4A Customer Perception of SQ & Satisfaction

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PRESENTATION 3

CUSTOMER PERCEPTION OF SERVICE QUALITY


Chapter Objectives

Who is a Customer
What is “service quality” all about
Service encounters (moments of truth)
Explore the SERVQUAL instrument
Discuss customer satisfaction
WHO IS A CUSTOMER?
The customer is . . .

Anyone who receives the company’s services,


including:
 external customers (outside the organization, e.g.,
business customers, partners, end consumers)

 internal customers (inside the organization, e.g.,


other departments, fellow employees)

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WHAT IS SERVICE QUALITY?
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

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DIMENSIONS OF SERVICE QUALITY
THE SERVQUAL INSTRUMENT/ SCALE
SERVQUAL
5 Dimensions Original 10 Dimensions
 Reliability  Reliability

 Assurance  Communication/ competence/ credibility/


courtesy/ security

 Tangibles  Tangibles

 Empathy  Knowing/ understanding the customer/


access

 Responsiveness  Responsiveness
The Five Dimensions of Service Quality
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.

Willingness to help customers and provide prompt


Responsiveness service.

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Service Quality 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
 Maintaining error-free records their 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,
 Readiness to respond to customers’ professional appearance
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
How Customers Judge the Five Dimensions of
Service Quality
Class Discussion
Choose a services industry and spend
some time brainstorming specific
requirements of customers in each of
the original ten service quality
dimensions, as proposed by Zeithaml
et al. (1985). Be certain the
requirements reflect the customer’s
point of view.
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
Customer Perceptions of Quality and Customer
Satisfaction

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CUSTOMER SATISFACTION
WHAT IS CUSTOMER SATISFACTION
What is Satisfaction

 A consumer’s fulfilment response

 A judgment that a product or service feature or


the product or service itself provides a
pleasurable level of consumption related
fulfilment.
Factors Influencing Customer Satisfaction
 Product quality
 Service quality
 Price
 Specific product or service features
 Consumer emotions
 Attributions for service success or failure
 Perceptions of equity or fairness
 Other consumers, family members, and coworkers
 Personal factors
 Situational factors
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Outcomes of Customer Satisfaction

 Increased customer loyalty


 Positive word-of-mouth communications
 Increased revenues
 Increased return to shareholders

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