Description
Presentation about service industry expectations in terms of expected service, perceived service in terms of customer gap.
Customer’s Perception of Service
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
What is customer satisfaction?
Satisfaction is the customer’s fulfillment response.
It is a judgment that a product or service itself, provide a pleasurable level of consumption- related fulfillment.
In simple words it is the evaluation of the customer whether that product or service has met their needs and expectations
Service Quality
Service Quality and Customer’s satisfaction go hand in hand
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 the 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
5 Dimensions of Service Quality
Car Repair Airlines Doctor Architect
Reliability Responsiveness Assurance Empathy Tangibles
Customer Satisfaction Index
American Customer Satisfaction Index (ACSI) Features 200 firms 250 interviews with current customer Based on 1. Quality, 2. Value, 3. Satisfaction, 4. Expectations, 5. Complaints and 6.Future Loyalty
Results of ACSI
Most Satisfied with non-durables A bit less satisfied by durables Least satisfied by the services
Relationship between Customer satisfaction and Loyalty
100
Loyalty ( Retention) (%)
80
60
40
20
Very Dissatisfied
Dissatisfied
Neither satisfied Nor Dissatisfied
Satisfied
Very Satisfied
Satisfaction measure
Service Encounters or Moments of Truth (MOT)
The occasion when customer interact with the Service 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
Service Encounters
Industry based encounters
Hotel visit
Check-in Bell person takes to room Restaurant meal Wake-up Call Check out
Service Encounters
Industry based encounters
Industrial Purchase Sales Call Delivery & Installation Servicing
Ordering of Supply
Billing
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.
Coping – Employee response to problem customers
Customer themselves were the cause of their dissatisfaction. Such customers are un co-operative, Unwilling to cooperate with the providers, other customers, industry regulation 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
Service Encounter Theme
Coping
A person who became intoxicated on a flight started speaking loudly, annoying the other passengers. The flight attendant asked the passenger if he would be driving when the plane landed and offered him coffee. He accepted the Coffee and become quieter and friendlier
Satisfaction
While a family of 3 were waiting to order dinner, the father began hitting his child. Another customer complained about this to the manger who then, in a friendly and sympathetic way, asked the family to leave. The father knocked all of the plates and glasses off the table before leaving.
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 Promise, that fells to follow through Anticipate Embarrass the customer Attempt to accommodate Laugh at the customer Adjust the system Avoid responsibility Explain rules/policies “pass the buck” Take time Anticipate needs Listen Provide information Show empathy Listen Try to accommodate Explain Let go of the customer Exhibit impatience Yell/laugh/swear Steal from customers Discriminate Take customer’s dissatisfaction personally Let customer’s dissatisfaction affect others
Spontaneity
Coping
Evidence of Service
•Contract employees •Customer him/herself •Other customers
People
•Operational flow of activities •Steps in process •Flexibility versus standard •Technology versus human
Process
Physical Evidence
•Tangible communication •Servicescape •Guarantees •Technology
doc_474655341.ppt
Presentation about service industry expectations in terms of expected service, perceived service in terms of customer gap.
Customer’s Perception of Service
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
What is customer satisfaction?
Satisfaction is the customer’s fulfillment response.
It is a judgment that a product or service itself, provide a pleasurable level of consumption- related fulfillment.
In simple words it is the evaluation of the customer whether that product or service has met their needs and expectations
Service Quality
Service Quality and Customer’s satisfaction go hand in hand
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 the 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
5 Dimensions of Service Quality
Car Repair Airlines Doctor Architect
Reliability Responsiveness Assurance Empathy Tangibles
Customer Satisfaction Index
American Customer Satisfaction Index (ACSI) Features 200 firms 250 interviews with current customer Based on 1. Quality, 2. Value, 3. Satisfaction, 4. Expectations, 5. Complaints and 6.Future Loyalty
Results of ACSI
Most Satisfied with non-durables A bit less satisfied by durables Least satisfied by the services
Relationship between Customer satisfaction and Loyalty
100
Loyalty ( Retention) (%)
80
60
40
20
Very Dissatisfied
Dissatisfied
Neither satisfied Nor Dissatisfied
Satisfied
Very Satisfied
Satisfaction measure
Service Encounters or Moments of Truth (MOT)
The occasion when customer interact with the Service 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
Service Encounters
Industry based encounters
Hotel visit
Check-in Bell person takes to room Restaurant meal Wake-up Call Check out
Service Encounters
Industry based encounters
Industrial Purchase Sales Call Delivery & Installation Servicing
Ordering of Supply
Billing
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.
Coping – Employee response to problem customers
Customer themselves were the cause of their dissatisfaction. Such customers are un co-operative, Unwilling to cooperate with the providers, other customers, industry regulation 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
Service Encounter Theme
Coping
A person who became intoxicated on a flight started speaking loudly, annoying the other passengers. The flight attendant asked the passenger if he would be driving when the plane landed and offered him coffee. He accepted the Coffee and become quieter and friendlier
Satisfaction
While a family of 3 were waiting to order dinner, the father began hitting his child. Another customer complained about this to the manger who then, in a friendly and sympathetic way, asked the family to leave. The father knocked all of the plates and glasses off the table before leaving.
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 Promise, that fells to follow through Anticipate Embarrass the customer Attempt to accommodate Laugh at the customer Adjust the system Avoid responsibility Explain rules/policies “pass the buck” Take time Anticipate needs Listen Provide information Show empathy Listen Try to accommodate Explain Let go of the customer Exhibit impatience Yell/laugh/swear Steal from customers Discriminate Take customer’s dissatisfaction personally Let customer’s dissatisfaction affect others
Spontaneity
Coping
Evidence of Service
•Contract employees •Customer him/herself •Other customers
People
•Operational flow of activities •Steps in process •Flexibility versus standard •Technology versus human
Process
Physical Evidence
•Tangible communication •Servicescape •Guarantees •Technology
doc_474655341.ppt