Chap005(2)_CustomerPerception of Service

7/28/2019 Chap005(2)_CustomerPerception of 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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2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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


5/21 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Outcomes of

Customer Satisfaction

Increased customer retention

Positive word-of-mouth communications

Increased revenues



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.



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.



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



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



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:



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



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

Fi 5 5



Check-In

Request Wake-Up Call

Checkout

Bellboy Takes to Room

Restaurant Meal

Figure 5.5

A Service Encounter Cascade

for a Hotel Visit



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.

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