Achieving Consumer Satisfaction ‑ Key to Organizational Prosperity Part-II
How Does Consumer Satisfaction Contribute to Organizational Prosperity?
It is widely admitted that the long‑term organizational prosperity is the desired goal of an enterprise. If an enterprise is to ensure its continued prosperity, it must be able to attain expected level of productivity and profitability. The marketing performance of a firm has an important bearing upon its productivity and profitability. Clearly, the marketing performance of a firm is largely dependent on the favorable attitude of target market towards a firm and its products. We know that consumers do not hesitate to patronize a firm, if it is capable of providing them desired satisfaction through its marketing mix policies. Consumer patronization exerts favorable impact on sales performance of a firm, which is a major determinant of organizational profitability. Since organizational health is closely linked with its financial soundness, it is possible for a sound company to achieve its growth objectives through diversification of product, or increase of market share or use of vertical integration strategy. The following table shows the relationship between consumer satisfaction and organizational prosperity.
A Model of depicting Consumer Satisfaction as the Key to Organizational Prosperity:
Nature of Market
Importance of Consumer
Not so important
Societal marketing concept
Consumer satisfaction elements
Failure or success in providing
Psychological state of consumer
Firm’s failure to ensure the
elements of consumer
Consumer safety & well being
Firm’s ability to integrate the
elements of consumer
Consumer problem solving
State of consumer satisfaction
Impacts of consumer
satisfaction / dissatisfaction
Change in brand loyalty
Organizational success is
Growing govt. control over
Organizational prosperity is
The past decades saw the rise of many successful business firms at home and abroad even in the turbulent and changing environment. An insight into their operations uncovers that the ability of these enterprises to create and maintain a satisfied target group of consumers was the prime reason of their enduring success. Obviously, a total commitment of a firm to provide maximum delivered value to the consumers may be of immense help to bring organizational prosperity. This is an arduous task, which demands capable leadership dedicated to achieve organizational development, a set of skilled human resource working to promote excellent organizational culture and an outward looking organizational philosophy to materialize the consumer orientation of the enterprise.
Consumer Satisfaction ‑ Practices of Developed Countries:
Consumer satisfaction is of prime importance in the marketing context of industrially developed countries where consumer sovereignty has been well established. The environment for the exercise of consumer rights exits and the consumers are also well organized to protect their rights in these countries. In the backdrop of above situation, companies are found to adopt strategies that may facilitate the achievement of consumer satisfaction. The leading American companies operating at home and abroad are found to pursue consumer oriented policies and strategies.
McDonald tries to provide consumer satisfaction through quality, service, cleanliness and value in serving its fast food market.1 Researches reveal that one of the important characteristics of excellent American enterprises is that they learnt about the needs of their customers2, General Motors enjoyed rich dividend during the last quarter of 1988 by introducing a new model ‘Deville’ based on customer preference3 ‑ Satisfied customers accounted for the success of Lands East, a US mail order house4, IBM formulated corporate philosophy to deliver defect‑free competitive products and services on time to its customers as an aid to provide customer satisfaction5. Some leading US companies like Johnson & Johnson, Coca Cola Garber and Kodak are noted for paying attention to ethical standards in a bid to maintain trustworthy relationship with the customers and other interest groups6. Wal‑Mart chooses its product line in the light of its commitment to a cleaner environment7.
Consumer orientation in marketing has been practiced by the Japanese firms as well to render satisfaction to their domestic and overseas customers. Japanese carmakers like Toyota, Honda and Nissan are found to lay stress on product innovations to serve the changing needs of automobile users. Similarly, the leading manufacturers of electronic goods in Japan including Sony, Toshiba and Sanyo have been launching new product versions every year comprising of improved product features to serve its customers satisfactorily. The past decades witnessed remarkable changes in the quality of Japanese products on the support of total quality management. Japanese firms are fund to use ‘Quality Circles’ for overcoming their quality ‑ related problems involving the employees8. This is basically done to ensure superior products to their customers so that customer satisfaction can be attained.
State of Consumer Satisfaction in Bangladesh:
Apparently, consumer satisfaction is a neglected aspect in the marketing scenario of Bangladesh. The reason is not far to seek. Bangladeshis yet to develop appreciably in respect of industrialization. The economy is basically agriculture‑oriented. It markets for most of the consumer and industrial goods are characterized by the existence of seller’s market. Different brands of products are available for a few manufactured consumer goods only due to manufacturing facilities of the multinational companies along with some local private producing units. Some of these goods are toiletries, cosmetics, medicine, shoes, soaps, electronic items etc. As a consequence, the marketing efforts of most companies center round product and sales orientations.
In view of growing competition in some manufactured goods, MNCs and leading private companies operating in Bangladesh are found to attach importance to uncover consumer attitude towards their product line for facilitating their future product planning, In some segments of the services sector like banking, insurance, education, health‑care and hotel services; competition has been growing rapidly due to increasing involvements of the private enterprises. This is why, customer‑orientation is being increasingly practiced in these service sub‑sectors. Generally speaking, public sector enterprise including some public corporations are, indeed, very callous to serving their customers efficiently and effectively. The national dailies of the country frequently publish reports of utter customer dissatisfaction on the services of WASA, PDB, Bangladesh Railway, Bangladesh Biman and many other public manufacturing firms.
One of major reasons for consumer dissatisfaction in Bangladesh is the involvement of many firms in marketing malpractice. Adulteration in food, deception in weights, charging manipulative prices, lack of uniformity in quality and availability of inferior & defective goods have become common phenomena for which consumers are to suffer badly. In the wake of these‑unethical marketing practices, the Consumer Association of Bangladesh (CAB) was supposed to play an active role to protect the interests of consumers. But unfortunately, this did not happen. CAB was found to make intermittent efforts to protest against the marketing malpractice of companies. In the absence of organized consumer movement for protecting their rights, most Bangladeshi companies seldom attempt to provide consumer satisfaction through their marketing efforts. This dismal scenario would have improved if the existing marketing laws in Bangladesh could be strictly enforced by the government agencies. Environment pollution is another issue causing serious worries among the conscious citizens of Bangladesh. The capital city of Dhaka is one of the most polluted cities of South Asia where the safety of people’s health is in great danger9. It appears that this is the high time for the government of Bangladesh to play a desired role in ensuring the safety of living environment in the country and thereby contribute to the welfare of its people.
Consumer satisfaction has become the key variable of marketing decision making in modern days in the context of competitive and changing environment coupled with buyers domination in the marketing process. Firms designing marketing program based on consumer orientation can create favorable situation to pursue its marketing operations smoothly. It becomes easy to build up trustworthy relationship with consumers by adhering to consumer‑oriented policies and strategies. When such relationship exists between the parties in a marketing transaction, it is reflected in the improved organizational performance ‑and contributes to a firm’s prosperity.
To achieve consumer satisfaction, a firm must devise its marketing mix in keeping with the needs, preferences and expectations of the target market. It must attain the skill to deliver maximum value to the consumers by providing quality goods or services at a reasonable price through an efficient distribution system. Responding quickly to the consumers’ problems and grievances may greatly help to attain consumer patronization regularly and thereby facilitate the path of organizational prosperity.
I H. Weihrich and H.Koontz, ” Management: A Global Perspective”, McGraw‑Hill International Edition, 1994, p.25
2. T. J. Pelers and R.H. Waterman Jr., In Search of Excellence,” Harper & Row Publishers, 1982
3. H. Weihrich and H. Koontz, Op. cit. p. 10
4. lbid, p.11.
5. James B. Dilworth “Production and Operations Management: Manufacturing and Services”, McGraw-Hill Inc. New York, P. 486
6. K. Labich, “The New Crisis in Business Ethics,” Fortune. April, P. 167.
7. W.J. Stanton, M. JEtzel and B. J. Walker, “Fundamentals of Marketing”, McGraw‑Hill International Edition, 1994. P. 48.
8. James B. Dilworth, Op. Cit., P. 472
9. S.M. Nazrul Islam, “The Impact of Environmentalism on Marketing Management,” The Marketer, Department of Marketing, University of Chittagong, 1998, P. 23