CUSTOMER PERCEPTIONS OF SERVICE
CUSTOMER PERCEPTIONS We
are focusing on the perceived service box in the gaps model.
Keep
in mind that perceptions are always considered relative to expectations.
Customers
perceive services in terms of quality of the service and how satisfied they are overall with their experiences.
Satisfaction Vs Service Quality Satisfaction
is generally viewed as a broader concept while Service Quality assessment focuses specifically on dimensions of service.
Perceived
Service Quality is a component of customer satisfaction.
Customer Perceptions of Quality and Customer Satisfaction RELIABILITY RESPONSIVENESS ASSURANCE
SERVICE QUALITY
SITUATIONAL FACTORS
EMPATHY TANGIBLES PRODUCT QUALITY
PRICE
CUSTOMER SATISFACTION
PERSONAL FACTORS
Customer Satisfaction The
customers’ evaluation of a product or service in terms of whether that product or service has met their needs and expectations.
Failure
to meet needs and expectations is assumed to result in dissatisfaction with the product or service.
Customer Satisfaction Customer
satisfaction will be influenced by specific product or service features and by perceptions of quality.
Satisfaction
is also influenced by customers’ emotional responses, their attributions and their perceptions of equity.
Customer Satisfaction
Product and Service Features:
Customer satisfaction, influenced significantly by the customers’ evaluation of product or service features. Ex. Resort with pool and golf, room comfort, privacy, helpfulness, courtesy of staff, room price etc.
Consumer Emotions:
Like mood and life satisfaction. Happy mood, positive mind frame influences positively, while when bad mood, negative feelings may carry over into how you responds to the services.
Customer Satisfaction
Attributions for Service Success or Failure:
The perceived causes of events – influence perceptions of satisfaction. Ex. Customer of VLCC, fails to lose weight as hoped for, she will likely search for cause –was the diet plan ineffective or she was not able to follow up?
Perception of Equity or Fairness:
Have I treated fairly compared to other customers?? Did other customers get better treatment, better prices, or better quality service?
SERVICE QUALITY Service
Quality a critical component of customer perceptions
In case of pure services: more dominant In case of physical product with services: may also be very important.
DIMENSIONS OF SERVICE QUALITY Reliability:
Ability to perform the promised service dependably and accurately.
Responsiveness:
Willingness to help customers and provide prompt service.
Assurance:
Employees’ knowledge and courtesy and their ability to inspire trust and confidence.
DIMENSIONS OF SERVICE QUALITY Empathy:
Caring, individualized attention given to customers.
Tangibles:
Appearance of physical facilities, equipments, personnel, and written materials
SERVICE ENCOUNTERS OR “MOMENTS OF TRUTH” When
the customer interacts with the service
firm. Types
A
of service encounters:
Remote encounters Phone encounters Face-to-face encounters
customer may experience any of these types of encounters or a combination of all three.
Remote encounters
Encounters that occurs without any direct human contact
Ex. Interacting with bank through ATM Automated ticket machine Mail order through automated dial-in ordering
Tangible evidence of the service and the quality of the technical processes and systems become the primary bases for judging quality. More and more services are being delivered through technology, particularly with the advent of Internet.
Phone encounters In
many organizations (e.g. insurance, telecommunications, financial services etc.), the most frequent type of encounter between an end customer and the firm occurs over the telephone. Tone of voice, employee knowledge, and effectiveness/efficiency in handling customer issues become important criteria for judging quality in these encounters.
Face-to-face encounters Encounters
that occurs between an employee and a customer in direct contact.
Ex.: customer and salespeople, delivery personnel, food & beverages servers, maintenance representatives, professional consultants etc.
Verbal
and non-verbal behaviors are important determinants of quality besides tangible clues like employee dress etc. Customer also plays a role in creating quality service
Evidence of Service
Because services are intangible, customers are searching for evidence of service in every interaction or encounters. The three major categories of evidences are:
People Contact employee Customer himself/herself Other customers Process Operation flow of activities Steps in process Flexibility vs standard Technology vs human
Evidence of Service
Physical Evidence
Tangible communication Service space Guarantees Technology
The
new mix elements essentially are the evidence of service in each moment of truth.
Strategies for influencing customer perceptions Measure
and Manage Customer satisfaction and Service Quality
Track the trends, diagnose problems, link to customer focused strategies
Aim
for customer quality and satisfaction in every service encounter – aim for zero defects
Plan for effective recovery
Service has been disappointed first time, doing it very right the second time is essential, identify root cause of failure and redesign to ensure reliability Failures are inevitable in services, but should have strong recovery strategies
Strategies for influencing customer perceptions
Facilitate adaptability and flexibility Know when and how system can be flexed, and when and how to explain to customers why cannot be granted
Encourage spontaneity Encourage positive spontaneous behaviors and discourage negative behaviors
Strategies for influencing customer perceptions
Help employees to cope with problem customers Training to employees to cope with problem customers Manage dimensions of quality at the encounter level Relate five dimensions (reliability, responsiveness, assurance, empathy and tangibles) to each encounter to ensure quality service
Manage the evidence of service to reinforce perceptions