1. Customer Perceptions of Service
Chapter
Customer Perceptions of Service 5
Customer Perceptions
Customer Satisfaction
Service Quality
Service Encounters: The Building Blocks for Customer Perceptions

2. Customer Perceptions of Service (Chapter 5)
Customer satisfaction: Satisfaction is the consumer’s fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provides a pleasurable level of consumption-related fulfillment
Customer satisfaction

3. Figure 5.1 Customer Perceptions of Quality and Customer Satisfaction

4. Factors Influencing Customer Satisfaction
Product/service quality
Specific product or service features
Consumer emotions
Attributions for service success or failure
Perceptions of equity or fairness
Other consumers, family members, and coworkers
Price
Personal factors
the customer’s mood or emotional state
situational factors

5. Factors Influencing Customer Satisfaction
Examples:
Attributions for Service Success or Failure – why was the service better or worse than expected? For poor service, ___________________ factors more acceptable
Perceptions of Equity or Fairness – Have I been treated fairly compared with other customers? Did I pay a fair price for the service?

6. Outcomes of Customer Satisfaction
Increased customer retention
Positive word-of-mouth communications
Increased revenues

7. Figure 5.4 Relationship between Customer Satisfaction and Loyalty in Competitive Industries
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.

8. Service Quality
Service Quality: The customer’s judgment of overall excellence of the service provided in relation to the quality that was expected.
Technical outcome quality – ______________
Interaction quality – ______________________
Physical environment quality – _________________________

9. The Five Dimensions of Service Quality
Reliability
Ability to perform the promised service dependably and accurately.
Knowledge and courtesy of employees and their ability to inspire trust and confidence.
Physical facilities, equipment, and appearance of personnel.
Caring, individualized attention the firm provides its customers.
Willingness to help customers and provide prompt service.
Assurance
Tangibles
Empathy
Responsiveness

10. SERVQUAL Attributes RELIABILITY EMPATHY RESPONSIVENESS TANGIBLES
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
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
RESPONSIVENESS
TANGIBLES
Keeping customers informed as to when services will be performed
Prompt service to customers
Willingness to help customers
Readiness to respond to customers’ requests
Modern equipment
Visually appealing facilities
Employees who have a neat, professional appearance
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

11. 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

12. Figure 5.5 A Service Encounter Cascade for a Hotel Visit
Check-In
Bellboy Takes to Room
Restaurant Meal
Request Wake-Up Call
Checkout

13. A Service Encounter Cascade for an Industrial Purchase
Sales Call
Delivery and Installation
Servicing
Ordering Supplies
Billing

14. 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)?

15. Common Themes in Critical Service Encounters Research
Recovery:
Adaptability:
employee response
to service delivery
system failure
employee response
to customer needs
and requests
Coping:
Spontaneity:
unprompted and
unsolicited employee
actions and attitudes
employee response
to problem customers

16. Recovery DO DON’T Acknowledge problem Explain causes Apologize
Compensate/upgrade
Lay out options
Take responsibility
Ignore customer
Blame customer
Leave customer to fend for him/herself
Downgrade
Act as if nothing is wrong
“Pass the buck”

17. Adaptability DO DON’T Recognize the seriousness of the need
Acknowledge
Anticipate
Attempt to accommodate
Adjust the system
Explain rules/policies
Take responsibility
Ignore
Promise, but fail to follow through
Show unwillingness to try
Embarrass the customer
Laugh at the customer
Avoid responsibility
“Pass the buck”

18. Spontaneity DO DON’T Take time Be attentive Anticipate needs Listen
Provide information
Show empathy
Exhibit impatience
Ignore
Yell/laugh/swear
Steal from customers
Discriminate

19. Coping DO DON’T Listen Try to accommodate Explain
Let go of the customer
Take customer’s dissatisfaction personally
Let customer’s dissatisfaction affect others
Coping:

20. Technology-Based Service Encounters
Self-service technologies (SSTs) – Customer provides his own service
For Satisfying SSTs: solved an intensified need; better than the alternative; did its job
For Dissatisfying SSTs: technology failure; process failure; poor design

21. Figure 5.7 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
People
Physical
Evidence
Tangible communication
Servicescape
Guarantees
Technology
Website
Process
Source: From “Managing the Evidence of Service” by M. J. Bitner from The Service Quality Handbook, eds. E. E. Scheuing and W. F. Christopher (1993), pp