Expectation-confirmation theory posits that customer satisfaction is determined by the extent to which a product or service meets or exceeds initial expectations. This theory is crucial in understanding consumer behavior and is widely used in marketing to improve customer retention and loyalty.

Expectation-confirmation Theory

Expectation-confirmation theory

Customer satisfaction is a measure of how well a company's products or services meet or exceed customer expectations, directly impacting customer loyalty and business profitability. It involves understanding customer needs, delivering consistent quality, and actively seeking feedback for continuous improvement.

customer satisfaction

product or service

initial expectations

Consumer behavior is the study of how individuals make decisions to spend their available resources on consumption-related items. It encompasses the psychological, social, and economic factors that influence purchasing decisions and the use of goods and services.

consumer behavior

marketing

Customer retention refers to a company's ability to keep its customers over a period of time, which is crucial for ensuring long-term profitability and growth. It involves strategies and activities aimed at increasing customer loyalty and reducing churn, often by enhancing customer satisfaction and engagement.

customer retention

Customer loyalty refers to the likelihood of customers to continue purchasing from a specific company due to positive experiences, satisfaction, and perceived value. It is a critical driver of long-term business success, as loyal customers tend to spend more, refer others, and are less sensitive to price changes.

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