5 Chapter Customer Perceptions of Service Customer Perceptions Customer Satisfaction Service...
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5 Chapter Customer Perceptions of Service Customer Perceptions Customer Satisfaction Service Quality Service Encounters: The Building Blocks for Customer Perceptions
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Transcript of 5 Chapter Customer Perceptions of Service Customer Perceptions Customer Satisfaction Service...
5ChapterChapter
Customer Perceptions of ServiceCustomer Perceptions of Service
Customer Perceptions Customer Satisfaction Service Quality Service Encounters: The Building Blocks
for Customer Perceptions
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Figure 5.1
Customer Perceptions of Quality and Customer Satisfaction
Figure 5.1
Customer Perceptions of Quality and Customer Satisfaction
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Factors Influencing Customer SatisfactionFactors Influencing
Customer Satisfaction Personal Factors & Situational Factors
Product/service quality Specific product or service features The customer’s mood or emotional state Consumer emotions Attributions for service success or failure Perceptions of equity or fairness Other consumers, family members, and coworkers
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Figure 5.3
ASCI and Annual Percentage Growthin S&P 500 Earnings
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.
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Figure 5.4
Relationship between Customer Satisfaction and Loyalty in Competitive Industries
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.
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Service QualityService 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
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
The Five Dimensions of Service Quality
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
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
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 AttributesSERVQUAL Attributes
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
The Service EncounterThe 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
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Check-InCheck-In
Request Wake-Up CallRequest Wake-Up Call
CheckoutCheckout
Bellboy Takes to Room Bellboy Takes to Room
Restaurant MealRestaurant Meal
Figure 5.5
A Service Encounter Cascadefor a Hotel Visit
Figure 5.5
A Service Encounter Cascadefor a Hotel Visit
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Sales CallSales Call
Ordering SuppliesOrdering Supplies
BillingBilling
Delivery and Installation Delivery and Installation
ServicingServicing
A Service Encounter Cascade for an Industrial Purchase
A Service Encounter Cascade for an Industrial Purchase
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Critical Service Encounters ResearchCritical 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
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Common Themes in CriticalService Encounters ResearchCommon Themes in Critical
Service 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
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
RecoveryRecovery
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
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
AdaptabilityAdaptability
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
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
SpontaneitySpontaneity
Take time Be attentive Anticipate needs Listen Provide information Show empathy
Exhibit impatience Ignore Yell/laugh/swear Steal from customers Discriminate
DO DON’T
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
CopingCoping
Listen Try to accommodate Explain Let go of the customer
Take customer’s dissatisfaction personally
Let customer’s dissatisfaction affect others
DO DON’T
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Figure 5.7
Evidence of Service from theCustomer’s Point of View
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.
