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    Customer Satisfaction & Service Quality: Lesson 4

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    Hậu Lê Phan Minh
    The document discusses customer satisfaction and service quality. It defines key concepts like customers, customer satisfaction, service quality, and gaps in service quality. It presents models for measuring service quality, including SERVUCTION which outlines visible and invisible factors that influence customer experience, and the 5-gap model which identifies gaps between customer expectations and company performance.

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    Customer Satisfaction & Service Quality: Lesson 4

    Uploaded by

    Hậu Lê Phan Minh
    39 views25 pages
    The document discusses customer satisfaction and service quality. It defines key concepts like customers, customer satisfaction, service quality, and gaps in service quality. It presents models for measuring service quality, including SERVUCTION which outlines visible and invisible factors that influence customer experience, and the 5-gap model which identifies gaps between customer expectations and company performance.

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    Lesson 4

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    The document discusses customer satisfaction and service quality. It defines key concepts like customers, customer satisfaction, service quality, and gaps in service quality. It presents models for measuring service quality, including SERVUCTION which outlines visible and invisible factors that influence customer experience, and the 5-gap model which identifies gaps between customer expectations and company performance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    39 views25 pages

    Customer Satisfaction & Service Quality: Lesson 4

    Uploaded by

    Hậu Lê Phan Minh
    The document discusses customer satisfaction and service quality. It defines key concepts like customers, customer satisfaction, service quality, and gaps in service quality. It presents models for measuring service quality, including SERVUCTION which outlines visible and invisible factors that influence customer experience, and the 5-gap model which identifies gaps between customer expectations and company performance.

    Copyright:

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    of 25

    Customer Satisfaction

    & Service Quality


    Lesson 4
    Agenda

    • Customer and customer satisfaction

    • Collecting and Using Feedback

    • Measuring Service Quality


    Who is the customer?
    • A customer is an individual or business that purchases the
    goods or services produced by a business.

    • ‘The customer is always right’

    • Customer vs. consumer?

    • Satisfied customers are expected to continue buying goods and


    services again and again from companies that meet their
    needs.

    • Feedback through questionnaire and interviews is the process


    through which many companies closely monitor the satisfaction
    level of the customers.
    Who is the customer?
    • Two distinct types of customers: external and internal

    • An external customer: the one who uses the product/


    service, the one who purchases the product/service or the
    one who influences the sale of the product/service.

    • An internal customer: Every person in a process is


    considered a customer of the preceding operation. Each
    worker’s goal is to make sure that the quality meets the
    expectations of the next person.

    • One basic concept of TQM is an unwavering focus on


    customers, both internal and external.
    Customer Satisfaction
    • An organization’s success depends on how many customers it
    has, how much they buy, and how often they buy.

    • Understanding the customer’s needs and expectations is


    essential to winning new business and keeping existing business.

    • An organization must give its customers a quality product or


    service that meets their needs at a reasonable price, which
    includes on-time delivery and outstanding service. To attain this
    level, the organization needs to continually examine their quality
    system to see if it is responsive to ever-changing customer
    requirements and expectations.

    • Customer satisfaction is not an objective statistic but more of a


    feeling or attitude.
    Customer Perception of Quality
    • Performance: fitness for use; availability; reliability; maintainability.

    • Features: secondary characteristics of the product or service

    • Service: value-added, intangible characteristics which are not


    quantifiable, yet contribute greatly to customer satisfaction

    • Warranty: represents an organization’s public promise of a quality


    product

    • Price: Customers are constantly evaluating one organization’s


    products and services against those of its competitors

    • Reputation: Customers are willing to pay a premium for a known


    or trusted brand name and often become customers for life
    Feedback
    • Customers continually change. Customer feedback is not a
    one-time effort; it is an ongoing and active probing of the
    customers’ mind.

    • Feedback enables the organization to:

    • Discover customer dissatisfaction.

    • Discover relative priorities of quality.

    • Compare performance with the competition.

    • Identify customers’ needs.

    • Determine opportunities for improvement


    Customer Feedback:
    Information-collecting tools
    • Comment Card

    • Customer Questionnaire

    • Focus Groups

    • Toll-free Telephone Numbers

    • Customer Visits

    • Report Card

    • The Internet and Computers

    • Employee Feedback

    • Mass Customization
    Using customer Complaints
    • Investigate customers’ experiences by actively soliciting feedback, both positive and negative,
    and then acting on it promptly.

    • Develop procedures for complaint resolution that include empowering front-line personnel.

    • Analyze complaints, but understand that complaints do not always fit into neat categories.

    • Work to identify process and material variations and then eliminate the root cause. “More
    inspection” is not corrective action.

    • When a survey response is received, a senior manager should contact the customer and strive
    to resolve the concern.

    • Establish customer satisfaction measures and constantly monitor them.

    • Communicate complaint information, as well as the results of all investigations and solutions, to
    all people in the organization.

    • Provide a monthly complaint report to the quality council for their evaluation and, if needed, the
    assignment of process improvement teams.

    • Identify customers’ expectations beforehand rather than afterward through complaint analysis.
    Translating needs into requirements:
    the Kano model
    Service Quality
    • A service is a transaction in which no physical goods are
    transferred from the seller to the buyer.

    • Examples of service?

    • Service Characteristics
    • How to measure service quality?
    Service Quality
    • Service Quality = Customer Satisfaction

    • Service Quality: the discrepancy between


    consumer’s perceptions of services offered by a
    particular firm and their expectations about firms
    offering such services.

    • Service Quality = perceived service - expected


    service
    Models of Service Quality:
    SERVUCTION
    SERVUCTION
    • The model illustrates all factor which affect the
    consumer’s service experience, both visible and
    invisible.

    • The invisible factors: include the things that happen


    within the organizations that the customer does not
    necessarily see, but affect their experience such as a
    company’s policies, rules and guidelines or core values.

    • The visible factors: include the environment, the service


    providers and other customers.
    Models of Service Quality:
    5-gap model
    5-gap model
    • Knowledge Gap: Gap between Management Perception
    and Customer Expectation

    • Policy Gap: Gap between Service Quality Specification


    and Management Perception

    • Delivery Gap: Gap between Service Quality Specification


    and Service Delivery

    • Communication Gap: Gap between External


    Communication and Service Delivery

    • Customer Gap: Gap between Experienced Service and


    Expected Service
    GAP 1: not knowing what customers expect
    • This is the difference between customer expectations of service and a
    company’s understanding of those expectations.

    • A café owner may think that the consumer wants a better ambience in the
    café, but the consumer is more concerned about the coffee and food they
    serve

    • Causes:

    • Inadequate marketing research orientation: insufficient marketing


    research, research not focused on service quality

    • Inadequate use of marketing research: lack of upward communication,


    lack of interaction between management and customers, too many
    layers between contact personnel and top management

    • Insufficient relationship focus: lack of market segmentation, focus on


    transactions rather than relationships
    GAP 2: not selecting the right service quality
    designs and standards
    • This gap arises when the management or service provider might
    correctly comprehend what the customer requires, but may not set
    a performance standard.

    • An example would be restaurant Managers who may tell the waiters


    to provide the order of the consumer quick, but do not specify
    “How Quick”.

    • Causes:

    • Poor service design

    • Absense of customer-driven standards

    • Inappropriate physical evidence and servicescape


    GAP 3: not delivering to service designs and
    standards
    • This is the dissimilarity between the standard of the service delivery
    policies of the company and the actual delivery of the service.

    • An example would be a restaurant having very specific standards of the


    food communicated but the restaurant staff may not be given proper
    instruction as to how to follow these standards.

    • Causes

    • Deficiencies in human resource policies

    • Inadequate service recovery

    • Customer do not fulfill roles

    • Failure to match supply and demand


    GAP 4: not matching performance to promise

    • This gap arises when these assumed expectations are not fulfilled
    at the time of Delivery of Service

    • An example would be a restaurant that has printed on its menu that


    it serves 100% Vegetarian Food but in reality, it serves Non-
    Vegetarian Food as well.

    • Causes:

    • Overpromising

    • Inadequate horizonal communications between sales/


    advertising and operation

    • Ineffective management of customer expectation


    GAP 5: difference between perceptions and expectations

    • This gap arises when the consumer misunderstands


    the service quality.

    • A Restaurant Manager may keep visiting their


    consumer to ensure quality check and consumer
    satisfaction, but the consumer may interpret this as
    an indication that something is fishy or there is
    something wrong in the service provided by the
    restaurant staff.
    Models of Service Quality: SERVQUAL

    SERVQUAL is a multidimensional research instrument designed to measure service quality by


    capturing respondents’ expectations and perceptions along five dimensions of service quality

    Reliability: The ability to perform the promised service dependably and


    accurately
    Assurance: The knowledge and courtesy of employees and their ability to
    convey trust and confidence
    Tangibles: The appearance of physical facilities, equipment, personnel and
    communication materials
    Empathy: The provision of caring, individualized attention to customer
    Responsiveness: The willingness to help customers and to provide prompt
    service

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