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Mkt 350, ch 5, consumer perceptions of service

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Fardeen Ameen
Fardeen Ameen

This document discusses customer perceptions of service quality. It defines key concepts like customer satisfaction, service quality, and the five dimensions of SERVQUAL: reliability, assurance, tangibles, empathy and responsiveness. It explains that customer perception is influenced by their expectations and experiences during service encounters. Positive service encounters can increase customer satisfaction, loyalty and revenues, while negative encounters hurt perceptions. The document also outlines strategies for managing customer perceptions through reliable service, employee knowledge and responsiveness.

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SM Chapter 5 CUSTOMER PERCEPTIONS OF SERVICE
Objectives for Chapter 5: Customer Perceptions of Service Provide you with definitions and understanding of customer satisfaction and service quality Show that service encounters or the moments of truth are the building blocks of customer perceptions Highlight strategies for managing customer perceptions of service
Customer perception Customers perception is relative to expectation. Evaluation of service quality are in constant flux.
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.
SERVQUAL Attributes RELIABILITY ASSURANCE RESPONSIVENESS EMPATHY TANGIBLES
Reliability Ability to perform promised service Promise of core service attribute
Responsiveness Willingness to help and prompt service
Assurance Firms ability to inspire Trust and confidence
Empathy Caring and individualized attention to customers
Tangibles Physical facility, equipment written materials Important dimension for hospitality service
Outcomes of Customer Satisfaction Increased customer retention Positive word-of-mouth communications Increased revenues
Figure 4-3 Relationship between Customer Satisfaction and Loyalty in Competitive Industries 100% 80% 60% 40% 20% 0% Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Very satisfied Satisfaction measure Loyalty (retention) 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.
The Five Dimensions of Service Quality Ability to perform the promised service dependably and accurately. Knowledge and courtesy of employees and their ability to convey trust and confidence. Physical facilities, equipment, and appearance of personnel. Caring, individualized attention the firm provides its customers. Willingness to help customers and provide prompt service. Reliability Assurance Tangibles Empathy Responsiveness
Exercise to Identify Service Attributes In groups of five, choose a services industry and spend 10 minutes brainstorming specific 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:
Perceived Value Overall assessment of Utility What they receive and what is given
Factors influence Customer Perception Service Encounter Evidence of Service Image Price
The Service Encounter occurs any time the customer interacts with the firm Vivid impression is developed from experiences with service Encounters
Check-In Figure 4-4 A Service Encounter Cascade for a Hotel Visit Request Wake-Up Call Checkout Bellboy Takes to Room Restaurant Meal
Common Themes in Critical Service Encounters Research Recovery: Adaptability: Employee Response to Service Delivery System Failure Employee Response to Customer Needs and Requests Coping: Spontaneity: Employee Response to Problem Customers Unprompted and Unsolicited Employee Actions and Attitudes
The Service Encounter Negative Experience with Any One of the Encounters may lead to Negative Overall Evaluation of the Service First Impression lead to successive positive feeling
The Service Encounter All the Encounters are equally Important Composite of Positive Experiences develops Positive Image
The Service Encounter Certain Encounters are Key to Customer Satisfaction
The Service Encounter Types of Encounter: Remote Encounter Phone Encounter Face to face Encounter
Evidence of Service Types of Encounter: People Process Physical Evidence

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Mkt 350, ch 5, consumer perceptions of service

  • 1. SM Chapter 5 CUSTOMER PERCEPTIONS OF SERVICE
  • 2. Objectives for Chapter 5: Customer Perceptions of Service Provide you with definitions and understanding of customer satisfaction and service quality Show that service encounters or the moments of truth are the building blocks of customer perceptions Highlight strategies for managing customer perceptions of service
  • 3. Customer perception Customers perception is relative to expectation. Evaluation of service quality are in constant flux.
  • 4. 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.
  • 5. SERVQUAL Attributes RELIABILITY ASSURANCE RESPONSIVENESS EMPATHY TANGIBLES
  • 6. Reliability Ability to perform promised service Promise of core service attribute
  • 7. Responsiveness Willingness to help and prompt service
  • 8. Assurance Firms ability to inspire Trust and confidence
  • 9. Empathy Caring and individualized attention to customers
  • 10. Tangibles Physical facility, equipment written materials Important dimension for hospitality service
  • 11. Outcomes of Customer Satisfaction Increased customer retention Positive word-of-mouth communications Increased revenues
  • 12. Figure 4-3 Relationship between Customer Satisfaction and Loyalty in Competitive Industries 100% 80% 60% 40% 20% 0% Very dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Very satisfied Satisfaction measure Loyalty (retention) 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.
  • 13. The Five Dimensions of Service Quality Ability to perform the promised service dependably and accurately. Knowledge and courtesy of employees and their ability to convey trust and confidence. Physical facilities, equipment, and appearance of personnel. Caring, individualized attention the firm provides its customers. Willingness to help customers and provide prompt service. Reliability Assurance Tangibles Empathy Responsiveness
  • 14. Exercise to Identify Service Attributes In groups of five, choose a services industry and spend 10 minutes brainstorming specific 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:
  • 15. Perceived Value Overall assessment of Utility What they receive and what is given
  • 16. Factors influence Customer Perception Service Encounter Evidence of Service Image Price
  • 17. The Service Encounter occurs any time the customer interacts with the firm Vivid impression is developed from experiences with service Encounters
  • 18. Check-In Figure 4-4 A Service Encounter Cascade for a Hotel Visit Request Wake-Up Call Checkout Bellboy Takes to Room Restaurant Meal
  • 19. Common Themes in Critical Service Encounters Research Recovery: Adaptability: Employee Response to Service Delivery System Failure Employee Response to Customer Needs and Requests Coping: Spontaneity: Employee Response to Problem Customers Unprompted and Unsolicited Employee Actions and Attitudes
  • 20. The Service Encounter Negative Experience with Any One of the Encounters may lead to Negative Overall Evaluation of the Service First Impression lead to successive positive feeling
  • 21. The Service Encounter All the Encounters are equally Important Composite of Positive Experiences develops Positive Image
  • 22. The Service Encounter Certain Encounters are Key to Customer Satisfaction
  • 23. The Service Encounter Types of Encounter: Remote Encounter Phone Encounter Face to face Encounter
  • 24. Evidence of Service Types of Encounter: People Process Physical Evidence