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Consumer Perceptionof Services
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Customer Perception
The process by which an individual selects,
organizes and interprets stimuli into a
meaningful and coherent picture of theworld
Depends upon
Expectations
Motive
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Consumer Expectations
Pre-trial beliefs about a service that function
as standards against which performance is
judged.
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Types of Expectations
Desired service -- the level of service the
customer hopes to receive
Adequate service -- the level of service the
customer will accept
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Figure 3-1
Dual Customer
Expectation Levels
Adequate Service
Desired Service
Zone ofTolerance
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The Zone of Tolerance---The extent to which customers
recognize and are willing to acceptvariation in service performance
Adequate Service
Desired Service
Zone ofTolerance
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Zone of Tolerance andImportance of Service
Dimensions
as a service dimension becomes more
important zone of tolerance will narrow anddesired and adequate levels will increase
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Factors That Influence Adequate
Service Expectations Perceived Service
Alternatives----
As the number ofalternatives increases,
the level of adequate
service increases and
the zone of tolerancenarrows
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Factors That Influence Adequate
Service Expectations Situational
Factors Temporary changes in
the normal state of
things ---- tends to
lower the level of
adequate serviceexpected and widen the
zone of tolerance
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Situational Factors
Reason for purchase
Consumer mood
Weather
Time constraints
Emergency
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Factors That Influence Adequate
Service Expectations Self Perceived Service
Role --- how well the
customer perceivesthey are performing
their own role in
service delivery
Fi
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Figure 3-7
Factors that InfluenceDesired and Predicted Service
DesiredService
AdequateService
Zoneof
Tolerance
Predicted
Service
Explicit ServicePromises
Implicit ServicePromises
Word-of-Mouth
Past Experience
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Satisfaction Vs Service
Quality
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Service Quality
The customers judgment of overall
excellence of the service provided inrelation to the quality that was expected.
Process and outcome quality are both
important.
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Perceived service Quality
Experienced Service Quality
Outcome Dimension
Process related dimension Expected Service Quality
Marketing communication
Image of Organization
Word of mouth
Customer needs
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Dimensions of Service
Quality
ServiceQuality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
S i Q lit
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Service Quality(SERVQUAL) Attributes
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 towhen services will be performed
Prompt service to customers
Willingness to help customers
Readiness to respond to customers
requests
RELIABILITY
RESPONSIVENESS
Employees who instill confidence incustomers
Making customers feel safe in theirtransactions
Employees who are consistently courteous
Employees who have the knowledge toanswer customer 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 oftheir 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
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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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Causes of Service Quality
Gaps (CustomerDissatisfaction)
19
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The Gaps Model of Service Quality
The Customer Gap
The Provider Gaps: Gap 1not knowing what customers expect
Gap 2not having the right service designs and
standards
Gap 3not delivering to service standards
Gap 4not matching performance to promises
Putting It All Together: Closing the Gaps
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Perceived
Service
Expected Service
CUSTOMER
COMPANY
Customer
Gap
Gap 1
Gap 2
Gap 3
ExternalCommunications to
CustomersGap 4Service
Delivery
Customer-DrivenService Designs and
Standards
Company Perceptions ofConsumer Expectations
Gaps Model of ServiceQuality
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Gap 1
22
Customer Expectations(Expected Service)
Managements Perception
of Customer Expectations
1. Lack of Market Research
Orientation;
2. Inadequate upward
communication;
3. Too many levels of
management
G M d l f S i
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Gaps Model of ServiceQuality
Customer Gap:difference between customer expectations and
perceptions
Provider Gap 1 (The Knowledge Gap):
not knowing what customers expect
Provider Gap 2 (The Service Design & Standards Gap):
not having the right service designs and standards
Provider Gap 3 (The Service Performance Gap):not delivering to service standards
Provider Gap 4 (The Communication Gap):
not matching performance to promises
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Provider Gap 1: Not knowing what customers expect
Provider Gap 2: Not selecting the right service designs and standards
Provider Gap 3: Not delivering to service standards
Provider Gap 4: Not matching performance to promises
Customer
Expectations
CustomerPerceptions
Key Factors Leadingto the Customer Gap
Customer
Gap
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Customer Expectations
Company Perceptions ofCustomer Expectations
Inadequate marketing research orientationInsufficient marketing researchResearch not focused on service qualityInadequate use of market research
Lack of upward communicationLack of interaction between management and customersInsufficient communication between contact employees and managersToo many layers between contact personnel and top management
Insufficient relationship focusLack of market segmentationFocus on transactions rather than relationships
Focus on new customers rather than relationship customers Inadequate service recovery
Lack of encouragement to listen to customer complaintsFailure to make amends when things go wrongNo appropriate recovery mechanisms in place for service failures
Key Factors Leading toProvider Gap 1
Gap
1
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Gap 2
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Service Quality Specifications
Management Perceptions of
Customer Expectations
1. Inadequate management
commitment to Service
Quality
2. Perception of infeasibility
3. Absence of goal setting
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Customer-Driven ServiceDesigns and Standards
Management Perceptions ofCustomer Expectations
Poor service designUnsystematic new service development processVague, undefined service designs
Failure to connect service design to service positioning Absence of customer-driven standards
Lack of customer-driven service standardsAbsence of process management to focus on customer
requirementsAbsence of formal process for setting service quality goals
Inappropriate physical evidence and servicescape
Failure to develop tangibles in line with customer expectationsServicescape design that does not meet customer and
employee needsInadequate maintenance and updating of the servicescape
Key Factors Leading toProvider Gap 2
Gap
2
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Gap 3
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Service Delivery
Service Quality Specifications
1. Role ambiguity
2. Role conflict
3. Poor technology
4. Lack of team work
5. Poor employee job fit
K F L di
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Service Delivery
Customer-Driven ServiceDesigns and Standards
Deficiencies in human resource policiesIneffective recruitmentRole ambiguity and role conflictPoor employee-technology job fit
Inappropriate evaluation and compensation systemsLack of empowerment, perceived control, and teamwork
Customers who do not fulfill rolesCustomers who lack knowledge of their roles and responsibilitiesCustomers who negatively impact each other
Problems with service intermediariesChannel conflict over objectives and performance
Difficulty controlling quality and consistencyTension between empowerment and control
Failure to match supply and demandFailure to smooth peaks and valleys of demandInappropriate customer mixOverreliance on price to smooth demand
Key Factors Leading toProvider Gap 3
Gap
3
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Gap 4
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Service Delivery
External
Communications
to Customers
1. Propensity to over-
promise
2. Inadequate horizontal
communication
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Service Delivery
Lack of integrated services marketing communicationsTendency to view each external communication as independentNot including interactive marketing in communications planAbsence of strong internal marketing program
Ineffective management of customer expectationsAbsence of customer expectation management through all forms of
communicationLack of adequate education for customers
OverpromisingOverpromising in advertisingOverpromising in personal sellingOverpromising through physical evidence cues
Inadequate horizontal communicationsInsufficient communication between sales and operationsInsufficient communication between advertising and operationsDifferences in policies and procedures across branches or units
External Communications to
Customers
Key Factors Leading toProvider Gap 4
Gap
4
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Past ExperiencePersonal Needs
Expected Service
Perceived Service
Service Delivery Externalcommunication
to consumers
Word-of-mouth
Communication
Converting perceptions into
service quality specifications
Management perceptions of
consumer expectations
GAP 5
GAP
2
GAP
3
GAP
4
GAP 1
Marketer
Service Provider
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Perceived
Service
Expected Service
CUSTOMER
COMPANY
Customer
Gap
Gap 1
Gap 2
Gap 3
ExternalCommunications to
CustomersGap 4Service
Delivery
Customer-DrivenService Designs and
Standards
Company Perceptions ofConsumer Expectations
Gaps Model of ServiceQuality