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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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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 Growth
in 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 customers 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 servicedependably and accurately.
Knowledge and courtesy of employees and
their ability to inspire trust and confidence.
Physical facilities, equipment, andappearance of personnel.
Caring, individualized attention the firmprovides its customers.
Willingness to help customers and provideprompt 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 brainstormingspecific 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:
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Providing service as promised
Dependability in handling customersservice problems
Performing services right the first time
Providing services at the promised time
Maintaining error-free records
Keeping customers informed as to whenservices 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 answercustomer questions
ASSURANCE
Giving customers individual attention
Employees who deal with customers in acaring fashion
Having the customers best interest at heart
Employees who understand the needs of theircustomers
Convenient business hours
EMPATHY
Modern equipment
Visually appealing facilities
Employees who have a neat, professionalappearance
Visually appealing materials associatedwith 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 customersatisfaction 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 Cascade
for 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 aparticularly satisfying (dissatisfying) interaction with anemployee 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 wassatisfying (dissatisfying)?
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Common 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
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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 DONT
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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 DONT
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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 DONT
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Coping
Listen
Try to accommodate
Explain
Let go of the customer
Take customers dissatisfaction
personally
Let customers dissatisfaction
affect others
DO DONT
Figure 5.7
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Figure 5.7
Evidence of Service from the
Customers Point of View
People
ProcessPhysical
Evidence
Contact employees
Customer him/herself
Other customersOperational 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.