5-1

Customer Perceptions of Service

Customer Perceptions

Customer Satisfaction

Service Quality

Service Encounters: The Building Blocks for Customer Perceptions

ChapterChapter

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5-2

The customer is . . .

Anyone who receives the company’s services, including: ________________(outside the organization,

business customers, suppliers, partners, end consumers)

________________(inside the organization, e.g., other departments, fellow employees)

5-3

Customer Satisfaction

What is customer satisfaction? Customer’s evaluation of a product or service in

terms of whether that product or service has met the customer’s ________________

________________ = an outcome of a failure to meet needs and expectations

A dynamic, moving target that may evolve over time

5-4

Factors Influencing Customer Satisfaction Product quality Service quality ________________ Specific product or service features Consumer emotions Attributions for service success or failure ________________ Other consumers, family members, and coworkers Personal factors ________________

5-5

Customer Satisfaction: ASCI

National Customer satisfaction IndexesMeasure and track customer satisfaction at a macro levelGet at the quality of economic output

American Customer satisfaction Index (ACSI)Measure of quality of goods and services as experienced by consumersU.S. consumers are least satisfied with services

5-6

Outcomes of Customer Satisfaction

Increased customer retentionPositive word-of-mouth communications________________

5-7

Customer Gap

What is Service Quality? The Customer Gap

Service quality is the customer’s judgment of ______________________ provided in relation to the quality that was expected.

5-8

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: ________________ quality ________________ quality ________________quality

5-9

The Five Dimensions of Service Quality

Five dimensions which act as drivers of service quality.

Represent how consumers organize information about service quality in their minds.

Sometimes customers will use all of the dimensions to determine service quality…sometimes not.

TTangiblesangibles

RReliabilityeliability

RResponsivenessesponsiveness

AAssurancessurance

EEmpathympathy

5-10

The Five Dimensions of Service Quality

Ability to perform the promised service ________________.

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

Physical facilities, equipment, and appearance of personnel.

________________the firm provides its customers.

Willingness to help customers and provide prompt service.

Tangibles

Reliability

Responsiveness

Assurance

Empathy

5-11

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

5-12

The Service Encounter

is the “moment of truth” occurs any time the customer ________________ 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:

________________ reinforce quality ________________ increase loyalty

5-13

CriticalService 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 4 common themes underlying

satisfaction and dissatisfaction with service encounters

5-14

Common Themes in CriticalService Encounters Research

__________________:: ______________________::

________________________::______________________::

employee responseemployee responseto service deliveryto service delivery

system failuresystem failure

employee responseemployee responseto customer needsto customer needs

and requestsand requests

employee responseemployee responseto problem customersto problem customers

unprompted andunprompted andunsolicited employeeunsolicited employeeactions and attitudesactions and attitudes

5-15

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”

DODO DON’TDON’T

5-16

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”

DODO DON’TDON’T

5-17

Spontaneity

Take time Be attentive Anticipate needs Listen Provide information Show empathy

Exhibit impatience Ignore Yell/laugh/swear Steal from customers Discriminate

DODO DON’TDON’T

5-18

Coping

Listen Try to accommodate Explain Let go of the customer

Take customer’s dissatisfaction personally

Let customer’s dissatisfaction affect others

DODO DON’TDON’T

5-19

Evidence of Service from theCustomer’s Point of View

____________________

______________ ________________________________

Contact employeesContact employees Customer Customer

him/herselfhim/herself Other customersOther customers

Operational flow of Operational flow of activitiesactivities

Steps in processSteps in process

Flexibility vs. Flexibility vs. standardstandard

Technology vs. Technology vs. humanhuman

Tangible Tangible communicationcommunication

ServicescapeServicescape

GuaranteesGuarantees

TechnologyTechnology

WebsiteWebsiteSourceSource: From “Managing the Evidence of Service” by M. J. Bitner from : From “Managing the Evidence of Service” by M. J. Bitner from The Service Quality Handbook, The Service Quality Handbook,

eds. E. E. Scheuing and W. F. Christopher (1993), pp. 358-70.eds. E. E. Scheuing and W. F. Christopher (1993), pp. 358-70.