To create satisfied customers, the organization needs to identify customers’ needs, design the production and service systems to meet those needs, and measure the results as the basis for improvement. Satisfaction is an attitude; loyalty is a Satisfaction is an attitude; loyalty is a behaviorbehavior. Loyal customers spend more, are willing to Loyal customers spend more, are willing to pay higher prices, refer new clients, and are pay higher prices, refer new clients, and are less costly to do business costly to do business with | Chapter 4 Focusing on Customers The Management AND Control of QUALITY Sixth Edition James R. Evans William M. Lindsay Key Idea To create satisfied customers the organization needs to identify customers needs design the production and service systems to meet those needs and measure the results as the basis for improvement. Importance of Customer Satisfaction and Loyalty Satisfaction is an attitude loyalty is a behavior Loyal customers spend more are willing to pay higher prices refer new clients and are ess costly to do business with. It costs five times more to find a new 5 customer than to keep an existing one happy. A firm cannot create loyal customers without first creating satisfied .
