Many companies adopt strategies to improve customer satisfaction with the perceived objectives of strengthening bonds and achieving customer loyalty. Great claims are made regarding higher satisfaction levels. It is suggested that customer satisfaction:
Ø Increases customer loyalty
Ø Reduces price elasticity
Ø Insulates market share from competitors
Ø Lowers transaction cost
Ø Reduces failure rates and cost of attracting new customers
Ø Improves the firm’s reputation in the market place
