SERVICE

MARKETING
CUSTOMER PERCEPTIONS
Of SERVICE

Chapter # 5

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C USTOMER PERCEPTIONS

How customers perceive services, how they assess

whether they have experienced quality service and
whether they are satisfied are the subjects of this
chapter.

We will be focusing on the perceived service box in the

gaps model.

Because expectations are dynamic, evaluations may also

shift over time from person to person and from culture
to culture.
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S ATISFACTION V ERSUS
S ERVICE Q UALITY

Practitioners and writers in the popular

press tend to use the terms satisfaction and
quality interchangeably, but researchers
have attempted to be more precise about
the meanings and measurement of the two
concepts.
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S ATISFACTION V ERSUS
S ERVICE Q UALITY

Satisfaction is generally considered as

broader concept.
Service quality assessment focuses
specifically on dimensions of service.
Perceived service quality is the
component of customer satisfaction.
 C USTOMER PERCEPTIONS OF QUALITY
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AND CUSTOMER SATISFACTION
6 C USTOMER PERCEPTIONS OF QUALITY
AND CUSTOMER SATISFACTION

The quality of the product depends on the following

issues:
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.
Empathy: Caring, individualized attention given to
customers.
Tangibles: Appearance of physical facilities, equipment,
personnel and written materials.
Customer satisfaction on the other hand is more inclusive, it is
influenced by perceptions of service quality, product quality,
and price as well as situational factors and personal factors.
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W HAT IS CUSTOMER SATISFACTION ?
Customer satisfaction is 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.
Satisfaction can be related to the following feelings:
Fulfillment in the knowledge that ones need have been
met, satisfaction can also be related to other types of
feelings, depending on the particular context or type of
service.
Satisfaction can be viewed as Contentment more passive
response that consumers may associate with service they
dont think a lot about or services that they receive routinely
over time.
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W HAT IS CUSTOMER SATISFACTION ?

Pleasure: Services that make the consumers feel

good are associated with sense of happiness.

Delight: For those services which really surprise

the consumer in a positive way.

Relief: When removal of any negative leads to

satisfaction the consumer may associate a sense of
relief.

Ambivalence: When there is a mix of positive and

negative experiences associated with the product or
service.
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W HAT DETERMINES
CUSTOMER SATISFACTION ?

Product and Service Features

Consumer Emotions
Attributions for service success or
failure
Perceptions of equity and fairness.
Other consumers, family members
and co-workers.
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O UTCOMES OF
CUSTOMER SATISFACTION ?

Increased Customer Retention

Positive word-of-mouth
Communications
Increased Revenues
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S ERVICE QUALITY
Service Quality is a critical element of
customer perceptions. In the case of pure
services (e.g. health care, financial services,
education), service quality will be the
dominant element in customers evaluations.
In cases in which customer service or services
are offered in a combination with a physical
product (e.g. IT services, auto services),
service quality may also be very critical in
determining customer satisfaction.
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S ERVICE QUALITY

The customers judgment of overall

excellence of the service provided in
relation to the quality that was
expected.
Process and outcome ,quality are
both important.
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T HE F IVE D IMENSIONS OF
S ERVICE Q UALITY (RATER)

Reliability Ability to perform the promised

service dependably and accurately.
Knowledge and courtesy of
Assurance employees and their ability to
convey trust and confidence.
Tangibles Physical facilities, equipment, and
appearance of personnel.
Caring, individualized attention the
Empathy firm provides its customers.
Willingness to help customers and
Responsiveness provide prompt service.
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T HE F IVE D IMENSIONS OF
S ERVICE Q UALITY
Reliability
n Providing service as promised
n Dependability in handling customers service problems
n Performing services right the first time
n Providing services at the promised time
n Maintaining error-free records

Responsiveness
n Keeping customers informed as to when services will be
performed
n Prompt service to customers
n Willingness to help customers
n Readiness to respond to customers requests
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T HE F IVE D IMENSIONS OF
S ERVICE Q UALITY
Assurance
n Employees who instill confidence in customers
n Making customers feel safe in their transactions
n Employees who are consistently courteous
n Employees who have the knowledge to answer customer
questions

Empathy
n Giving customers individual attention
n Employees who deal with customers in a caring fashion
n Having the customers best interest at heart
n Employees who understand the needs of their customers
n Convenient business hours
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T HE F IVE D IMENSIONS OF
S ERVICE Q UALITY

Tangibles
n Modern equipment
n Visually appealing facilities
n Employees who have a neat, professional appearance
n Visually appealing materials associated with the service
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S ERVICE E NCOUNTERS OR
M OMENTS OF T RUTH
From customers point of view the most vivid
impression of service occurs in the service
encounter or moment of truth, when the customer
interacts with the service firm.
Logic suggests all encounters are equally important in
building relationships. For every organization,
certain encounters are probably key to customer
satisfaction. Suppose in a hospital context,
encounter with nursing staff were more important
in predicting satisfaction.
Aside from the common key encounters, there are
some momentous encounters that are crucial.
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T YPES OF S ERVICE E NCOUNTERS

Remote Encounters: Encounter can

occur without any direct human
contact. Example: ATM, Online
Shopping, billing statements etc.
Phone Encounters
Face to face Encounters
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O PPORTUNITIES OF S ERVICE
E NCOUNTERS

Build Trust
Reinforce Quality
Build Brand Identity
Increase Loyalty
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A S ERVICE E NCOUNTER
FOR A H OTEL V ISIT (E XAMPLE )

Check-In

Bellboy Takes to Room

Restaurant Meal

Request Wake-Up Call

Checkout
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C OMMON T HEMES IN C RITICAL
S ERVICE E NCOUNTERS R ESEARCH

Recovery: Adaptability:
Employee Response Employee Response
to Service Delivery to Customer Needs
System Failure and Requests

Coping: Spontaneity:
Employee Response Unprompted and
to Problem Customers Unsolicited Employee
Actions and Attitudes
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C OMMON T HEMES IN C RITICAL
S ERVICE E NCOUNTERS R ESEARCH
Contact employees

People Customer him/herself

Other customers
Operational flow
of activities
Steps in process
Process
Flexibility vs.
standard Tangible
communication
Technology vs.
human Physical Servicescape

Evidence Guarantees
Technology
Website
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END OF THE CHAPTER