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CUSTOMER PERSEPTIONS OF
SERVICES
BY
Syed Ghous Ali Shah
Email: [email protected]
Session 4
Class BBA 7
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Customer perception
Factors which influence consumers
perceptions
Factors which influence satisfaction
Dimensions of service quality
Service encounters
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Satisfaction and Service Quality
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Factors Influencing
Customer Satisfaction
Product/service quality
Specific product or service features
Consumer emotions Attributions for service success or failure
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Factors Influencing
Customer Satisfaction
Perceptions of equity or fairness
Other consumers, family members, and
coworkers
Price
Personal factors
the customers mood or emotional state situational factors
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Outcomes of
Customer Satisfaction
Increased customer retention
Positive word-of-mouth communications
Increased revenues
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Relationship between Customer Satisfaction and
Loyalty in Competitive Industries
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.
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Service Quality
The customers judgment of overall excellence
of the service provided in relation to the
quality that was expected.
Service quality assessments are formed on
judgments of:
outcome quality
interaction quality
physical environment quality
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The SERVQUAL dimensions
Perceived Service Quality
Reliability (dependability, accurate performance)
Assurance (competence, courtesy, credibility & security)
Tangibles (appearance of physical elements)
Empathy (easy access, good communications & customerunderstanding)
Responsiveness (promptness & helpfulness)
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The Five Dimensions of
Service Quality
Ability to perform the promised servicedependably and accurately.
Knowledge and courtesy of employees andtheir ability to inspire trust andconfidence.
Physical facilities, equipment, andappearance of personnel.
Caring, individualized attention the firmprovides its customers.
Willingness to help customers and provideprompt service.
Tangibles
Reliability
Responsiveness
Assurance
Empathy
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n Providing service as promised
n Dependability in handling customers service
problemsn Performing services right the first time
n Providing services at the promised time
n Maintaining error-free records
n Keeping customers informed as to whenservices will be performed
n Prompt service to customers
n Willingness to help customers
n Readiness to respond to customers
requests
RELIABILITY
RESPONSIVENESS
n Employees who instill confidence in customers
n Making customers feel safe in their transactions
n Employees who are consistently courteous
n Employees who have the knowledge to answercustomer questions
ASSURANCE
n Giving customers individual attention
n Employees who deal with customers in a caringfashion
n Having the customers best interest at heart
n Employees who understand the needs of theircustomers
n Convenient business hours
EMPATHY
n Modern equipment
n Visually appealing facilities
n Employees who have a neat, professionalappearance
n Visually appealing materials associated withthe service
TANGIBLES
SERVQUAL Attributes
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E-Service Quality
Efficiency
Fulfillment
Reliability Privacy
Responsiveness
Compensation Contact
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The Service Encounter is the moment of truth
occurs any time the customer interacts with thefirm
can potentially be critical in determining customersatisfaction 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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Check-In
Request Wake-Up Call
Checkout
Bellboy Takes to Room
Restaurant Meal
A Service Encounter Cascade
for a Hotel Visit
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Sales Call
Ordering Supplies
Billing
Delivery and Installation
Servicing
A Service Encounter
Cascade for an Industrial Purchase
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Critical Service Encounters Research GOAL:
understanding actual events and behaviors that causecustomer dis/satisfaction in service encounters
METHOD:
Critical Incident Technique
DATA:
stories from customers and employees
OUTPUT:
identification of themes underlying satisfaction anddissatisfaction with service encounters
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Sample Questions for Critical Incidents
Technique Study
Think of a time when, as a customer, you had a particularly satisfying(dissatisfying) interaction with an employee of ______________.
When did the incident happen?
What specific circumstances led up to this situation?
Exactly what was said and done?
What resulted that made you feel the interaction was satisfying(dissatisfying)?
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Common Themes in Critical
Service Encounters Research
Recovery: Adaptability:
Spontaneity:Coping:
employee responseto service delivery
system failure
employee responseto customer needs
and requests
employee responseto problem customers
unprompted andunsolicited employeeactions and attitudes
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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
DO DONT
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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 followthrough
Show unwillingness to try
Embarrass the customer
Laugh at the customer
Avoid responsibility
Pass the buck
DO DONT
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Spontaneity
Take time
Be attentive
Anticipate needs
Listen
Provide information
Show empathy
Exhibit impatience
Ignore
Yell/laugh/swear
Steal from customers
Discriminate
DO DONT
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Coping
Listen
Try to accommodate Explain
Let go of the customer
Take customers
dissatisfaction personally Let customers
dissatisfaction affect
others
DO DONT
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Evidence of Service from the
Customers Point of View
People
ProcessPhysical
Evidence
Contact employees
Customer him/herself
Other customersOperational flow of
activities
Steps in process
Flexibility vs. standard
Technology vs. human
Tangible
communicationServicescape
Guarantees
Technology
WebsiteSource: 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. 23
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Strategies for Influencing Customer
Perceptions
Measure and manage customer satisfaction
Aim for customer quality and satisfaction in everyservice encounter
1. Plan for effective recovery
2. Facilitate adaptability and flexibility3. Encourage spontaneity
4. Help employees cope with problem customers
5. Manage the dimensions of quality at the encounter
level Manage the evidence of service to reinforce
perception
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Exercise to
Identify Service AttributesIn groups of five, choose a services industry and spend 10 minutes brainstormingspecific requirements of customers in each of the five service quality dimensions.
Be certain the requirements reflect the customers point of view.
Reliability:
Assurance:
Tangibles:
Empathy:
Responsiveness:
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