CUSTOMER SATISFACTION Service Failure, Service Recovery, Service Guarantee. Customer Satisfaction (CS). All customers want to be satisfied .
Service Failure, Service Recovery, Service Guarantee
“a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.”
Satisfaction results when expectations are equaled or surpassed.
is considered a prerequisite for customer retention and loyalty, and obviously helps in realizing economic goals like profitability,market share, return on investment, etc.(Scheuing, 1995; Reichheld, 1996; Hackl and Westlund, 2000).
In today’s world of intense competition, the key to sustainable competitive advantage lies in delivering high quality service that will in turn result in satisfied customers (Shemwell et al., 1998)
SERVICE QUALITY → SATISFACTION
Satisfaction is psychological outcome emerging from an experience,
Service Qualityis concerned with the attributes of the service itself.
* Customer use the same criteria to judge both(Parasuraman et al, 1988)
Oliver (1997)SQ and CS RELATIONSHIP - CONT
The expectancy/disconfirmation paradigm in process theory (Mohr, 1982) provides the grounding for the vast majority of satisfaction studies and encompasses four constructs:
The consumer’s response to the evaluation of the perceived discrepancy between prior expectations (or some norm of performance) and the actual performance of the product as perceived after its consumption.
ADEQUATE → DESIRED → DELIGHT.
PRE-PURCHASED DURING POST-
↓ ↓ ↓
CUSTOMER CUSTOMER CUSTOMER
EXPECTATION PERCEPTIONS SATISFACTION
ZONE OF TOLERANCE
their ZTT will be very narrow.
≈ giving information/assurance
≈ delighting rather than satisfying
>reduce levels of service
>but still satisfy them
Factors that influence customers’ formulation of expectations:
(Ziethaml et al, 1990)
*Image of Organisation(Gummesson and Grönroos, 1987)
A comparison to excellence in service by the customer
Normally, customer perceptions of service are made at the end of a service encounter.
BUT ZIETHAML et al (1990) disagreed.
→ They believed that there is an endless potential for judgements to be made during the service delivery process.
► the purpose of encounter
► the importance the customer places on the encounter
► cost involved
Other factors that may have some influence:
→ MOOD of customer could affect their perceptions of service.
→ EMPLOYEES’ PERCEPTION are directly related to customer’s perceptions of service and vice versa.
SPC or internal customer vs external customer
DISSATISFACTION occur when :
Customer perceptions of a service do not meet their expectations.
Causes of Dissatisfaction:
1. Research – lack, inappropriate, etc
2. External Information – false expectation
3. Inadequate training –staff
4. Financial objectives taking priority –lead to unsafe custom and practices
Research indicate that many cases of customer dissatisfaction came about as a result of organisation’s failure to address a complaint, rather than the original service problem.
→ design and instigate service recovery techniques to safe guard customer satisfaction.
What is called “service failure” means
the service or product couldn’t reach the expected level because some fault happened in one link of service delivery (Mueller et al., 2003).
Primary Failure Type
Unreasonably Slow ServiceOther Core Service Failure
“Special Needs” Customers
Admitted Customer Error
Level of Attention
Verbal and Physical Abuse
Breaking Company Policies
Service Delivery System Failures
Customer Needs and Requests
Unprompted/Unsolicited Employee ActionsProblematic Customers
Pre-recovery Phase Immediate Recovery Phase Follow-up Phase
Top Ten Guidelines for Effective Service Recovery
1. Act quickly
2. Admit mistakes but don’t be defensive
3. Show that you understand the problem from each
customer’s point of view
4. Don’t argue with customers
5. Acknowledge the customer’s feelings
6. Give customers the benefit of the doubt
7. Clarify the steps needed to solve the problem
8. Keep customers informed of progress
9. Consider compensation
10. Persevere to regain customer goodwill
Source: Adapted from Lovelock (1996), pg. 477
Bell and Zemke (1987) suggested five ingredients were important to successful service recovery :