The objective of business firm cannot be achieved only by creating demand. If the customers are not satisfied with the goods or services supplied, they cannot be permanent customers of the firm. So, if the relative benefit from the goods or services is more than the price paid then there customer value is created. The customers' decision of selection of goods is directed by customer value. A marketer should include different prices with the goods or services brought in the market.
Customer value creates customer satisfaction. The customers expect certain benefit from the goods while buying goods. If the goods is found satisfactory in use as expected, customers feel satisfied. Otherwise, they become unsatisfied. Similarly, if the goods or services work better than expected or created more value, they become more satisfied.
Customer Satisfaction = Perceived Performance/Desired Performance
Satisfied customers become loyal to the brand or they love brand. They tell their experience of the goods or services to others. So, success of any business firm depends on matching the performance of goods or services with customers' expectation.
