customer perceptions of service

2. Today’s Objectives Provide you with definitions and understanding of customer satisfaction and service quality. Show that service encounters or the “moments of truth” are the building blocks of customer perceptions. Highlight strategies for managing customer perceptions of service.

3. Gaps Model of Service Quality

4. The Customer Gap

5. Customer Perceptions of Service Quality and Customer Satisfaction

6. Definition of Satisfaction The customer’s evaluation of a product or service in terms of whether that product or service has met their needs and expectations

7. Factors Influencing Customer Satisfaction Product/service attributes or features Consumer Emotions Attributions for product/service success or failure Equity or fairness evaluations Other consumers, friends, family

8. American Customer Satisfaction Index

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

10. Relationship between Customer Satisfaction and Loyalty in Competitive Industries

11. Customer Perceptions & 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 Process quality Physical environment quality

12. Attributesof Service Quality

13. 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

14. A Service Encounter Cascade for a Hotel Visit

15. Critical Service Encounters Research GOAL - understanding actual events and behaviors that cause customer dis/satisfaction in service encounters METHOD - Critical Incident Technique DATA - stories from customers and employees OUTPUT - identification of themes underlying satisfaction and dissatisfaction with service encounters

16. Sample Questions for Critical Incidents Technique Study Think of a time when, as a customer, you had a particularly satisfying (dissatisfying) interaction with _________________________. 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)?

17. Common Themes in CriticalService Encounters Research

18. Technology Based Service Encounters Self-Service Technologies (SSTs) Internet based services, ATM Drivers of satisfaction Solved an intensified need Better than alternative Did its job Drivers of dissatisfaction Technology failure Process failure Poor design Customer-driven failure

19. Evidence of Service from theCustomer’s Point of View

20. Strategies for Influencing Perceptions Measure customer satisfaction/service quality Every service encounter counts Plan for Recovery Facilitate Adaptability/Flexibility Encourage Spontaneity Help employees cope with problem customers