Chapter 4 09/07/2012. Customer Perceptions of Service Customer Perceptions Customer Satisfaction...
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Customer Perceptions of Service Chapter 4 09/07/2012
Chapter 4 09/07/2012. Customer Perceptions of Service Customer Perceptions Customer Satisfaction Service Quality Service Encounters: The Building Blocks
Customer Perceptions of Service Customer Perceptions Customer
Satisfaction Service Quality Service Encounters: The Building
Blocks for Customer Perceptions Chapter4 4-2
Slide 3
Objectives for Chapter 4: Consumer Perceptions of Service
Provide a solid basis for understanding what influences customer
perceptions of service and the relationships among customer
satisfaction, service quality, and individual service encounters.
Demonstrate the importance of customer satisfactionwhat it is, the
factors that influence it, and the significant outcomes resulting
from it. 4-3
Slide 4
Objectives for Chapter 4: Consumer Perceptions of Service
Develop critical knowledge of service quality and its five key
dimensions: reliability, responsiveness, empathy, assurance, and
tangibles. Show that service encounters, or the moments of truth
are the essential building blocks from which customers form their
perceptions.
Slide 5
The customer is... Anyone who receives the companys services,
including: external customers (outside the organization, business
customers, suppliers, partners, end consumers) internal customers
(inside the organization, e.g., other departments, fellow
employees) 4-5
Slide 6
Customer perceptions How customer assess whether they have
experienced quality service and whether they are satisfied
Perceptions are always considered relative to expectations. A
discussion of quality and satisfaction is based on customers
perceptions of the service- not some predetermined objective
criteria of what service is or should be.
Slide 7
Transaction versus Cumulative Perceptions The customers will
have perception on single, transaction-specific encounters as well
as overall perceptions of a company based on all their experiences.
Isolated encounters are the building blocks for overall, cumulative
experience evaluations. Understanding perceptions at the
transaction-specific level is critical for diagnosing service
issues and making immediate changes.
Slide 8
Customer Satisfaction is the customers evaluation of a product
or service in terms of whether that product or service has met the
customers needs and expectations. Satisfaction and quality are
different. Satisfaction is viewed as a broader concept, while
service quality is a component of customer satisfaction. Customer
Satisfaction can mean Contentment, pleasure, delight,
ambivalence
Slide 9
Customer Perceptions of Quality and Customer Satisfaction
4-9
Slide 10
Factors Influencing Customer Satisfaction Product quality
Service quality Personal factors Situational factors Price
4-10
Slide 11
Factors Influencing Customer Satisfaction (continued) Specific
product or service features eg. Resort hotel-pool, restaurants,
room comfort Consumer emotions If you are happy, your mood will
influence how you feel about the services you experience.
Slide 12
Attributions for service success or failure e.g. A customer of
a weight-loss organization will search for the causes of the
success/ failure before determining her satisfaction with the
service. Perceptions of equity or fairness Am I treated fairly
compared with other customers? Other consumers, family members, and
coworkers
Slide 13
Outcomes of Customer Satisfaction Increased customer loyalty
Positive word-of-mouth communications Increased revenues Increased
return to shareholders 4-13
Slide 14
ASQI and Market Value Added 4-14 A relationship between market
value added and satisfaction.
Slide 15
Relationship between Customer Satisfaction and Loyalty in
Competitive Industries 4-15
Slide 16
BOTTOM 3 BOXES Neutral to Very Dissatisfied (7%) Overall
Satisfaction with XYZ (% of customers) = = = TOP BOX Very Satisfied
(64%) SECOND BOX Somewhat Satisfied (29%) Definitely Will
Repurchase from XYZ 96% 52% 7% All Customers Top Box Scores A
Higher Standard 44-point drop = = = Definitely Would Recommend XYZ
91% 36% 4% 55-point drop Source: Technical Assistance Research
Bureau (TARP), 2007. 4-16
Slide 17
What is Service Quality? The Customer Gap Service quality is
the customers judgment of overall excellence of the service
provided in relation to the quality that was expected. Expected
Service Perceived Service Customer gap 4-17
Slide 18
Service Quality Service quality assessments are formed on
judgments of: outcome quality interaction quality physical
environment quality 4-18
Slide 19
E.g. a legal service Outcome quality- how the court case was
resolved Interaction quality- the lawyer's timeliness in returning
phone calls, his empathy for the client Physical environment
quality- the dcor and surroundings E.g. restaurant Outcome quality
- food Interaction quality - how the food is served Physical
environment quality - the dcor and surroundings
Slide 20
The Five Dimensions of Service Quality Ability to perform the
promised service dependably and accurately. Knowledge and courtesy
of employees and their ability to inspire trust and confidence.
Physical facilities, equipment, and appearance of personnel.
Caring, individualized attention the firm provides its customers.
Willingness to help customers and provide prompt service. Tangibles
Reliability Responsiveness Assurance Empathy 4-20
Slide 21
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 Keeping customers informed as to when services will be
performed Prompt service to customers Willingness to help customers
Readiness to respond to customers requests RELIABILITY
RESPONSIVENESS 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 Giving customers individual attention
Employees who deal with customers in a caring fashion Having the
customers best interest at heart Employees who understand the needs
of their customers Convenient business hours EMPATHY Modern
equipment Visually appealing facilities Employees who have a neat,
professional appearance Visually appealing materials associated
with the service TANGIBLES SERVQUAL Attributes 4-21
Slide 22
Reliability Absolutely, positively has to get there.
Slide 23
Geek Squads Focus on Responsiveness 4-23
http://www.youtube.com/watch?feature=endscreen&NR=1&v=WAqnrluv3j
w
http://www.youtube.com/watch?v=oCRPI-1dHQw&feature=related
Slide 24
How Customers Judge the Five Dimensions of Service Quality
4-24
Exercise to Identify Service Attributes In groups of two,
choose a services industry and spend 10 minutes brainstorming
specific requirements of customers in each of the five service
quality dimensions. Be certain the requirements reflect the
customers point of view. Reliability: Assurance: Tangibles:
Empathy: Responsiveness: 4-26
Slide 27
Service Encounter: The building blocks for customer perceptions
is the moment of truth occurs any time the customer interacts with
the firm can potentially be critical in determining customer
satisfaction and loyalty 4-27
Slide 28
The Service Encounter types of encounters: remote encounters,
phone encounters, face-to-face encounters is an opportunity to:
build trust reinforce quality build brand identity increase
loyalty
Slide 29
A Service Encounter Cascade for a Hotel Visit 4-29
Slide 30
Sales Call Ordering Supplies Billing Delivery and Installation
Servicing A Service Encounter Cascade for an Industrial Purchase
4-30
Slide 31
Service Encounters: An Opportunity to Build Satisfaction and
Quality 4-31 http://www.youtube.com/watch?v=UG 39pqO6giI
Slide 32
Common Themes in Critical Service Encounters Research Recovery:
Adaptability: Spontaneity:Coping: employee response to service
delivery system failure employee response to customer needs and
requests employee response to problem customers unprompted and
unsolicited employee actions and attitudes 4-32
Slide 33
Recovery 4-33 Employee is required to respond in some way to
consumer complaints and disappointments.
Slide 34
Adaptability 4-34 Customers judge service encounters quality in
terms of the flexibility of the employees and the system. Customer
perceives that something special is being done for her individual
needs.
Slide 35
Spontaneity 4-35
Slide 36
Coping 4-36 The behavior required of employee to handles
problem customers encounters.
Slide 37
Technology-Based Service Encounters Themes for satisfying
self-service technologies (SSTs) The technology solved an
intensified need The technology was better than the alternative The
technology did its job Themes for dissatisfying SSTs The technology
itself failed The process failed The technology was poorly designed
The customer did not use the technology properly 4-37
Slide 38
Homework: due next week Read Technology Spotlight on page 100.
Visit Amazon.coms website. Visit a traditional bookstore. How would
you compare the two experience? Compare and contrast the factors
that most influenced you satisfaction and perceptions of service
quality in the two different situations. When would you choose to
use one versus another?