative studies, they evolved a set of five dimensions ranked systematically by customers as central to service quality, regardless of theservice industry. Berry, Parasuraman, and Zeithaml (1994) defined these dimensions as*Tangibles the appearance of physical facilities, equipment, personnel, and communication materials*Reliability an ability to perform the promised service dependably and accurately*Responsiveness a willingness to help customers and provide prompt service*Assurance the knowledge and courtesy of employees and their ability to cause trust and confidence and*Empathy the caring, individualized atte ntion the firm provides its customers.Based on the five SERVQUAL dimensions, the researchers also developed a survey instrument to measure the gap between customers expectation for excellence and their perception of actual service delivered. The SERVQUAL instrument helps service providers understand both customer expectations and perceptions of specific services, as well as quality improvements over time (Berry, Parasuraman, and Zeithaml, 1988). Analysis of customer responses to a SERVQUAL questionnaire presents numerous potential practical implications for companies and their customer service teams. stoveWe will conduct a study of all ImageStream customers (the population) by e-mailing or mailing a questionnaire to companies listed in ImageStreams internal records. The study will take less than one month to complete. We will mop up all customers and direct them to the on-line survey, and follow up with customers who have not responded after two weeks. We will end the study after f our weeks, and expect 25%-30% participation. We base this estimate on the response rate of similar studies mentioned above. A responserate of at least 10% will yield a significant sample, enabling us to make conclusive findings and recommendations.MethodologyWe identify three determinants of customer satisfaction with ImageStream service quality, solution quality, and price (through a measure of perceived value). Data on customer satisfaction, service quality, solution quality and price will be collected through the attached questionnaire survey. The questionnaire adapts the SERVQUAL instrument developed by Berry, Parasuraman and Zeithaml (1998) and uses a faction of Likert-scaled, divided and unstructured questions.The use of both bipolar Likert/dichotomous and unstructured questions allows us to benefit from the strengths of both quantitative and qualitative research. The use of quantitative questions allows us to obtain a high degree of dependability and validity using the sci entific method, and enables others to more easily repeat or replicate our study. The qualitative questions provide background for customer responses, and help to identify any underlying issues highlighted by the quantitative research. Triangulation, in this case the combination of qualitative and quantitative methods, allows us to overcome the weakness of using but one research technique.We do not assume that there is only one reality and believe that contrary research methods will learn different perspectives. Using quantitative and qualitative triangulation allows us to use different sets of data, different types of analyses, different researchers, and/or different theoretical perspectives to study customer service.The quantitative question results will provide data that we can accede to complex statistical analyses. We will combine the quantitative question responses to go through central tendencies and dispersion of the data, including measures of mean, standard error, medi an, mode, standard deviation, variance, kurtosis, skewness, and range. We will analyze theresults of each question and of the study as a whole.Based on the results of the compend above, we will develop regressions to identify potential relationships between past service experiences, perceived quality, future purchasing behavior, and loyalty. A possible research design for the regression analysis follows.H1 There is a positive correlation between the level of superior customer service and positive future customer behavior.H2 There is a negative or no correlation between the level of superior customer service and positive future customer behavior.H3 There is a positive correlation between the level of subordinate customer service and negative future customer behavior.H4 There is a negative or no correlation between the level of indifferent customer service and negative future customer behavior.Using these results, we can make conclusions about the management problem defined above. Development of these findings will include the use of anecdotal evidence from the qualitative questions in the survey. We will use the responses to the qualitative questions to support the quantitative findings, and to highlight key issues not covered by the quantitative portions of the survey.Possible FindingsFollowing Zeithaml, Berry and Parasuraman (1996), we believe that a positive relationship exists between quality service and positive customer behavior as defined above. Additionally, we believe that our research will show that favorable customer behavioral intentions will be higher(prenominal) among customers experiencing no service problems. Customers who have experience problems, but received service to resolve them will show the next highest level. Customers with unresolved service problems will show the least favorablebehavioral intentions.ConclusionCustomer service and its effect on customer retention in an organization is a growing area of research, and one that is vita l to maintaining quality at ImageStream. This paper examined customer retention and defection from an organization in the context of customer service quality, exploring four areas1.A conceptual framework of how service quality affects grouchy customer behaviors and the consequences for ImageStream, establishing the purpose for this study,2.Empirical studies that focused on the relationship between service quality and customer behavioral intentions,3.A triangulated quantitative and qualitative survey to study perceived service levels among ImageStream customers,4.Follow-on research based on the survey results and statistical analysis, including a summary of expected findingsCustomer retention branches off into many other significant areas such as value-added services, supply chain relationships, use of information systems to service customers better, and very importantly perceived and expected performance.Organizations have a chance to learn from their customers. The more customers teach the company the more effective it becomes at providing exactly what they want and the more difficult it is for competitors to hook shot them away from the organization (Pine II et al., 1995). Learning about customers is what this whole retention topic is about. The customers tell the organization what to do to keep them. The strategy is for the organization to learn how to listen and respond.ReferencesAnton, J. (1996). Customer Relationship management Making rugged Decisions with Soft Numbers. New York Prentice Hall.Berry, L., Parasuraman, A. and Zeithaml, V. (1988). A inventionual Model of proceeds Quality and its Implications for Future Research. The Academy of Management Executive, 8, 32-52.Berry, L. and Parasuraman, A. (1997). Listening to the Customer The Concept of a avail-Quality learning System. Sloan Management Review, 38, 65-76.Berry, L., Parasuraman, A. and Zeithaml, V. (1994). Improving Service Quality in America Lessons Learned. 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