"I came into the dressing room and saw my players crying like kids, I think we deserved to win the game.
"We tried to defend, we tried to make substitutes, but they (match officials) didn't let us."
Penalty misses from Luka Modric and Ivan Rakitic, while a saved spot-kick from Mladen Petric, saw Turkey book their place against Germany in the semi-finals in Basel on Wednesday with a 3-1 shootout win.
Interview: Croatia coach Slaven Bilic
Bilic's management style has won him admirers across Europe and his name has been linked with moves to Premier League clubs, even though he has signed a contract extension with Croatia until the 2010 World Cup.
However, the 39-year-old reassured Croatia fans he wants to stay on as national team boss.
He said: "I don't think about 'should I go to another club or should I stay?'
"I only think about my players and the way we played. We were doing it step by step, the way we were playing without (injured Arsenal striker) Eduardo, nine points in three games, we didn't fade.
"It's a huge disappointment to lose, but life goes on - we are definitely going to be back."
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