Customer Satisfaction and Demand Essay Example | Topics and Well Written Essays - 1500 words

Customer Satisf effection and Demand - Essay Example(Macrae 1991)Although there is a strong shell for privatization of industry, in many countries the political forces of welfarism were far too strong to turn such public monopolies into buck private enterprises. Many governments found a via media approach, in deregulation of industries. This is the process by which governments removed restrictions on businesses in order to encourage competition that would not only improve efficiency and lower prices but excessively protect the rights of the consumers.For instance, the board for public utilities of Newfoundland & Labrador, Canada states its mission as ensuring the states public are well served in a changing environment, achieving an equitable balance between the interests of consumers and service providers in the electric utility, automobile insurance, petroleum products and go carrier industries. (Newfoundland & Labrador Board 2005). Similarly, in its 2006 Handbook, the departmen t of Consumer Affairs - Industry, Canada has given useful tips not only to observe money on their utility bills, usage of natural resources responsibly and protecting the environment but withal contacts and mechanisms for redressal of grievances in case of problems with public utilities. (Canadian Consumer Handbook 2006)The argument for total deregulation was that the regulated industries a good deal influenced the government regulatory bodies tilting the scales in their interests. Although the regulatory bodies might have started functioning independently, many of them have locomote prey to the industries they sought to regulate and were in many cases influenced by them. Ironically the same pattern could be discerned even in the process of deregulation. Some of the perceived failures of deregulation have found favor with the proponents of re-regulation for a calibrated approach for each case separately and in consonance with the winds of change that are move across businesses such as liberalization and globalization of markets.According to the 1989-1992 Electricity Act, British consumers can acquire their electricity supplier. Regional electricity companies not only have to join forces the standards specified in the act but also face fierce completion from others. It is no different for water companies. They face deepen pressure for improved customer service, reduced wastage and environmental damage. The standards of service are driven not by the regulator but by the industry and customer expectations. The challenge would be to achieve high levels standards to meet heightened consumer expectations without increasing costs. Public utilities long considered slow and unresponsive to the market are forced into making investments to repair their shortcomings. (Mansell-Lewis 1994). Customer satisfaction It is well known that customer satisfaction largely leads to customer loyalty. Loyal customers demand in a higher share of their expenditure, repeat busin ess, referrals and word-of-mouth publicity. As deregulation and liberalization increases the be of players competing in an industry, the net effect for the service providers is heightened customer expectations. According to a national opinion survey (NOP) survey commissioned by Olista, a service experience assurance company, users who encounter problems while using mobile entropy services would simply give up rather than seek assistance. The report is headlined impatient mobile selective information users arent prepared to give operators a