1. Customer Satisfaction Research Conceptualization and Analysis of Strategic Customer Satisfaction Research The information and examples contained in this document are confidential and proprietary to Market Strategies International.

4. Conceptualization of Customer Satisfaction Research Problems

8. Conceptual Model Platform

12. Three Typical Outcomes in Satisfaction and Value Models A. CVA (Customer Value Analysis) B. Quality GAP Analysis and ACSI C. Competitive Position Value Satisfaction Reputation Reputation and Brand ( Favorability or Approval ) Satisfaction Expectations Ideal Quality Price = = = = = =

18. Structural Equation Modeling as the Analytical Tool

28. Calculation of Total Impacts Reliability and Restoration Example Total Impact = Direct Impact + Sum (Any Indirect Impacts) Total Impact ( Rel/Restoration (C 1 ) on Satisfaction (C 4 ) ) = Direct + Indirect = 1.273 + [ (1.967 / 5) * (3.164 / 5) ] * 5 = 1.273 + 1.245 = 2.518 Direct Impacts (Solid Lines) Indirect Impacts (Dotted Lines) = Total Impacts 1.273 1.967 3.164 C 1 C 2 C 4 C 3

29. EXAMPLE ESTIMATED MODEL Value Corporate Reputation Overall Satisfaction Impacts on: Value Satisfaction Corp. Rep. Reliability and Restoration SUB-DRIVERS KEY DRIVERS OUTCOMES General Employee Service Field Employees A B C D E Impacts on: A C D E A C D E C B D E A A A D E B E D E Community Involvement 0.8 2.1 1.0 0.6 2.5 0.9 1.3 1.2 1.0 0.7 0.8 1.2 0.5 1.5 0.8 0.8 1.4 0.9 0.8 0.6 0.2 0.8 0.6 0.6 1.1 1.1 1.3 1.7 1.3 1.4 0.5 0.7 0.8 0.4 0.6 1.0 0.8 1.2 1.1 Willingness to Recommend Future Purchase Intention 2.0 1.1 1.5 Impacts on: Recommend Purchase Intention 1.8 2.1 1.7 1.3 Customer Care Price Management Reputation System Maintenance Billing Energy Efficiency Information Outage Management Customer Solutions Telephone Contact Satisfaction Safety 71 75 76 81 62 70 72 68 77 80 68 75 70 76 82 70 75 74 76

30. Key Driver Impacts on Customer Satisfaction Total Impact Performance Index Customer Solutions Management Reputation Reliability and Restoration Price 81 68 72 62 Customer Care 70

32. Relationship Between Customer Solutions and Overall Satisfaction Customer Solutions Overall Satisfaction Sat. Index = 75

34. MSImpact Modeling Predictive Validity Example from the Utilities Industry 81 62 70 72 68 2.5 1.2 0.8 1.5 1.4 84 61 72 75 70 3 -1 2 3 2 1.5 -0.2 0.3 0.9 0.6 T1 Driver Indexes T1 Impacts on Satisfaction T2 Driver Indexes Actual Change in Driver Indexes Predicted Change in Satisfaction Index Total = 3.1 Predicted change in Satisfaction Index Satisfaction T1=75 T2=78 Actual change in Satisfaction Index = 3.0 Reliability and Restoration Price Customer Care Customer Solutions Management Reputation