3.

2 CUSTOMERS PERCEPTION
OF SERVICE
 Customers assess whether they have
received quality service and whether
they are satisfied.

 Customers perceive service in terms of

quality and how satisfied they are
with over all experiences.
SERVICE QUALITY DIMENSION
 Customers judge quality of service on the basis of multiple factors.
Ex: quality of automobiles :it is based on serviceability, prestige, reliability,
durability and functionality.

Five dimension of service quality are:

1. Reliability: ability to perform the promised service dependably and
accurately.
Reliability is defined as the ability to perform the promised service
dependably and accurately based on the promises of the company.
 Prices of the service
 Problem resolving
 Promises about the delivery of service
 2. Responsiveness : willingness to help customers and to
provide prompt service. It is communicated to customers
by the length of time. Attentiveness and promptness in
dealing with customers request.
 Standards and promptness to answer customers questions
need to be maintained.
 3.Assurance: inspiring trust and confidence:
 Assurance is defined as employees knowledge and
courtesy and the ability of the firm and its employees to
inspire trust and confidence.
 Ex: personal banker.
 Insurance brokers
 4. Empathy : treating customers as individuals:
 Empathy is defined as the caring individuals attention the firm
provides to its customers.
 Customers want to be felt understood.
 B to B- customers want their suppliers to understand them
 Counseling departments
 5. Tangibles: representing the service physically: Physical evidence of
the service.
 Hospitality industries.
 Land, building, landscape, parking lot, restaurants etc.
 EXAMPLES OF DIMENSION
DIMENSION SPECIFIC QUESTION
Tangibles- appearance, Are the bank facilities attractive?
equipment, personnel Is my credit card statement easy to understand?
Reliability- ability to When a loan officer says the will all me
perform the promised back in 15 minutes?
service Is my credit card free of errors.
Responsiveness- Willing Does the bank willing to resolve my
ness to help customers problems quickly?
Competence- possession Is the bank teller able to process my
of the required skills and transactions without fumbling around?
knowledge
Courtesy: Does the bank teller have pleasant
demeanor?
 Credibility?
 Security?
 Access?
 Communications?
 Understanding?
Credibility- trust worthiness,
honesty of the service
Security: Freedom from
danger, risk
Does the bank have good reputation?
Are the interest rates charged by credit t
card consistent
Is it safe to use ATM?
Is my credit card safe from unauthorized
use?

Access: Approachability and Is it easy to get through by personal

ease of contact banker on phone?.
Toll free number of credit card?

Communications: Keeping Loan officer explaining various s charges

customers informed in language of loan and installment.
they can understand
Understanding: making Does some one in the bank
the effort to know recognize me as a regular
customers customers?
Is the credit card limit set by the
company is consistent.
E- service quality
 Efficiency- ease and speed of accessing and using the site.
 fulfillment- order delivery and item available.
 Reliability- correct technical functioning of the site.
 Privacy- safe and protects customer information
E-TAILING
 e-tailing, or e-commerce can be described as
transactions that are conducted over an electronic
network, where the buyer and merchant are not at the
same physical location, for example plastic card
transactions via the internet.
According to a recent study:
 Presently there are 4 million Internet users in India and

the number is growing. Computer Hardware, cinema,

Books, Music cassettes /CDs, travel tickets and gifts are
sold through the net in a big way.
 e-Services or "eServices" is a highly general usually
referring to the provision of services via the Internet .

It is true Web jargon, meaning just about anything done online.

 It can cause confusion when used in conjunction with
"Support," as who knows the difference between "eServices"
and online Support. It is often best to be avoided for this
reason, especially in Website navigation.
 e-Services include "e-commerce," although they may also
include non-commercial services.
 Non-ecommerce e-services include (at least some) “E-
government" services.
 FIVE DIMENSIONS OF SERVICE QUALITY

Reliability Responsive Assurance Empathy Tangibles

ness

CAR Problems of car Accessible. Knowledge Acknowledge Repair facility.

REPAIR fixed. able customer by
(Consu No waiting mechanics name. Uniforms
mer) Repairs are done
and ready when Responds to Remember Equipments and
promised requests previous problem. tools.

Airline Flights take off Prompt and Trusted name, Understands Aircraft,
(Consu and arrive on speedy system for special individual Ticketing
mer) time ( as ticketing good safety record needs. counters,
promised/
scheduled) In-flight baggage Competent Baggage areas,
handling employee
Uniforms.
Equipments,
 Draft five dimensions of service quality
for medical care ??????????????????
Examination room
Waiting room
Credentials
Knowledge skills….
Listening to the patient
Diagnosis…..patient profile
Has Patience ……
 Reliability Assurance Empathy Tangibles
Responsivene
ss
Medical Appointment Accessible to Knowledge, Acknowledge Waiting
Care s are kept on waiting, skills s patient as room
schedule, a person
Willingness to credentials, Exam room
Diagnosis listen Remembers
prove reputation previous Equipment
accurate problems Written
materials
Listens well

Has patience
Service encounters /Moments of truth
 Moments of truth- customer interacts with the
service providers.
 Customers of hotel when they enter the hotel will
check each and every aspect of the service.
 Ex: in a hotel Receiving the customer, checking in to
the hotel, restaurants, meals, wake up calls,
entertainment, checking out.
 The customers if they are unhappy at the first
encounters chances are that they will continue
getting negative feeling in future. Some service
providers have less moments of truth than the other.
 Some service providers have few encounters and
some have many.
Importance of encounters
 Creating first impression of service
 Determining customer satisfaction and loyalty
 Composite image building through multiple positive
encounters.

 (what happens when customers have both positive

and negative encounter?)
 Customer are left confused, cannot judge quality,
consistency, vulnerable to the appeals of competitors
TYPES OF SERVICE ENCOUNTERS
 Remote encounters: Customers have contact with the help of
technology.
Ex: bank through ATM , network banking, web site, mail order
service.
Airline ticketing, repair and maintenance trouble shooting, Courier
services through net,
 Phone encounter:
Insurance companies, telecommunication services
 Face to face encounters: service providers and customers.
maintenance services, ticketing service, consultants,
salespeople, delivery personnel, etc.
ONE CRITICAL ENCOUNTER DESTROYS 30 YEARS
RELATIONSHIP

“ If you have $1 in a bank or $ 1 million, I think they owe you the courtesy of stamping your
parking ticket” said John Barrier.
In 1989 Mr. Barrier paid a visit to his bank in Spokane Washington. He was wearing his usual
shabby clothes and pulled on his pickup truck, parking near the parking lot.
After cashing a cheque, he went outside to drive away and was stopped by a parking attendant who
told him there was 60% fee, but that he could get his slip validated in the bank and park for
free.
He went into the bank. ( he had been banking for 30 years). the teller looked up at him and refused
to stamp his slip telling him that the bank validated parking only for people who have
transactions with the bank.
Mr. Barrier then asked to see the bank manager, who also looked at him up and down, stood back
and refused to validate the bill.
Mr. Barrier said. “Fine”. You don’t need me, I don’t need you either.
He withdrew all his money and took it down the street to a competing bank, where the first amount
he deposited was $1,000,000 in the other bank.

( Shabby millionaire closes account- The Arizona Republic issue in 1989)

Service encounter theme 1: Recovery

 If the service had failed at a certain time, what has been the
solution from the service provider.
 The solution is identified as recovery.
 Recovery can be good or bad. (Satisfactory or Dissatisfactory)
Sources of pleasure and displeasure in service
encounter
 Services can lead a pleasure or delight and at the same time
displeasure with the service providers.
 Frequent questions asked are:
1. When did the incident happened?
2. What specific circumstances led up to this situation?
3. Exactly what the Employee say or to do?
4. What could or should have been done differently?
 Service encounter theme 1: Recovery
Satisfactory
They lost my room reservation but
the manager gave me the V.I. P.
suite for the same price
Even though I did not make any
complaint about the hour and a half
wait, the waitress kept apologizing
and said the bill was on the house.
Dissatisfactory
We had made advance reservations at
the hotel. When we arrived we found we
had no room no explanation, no
apologies, no help
One of my suitcases was all dented up
and looked like it had been dropped from
30,000 feet. When I tried to make a chain
for my damaged luggage, the employee
insinuated that I was lying and trying to
rip them off.
Satisfactory Dissatisfactory

(Employee response to customer needs and requests)

 Adaptability means how adaptable the service delivery system towards
customers special needs or requests.

 The customers are very happy when the service providers

accommodate and adjust the system to meet their requirements.
 They are unhappy when the service providers do not accommodate the
special requirements of the customers.
 Service encounter theme 2 : Adaptability

Satisfactory Dissatisfactory

It was snowing outside, my car
broke down. I checked 10 hotels
and there were no rooms. Finally
one understood my situation and
offered to rent me a bed and set it
Despite our repeated request the hotel
staff did not deal with the noisy people
partying in the hall at 3 am.

up in a small banquet room.

 Service encounter theme 3: Spontaneity

(Unprompted and unsolicited employee action)

Actions/ behaviors of the employee at the time of the service encounter
which is instantaneous.
Satisfactory unsatisfactory

I was preparing for the presentation . An  I needed few more minutes to

employee from the other department
provided me with the input and also
made a constructive criticism of the
improving my presentation. I was really
impressed.
decide on a dinner. The waitress
said, “ if you would read the
menu and not the road map, you
would know what you want to
order”

 The receptionist at the desk

acted as if we were bothering
her. She was watching TV and
paying mire attention to the TV
than to the hotel guest
Service encounter theme 4: Coping

Employee response to problem customers.

Customers who are unwilling to cope with the service providers, industry
regulations and laws.
copying is used to describe these incidents because this is the behavior
generally required of employee to handle problem customer
encounters.
Service encounter theme 4: Coping
Satisfactory
An intoxicated passenger was
speaking loudly, and was annoying
customer.
The flight attendant asked the
passenger if he was driving once
the plane landed and offered him
coffee. He accepted the coffee and
became quieter.
unsatisfactory
The family of three were waiting to
order food. The father began to hit
the child. Another customer
complained about this to the
manager. The family was asked to
leave the hotel. The father knocked
all the plates and glasses off the
table before leaving.