Customer perceptions of service
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Chapter 5. Customer Perceptions of Service. Customer Perceptions Customer Satisfaction Service Quality Service Encounters: The Building Blocks for Customer Perceptions. The customer is. Anyone who receives the company’s services, including:

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Customer perceptions of service

Chapter

5

Customer Perceptions of Service

  • Customer Perceptions

  • Customer Satisfaction

  • Service Quality

  • Service Encounters: The Building Blocks for Customer Perceptions


The customer is

The customer is . . .

Anyone who receives the company’s services, including:

  • ________________(outside the organization, business customers, suppliers, partners, end consumers)

  • ________________(inside the organization, e.g., other departments, fellow employees)


Customer satisfaction

Customer Satisfaction

  • What is customer satisfaction?

    • Customer’s evaluation of a product or service in terms of whether that product or service has met the customer’s ________________

    • ________________ = an outcome of a failure to meet needs and expectations

    • A dynamic, moving target that may evolve over time


Factors influencing customer satisfaction

Factors Influencing Customer Satisfaction

  • Product quality

  • Service quality

  • ________________

  • Specific product or service features

  • Consumer emotions

  • Attributions for service success or failure

  • ________________

  • Other consumers, family members, and coworkers

  • Personal factors

  • ________________


Customer satisfaction asci

Customer Satisfaction: ASCI

  • National Customer satisfaction Indexes

    • Measure and track customer satisfaction at a macro level

    • Get at the quality of economic output

  • American Customer satisfaction Index (ACSI)

    • Measure of quality of goods and services as experienced by consumers

    • U.S. consumers are least satisfied with services


Outcomes of customer satisfaction

Increased customer retention

Positive word-of-mouth communications

________________

Outcomes of Customer Satisfaction


What is service quality the customer gap

What is Service Quality? The Customer Gap

  • Service quality is the customer’s judgment of ______________________ provided in relation to the quality that was expected.

Customer Gap


Service quality

Service Quality

  • The customer’s judgment of overall excellence of the service provided in relation to the quality that was expected.

  • Service quality assessments are formed on judgments of:

    • ________________ quality

    • ________________ quality

    • ________________quality


The five dimensions of service quality

The Five Dimensions of Service Quality

Reliability

  • Five dimensions which act as drivers of service quality.

  • Represent how consumers organize information about service quality in their minds.

  • Sometimes customers will use all of the dimensions to determine service quality…sometimes not.

Assurance

Tangibles

Empathy

Responsiveness


The five dimensions of service quality1

Ability to perform the promised service ________________.

Knowledge and courtesy of employees and their ability to inspire trust and confidence.

Physical facilities, equipment, and appearance of personnel.

________________the firm provides its customers.

Willingness to help customers and provide prompt service.

The Five Dimensions of Service Quality

Reliability

Assurance

Tangibles

Empathy

Responsiveness


Servqual attributes

SERVQUAL Attributes

RELIABILITY

EMPATHY

  • Giving customers individual attention

  • Employees who deal with customers in a caring fashion

  • Having the customer’s best interest at heart

  • Employees who understand the needs of their customers

  • Convenient business hours

  • Providing service as promised

  • Dependability in handling customers’ service problems

  • Performing services right the first time

  • Providing services at the promised time

  • Maintaining error-free records

RESPONSIVENESS

TANGIBLES

  • Keeping customers informed as to when services will be performed

  • Prompt service to customers

  • Willingness to help customers

  • Readiness to respond to customers’ requests

  • Modern equipment

  • Visually appealing facilities

  • Employees who have a neat, professional appearance

  • Visually appealing materials associated with the service

ASSURANCE

  • Employees who instill confidence in customers

  • Making customers feel safe in their transactions

  • Employees who are consistently courteous

  • Employees who have the knowledge to answer customer questions


The service encounter

The Service Encounter

  • is the “moment of truth”

  • occurs any time the customer ________________

  • 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:

    • ________________

    • reinforce quality

    • ________________

    • increase loyalty


Critical service encounters research

CriticalService 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 4 common themes underlying satisfaction and dissatisfaction with service encounters


Common themes in critical service encounters research

Common Themes in CriticalService Encounters Research

_________:

___________:

employee response

to service delivery

system failure

employee response

to customer needs

and requests

___________:

____________:

unprompted and

unsolicited employee

actions and attitudes

employee response

to problem customers


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”

Recovery

DO

DON’T


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”

Adaptability

DO

DON’T


Spontaneity

Take time

Be attentive

Anticipate needs

Listen

Provide information

Show empathy

Exhibit impatience

Ignore

Yell/laugh/swear

Steal from customers

Discriminate

Spontaneity

DO

DON’T


Coping

Listen

Try to accommodate

Explain

Let go of the customer

Take customer’s dissatisfaction personally

Let customer’s dissatisfaction affect others

Coping

DO

DON’T


Evidence of service from the customer s point of view

Evidence of Service from theCustomer’s Point of View

  • Contact employees

  • Customer him/herself

  • Other customers

  • Operational flow of activities

  • Steps in process

  • Flexibility vs. standard

  • Technology vs. human

__________

________

________

  • Tangible communication

  • Servicescape

  • Guarantees

  • Technology

  • Website

_______

Source: 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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