Categories in Consumer DecisionMaking and Evaluation of Services

Information Search
Use of personal sources Perceived risk

Evaluation of Alternatives
Evoked set Emotion and mood

Values and attitudes

Culture

Manners and customs Material culture Aesthetics Educational and social

institutions

Purchase and Consumption

Service provision as drama Service roles and scripts Compatibility of customers

Post-Purchase Evaluation
Attribution of dissatisfaction Innovation diffusion Brand loyalty

Customer Expectations of Service

Meaning and Types of Services Expectations Factors that Influence Customer Expectations of Service A Model of Customer Service Expectations Issues Involving Customer Service Expectations

Dual Customer Expectation Levels

Desired Service

Adequate Service

The Zone of Tolerance

Desired Service

Zone of Tolerance

Adequate Service

Internal Antecedents of Consumer Expectations

Individual needs Level of involvement Past experience Service philosophy

External Antecedents of Consumer Expectations

Competitive options Social context Word-of-mouth communication

Situational Factors Impacting Consumer Expectations

Reason for purchase Consumer mood Weather Time constraints Emergency

Firm-Produced Antecedents of Consumer Expectations

Promotions Price Distribution Service personnel Other customers Firm image Pre-service waiting Tangible cues

Role of Consumer Expectations

During Pre-Purchase Phase During Service Encounter During Post-Purchase Phase

Managing Consumer Expectations During Pre-Purchase Phase

Learn what customers expect. Tell customers what to expect. Consistently provide the service customers expect.

Managing Consumer Expectations During Service Encounter

Communicate with customers during the service. If possible, modify the service to meet customer expectations. Explain why service cannot be modified.

Managing Consumer Expectations During Post-Purchase Phase

Communicate to see if expectations were met. Develop a follow-up program. Develop a procedure for dealing with dissatisfied customers.

Zones of Tolerance for Different Service Dimensions

Desired Service

Level of Expectation

Zone of Tolerance
Adequate Service

Desired Service

Zone of Tolerance Adequate Service

Most Important Factors

Source: Berry, Parasuraman, and Zeithaml (1993)

Least Important Factors

Zones of Tolerance for First-Time and Recovery Service

First-Time Service Outcome Process

Recovery Service Outcome Process LOW

Source: Parasuraman, Berry and Zeithaml (1991)

Expectations

HIGH

Factors That Influence Desired Service

Enduring Service Intensifiers

Desired Service
Personal Needs

Zone of Tolerance Adequate Service

Factors That Influence Adequate Service

Transitory Service Intensifiers

Desired Service
Perceived Service Alternatives

Zone of Tolerance Adequate Service

Self-Perceived Service Role

Situational Factors

Factors That Influence Desired and Predicted Service

Explicit Service Promises

Implicit Service Promises

Desired Service

Word-of-Mouth

Zone of Tolerance Adequate Service

Past Experience

Predicted Service

Customer Perceptions of Service

Customer Perceptions Customer Satisfaction Service Quality Service Encounters: The Foundations for Satisfaction and Service Quality Strategies for Influencing Customer Perceptions
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Customer Perceptions of Service Quality and Customer Satisfaction

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Factors Influencing Customer Satisfaction

Product/service quality Product/service attributes or features Consumer Emotions Attributions for product/service success or failure Equity or fairness evaluations

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Outcomes of Customer Satisfaction

Increased customer retention Positive word-of-mouth communications Increased revenues

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Relationship between Customer Satisfaction and Loyalty in Competitive Industries

Source: James L. Heskett, W. Earl Sasser, Jr., and Leonard A. Schlesinger, The Service Profit Chain, (New York, NY: The Free Press, 1997), p. 83.

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Service Quality

The customers 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

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The Five Dimensions of Service Quality

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

Exercise to Identify Service Attributes

In groups of five, choose a services industry and spend 10 minutes brainstorming specific requirements of customers in each of the five service quality dimensions. Be certain the requirements reflect the customers point of view.

Reliability: Assurance: Tangibles: Empathy: Responsiveness:

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SERVQUAL Attributes
RELIABILITY

EMPATHY

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 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

Giving customers individual attention Employees who deal with customers in a caring fashion Having the customers best interest at heart Employees who understand the needs of their customers Convenient business hours Modern equipment Visually appealing facilities Employees who have a neat, professional appearance Visually appealing materials associated with the service

TANGIBLES

ASSURANCE

Employees who instill confidence in customers Making customers feel safe in their transactions Employees who are consistently courteous Employees who have the knowledge Dr.to Vinita Sahay answer customer questions

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

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A Service Encounter Cascade for a Hotel Visit

Check-In Bellboy Takes to Room Restaurant Meal Request Wake-Up Call Checkout

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A Service Encounter Cascade for an Industrial Purchase

Sales Call

Delivery and Installation

Servicing Ordering Supplies

Billing

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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
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Sample Questions for Critical Incidents Technique Study

Think of a time when, as a customer, you had a particularly satisfying (dissatisfying) interaction with an employee of . 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)? Dr. Vinita Sahay

Common Themes in Critical Service Encounters Research

Recovery:
Employee Response to Service Delivery System Failure

Adaptability:
Employee Response to Customer Needs and Requests

Coping:
Employee Response to Problem Customers

Spontaneity:
Unprompted and Unsolicited Employee Actions and Attitudes

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Recovery
DO DONT

Acknowledge
problem Explain causes Apologize Compensate/upgrade Lay out options Take responsibility
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Ignore customer Blame customer Leave customer to

fend for him/herself Downgrade Act as if nothing is wrong

Adaptability
DO
Recognize the
seriousness of the need Acknowledge Anticipate Attempt to accommodate Explain rules/policies Take responsibility Exert effort to accommodate
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DONT
Promise, then fail to
follow through Ignore Show unwillingness to try Embarrass the customer Laugh at the customer Avoid responsibility

Spontaneity
DO

Take time Be attentive Anticipate needs Listen Provide information (even if not asked) Treat customers fairly Show empathy Acknowledge by name
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DONT

Exhibit impatience Ignore Yell/laugh/swear Steal from or cheat a customer Discriminate Treat impersonally

Coping
DO

DONT

Listen Try to accommodate Explain Let go of the customer

Take customers
dissatisfaction personally Let customers dissatisfaction affect others
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Evidence of Service from the Customers Point of View

Contact employees Customer him/herself Other customers

Operational flow of activities Steps in process

People

Flexibility vs. standard

Technology vs. human

Process

Physical Evidence

Tangible communication

Servicescape
Guarantees Technology Website
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