Description
This is a presentation decribes customers expectations from retail, zone of tolerance, influencing factors, gap in terms of percieved service and actial service and service encounter
WHY CUSTOMER GO TO AN ORGANISED RETAILER?
A MILLION DOLLAR QUESTION?
?
TO BUY A PRODUCT? OR TO TAKE HIS SERVICES?
Customer Expectations In Retailing
Meaning and Types of Customer Expectations
Meaning :
Customer expectations are hopes or wishes and beliefs Customer expectations are beliefs about service deliver that function as standards or reference points against which performance is judged.
Two level of Expectation
Desired Service : The service customer hope to receive The “wished for” level of performance Customer believe “can be” and “should be”
Though Desired expectations cannot be always hoped.
Even a lower level of acceptable service is recognized in certain cases
It is the threshold level of acceptable service which is Adequate service
Two level of Expectation
Infinite
Maximum Expectation
Desired Service Level of Expectation
Zone of Tolerance
Adequate Service
Minimum Tolerable Expectation
Customer assess service performance on the basis of 2 standards: What they desire and What they deem acceptable
Two level of Expectation
Over Pleased Customer
Desired Service Maximum Expectation
Level of Expectation
Zone of Tolerance Minimum Tolerable Expectation
Adequate Service
Unsatisfied Customer
Pizza Delivery – 30 to 50 mins Waiting in Checkout line in a Retail store - 5 to 10 mins
Zone of tolerance
The extent to which customers recognize and willing to accept this variation is called the Zone of Tolerance
Desired Service
Zone of Tolerance
Adequate Service
Service being Heterogeneous performance vary
Across provider Across employees of same provider Even within same service employee
Zone of Tolerance
Different customer possess different Zone of Tolerance
A BUSY CUSTOMER Desired Service Desired Service Desired Service Zone of Tolerance Adequate Service Adequate Service Works from Home Adequate Service Do not work Works outside the home
Zone of Tolerance
Zone of Tolerance
Zone of Tolerance
Zone of Tolerance vary for service dimensions
MOST OR LEAST IMPORTANCE
Desired Service Zone of Tolerance
Desired Service
Level of Expectation
Adequate Service Zone of Tolerance
Adequate Service
Most Important Factors
Least Important Factors
IMPORTANCE
Factors that influence Customer Expectations of Service
Factors that influence Desired Service Expectations
Derived service expectations: Personal or from others members e.g. Group, Family, members of society
Enduring Service Intensifiers
Desired Service Personal Needs
Zone of Tolerance
Conditions essential to the physical or psychological well being of the customer. Including social or functional needs
Adequate Service
Factors that influence Adequate Service Expectations
Transitory Service Intensifiers Desired Service
Perceived service Alternatives
Zone of Tolerance
Self perceived Service role
Adequate Service
Situational Factors
Factors that influence Adequate Service Expectations
Transitory Service Intensifiers Personal Emergencies were service is urgently needed eg. Home delivery from Pharmacy
Perceived service Alternatives
Possible other options which are available, other alternatives eg only retail, no other options
Self perceived Service role
The self role in the service performance
Situational Factors
Peak demand day Random Over demand Catastrophe
Predicted Service Expectations
Desired service –what customer wants
Adequate Service - what customers are willing to accept Predicted Service – what customer believes they are likely to get
Desired Service
Zone of Tolerance
Adequate Service
Predicted Services
Other Factors that influence Predicted Service Expectations
Explicit service promises
Implicit service Promises
Desired Service
Word of Mouth
Zone of Tolerance
Past Experience
Adequate Service
Predicted Services
Other Factors that influence Predicted Service Expectations
Explicit service promises Advertising / personal selling / Contracts/ Other communication
Implicit service Promises
Tangibles / Price
Word of Mouth
Personal / Experts (reports/ publicity / Consultants)
Past Experience
Your last experience
Enduring Service Intensifiers
Explicit service promises
Personal Needs
Implicit service Promises
Transitory Service Intensifiers
Word of Mouth Desired Service
Perceived service Alternatives
Past Experience
Zone of Tolerance
Self perceived Service role
Adequate Service
Predicted Services
Situational Factors
Enduring Service Intensifiers Personal Needs
Explicit service promises Implicit service Promises Word of Mouth Desired Service Past Experience
Transitory Service Intensifiers Perceived service Alternatives Self perceived Service role Situational Factors
Zone of Tolerance
Adequate Service
Predicted Services
Expected Service
CUSTOMER GAP
Perceived Service
Customer Gap is difference between What I thought and What I got
Perceived Service
Perceived service is the assessment of the customer of the quality of the service. Reliability Responsiveness Assurance Empathy Tangibles
Service Quality
Situational Factor
Product Quality
Customer Satisfaction
Price
Personal Factor
Customer Satisfaction
Apart from Product Quality, Service Quality and Price Situational and Personnel factors includes Consumer Emotion Positive frame of mind and Negative frame of mind Happiness, pleasure, elation and sense of warm heartedness enhances t he Customer Satisfaction While sadness, sorrow, regret and anger led negative Customer Satisfaction
Perception of Fairness Customer ask the questions to themselves Have I been treated fairly compared to others? Did other customers get better treatment, better price, better service? Did I pay a fair price for the service?
Every Service quality is assessed from certain Dimensions
Dimensions of Service Quality
Reliability – Delivering on Promises
Ability to perform the promised service, dependably and accurately Responsiveness – Being willing to help
Willingness to help customers and provide prompt service Assurance - Inspiring Trust and confidence Employee’s knowledge and courtesy & ability to inspire trust and confidence Empathy – Treating customer as individuals Caring, individualized attention given to customers Tangibles – Representing service physically Appearance of physical facilities. equipment, personnel and written material
Service Encounters or Moments of Truth (MOT)
The occasion when customer interact with the Retail firm
First encounter – First impression
Each individual encounter is important in creating a composite image of the firm
“ One bad apple ”ruins rest of encounters Each encounters adds to or detracts from the potential for a continuing relationship
Types of Service Encounters
Face to face encounter
Most complex, importance on verbal and non- verbal behaviors
Types of Service Encounters
Phone encounters
Judgment of quality – Tone of voice, audio disturbance, employee knowledge, effectiveness in handling customer
Types of Service Encounters
Remote encounter
Non- personal encounter, without human contact – New avenue has opened due to Technological innovations
Service Marketers Strategy
Reducing face to face encounters by increasing telephonic conversion and maximizing the remote encounters
Technology Spotlight Amazon.com A revolution in online shopping
Founder Jeff Bezos Started in July 1995 2.5 millions title in 1st year Sold 1.6 million customers in a year but soon diversified to product lines of VHS, DVD, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, Sells digital music – thro’ Sony Sales have touched $15 Billion in 2007 Books options- used, buy/sell, hire etc.
Get it by Wednesday, Jan 28 if you order in the next 16 hours and choose one-day shipping. Eligible for FREE Super Saver Shipping.
Sources of Pleasure and Displeasure in Service Encounter
Recording the stories from the customers – Closed MOTs, Open MOTs Recording the stories from the employee – In the shoe of customer, Open MOTs
The stories are analyzed to determine common themes of Satisfaction / Dissatisfaction and are classified as follows
Recovery – Employees response to service delivery system failure Includes, failure of service delivery, here the employee has to satisfy the disappointed customer
Adaptability – Employee response to customer needs and requests Includes the special need, demand or request by the customer. Here flexibility in employees approach and systems is at toss. Slight modification in SOP as a special need.
Spontaneity – Unprompted and unsolicited employee actions No service failure. Employee give good / bad service. e.g. special attention, loyal treatment Receiving something nice without request etc. Against rudeness, dishonest, ignorance etc.
Service Encounter Theme
Recovery
A gentleman left his shoes outside his room door to be polished. When he went to retrieve them, they were gone and was unable to find them The hotel staff took responsibility and within an hour the dealer of Branded shoes came with the 6 pairs of shoes to select from. Satisfaction
We had made advance reservations at the hotel. When we arrived we found we had no room. - no explanation, no apologies, no assistance in finding another hotel. Dissatisfaction
Service Encounter Theme
Adaptability
I didn’t have an appointment to see a Specialist (doctor). However my family Doctor spoke to his assistance and worked me that schedule. I received treatment after 10 mins. I was very satisfied
Satisfaction My young son, flying alone, was to be assisted by the air – hostess from start to finish. At a changeover air port , she left him alone in the airport with no one to escort him to The connected flight Dissatisfaction
Service Encounter Theme
Spontaneity
We always travel with our Teddy bears. When we got back to our room at the hotel we saw that the housekeeping staff had arranged Our Teddies were comfortably in a chair, holding hands.
Satisfaction We went to the 5 star hotel from our day long mountain trek and after a Bungee jump. Looking at our attire the waiter started ignoring us. After several calls came to us and were reluctant to serve us Wine bottle. One of the waitresses said that “we don’t have left hand menu” Dissatisfaction
General Service Behaviors – Do and Don’t
Do Recovery Acknowledge problem Explain causes Apologize Compensate/upgrade Take responsibility Don’t Ignore customer Blame customer / Downgrade Leave customer to “fend for him/herself Act as if nothing is wrong “pass the buck”
Adaptability Recognize the seriousness of the need Anticipate Attempt to accommodate Adjust the system Explain rules/policies
Promise, that fells to follow through Embarrass the customer Laugh at the customer Avoid responsibility “pass the buck”
Spontaneity Take time Anticipate needs Listen Provide information Show empathy
Exhibit impatience Yell/laugh/swear Steal from customers Discriminate
doc_174271371.pptx
This is a presentation decribes customers expectations from retail, zone of tolerance, influencing factors, gap in terms of percieved service and actial service and service encounter
WHY CUSTOMER GO TO AN ORGANISED RETAILER?
A MILLION DOLLAR QUESTION?
?
TO BUY A PRODUCT? OR TO TAKE HIS SERVICES?
Customer Expectations In Retailing
Meaning and Types of Customer Expectations
Meaning :
Customer expectations are hopes or wishes and beliefs Customer expectations are beliefs about service deliver that function as standards or reference points against which performance is judged.
Two level of Expectation
Desired Service : The service customer hope to receive The “wished for” level of performance Customer believe “can be” and “should be”
Though Desired expectations cannot be always hoped.
Even a lower level of acceptable service is recognized in certain cases
It is the threshold level of acceptable service which is Adequate service
Two level of Expectation
Infinite
Maximum Expectation
Desired Service Level of Expectation
Zone of Tolerance
Adequate Service
Minimum Tolerable Expectation
Customer assess service performance on the basis of 2 standards: What they desire and What they deem acceptable
Two level of Expectation
Over Pleased Customer
Desired Service Maximum Expectation
Level of Expectation
Zone of Tolerance Minimum Tolerable Expectation
Adequate Service
Unsatisfied Customer
Pizza Delivery – 30 to 50 mins Waiting in Checkout line in a Retail store - 5 to 10 mins
Zone of tolerance
The extent to which customers recognize and willing to accept this variation is called the Zone of Tolerance
Desired Service
Zone of Tolerance
Adequate Service
Service being Heterogeneous performance vary
Across provider Across employees of same provider Even within same service employee
Zone of Tolerance
Different customer possess different Zone of Tolerance
A BUSY CUSTOMER Desired Service Desired Service Desired Service Zone of Tolerance Adequate Service Adequate Service Works from Home Adequate Service Do not work Works outside the home
Zone of Tolerance
Zone of Tolerance
Zone of Tolerance
Zone of Tolerance vary for service dimensions
MOST OR LEAST IMPORTANCE
Desired Service Zone of Tolerance
Desired Service
Level of Expectation
Adequate Service Zone of Tolerance
Adequate Service
Most Important Factors
Least Important Factors
IMPORTANCE
Factors that influence Customer Expectations of Service
Factors that influence Desired Service Expectations
Derived service expectations: Personal or from others members e.g. Group, Family, members of society
Enduring Service Intensifiers
Desired Service Personal Needs
Zone of Tolerance
Conditions essential to the physical or psychological well being of the customer. Including social or functional needs
Adequate Service
Factors that influence Adequate Service Expectations
Transitory Service Intensifiers Desired Service
Perceived service Alternatives
Zone of Tolerance
Self perceived Service role
Adequate Service
Situational Factors
Factors that influence Adequate Service Expectations
Transitory Service Intensifiers Personal Emergencies were service is urgently needed eg. Home delivery from Pharmacy
Perceived service Alternatives
Possible other options which are available, other alternatives eg only retail, no other options
Self perceived Service role
The self role in the service performance
Situational Factors
Peak demand day Random Over demand Catastrophe
Predicted Service Expectations
Desired service –what customer wants
Adequate Service - what customers are willing to accept Predicted Service – what customer believes they are likely to get
Desired Service
Zone of Tolerance
Adequate Service
Predicted Services
Other Factors that influence Predicted Service Expectations
Explicit service promises
Implicit service Promises
Desired Service
Word of Mouth
Zone of Tolerance
Past Experience
Adequate Service
Predicted Services
Other Factors that influence Predicted Service Expectations
Explicit service promises Advertising / personal selling / Contracts/ Other communication
Implicit service Promises
Tangibles / Price
Word of Mouth
Personal / Experts (reports/ publicity / Consultants)
Past Experience
Your last experience
Enduring Service Intensifiers
Explicit service promises
Personal Needs
Implicit service Promises
Transitory Service Intensifiers
Word of Mouth Desired Service
Perceived service Alternatives
Past Experience
Zone of Tolerance
Self perceived Service role
Adequate Service
Predicted Services
Situational Factors
Enduring Service Intensifiers Personal Needs
Explicit service promises Implicit service Promises Word of Mouth Desired Service Past Experience
Transitory Service Intensifiers Perceived service Alternatives Self perceived Service role Situational Factors
Zone of Tolerance
Adequate Service
Predicted Services
Expected Service
CUSTOMER GAP
Perceived Service
Customer Gap is difference between What I thought and What I got
Perceived Service
Perceived service is the assessment of the customer of the quality of the service. Reliability Responsiveness Assurance Empathy Tangibles
Service Quality
Situational Factor
Product Quality
Customer Satisfaction
Price
Personal Factor
Customer Satisfaction
Apart from Product Quality, Service Quality and Price Situational and Personnel factors includes Consumer Emotion Positive frame of mind and Negative frame of mind Happiness, pleasure, elation and sense of warm heartedness enhances t he Customer Satisfaction While sadness, sorrow, regret and anger led negative Customer Satisfaction
Perception of Fairness Customer ask the questions to themselves Have I been treated fairly compared to others? Did other customers get better treatment, better price, better service? Did I pay a fair price for the service?
Every Service quality is assessed from certain Dimensions
Dimensions of Service Quality
Reliability – Delivering on Promises
Ability to perform the promised service, dependably and accurately Responsiveness – Being willing to help
Willingness to help customers and provide prompt service Assurance - Inspiring Trust and confidence Employee’s knowledge and courtesy & ability to inspire trust and confidence Empathy – Treating customer as individuals Caring, individualized attention given to customers Tangibles – Representing service physically Appearance of physical facilities. equipment, personnel and written material
Service Encounters or Moments of Truth (MOT)
The occasion when customer interact with the Retail firm
First encounter – First impression
Each individual encounter is important in creating a composite image of the firm
“ One bad apple ”ruins rest of encounters Each encounters adds to or detracts from the potential for a continuing relationship
Types of Service Encounters
Face to face encounter
Most complex, importance on verbal and non- verbal behaviors
Types of Service Encounters
Phone encounters
Judgment of quality – Tone of voice, audio disturbance, employee knowledge, effectiveness in handling customer
Types of Service Encounters
Remote encounter
Non- personal encounter, without human contact – New avenue has opened due to Technological innovations
Service Marketers Strategy
Reducing face to face encounters by increasing telephonic conversion and maximizing the remote encounters
Technology Spotlight Amazon.com A revolution in online shopping
Founder Jeff Bezos Started in July 1995 2.5 millions title in 1st year Sold 1.6 million customers in a year but soon diversified to product lines of VHS, DVD, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, Sells digital music – thro’ Sony Sales have touched $15 Billion in 2007 Books options- used, buy/sell, hire etc.
Get it by Wednesday, Jan 28 if you order in the next 16 hours and choose one-day shipping. Eligible for FREE Super Saver Shipping.
Sources of Pleasure and Displeasure in Service Encounter
Recording the stories from the customers – Closed MOTs, Open MOTs Recording the stories from the employee – In the shoe of customer, Open MOTs
The stories are analyzed to determine common themes of Satisfaction / Dissatisfaction and are classified as follows
Recovery – Employees response to service delivery system failure Includes, failure of service delivery, here the employee has to satisfy the disappointed customer
Adaptability – Employee response to customer needs and requests Includes the special need, demand or request by the customer. Here flexibility in employees approach and systems is at toss. Slight modification in SOP as a special need.
Spontaneity – Unprompted and unsolicited employee actions No service failure. Employee give good / bad service. e.g. special attention, loyal treatment Receiving something nice without request etc. Against rudeness, dishonest, ignorance etc.
Service Encounter Theme
Recovery
A gentleman left his shoes outside his room door to be polished. When he went to retrieve them, they were gone and was unable to find them The hotel staff took responsibility and within an hour the dealer of Branded shoes came with the 6 pairs of shoes to select from. Satisfaction
We had made advance reservations at the hotel. When we arrived we found we had no room. - no explanation, no apologies, no assistance in finding another hotel. Dissatisfaction
Service Encounter Theme
Adaptability
I didn’t have an appointment to see a Specialist (doctor). However my family Doctor spoke to his assistance and worked me that schedule. I received treatment after 10 mins. I was very satisfied
Satisfaction My young son, flying alone, was to be assisted by the air – hostess from start to finish. At a changeover air port , she left him alone in the airport with no one to escort him to The connected flight Dissatisfaction
Service Encounter Theme
Spontaneity
We always travel with our Teddy bears. When we got back to our room at the hotel we saw that the housekeeping staff had arranged Our Teddies were comfortably in a chair, holding hands.
Satisfaction We went to the 5 star hotel from our day long mountain trek and after a Bungee jump. Looking at our attire the waiter started ignoring us. After several calls came to us and were reluctant to serve us Wine bottle. One of the waitresses said that “we don’t have left hand menu” Dissatisfaction
General Service Behaviors – Do and Don’t
Do Recovery Acknowledge problem Explain causes Apologize Compensate/upgrade Take responsibility Don’t Ignore customer Blame customer / Downgrade Leave customer to “fend for him/herself Act as if nothing is wrong “pass the buck”
Adaptability Recognize the seriousness of the need Anticipate Attempt to accommodate Adjust the system Explain rules/policies
Promise, that fells to follow through Embarrass the customer Laugh at the customer Avoid responsibility “pass the buck”
Spontaneity Take time Anticipate needs Listen Provide information Show empathy
Exhibit impatience Yell/laugh/swear Steal from customers Discriminate
doc_174271371.pptx