5Chapter
Customer Perceptions of Service
Customer Perceptions Customer Satisfaction Service Quality Service Encounters: The Building Blocks
for Customer Perceptions
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Expectedservice
Perceivedservice
Customer Gap
Figure 2.1
The Customer Gap
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Figure 5.1
Customer Perceptions of Quality and Customer Satisfaction
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Satisfaction Defined
Global Value Assessment- All benefits versus the Costs
Derived from Expectations/ Perceptions
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Outcomes of Customer Satisfaction
Increased customer retention Positive word-of-mouth communications Increased revenues
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Figure 5.3
ASCI and Annual Percentage Growthin S&P 500 Earnings
Source: C. Fornell “Customer Satisfaction and Corporate Earnings,“ commentary appearing on ACSI website, May 1, 2001,http://www.bus.umich.edu/research/nqre/Q1-01c.html.
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Figure 5.4
Relationship between Customer Satisfaction and Loyalty in Competitive Industries
Source: James L. Heskett, W. Earl Sasser, Jr., and Leonard A. Schlesinger, The Service Profit Chain, (New York, NY: The Free Press, 1997), p. 83.
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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
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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
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Exercise to Identify Service Attributes
In groups, 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 customer’s point of view.
Reliability:
Assurance:
Tangibles:
Empathy:
Responsiveness:
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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 customer’s 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
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The Service Encounter
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
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Check-In
Request Wake-Up Call
Checkout
Bellboy Takes to Room
Restaurant Meal
Figure 5.5
A Service Encounter Cascadefor a Hotel Visit
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Critical Service Encounters Research
GOAL: understanding actual events and behaviors that cause
customer dis/satisfaction in service encounters METHOD:
Critical Incident Technique DATA:
stories from customers and employees OUTPUT:
identification of themes underlying satisfaction and dissatisfaction with service encounters
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Sample Questions for Critical Incidents Technique Study
Think of a time when, as a customer, you had a particularly satisfying (dissatisfying) interaction with an employee of ______________.
When did the incident happen?
What specific circumstances led up to this situation?
Exactly what was said and done?
What resulted that made you feel the interaction was satisfying (dissatisfying)?
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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
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Recovery
Acknowledge problem Explain causes Apologize Compensate/upgrade Lay out options Take responsibility
Ignore customer Blame customer Leave customer to fend for
him/herself Downgrade Act as if nothing is wrong “Pass the buck”
DO DON’T
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Adaptability
Recognize the seriousness of the need
Acknowledge Anticipate Attempt to accommodate Adjust the system Explain rules/policies Take responsibility
Ignore Promise, but fail to follow
through Show unwillingness to try Embarrass the customer Laugh at the customer Avoid responsibility “Pass the buck”
DO DON’T
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Spontaneity
Take time Be attentive Anticipate needs Listen Provide information Show empathy
Exhibit impatience Ignore Yell/laugh/swear Steal from customers Discriminate
DO DON’T
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Coping
Listen Try to accommodate Explain Let go of the customer
Take customer’s dissatisfaction personally
Let customer’s dissatisfaction affect others
DO DON’T
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Figure 5.7
Evidence of Service from theCustomer’s Point of View
People
Process PhysicalEvidence
Contact employees Customer him/herself Other customers Operational flow of
activities Steps in process Flexibility vs. standard Technology vs. human
Tangible communication Servicescape Guarantees Technology WebsiteSource: From “Managing the Evidence of Service” by M. J. Bitner from The Service Quality Handbook,
eds. E. E. Scheuing and W. F. Christopher (1993), pp. 358-70.