Abstract:
Customers are the key drivers of an organization’s revenue as well as are a basis for its profitability. Therefore organizations focus a lot on the satisfaction of customer as well as on the retention of its existing market base. It is important to keep customers happy and contented with the products and services. This contentment with company’s products and services leads towards customer loyalty which definitely in return helps in maintaining the revenue levels. As every organization aims towards the maximization of profits so there are basically three key livers through which the organizations try to achieve their goal. These three key livers are customer acquisition, customer retention and customer engagement. Customer acquisition focuses on new customer intake that will gradually increase the market share hence increasing the revenues. The second and the most important liver is the customer retention phase where the organization tries its best to bring churned customers back to the customer base. The third being the customer engagement mainly focuses on increasing the consumption or the activity level of the customers which eventually will pool in the revenue’s pie. To understand this complete customer satisfaction phenomenon, it is important to understand the customer purchase behavior and what affects this behavior. Customers have different perceptions towards products and services provided to them depending on quality, price, promotion and innovation. There are many other variables which affects customer perceptions i.e. brand image, product packaging, service quality and reliability. It is essential to understand consumer perceptions which affect their purchase decisions to great extent. Product intelligence and service quality are considered important while purchasing.
