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

 - Dwayne D. Gremler

 Two Types of Customers

 External Customers


 Internal Customers


 - Dwayne D. Gremler

 Customer Satisfaction

 What is it?


 Failure to meet needs and expectations usually

results in dissatisfaction.
 Satisfaction is thought to be

 - Dwayne D. Gremler

 Customer Satisfaction

 satisfaction is thought to be influenced by:






 satisfaction can only be assessed following

 - Dwayne D. Gremler

 Satisfaction and Service Quality

Figure 5.1
 - Dwayne D. Gremler
 Outcomes of Customer Satisfaction





 - Dwayne D. Gremler

 Customer Satisfaction and Loyalty in
Competitive Industries

100%
Loyalty (retention)

80%

60%

40%

20%

0%
Very Dissatisfied Neither Satisfied Very
dissatisfied satisfied nor satisfied
dissatisfied
Figure 5.4
Satisfaction measure

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.

 - Dwayne D. Gremler

 Service Quality

 is “the delivery of

 service quality dimensions

 - Dwayne D. Gremler

 Dimensions of Service Quality

Reliability

Responsiveness

Service
Assurance
Quality

Empathy

Tangibles

 - Dwayne D. Gremler

 Service Quality Dimensions

 reliability ( )

 responsiveness ( )

 assurance ( )

 empathy ( )

 tangibles ( )


 - Dwayne D. Gremler

 Service Quality (SERVQUAL) Attributes
RELIABILITY
 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
 Keeping customers informed as to
when services will be performed
 Prompt service to customers
 Willingness to help customers
 Readiness to respond to customers’
requests
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
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
TANGIBLES
 Modern equipment
 Visually appealing facilities
 Employees who have a neat,
professional appearance
 Visually appealing materials
associated with the service
 - Dwayne D. Gremler
 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:





 - Dwayne D. Gremler

 A Service Encounter Cascade for a
Hotel Visit

Check-In
Check-In
Bellboy
BellboyTakes
Takesto
toRoom
Room

Restaurant
RestaurantMeal
Meal

Request
RequestWake-Up
Wake-UpCall
Call
Checkout
Checkout

Figure 5.5

 - Dwayne D. Gremler

 Sources of Pleasure/Displeasure in
Service Encounters

 Recovery

 Adaptability

 Spontaneity

 Coping


 - Dwayne D. Gremler

 The Evidence of Service from the
Customer’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
 - Dwayne D. Gremler
Strategies for Influencing Customer
Perceptions

 effective
 emphasize

 use the

 assume ALL

 - Dwayne D. Gremler

 Recovery

DO DON’T

 Acknowledge problem  Ignore customer

 Explain causes  Blame customer
 Apologize  Leave customer to fend for
 him/herself
Compensate/upgrade
 Downgrade
 Lay out options
 Act as if nothing is wrong
 Take responsibility

 - Dwayne D. Gremler

 Adaptability

DO
 Recognize the seriousness
of the need
 Acknowledge
 Anticipate
 Attempt to accommodate
 Explain rules/policies
 Take responsibility
 Exert effort to
accommodate
DON’T
 Promise, then fail to follow
through
 Ignore
 Show unwillingness to try
 Embarrass the customer
 Laugh at the customer
 Avoid responsibility

 - Dwayne D. Gremler

 Spontaneity

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

 - Dwayne D. Gremler

 Coping

DO DON’T

 Listen  Take customer’s

 Try to accommodate dissatisfaction personally
 Explain  Let customer’s
 dissatisfaction affect others
Let go of the customer

 - Dwayne D. Gremler