Final answer:
Customer satisfaction is determined by comparing a customer's expectations of a product or service with the actual performance they experience. Achieving high customer satisfaction requires managing expectations and delivering superior performance.
Step-by-step explanation:
Customer satisfaction is a function of perceived performance and expectations. It is the result of comparing what a customer expects to receive before purchasing a product or service against the actual performance they experience post-purchase. When the performance meets or exceeds expectations, high customer satisfaction is often the result. Conversely, when performance falls short of expectations, dissatisfaction occurs.
To ensure high levels of customer satisfaction, businesses must accurately manage customer expectations and strive to deliver superior performance. This can include ensuring high-quality products, providing excellent customer service, and offering good value for the price. Companies can use customer satisfaction as a metric to gauge their success in meeting and exceeding customer expectations.