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- Dwayne D. Gremler

Customer Perceptions of Service

(Chapter 5)

Customer Satisfaction

influencing factors, outcomes

satisfaction and loyalty

Service Quality

dimensions

Service Encounters

types of encounters

sources of pleasure/displeasure

Strategies for Influencing Customer Perceptions

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- Dwayne D. Gremler

Two Types of Customers

External Customers

Internal Customers

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- Dwayne D. Gremler

Customer Satisfaction

What is it?

Failure to meet needs and expectations usually

results in dissatisfaction.

Satisfaction is thought to be

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- Dwayne D. Gremler

Customer Satisfaction

satisfaction is thought to be influenced by:

satisfaction can only be assessed following

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- Dwayne D. Gremler

Satisfaction and Service Quality

Figure 5.1

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- Dwayne D. Gremler

Outcomes of Customer Satisfaction

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- Dwayne D. Gremler

0%

20%

40%

60%

80%

100%

Very

dissatisfied

Dissatisfied Neither

satisfied nor

dissatisfied

Satisfied Very

satisfied

Satisfaction measure

Lo

yalt

y (

rete

nti

on

)

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.

Figure 5.4

Customer Satisfaction and Loyalty in

Competitive Industries

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- Dwayne D. Gremler

Service Quality

is “the delivery of

service quality dimensions

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- Dwayne D. Gremler

Dimensions of Service Quality

Service

Quality

Reliability

Responsiveness

Assurance

Empathy

Tangibles

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- Dwayne D. Gremler

Service Quality Dimensions

reliability ( )

responsiveness ( )

assurance ( )

empathy ( )

tangibles ( )

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- Dwayne D. Gremler

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

RELIABILITY

RESPONSIVENESS

Employees who instill confidence in customers

Making customers feel safe in their transactions

Employees who are consistently courteous

Employees who have the knowledge to answer customer questions

ASSURANCE

Giving customers individual attention

Employees who deal with customers in a caring fashion

Having the customer’s best interest at heart

Employees who understand the needs of their customers

Convenient business hours

EMPATHY

Modern equipment

Visually appealing facilities

Employees who have a neat, professional appearance

Visually appealing materials associated with the service

TANGIBLES

Service Quality (SERVQUAL) Attributes

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- Dwayne D. Gremler

The Service Encounter

is the “moment of truth”

types of encounters:

is an opportunity to: build trust, reinforce quality, increase loyalty

sequential service encounter examples:

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- Dwayne D. Gremler

Check-In

Request Wake-Up Call

Checkout

Bellboy Takes to Room

Restaurant Meal

A Service Encounter Cascade for a

Hotel Visit

Figure 5.5

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- Dwayne D. Gremler

Sources of Pleasure/Displeasure in

Service Encounters

Recovery

Adaptability

Spontaneity

Coping

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- Dwayne D. Gremler

The Evidence of Service from the

Customer’s Point of View

Operational flow of

activities

Steps in process

Flexibility vs.

standard

Technology vs.

human

Tangible

communication

Servicescape

Guarantees

Technology

Contact employees

Customer him/herself

Other customers

Figure 5.7

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Strategies for Influencing Customer

Perceptions

effective

emphasize

use the

assume ALL

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- Dwayne D. Gremler

DO DON’T

Recovery

Acknowledge problem

Explain causes

Apologize

Compensate/upgrade

Lay out options

Take responsibility

Ignore customer

Blame customer

Leave customer to fend for

him/herself

Downgrade

Act as if nothing is wrong

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- Dwayne D. Gremler

DO DON’T

Adaptability

Recognize the seriousness

of the need

Acknowledge

Anticipate

Attempt to accommodate

Explain rules/policies

Take responsibility

Exert effort to

accommodate

Promise, then fail to follow

through

Ignore

Show unwillingness to try

Embarrass the customer

Laugh at the customer

Avoid responsibility

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- Dwayne D. Gremler

DO DON’T

Spontaneity

Take time

Be attentive

Anticipate needs

Listen

Provide information (even if

not asked)

Treat customers fairly

Show empathy

Acknowledge by name

Exhibit impatience

Ignore

Yell/laugh/swear

Steal from or cheat a

customer

Discriminate

Treat impersonally

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- Dwayne D. Gremler

DO DON’T

Coping

Listen

Try to accommodate

Explain

Let go of the customer

Take customer’s

dissatisfaction personally

Let customer’s

dissatisfaction affect others