1. 5-1 The Customer Gap

2. 5-2 The Customer Gap What a customer believes should or will happen Subjective assessments of actual service experiences (reality for the individual)

3. 5-3 Perceptions or reality?  In a perfect world, customer expectations and perceptions would be identical (E=P).  Customers would perceive that they had received what they thought they would and should.  Failure to meet expectations (E>P)  Exceed expectations (E<P)

4. 5-4 What is Customer Satisfaction?  The level that products/services meet customer expectations. (P =,> E)  Is the customer’s evaluation of a product/service in terms of whether product/service has met the needs and expectations (P =,> E).

5. 5-5 Has the service met customer expectations?

6. 5-6 Why Customer Satisfaction is Important?  Increased customer retention  Positive word-of-mouth communications  Increased revenues

7. 5-7 Relationship between Customer Satisfaction and Loyalty in Competitive Industries

8. 5-8 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

9. 5-9 Customer Perceptions of Quality and Customer Satisfaction

10. 5-10 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

11. 5-11 The Five Dimensions of Service Quality Ability to perform the promised service dependably and accurately. Willingness to help customers and provide prompt service. Knowledge and courtesy of employees and their ability to inspire trust and confidence. Caring, individualized attention the firm provides its customers. Physical facilities, equipment, and appearance of personnel. Tangibles Reliability Responsiveness Assurance Empathy

12. 5-12   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 RELIABILITY SERVINE QUALITY Attributes

13. 5-13   Keeping customers informed as to when services will be performed   Prompt service to customers   Willingness to help customers   Readiness to respond to customers’ requests RESPONSIVENESS SERVINE QUALITY Attributes

14. 5-14   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 ASSURANCE SERVINE QUALITY Attributes

15. 5-15   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 EMPATHY SERVINE QUALITY Attributes

16. 5-16   Modern equipment   Visually appealing facilities   Employees who have a neat, professional appearance   Visually appealing materials associated with the service TANGIBLES SERVINE QUALITY Attributes

17. 5-17 How Customers Judge the Five Dimensions of Service Quality

18. 5-18 Geek Squad’s Focus on Responsiveness Relax, it’s FedEx (Assurance)

19. 5-19 The Service Encounter The building blocks of customer perception  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

20. 5-20 A Service Encounter Cascade for a Hotel Visit

21. 5-21 Sales Call Ordering Supplies Billing Delivery and Installation Servicing A Service Encounter Cascade for an Industrial Purchase

22. 5-22 Common Themes in Critical Service Encounters Research Recovery: Adaptability: Spontaneity:Coping: employee response to service delivery system failure employee response to customer needs and requests employee response to problem customers unprompted and unsolicited employee actions and attitudes

23. 5-23 Recovery 4-23

24. 5-24 Adaptability 4-24

25. 5-25 Spontaneity 4-25

26. 5-26 Coping 4-26