The Power of Perceptions in Shaping Customer

SatisfactionMegan McCullough

Harsha Khemlani

Definitions:Definitions: From our class slides:

Perception: A process that involves sensing various

aspects of a person, task or event and forming impressions based on selected inputs.

Learning: A process through which individuals

change their behavior based on positive or negative experiences in a situation.

http://www.youtube.com/watch?v=hibyAJOSW8U&NR=1

http://www.youtube.com/watch?v=7-kSZsvBY-A&feature=related

Is the glass half empty Is the glass half empty or half full?or half full?

People perceive quality in many ways… People respond to “quality in perception” more

than “quality in fact.” Quality in fact refers to the features we

believe we are paying for (weight, speed, etc.)

Quality in perception pertains to special considerations, courtesies, a caring and personalized attitude or other subtleties that lead us to believe we are receiving more than we are paying for.

Example:Example: Ritz-Carlton hotel vs. Hilton Hotels

Customers perceive the Ritz-Carlton to be of Customers perceive the Ritz-Carlton to be of

higher quality due to the “quality in perception’ higher quality due to the “quality in perception’

factor. factor.

The Ritz prides itself on going the extra mile, in both exemplary service and training, as well as meeting the WOW factor among clientele.

Food/beverages Entertainment/Sporting events “lead us to believe we are receiving more

than we are paying for, and thus higher quality”

Perceived value is not Perceived value is not about cost……about cost……

Authors tale:

Some years ago, I was a volunteer mediator in the Small Claims Court system. During my involvement in the court system, I became fascinated with the number of cases involving alleged wrongdoing or incompetence. People were suing businesses such as termite services and auto body painters, and even former best friends and health care providers over a variety of grievances! The suits often sought fairly small amounts of compensation, which meant that the financial aspects were not the primary concern. What repeatedly emerged in the mediation sessions was that each plaintiff felt that the vendor, service provider, health care provider, or ex-friend had not listened to his or her concerns. Many of the plaintiffs believed that their concerns about shortcomings in services, products, or communications had simply been ignored. However, if the defendants in these cases had earlier offered a simple, sincere apology -- and had they made a concerted effort to communicate while also taking timely remedial action -- I believe the resulting quality in perception could have prevented many of these lawsuits, even if the quality in fact still left something to be desired.

The power of The power of apologies…apologies…

New York Times reports: the University of Illinois Medical Center implemented a program of openly acknowledging and apologizing for its medical mistakes. (as few as 30% of medical errors are disclosed to patients.)Thefrequency of malpractice cases filed against the center has cut in half. In 37 where the hospital acknowledged a preventable error, only one patient filed a suit.

A perception of A perception of seamlessness….seamlessness….

To ensure the continuity of our customers perceptions, we need to create consistently pleasant experiences in every interaction each person has.

Service Quality Service Quality PerceptionPerception

Whenever customers call technical support representatives, for example, they expect them to know all about the features advertised on the Web site that are supposed to be in the product.

How to boost How to boost perceived quality in perceived quality in your business..your business..

1) Special courtesies that can set your offerings apart from your competitors

2) Your ability to listen to and handle complaints quickly and diplomatically

3) Your willingness to be honest with clients about problems and shortcomings

4) Clear, prompt, and courteous communications that convey consistent details

Conclusion:Conclusion:Remember that quality in

perception is not a substitute for quality in fact. But it can go a long way toward minimizing customer and client dissatisfaction, as well as powerfully reinforcing stellar quality when you ultimately deliver it.

Citations:Citations: http://

www.returnonbehaviormagazine.com/main-articles/the-power-of-perceptions-in-shaping-customer-satisfaction-2.html

www.youtube.com

Psychological ReviewVolume 84, Issue 5, September 1977, Pages 413-451