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MANAGING CUSTOMER

PERCEPTIONS OF

SERVICE

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SERVICE QUALITY AND

CUSTOMER

SATISFACTION

Service

Quality

Reliability

Responsiveness

Assurance

Empathy

Tangibles

ProductQuality

PricePersonalFactors

CustomerSatisfaction

SituationalFactors

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FACTORS INFLUENCING

CUSTOMER

SATISFACTION

Product/service quality

Product/service attributes or features

Consumer Emotions

Attributions for product/service success or failure

Equity or fairness evaluations

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OUTCOMES OF

CUSTOMER

SATISFACTION

Increased customer retention

Positive word-of-mouth communications

Increased revenues

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SERVICE QUALITY

The customers judgment of overall excellence of the service

provided in relation to the quality that was expected.

Process and outcome quality are both important.

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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 customersrequests

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 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 materialsassociated with the service

TANGIBLES

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THE SERVICE

ENCOUNTERis the moment of truth

occurs any time the customer interacts with the firm

can potentially be critical in determining customer satisfaction

and loyaltytypes 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 CallCheckout

Bellboy Takes to Room

Restaurant Meal

SERVICE ENCOUNTER

CASCADE FOR A HOTEL VISIT

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EVIDENCE OF SERVICE FROM

THE

CUSTOMERS POINT OF VIEW

People

ProcessPhysical

Evidence

Contact employees

Customer him/herself

Other customersOperational flow ofactivities

Steps in process

Flexibility vs.standard

Technology vs.human

Tangible

communication Servicescape

Guarantees

Technology

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ANALYZING

GAPS

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Perceived

Service

Expected

ServiceCUSTOMER

COMPANY

Customer

Gap

GAP 1

GAP 2

Gaps Model of Service Quality

GAP 3

ExternalCommunications

to Customers

GAP 4

Service Delivery

Customer-Driven ServiceDesigns and Standards

Company Perceptions of

Consumer ExpectationsPart 1 Opener

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GAPS MODEL OF

SERVICE QUALITY

Provider Gap 1: (Listening Gap) not knowing what customers expect

Inadequate market research orientation

Lack of upward communication

Insufficient relationship focus

Inadequate service recoveryProvider Gap 2: (Standards Gap)

not having the right service designs and standards

Poor service design

Absence of customer-driven standards

Inappropriate physical evidence and servicescape

Part 1 Opener

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Provider Gap 3: (Service Performance Gap)

not delivering to service standards

Deficiencies in human resource policies

Failure to match supply and demand

Customer not fulfilling roles

Problems with service intermediaries

Provider Gap 4: (Communication Gap)

not matching performance to promises

Lack of integrated services marketing communications

Ineffective management of customer expectation

Overpromising

Inadequate horizontal communications

Inappropriate Pricing

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The Customer Gap

ExpectedService

PerceivedService

GAP

Part 1 Opener

Customer Gap:difference between expectations andperceptions

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BRIDGING THE GAP

By understanding customer expectation

By meeting customer expectation

By communicating effectively with customers

By managing customer expectations and perception

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Thank you