In: Operations Management
Both the core components and the peripheral, value-added supplemental components contribute to customer satisfaction and dissatisfaction. If the core is good, it does not enhance satisfaction much, because the customer expects it to be good. But if the core is bad, it can affect dissatisfaction. By comparison, the supplemental services can affect satisfaction or dissatisfaction. How do core factors, cues to quality, and interpersonal factors of a product influence your buying decisions. What about the supplemental services' influence? Explain with your supporting experiences.
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It is true that if the core product is good, it does not enhance satisfaction much, but if it's poor, then it will surely dissatisfy the customer. This all happens because the buyer has the choice and options to choose from.
So, if the company is failing to even provide better core functions to the customers, then it will never succeed in this era of competition, the buyer will not buy the product.
If we talk about the quality of the product, then if the company is providing better quality product from its competitors, and its prices also seem lower in comparison to the quality and functions customer is getting, then they surely by the product.
The same is with the additional services the company is providing. It only influences the customer buying decision, but everything would be in accordance with the price they are charging for. If at a cheap price, the customer is getting better quality products and better additional services and obviously core functions also, then the customer would be highly satisfied.
In my experience, Netflix subscription charges are higher in comparison to other streaming services, but people still prefer Netflix because of its better quality and content.
Same in the case of Amazon Prime, who gets subscribers' satisfaction with the additional benefits they provide along with the core functions, i.e., better offers and deliveries on their Amazon app.