1. Services Marketing by P Sivarajadhanavel
Part 3
Chapter - 6 – Listening to Customers through Research
Chapter – 7 – Building Customer Relationships
Chapter – 8 – Service Recovery

2. The Listening Gap
Not knowing what customers expect is one of the root causes of not delivering to customer expectations
Provider Gap – 1is the difference between customer expectations of service and company understanding of those expectations

3. Company Perceptions of Consumer Expectations
Provider Gap 1
CUSTOMER
Expected Service
(Customer Gap)
Listening Gap
Perceived Service
GAP 1
COMPANY
Company Perceptions of Consumer Expectations

4. Chapter - 6 Listening to Customers through Research

5. Objectives
Present the types of and guidelines for marketing research in services
Show how marketing research information can and should be used for services
Describe the strategies by which companies can facilitate interaction and communication between management and customers
Present ways that companies can and do facilitate interaction between contact people and management

6. Meeting customer expectations
Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market
Using marketing research to understand customer expectations
Marketing research is a form of business research and is generally divided into two categories: consumer market research and business-to-business (B2B) market research, which was previously known as industrial marketing research.
Consumer marketing research studies the buying habits of individual people while business-to-business marketing research investigates the markets for products sold by one business to another

7. Stages in the Research Process
Stage 1 : Define Problem
Stage 2 : Develop Measurement Strategy
Stage 3 : Implement Research Program
Stage 4 : Collect and Tabulate Data
Stage 5 : Interpret and Analyze Findings
Stage 6 : Report Findings

8. Why do service research?
To identify dissatisfied customers
To discover customer requirements or expectations
To monitor and track service performance
To assess overall company performance compared to competition
To assess gaps between customer expectations and perceptions
To gauge effectiveness of changes in service
To appraise performance of individuals/teams for rewards
To determine expectations for a new service
To monitor changing expectations in an industry
To forecast future expectations

9. Criteria for an Effective Services Research Program
Includes both qualitative and quantitative research
Includes both expectations and perceptions of customers
Balances the cost of the research and the value of the information
Includes statistical validity when necessary
Measures priorities or importance of attributes
Occurs with appropriate frequency
Includes measurement of loyalty, behavioral intentions, or actual behavior

10. Service Research Strategies
Qualitative and Quantitative Research
Common Service Research Techniques/program:
complaint solicitation
critical incident studies
Requirements research
“relationship and SERQUAL” surveys
trailer calls or post transaction
Service Expectation meeting and reviews
Process checkpoint Evaluations
Market oriented Ethnography
“mystery” shopping
customer panels
lost customer research
employee surveys
Future expectations research

11. Portfolio of Services Research
Research Objective
Type of Research
Customer Complaint Solicitation
“Relationship” Surveys
Post-Transaction Surveys
Customer Focus Groups
“Mystery Shopping” of Service Providers
Employee Surveys
Lost Customer Research
Identify dissatisfied customers to attempt recovery; identify most common categories of service failure for remedial action
Assess company’s service performance compared to competitors; identify service-improvement priorities; track service improvement over time
Obtain customer feedback while service experience is still fresh; act on feedback quickly if negative patterns develop
Use as input for quantitative surveys; provide a forum for customers to suggest service-improvement ideas
Measure individual employee service behaviors for use in coaching, training, performance evaluation, recognition and rewards; identify systemic strengths and weaknesses in service
Measure internal service quality; identify employee-perceived obstacles to improve service; track employee morale and attitudes
Determine the reasons why customers defect
To forecast future expectations of customers
To develop and test new service ideas
Future Expectations Research

12. Analyzing and interpreting marketing research findings
Tracking of performance, Gap Scores, and Competition
Zones of Tolerance Charts
Importance/Performance Matrices

13. Service Quality Perceptions Relative to Zones of Tolerance9 8 7 6 5 4 3 2 1 O O O O O
Reliability Responsiveness Assurance Empathy Tangibles
Insurance Agency
= Zone of Tolerance = Service Quality Perception O

14. Importance/Performance Matrix
HIGH
High
Leverage  
Attributes to Improve
Attributes to Maintain     
Importance
Low
Leverage 
Low
Leverage  
Attributes to Maintain
Attributes to De-emphasize
LOW
Performance
HIGH

15. Tracking of Customer Expectations and Perceptions of Service Reliability

16. Using Marketing Research Information
upward communication
allows management to truly understand customer expectations
can help to close
Objectives for Upward Communication
Research for Upward Communication
Executive Visits to Customers
Executive or Management Listening to Customers
Research on Intermediate Customers
Research on Internal Customers
Executive or Management Listening Approaches to Employees
Employee Suggestions

17. END