CORN LL
Class: SERVICES MARKETING

Date: 11/01/ 2021

NOT S Topic: CUSTOMER PERCEPTIONS OF

SERVICE

 
  Student Name
     
    Bui Anh Huy    
             
    Main Ideas / Key Words Notes    
 Satisfaction vs Service Quality
CUSTOMER PERCEPTIONS Satisfaction is viewed as a boarder concept while service quality
focuses on dimensions of service.
=> Perceived service quality is a component of customer
satisfaction.
 Transaction vs Cumulative Perceptions
Customer perception at the transaction-specific level – customer
perceptions of single encounter based on elements of the service
experienced during that transaction – is critical for identifying
service issues and making changes.
Customer cumulative perceptions - customer overall perceptions
of a company or whole industry based on all their experiences
and relative knowledge - can be used to predict customer loyalty.
 Customer satisfaction
- is the consumer’s fulfillment response
CUSTOMER SATISFACTION - is the evaluation of customer about a service or product
whether it has met the needs and expectations of customer.
- be related to other types of feeling: contentment (passive
response – not think about or routinely service), delight (positive
response), ambivalence (mix of positive and negative
experiences).
- is variable, influenced by variety of factors
• Product and service features (e.g., a hotel’s important
features such as room price, staff attitudes, privacy): customers
of services make trade-offs among different features.
• Customer emotions: specific emotions (of guiders or
employees) can affect customer emotions => affect customer
satisfaction.
• Attributions for service success or failure: how
customers assess the reasons of a surprised service outcome
(success or failure) can affect their satisfaction.
    • Perceptions of equity or fairness    
    • Other customers, family members, and coworkers    
National customer satisfaction indexes: are tools for evaluating
the health of nation’s economy; begin to get at the quality of
economic output.
 Outcomes of customer satisfaction:
- An important indicator of national economic health and
well-being.
- Correlate with other measures of economic health
(corporate earnings, stock value)
- Link to customer loyalty and company’s profits (higher
returns to shareholders, lower systematic risk, competition,
market value, stocks, etc.)
Service quality is evaluated by consumers based on their
perceptions of the technical outcome provided, interaction
quality, and physical environment quality of servicescape.
Five Dimensions of Service Quality (SERVQUAL): represent
how consumers organize information about service quality in
their minds; is variable through different cultures.

SERVICE QUALITY
SERVICE ENCOUNTERS: THE BUILDING
BLOCKS FOR CUSTOMER PERCEPTIONS
• Reliability: Delivering on Promises
₋ the most important determinant of customer perceptions
of service quality
₋ company’s ability to perform the promised services
(delivery, problem resolution, pricing, etc.) dependably and
accurately.
• Responsiveness: Being Willing to Help
₋ the willingness to help customer and provide prompt
service
₋ is communicated to customers by the time they wait for
help, answers to questions, attention to problems, etc.
₋ company must view the service process from customer’s
point of view.
• Assurance: Inspiring Trust and Confidence
₋ Employees’ knowledge and courtesy and the ability of
company and its employees to inspire customer trust and
confidence.
₋ Important dimension for services that customers perceive
as high risk and uncertain outcomes such as banking, insurance,
medical.
₋ May be embodied in the person who link the customer to
the company or in company itself.
• Empathy: Treating Customers as Individuals
₋ Company provides caring, personalized service that its
customers are unique and special, and their needs are understood.
₋ the competitive advantage of small firms.
• Tangibles: Representing the Service Physically
₋ The appearance of physical facilities, equipment,
materials
₋ Providing physical representations or images of service
that customer will use to evaluate service quality.
E-Service Quality (E-S-QUAL): the extent to which a website
facilitates efficient and effective shopping, purchasing, and
delivering.
• Four Dimensions of Service Evaluation
₋ Efficiency: ease and speed of accessing and using
website
₋ Fulfillment: fulfillment of website promises about order
delivery and item availability.
₋ System availability: website’s correct technical
functioning.
₋ Privacy: security level of website
• Three Dimensions of Service Recovery Evaluation
₋ Responsiveness: website’s effective handling of
problems and returns.
₋ Compensation: compensable level for customers.
₋ Contact: availability of assistance through telephone or
online representatives.
From customer’s POV, service encounter or moment of truth is
where the most vivid impression of service occurs, each
encounter contributes to the customer’s overall satisfaction and
willingness to return.
From organization’s POV, each encounter is an opportunity to
prove its potential as a quality service provider and to increase
customer loyalty.
The importance of Encounters
₋ Any encounter can determine customer satisfaction and
loyalty, especially early events in encounter cascade.
₋ Each encounter is important in creating company’s
image in customer’s memory.
₋ Positive interactions add up to a composite image of
high quality and vice versa
₋ A combination of positive and negative interactions can
make customer feel doubtful of company’s consistency in service
quality, and may change to competitors’ services.
₋ Not all encounters are equally important in building
customer satisfaction and loyalty. There are some momentous
encounters can ruin a company and make customers leave
immediately, whereas positive momentous encounters can
sometimes bind a customer to a company for life.
Three Types of Service Encounters
• Remote Encounters: encounters occur without direct
human contact (e.g., ATM system, mail-order service, website)
₋ is an opportunity for firm to reinforce or establish
customer perceptions of service quality.
₋ The tangible evidences and the quality of technical
processes and systems become the basic criteria for evaluating
quality.
• Technology-mediated Encounters: encounters occur
between an end-customer and the firm that allow technology-
based communication with a real person in real time (e.g.,
telephone, texting, live chats)
₋ Tone of voice, employee knowledge, words chosen, and
effectiveness/efficiency in handling customer issues become the
important criteria for evaluating quality.
• Face-to-face Encounters: encounters occur between a
customer and an employee in direct personal contact => the most
complex.
₋ Verbal and non-verbal behaviors, tangible cues such as
employee dress, and symbols of service (equipment,
informational brochures, physical setting) are important
determinants of quality.
₋ Customer’s behavior during the interaction also plays a
role in creating quality service.
Sources of Pleasure and Displeasure in Service Encounters
• Recovery – Employee Response to Service Delivery
System Failures: the manner of employee’s response results in
how customer remembers the service failure, favorably or
unfavorably.
• Adaptability – Employee Response to Customer
Needs and Requests: customers evaluate service encounter
quality by the flexibility of employees and the system in order to
meet their needs and requests.
• Spontaneity – Unprompted and Unsolicited
Employee Actions: employee spontaneity in delivering
memorably good or poor services.
₋ Satisfying incidents represent very pleasant surprises for
the customer whereas dissatisfying incidents represent negative
and unacceptable employee behaviors.
• Coping – Employee Response to Problem Customers:
customers cause their own dissatisfaction, unwilling to cooperate
with service provider, other customers, industry regulations or
laws.
₋ Customers either do not see or choose not to remember
or retell the stories when they cause their own dissatisfactory
service encounter.
Technology-based Service Encounters: involve customers
interacting with Internet-based services, automated phone
services, kiosk services, and services delivered via DVD or video
technology => customer provide their own service => Self-
service technologies (SSTs)
• For satisfying SSTs
₋ Solved an intensified need: Customers were thrilled that
the technology could help them in difficult situations.
₋ Better than the alternatives: easy to use, saved time,
available when and where the customer needed, saved money.
₋ Did its job: many failures of technology make customers
thrill when STT works as it should.
• For dissatisfying STTs
₋ Technology failure
₋ Process failure
₋ Poor design
 ₋ Customer-driven failure: customer inabilities or failures

       
     

 
   
             
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