MICROECONOMICS
A survey reported on Version 6.2 of the Penn World Table indicates that real per capita GDP rose by 18.9 on average for the 82 countries surveyed between 2000 and 2004. This shows that people are becoming a lot better than they were some years ago. The survey predicted that the real per capita GDP will be doubling in every 16 years. Shiller noted that Americans spent 23 of their huge increases in income on their homes, 12 on transport, and 9 on personal business matters while 10 was spent on leisure. He predicted that this trend could be duplicated around the world as long as people are able to maintain the worldwide growth at its present rate (Shiller, 2006).
Galbraith argued that the prosperous world as shown by the United States had by then risen from grim scarcity, when awful necessity ordered our lives, to a world of riches. He further stated that so enormous has been the transformation in the living standards that lots of the requirements of a person is not even evident to them anymore. He indicated that affluence is the unyielding adversary of understanding. Many people are converted by the advertisements and salesmanship that have turned into the most significant and endowed professionals. Though real per capita GDP for the US is currently thrice higher than it was in 1958, many people have been spending all this money on what is ordered by the salesmen and advertisers who are now inventing our needs. In their pursuit for affluence people are sometimes guided by ideas that are irrelevant in their own lives, leading them into purchasing what is unnecessary and unwise Galbraith, 1998, p.1-2)
The notion that growth in a countrys GDP makes people successful and attains better living standards has therefore been highly criticized in the recent past. Stewart challenges that happiness is the secret to success. She further states that mounting of the GDP doesnt necessarily lead to more satisfied people. Having noted that having more doest make people better, the question of what really makes people satisfied arises (Stewart, 2009)
Measurement of satisfaction comprises of - 1) measures of satisfaction as a whole, 2) Measure of satisfaction by a particular good or service quality, and 3) Measure of satisfaction arising from the benefits of the purchase. The focus of satisfaction is usually the consumer of a product (i.e. the person who uses the product) and not the customer (i.e. the person who purchases it). The argument in this is that the buyer may not necessarily be the user of the product. Satisfaction requires experience and use of a product.
It is important to note that satisfaction is a feeling or a short-term attitude that can easily change with changes in circumstances. It dwells in the mind of the user and is not like other observable behaviors such as product selection or re-selection and complaining. Satisfaction levels range from lower to upper, meaning they range from under-fulfillment to over-fulfillment. Satisfaction may be determined using two models macro-models and micro-models.
The Macro-Models
The following assumptions are made in these models
Where the consumer is especially new to the product, or it is difficult or intangible, perceived performance will most likely diverge from the objective performance.
Evaluation measures can be derived from several sources which vary widely by personality, circumstances prevailing, and by product kind.
The feeling of satisfaction is an attitude or a mental state. A consumer may experience mixed feelings for diverse product parts experience.
The results of satisfaction could be word of mouth, whereby the consumer approves or disapproves the product to others, or the consumer may purpose to purchase it again. There are other variables that may affect these results. For example, the customer may fail to complaint if heshe thinks that it may not bear any benefit. (Hom, 2000, p. 102)
A traditional macro-model of customer satisfaction is shown below
Further research has born a model that recognizes value as a thrust in the choice of products and its relationship to satisfaction as a short psychological response to a section of a value chain. This model linking consumer value to satisfaction is as shown below
A different macro-model links the overall product satisfaction, the products encounter satisfaction, and the perceived product quality. It recognizes the contrast between overall general satisfaction and the encounter product satisfaction.
This model is as shown below
Micro Models
These are the fundamentals making up satisfaction concept. Hom, 2000, p. 101 summarizes micro-models into expectations disconfirmation, change, equity, attribution, and regret.
Expectations Disconfirmation Model This model shows that expectations are derived from beliefs. Here, consumers have pre-consumption expectations that make them develop an attitude of satisfaction towards the product.
Norms Model - it is similar to Expectations Disconfirmation Model in that the consumer uses a standard for performance to evaluate perceived performance. The standard in this case is however not predictive, but he uses what should happen as the standard for comparison.
Perceived Performance Model This model shows that expectations do not play an important role in the formation of satisfaction. It presents well where a products performance is so positive such that the expectations of the consumers get dissolved in their post-consumption response towards the product.
Multiple Process Model - This is where consumers use multi dimensions to form satisfaction of a product.
Attribution Model - This model incorporates perceived products performance causality into the process of satisfaction. Here, consumers use the locus of causality, constancyfirmness, and controllability factors to establish the effect of attribution in satisfaction.
Affective model this model reaches beyond the normal processes. Satisfaction or dissatisfaction feelings after product usage are affected by mood, emotions and liking of the product.
Equity Model - this model stresses the attitude of the customer on reasonable treatment while consuming the product. Reasonable treatment may be determined using equity ratio (total returns for efforts made) or by social comparison (the comparative level of a products performance experienced by other consumers).
According to Oliver, the comparison standard could be summarized to cover-
Needs whether the experience of consumption reached their need.
Regret what might have been situation.
Nothing where consumers develop the feeling of dissatisfaction or satisfaction without cognition. (Oliver, 1997, p. 111).
He gives a summary of the above as follows-
Comparison OperatorResulting CognitionExpectationsDisconfirmationExcellence (ideals)QualityFairnessEquityinequityEvents that might have happenedRegretNothingUnapprised cognition
(Source Oliver, 1997, p.112)
The concept of consumer satisfaction needs to be given much attention in both the public and private sectors. The diversity of satisfaction models leaves researchers with the option of maneuvering consumer satisfaction concept if they are to measure it. They ought to presume a model for this subject matter. So many people in the world today are getting riches day after the other, yet we see more of dissatisfaction every day.
Marketers on the other hand need to adopt consumer satisfaction as key factor in their strategic marketing endeavors. We all need to realize that it is the well being and happiness that is going to count on our development, unlike the earlier thought that it is the accumulation of wealth.