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Customer Perceptions of Service (Chapter 5)

Customer Perceptions of Service (Chapter 5). Customer Satisfaction influencing factors, outcomes satisfaction and loyalty Service Quality dimensions Service Encounters types of encounters sources of pleasure/displeasure Strategies for Influencing Customer Perceptions.

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Customer Perceptions of Service (Chapter 5)

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  1. Customer Perceptions of Service(Chapter 5) • Customer Satisfaction • influencing factors, outcomes • satisfaction and loyalty • Service Quality • dimensions • Service Encounters • types of encounters • sources of pleasure/displeasure • Strategies for Influencing Customer Perceptions ã 2005 - Dwayne D. Gremler

  2. Two Types of Customers • External Customers • Internal Customers ã 2005 - Dwayne D. Gremler

  3. Customer Satisfaction • What is it? • Failure to meet needs and expectations usually results in dissatisfaction. • Satisfaction is thought to be ã 2005 - Dwayne D. Gremler

  4. Customer Satisfaction • satisfaction is thought to be influenced by: • satisfaction can only be assessed following ã 2005 - Dwayne D. Gremler

  5. Satisfaction and Service Quality Figure 5.1 ã 2005 - Dwayne D. Gremler

  6. Outcomes of Customer Satisfaction ã 2005 - Dwayne D. Gremler

  7. Customer Satisfaction and Loyalty in Competitive Industries Figure 5.4 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. ã 2005 - Dwayne D. Gremler

  8. Service Quality • is “the delivery of • service quality dimensions ã 2005 - Dwayne D. Gremler

  9. Reliability Responsiveness Service Quality Assurance Empathy Tangibles Dimensions of Service Quality ã 2005 - Dwayne D. Gremler

  10. Service Quality Dimensions • reliability ( ) • responsiveness ( ) • assurance ( ) • empathy ( ) • tangibles ( ) ã 2005 - Dwayne D. Gremler

  11. Service Quality (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 ã 2005 - Dwayne D. Gremler

  12. The Service Encounter • is the “moment of truth” • types of encounters: • is an opportunity to: • build trust, reinforce quality, increase loyalty • sequential service encounter examples: ã 2005 - Dwayne D. Gremler

  13. A Service Encounter Cascade for a Hotel Visit Check-In Bellboy Takes to Room Restaurant Meal Request Wake-Up Call Checkout Figure 5.5 ã 2005 - Dwayne D. Gremler

  14. Sources of Pleasure/Displeasure in Service Encounters • Recovery • Adaptability • Spontaneity • Coping ã 2005 - Dwayne D. Gremler

  15. The 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 Figure 5.7 ã 2005 - Dwayne D. Gremler

  16. Strategies for Influencing Customer Perceptions • effective • emphasize • use the • assume ALL ã 2005 - Dwayne D. Gremler

  17. 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 Recovery DO DON’T ã 2005 - Dwayne D. Gremler

  18. Recognize the seriousness of the need Acknowledge Anticipate Attempt to accommodate Explain rules/policies Take responsibility Exert effort to accommodate Promise, then fail to follow through Ignore Show unwillingness to try Embarrass the customer Laugh at the customer Avoid responsibility Adaptability DO DON’T ã 2005 - Dwayne D. Gremler

  19. Take time Be attentive Anticipate needs Listen Provide information (even if not asked) Treat customers fairly Show empathy Acknowledge by name Exhibit impatience Ignore Yell/laugh/swear Steal from or cheat a customer Discriminate Treat impersonally Spontaneity DO DON’T ã 2005 - Dwayne D. Gremler

  20. 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 ã 2005 - Dwayne D. Gremler

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