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    Customer Perceptions of Service

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    Arush Bhatnagar
    This document discusses customer perceptions of service quality and satisfaction. It identifies key factors that influence customer perceptions such as service encounters, the five dimensions of service quality (reliability, assurance, tangibles, empathy, responsiveness), and critical incidents. Satisfied customers are more likely to remain loyal customers and provide positive word-of-mouth advertising. The document also examines how employees can build trust and loyalty through effective recovery efforts, adapting to customer needs, coping with problems, and demonstrating spontaneity.

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    Customer Perceptions of Service

    Uploaded by

    Arush Bhatnagar
    60 views17 pages
    This document discusses customer perceptions of service quality and satisfaction. It identifies key factors that influence customer perceptions such as service encounters, the five dimensions of service quality (reliability, assurance, tangibles, empathy, responsiveness), and critical incidents. Satisfied customers are more likely to remain loyal customers and provide positive word-of-mouth advertising. The document also examines how employees can build trust and loyalty through effective recovery efforts, adapting to customer needs, coping with problems, and demonstrating spontaneity.

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    This document discusses customer perceptions of service quality and satisfaction. It identifies key factors that influence customer perceptions such as service encounters, the five dimensions of service quality (reliability, assurance, tangibles, empathy, responsiveness), and critical incidents. Satisfied customers are more likely to remain loyal customers and provide positive word-of-mouth advertising. The document also examines how employees can build trust and loyalty through effective recovery efforts, adapting to customer needs, coping with problems, and demonstrating spontaneity.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    60 views17 pages

    Customer Perceptions of Service

    Uploaded by

    Arush Bhatnagar
    This document discusses customer perceptions of service quality and satisfaction. It identifies key factors that influence customer perceptions such as service encounters, the five dimensions of service quality (reliability, assurance, tangibles, empathy, responsiveness), and critical incidents. Satisfied customers are more likely to remain loyal customers and provide positive word-of-mouth advertising. The document also examines how employees can build trust and loyalty through effective recovery efforts, adapting to customer needs, coping with problems, and demonstrating spontaneity.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 17

    CUSTOMER PERCEPTIONS OF 5

    SERVICE

     Customer Perceptions
     Customer Satisfaction
     Service Quality
     Service Encounters: The Building
    Blocks for Customer Perceptions
    CUSTOMER PERCEPTIONS OF QUALITY AND
    CUSTOMER SATISFACTION
    OUTCOMES OF
    CUSTOMER SATISFACTION
    • Increased customer retention
    • Positive word-of-mouth communications
    • Increased revenues
    SERVICE QUALITY
    • The customer’s 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
    THE FIVE DIMENSIONS OF
    SERVICE QUALITY
    RATER Model
    Reliability Ability to perform the promised service
    dependably and accurately.

    Assurance Knowledge and courtesy of employees


    and their ability to inspire trust and
    confidence.
    Tangibles Physical facilities, equipment, and
    appearance of personnel.
    Empathy Caring, individualized attention the firm
    provides its customers.
    Responsiveness Willingness to help customers and provide
    prompt service.
    SERVQUAL ATTRIBUTES
    RELIABILITY EMPATHY
     Providing service as promised  Giving customers individual attention
     Dependability in handling customers’  Employees who deal with customers in a
    service problems caring fashion
     Performing services right the first time  Having the customer’s best interest at heart
     Providing services at the promised time  Employees who understand the needs of their
     Maintaining error-free records customers
     Convenient business hours
    RESPONSIVENESS
     Keeping customers informed as to when TANGIBLES
    services will be performed  Modern equipment
     Prompt service to customers  Visually appealing facilities
     Willingness to help customers  Employees who have a neat, professional
    appearance
     Readiness to respond to customers’
    requests  Visually appealing materials associated
    with the service
    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
    THE SERVICE ENCOUNTER
    • is the “moment of truth”
    • occurs any time the customer interacts with the firm
    • can potentially be critical in determining customer
    satisfaction 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
    A SERVICE ENCOUNTER CASCADE
    FOR A HOTEL VISIT

    Check-In

    Bellboy Takes to Room

    Restaurant Meal

    Request Wake-Up Call

    Checkout
    A SERVICE ENCOUNTER
    CASCADE FOR AN INDUSTRIAL PURCHASE

    Sales Call

    Delivery and Installation

    Servicing

    Ordering Supplies

    Billing
    CRITICAL SERVICE ENCOUNTERS RESEARCH
    • GOAL:
    – understanding actual events and behaviors that cause
    customer dis/satisfaction in service encounters
    • METHOD:
    – Critical Incident Technique
    • DATA:
    – stories from customers and employees
    • OUTPUT:
    – identification of themes underlying satisfaction and
    dissatisfaction with service encounters
    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)?
    COMMON THEMES IN CRITICAL
    SERVICE ENCOUNTERS RESEARCH
    CARS
    Model

    Recovery: Adaptability:
    employee response employee response
    to service delivery to customer’s special
    system failure needs and requests

    Coping: Spontaneity:
    employee response unprompted and
    to problem customers unsolicited employee
    actions and attitudes
    COPING
    DO DON’T
    • Listen • Take customer’s
    dissatisfaction personally
    • Try to accommodate
    • Let customer’s
    • Explain dissatisfaction affect others
    • Let go of the customer
    ADAPTABILITY
    DO DON’T
    • Recognize the seriousness • Ignore
    of the need
    • Promise, but fail to follow
    • Acknowledge through
    • Anticipate • Show unwillingness to try

    • Attempt to accommodate • Embarrass the customer

    • Adjust the system • Laugh at the customer

    • Explain rules/policies • Avoid responsibility

    • Take responsibility • “Pass the buck”


    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
    • “Pass the buck”
    SPONTANEITY
    DO DON’T
    • Take time • Exhibit impatience

    • Be attentive • Ignore

    • Anticipate needs • Yell/laugh/swear

    • Listen • Steal from customers

    • Provide information • Discriminate

    • Show empathy
    EVIDENCE OF SERVICE FROM THE
    CUSTOMER’S POINT OF VIEW
     Contact employees
     Customer him/herself
     Operational flow of  Other customers
    activities People
     Steps in process
     Flexibility vs.
    standard
     Technology vs.  Tangible
    human Process Physical
    communication
    Evidence
     Servicescape
     Guarantees
     Technology

    Source: From “Managing the Evidence of Service” by M. J. Bitner from The Service Quality Handbook,
     Website
    eds. E. E. Scheuing and W. F. Christopher (1993), pp. 358-70.

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