Thursday, June 7, 2007

Measurement of loyalty and customer's satisfaction

Just read an article by McKinsey's. China's customers are really unconventional. Apparently, 72% of the time they left TV when ads are shown while in US, only 42% of the time. Yet, companies are reported to spend more and more on advertisement while in fact, according to the report, customers' choice fickle depending on what the salesperson said to them during their point of contact. Perhaps the Chinese custom to trust people and only buy things they find real use of is more important than brand after all. Recommendation from friends and especially relatives are very important in the purchase decision made by a typical Chinese. The family bond might be the cause. Furthermore, Chinese seems to buy things based on its cost. They are very economical anyway.

Then it will be crucial for manufacturers to train their sales in providing only what the customers need. Functional features need to be down to earth and explanation needs to be easily understood to influence the customers' decision. However, a product serving the owner well during its lifetime might not influence the owner to repurchase the same brand though. Since the salesperson has the big role in influencing the purchase decision, it then really depends on the retail marketer to provide the leading edge for any manufacturers in attracting customers.

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