5-1

The Customer Gap

5-2

The Customer Gap

What a customer What a customer believes should or believes should or

will happenwill happen

Subjective assessments of Subjective assessments of actual service experiencesactual service experiences

(reality for the individual)(reality for the individual)

5-3

Perceptions or reality?

In a perfect world, customer expectations and perceptions would be identical (E=P). Customers would perceive that they had

received what they thought they would and should.

Failure to meet expectations (E>P)Exceed expectations (E<P)

5-4

What is Customer Satisfaction?

The level that products/services meet customer expectations. (P =,> E)

Is the customer’s evaluation of a product/service in terms of whether product/service has met the needs and expectations (P =,> E).

5-5

Has the service met customer expectations?

5-6

Why Customer Satisfaction is Important?

Increased customer retentionPositive word-of-mouth communications Increased revenues

5-7

Relationship between Customer Satisfaction and Loyalty in Competitive Industries

5-8

Factors Influencing Customer Satisfaction Product quality Service quality Price Specific product or service features Consumer emotions Attributions for service success or failure Perceptions of equity or fairness Other consumers, family members, and coworkers Personal factors Situational factors

5-9

Customer Perceptions of Quality and Customer Satisfaction

5-10

Service Quality

The customer’s judgment of overall excellence of the service provided in relation to the quality that was expected.

Service quality assessments are formed on judgments of: outcome quality interaction quality physical environment quality

5-11

The Five Dimensions of Service Quality

Ability to perform the promised service dependably and accurately.

Willingness to help customers and provide prompt service.

Knowledge and courtesy of employees and their ability to inspire trust and confidence.

Caring, individualized attention the firm provides its customers.

Physical facilities, equipment, and appearance of personnel.Tangibles

Reliability

Responsiveness

Assurance

Empathy

5-12

Providing service as promised Dependability in handling customers’ service

problems Performing services right the first time Providing services at the promised time Maintaining error-free records

RELIABILITY

SERVINE QUALITY Attributes

5-13

Keeping customers informed as to when services will be performed

Prompt service to customers Willingness to help customers Readiness to respond to customers’

requests

RESPONSIVENESS

SERVINE QUALITY Attributes

5-14

Employees who instill confidence in customers

Making customers feel safe in their transactions

Employees who are consistently courteous Employees who have the knowledge to

answer customer questions

ASSURANCE

SERVINE QUALITY Attributes

5-15

Giving customers individual attention Employees who deal with customers

in a caring fashion Having the customer’s best interest at

heart Employees who understand the

needs of their customers Convenient business hours

EMPATHY

SERVINE QUALITY Attributes

5-16

Modern equipment Visually appealing facilities Employees who have a neat,

professional appearance Visually appealing materials

associated with the service

TANGIBLES

SERVINE QUALITY Attributes

5-17

How Customers Judge the Five Dimensions of Service Quality

5-18

Geek Squad’s Focus on Responsiveness

Relax, it’s FedEx Relax, it’s FedEx (Assurance)(Assurance)

5-19

The Service EncounterThe building blocks of customer perception

is the “moment of truth” occurs any time the customer interacts with the firm can potentially be critical in determining customer

satisfaction and loyalty types of encounters:

remote encounters, phone encounters, face-to-face encounters is an opportunity to:

build trust reinforce quality build brand identity increase loyalty

5-20

A Service Encounter Cascade for a Hotel Visit

5-21

Sales CallSales Call

Ordering SuppliesOrdering Supplies

BillingBilling

Delivery and Installation Delivery and Installation

ServicingServicing

A Service Encounter Cascade for an Industrial Purchase

5-22

Common Themes in CriticalService Encounters Research

Recovery: Adaptability:

Spontaneity:Coping:

employee responseto service delivery

system failure

employee responseto customer needs

and requests

employee responseto problem customers

unprompted andunsolicited employeeactions and attitudes

5-23

Recovery

4-23

5-24

Adaptability

4-24

5-25

Spontaneity

4-25

5-26

Coping

4-26