services marketing - ppt shared 1
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In our life
Consultation
Movie Cinema
Coaching / Training
Airlines
Computer software
Mobile Network
Electronic Gadgets
Automobiles
Cosmetics
Detergents Fast Food JointsFinancial Institution BanksGenera Stores
Saloons /Beauty Parlors
Advertising Agency
Direct to Home
Insurance
Groceries
Packaged food
Super Market
HouseApparels
Books & Magazines
Health Care / Hospitals
Medicines
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Contribution of Services to the GDP
Year Agriculture Industries Services
1951 52 55.4 15.4 29.3
1961 - 62 49.4 19.5 31.1
Source : Reserve Bank Of India, Office of Statistics
1971 - 72 43.1 22.5 34.51981 - 82 37.6 24.6 37.9
1991 92 30.3 25.6 44.1
2001 - 02 24 25 51
2010 - 11 14.6 28.5 56.9
Agriculture Sector employs approximately 52% of the countrys workforceAutomobile and ancillaries is currently the fastest growing industry in India alongwith Infrastructure
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Indian Service Sector BreakupSource : Reserve Bank Of India, Office of Statistics
THTC - Construction, Trade, Hotels, Transport, & CommunicationsFIRBS - Finance, Insurance, Real Estate, & Business ServicesCSPS - Community, Social & Personal Services
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What is Service? The Old View
Service is a technical after-sale function that is provided bythe service department.
Old:Service =wrench time
Old view of service =Customer Service Center
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What is Service? The New View
Service includes every interaction between any customerand anyone representing the company, including:Dealers
Web site and
Salespeople
Receptionistsand
Schedulers
Managementand Executives
ServiceEmployees
Billing andAccounting
Personnel
any e-channelInteraction
Customer
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What are Services? Definition
Services are a means of delivering value to customerswithout requiring the customer to own specific of thecosts and risks.
Lets break the definition to get more specific means of delivering value - value is defined in terms of utility (fit for purpose) and
warranty (fit for use). Using the service should lead to the desired outcome.
customer -A customer is someone who buys goods or services
without requiring the customer to own specific of the costs and risks - doesnot have to worry about the capabilities and resources required to provide theservice. My risk is limited to the choice made.
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Economic Definition of Services
In Economics, a service is an intangible commodity.More specifically, services are an intangible equivalentof economic goods.
which means - Service is an economic activity where the buyer doesnot generally, except by exclusive contract, obtain exclusive ownershipof the thing purchased.
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Are you satisfied with theCustomer Service you receive?
Promised V/s. Delivered Staff Knowledge and Professionalism
Increased use of Self Service and less human interface
ncrease use o ec no ogy u poor y es gne sys em
Cost Cutting. Profit Center V/s. Cost Center
Lip Service. No real intent.
Delivering consistent High Quality Service is not easy.
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Is Marketing of Services Different?
Services Goods Sales and operations are closely
linked. Production is a part ofthe sales process
Sales and Production aredecoupled.
Customer inter ace is a majordifference.
No stock inventories. It has torely on the mental inventory ofthe sales person
eop e uy pro uct ecause t eybelieve they work.
Goods are produced and stockedas per the market demand
People deal with people they like; and they buy services because
they believe they will like them as well.
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Why do firms focus on Services?
Services can provide higher profit margins and growthpotential than products
excellence
Services can be used as a differentiation strategy in
competitive markets
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Why study Services Marketing?
Service-based economies
Service as a business imperative in manufacturingand IT
Deregulated industries and professional serviceneeds
Services marketing is different
Service equals profits
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Service Can Mean all of These Service as a product
Customer service
Services as value add forgoods
Service embedded in atangible product
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Characteristics of ServicesCompared to Goods
Intangibility Heterogeneity
Perishability
Simultaneous
ProductionandConsumption
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Implications of Intangibility
Services cannot be inventoried
Services cannot be easily patented
Services cannot be readily displayed or communicated
Pricing is difficult
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Implications of Heterogeneity
Service delivery and customer satisfaction depend onemployee and customer actions
factors
There is no sure knowledge that the service delivered
matches what was planned and promoted
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Implications of SimultaneousProduction and Consumption
Customers participate in and affect the transaction
Customers affect each other
Employees affect the service outcome
Decentralization may be essential
Mass production is difficult
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Implications of Perishability
It is difficult to synchronize supply and demand withservices
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Challenges for Services Defining and improving quality
Ensuring the delivery of consistent quality
Designing and testing new services
Communicatin and maintainin a consistent ima e
Accommodating fluctuating demand Motivating and sustaining employee commitment
Coordinating marketing, operations, and human resourceefforts
Setting prices
Finding a balance between standardization versuscustomization
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network administration
network
technical support
network equipment
other
finance
repair
insurance
100%
80%
annual cost ofPC use: $6,259
average annual householdexpenditure: $6,064
Personal Computers Automobiles
The sale of aproduct accountsfor only a smallportion of overallrevenues.
Where the Money in Manufacturing Is: Services
by end user (downtime,file management, etc.)
administration
technical support
desktop hardware
gas
used car purchase
new car purchase
total expenditure:5X product costs
total expenditure:5X product costs
60%
40%
20%
0%
to customers iswhere the realmoney is.
S o u r c e : G a r t n e r G r o u p , A s s o c i a t i o n o f A m e r i c a n R a i l r o a d s , F e d e r a l H i g h w a y A d m i n i s t r a t i o n O f f i c e o f H i g h w a y
I n f o r m a t i o n M a n a g e m e n t . ( R a i l r o a d e x p e n d i t u r e s a r e f o r C l a s s 1 r a i l r o a d s . ) Compiled by Ajay Raheja ([email protected])
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Traditional Marketing Mix
All elements within the control of the firm thatcommunicate the firms capabilities and image tocustomers or that influence customer satisfaction with
Product
Price
Place
Promotion
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Expanded Mix for Services The 7 Ps Product Price Place Promotion
eop e All human actors who play a part in service delivery and thus influence the
buyers perceptions: namely, the firms personnel, the customer, and othercustomers in the service environment.
Physical Evidence The environment in which the service is delivered and where the firm and
customer interact, and any tangible components that facilitate performance
or communication of the service. Process
The actual procedures, mechanisms, and flow of activities by which theservice is deliveredthe service delivery and operating systems.
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Group Project (5 Marks) Identify a service industry for your group study.
Each group will make a 8 - 10 min. presentation next weekon the industry choosen which will cover the following:
Any regulators that control the industry and the role ofregulators in the growth of the industry
Who are the various stakeholders in the industry?
How has the industry evolved over the years and what are themost significant events of the recent past?
What benefit does the group foresee in the study of theindustry?
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The Customer Gap
The Customer Gap is the difference between the Customers Expectations and
Customers Perception
Customers Expectations are Market Controlled factors:
Pricing, Advertising, Sales Promotion
Innate personal needs, word-of-mouth, competitiveoffering
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Customer Gap
ExpectedService
How well does the company
understand expectations ofService Quality?
PerceivedService
How well does companyunderstand the customers
perception about theservice?
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Sources of Customer Expectation. Business must have a clear understanding of its customer.
(Customer Segmentation) Sources Customer expectations are market controlled
factors:
Service Guarantee Sales Promise Price comparison
And Factors that a marketer has limited ability to affect: Innate personal needs Word of mouth communication Competitive offering
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Consumer Behavior in Services
Focus is How consumers seek, choose, purchase and evaluate
services?
Many influences affect the process:
(2 important factors are)
Consumers life stage (childhood to retirement)
Personal background and upbringing.
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Why do you purchase Services? Time Deficiency
Concentrate on Core
Lack of knowledge (about the process and not service!)
Limited resources Cost of performing V/s. Cost of buying
ALL OF THE ABOVE ARE INTER RELATED TO A LARGE EXTENT.
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Classification of Service
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Buying process
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Search PropertyWhat is your buying process for a Car?
Kitna deti hai?
Sedan or Hatchback
eg room
Acceleration
Brand and after sales service
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Search Properties Do you purchase Pre Packaged food?
How do you make a choice of what you want to buy?
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Search Properties Search properties are product characteristics that
customers can easily evaluate and compare prior topurchasing the product.
best product to purchase.
They are often objective measures of productperformance.
Basically, customers can gather information and makecomparisons prior to the time they make a purchase
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Experience Properties Esselworld claims it is the Island of Fun
Do you agree with this?
Why?
Have you ever been to any other entertainment park?
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Experience Properties Experience properties are product characteristics that
cannot be evaluated prior to purchase, but must beexperienced by the customer in order to be evaluated.
Marketers may attempt to describe these properties inadvertising, but ultimately customers realize thatevaluating them requires experiencing the product.
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Experience Properties Some examples in our daily life:
barber shops, (Javed Habib / Lakme beauty store)
banks, (PSU, Private, Co-op)
ote s an restaurants
Mobile / Internet Service Providers,
retail stores.
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Credence Properties Have you seen the commercial on Emami Fair and
Handsome or the commercial of a Chinese Oil to GrowHair?
Would you trust the product if it were to be reinforcedthrough a specialist?
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Credence Properties Do you feel you are receiving the right education in
this Services Marketing class?
What is the basis of your judgment?
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Credence PropertyJet Airways Your Experience
Best First-Class Service in the World award at Business Travellers 20th annual
Best in Business Travel awards Best Business Class & Best Economy Class at the Business Traveller Awards
Best Overall in Entertainment at the Avion Awards 2010
Best Long Haul Carrier ex-Brussels award at the Tm Travel Awards 2009.
Best Eastbound Airline from India and Best domestic Airline in India awards atthe Abacus Tafi Awards 2009.
Business Travellers Best Indian Airline Award In London.
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Credence Properties Credence properties are product characteristics
which cannot be easily evaluated even afterthecustomer has experienced the productinstead the
credible source. The reason they cannot be evaluatedis that the typical customer does not have enoughknowledge or expertise to make an accurate
evaluation. As a result, customers wind up relying onthe opinion of supposed experts, who give anevaluation and make comparisons.
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Search, Experience and Credence Properties
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Buying process
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Consumer Behavior Stages in Consumer Decision Making and Evaluation
of Services:
Consumer Choice
onsumer xper ence
Post Experience
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Steps that lead to Purchase Steps for goods and Services are similar
Need Recognition
Information Research
va uat on o a ternat ves
PURCHASE
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Maslows Hierarchyof Needs
Need for ersonal services
Needto Joinclasses
for oil painting,bungee jumping
Need of Food and drink during shopping / sight seeing
Need to buy Auto cop security systems whenyou realize thefts in the neighborhood
Need to socialize and network inClubs, go out on vacation with family.
such as massage and Spas, plastic
surgery such as Nose Job, Lip Job etc.
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Steps that lead to Purchase Steps for goods and Services are similar
Need Recognition
Information Research
va uat on o a ternat ves
PURCHASE
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Information SearchWhy does consumer search information about the
goods or services?
Reduces the risk
a e cus omer ee more con en a ou e c o ces
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Information search Extensive and formalised Process if the service is
important or warrants major investment
Quick and relatively automatic if the service does not.
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Modes of Information research Personal and non Personal
Mass media eg. TV Commercials, Print Ads, Hoardings
Talking to aqautainces, friends, experience sites
or o out
Rating services and Professional associations!
Personal influence plays a very important role when the
services become complex or when the objectivitystandards by which to evaluate the product decreases.
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Information Search Perceived Risk Financial Risk (exchange, refund)
Performance Risk (guarantees, warranty, trial offer)
Social Risk (use of unbranded, perciaeved cheap)
Physiological risk (will affect the physical / mental state)
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Steps that lead to Purchase Steps for goods and Services are similar
Need Recognition
Information Research
va uat on o a ternat ves
PURCHASE
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AlternativesVisit the establishment (place where service is
delivered)
Lower no. of service providers in a geography /
Limited information on services offered and provided.
Generally customers accept the first available option.
Decision between self performing or buying srvices.
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Steps that lead to Purchase Steps for goods and Services are similar
Need Recognition
Information Research
va uat on o a ternat ves
PURCHASE
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Service Purchase The major difference in Service purchase as opposed to
Goods purchase is that a customer can touch and feelthe goods before purchase while services are produced
.
Taking a vacation Visiting a doctor
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Consumer ExperienceAll services are Experience. Each interaction is a
unique experience.
ets scuss your exper ence ast t me your octor
ordered for a medical check up. Involvement of Multiple parties
Doctor
Path Lab + Radiology Lab etc Chemist
SERVICE AS PROCESS
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Consumer ExperienceWhy do Bartenders twist and turn the bottles while
serving? you are more interested to see the tricks than the drink
In your favorite restaurant, do you prefer to be servedby a particular waiter? need a repeat service
In your B-school, do you have a favorite professor? knowledge of the contact is critical
SERVICE PROVISION AS DRAMA
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CaseletYou went to a super market to buy yourself a Lunch box.
At the entrance you were greeted by the sales rep with awarm smile. You states your requirement and the rep
boxes were placed. At the section he requested the Aislesales person to assist you.
The aisle sales person asked you question on your
requirement and within a minute presents you thelunch box you were looking forward to buy.
HOW DO YOU RATE THIS EXPERIENCE?
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Caselet (Contd.) Later, you visited your friend for lunch and saw a nice
window curtain. You would like to have the samewindow curtain.
,
friend to buy the curtain.
What are your expectation?
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Customer Expectations They are beliefs about service delivery that serve as a
standard or a reference points against whichperformances are judged.
Customers compare their perception of performancewith reference points while evaluating the servicequality.
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Caselet Travel experience to Olympics The choice of the airlines was dependent on:
Good looking On-flight personnel
Food and Beverage - Quality / Quantity
-
Leg space Baggage allowance
Punctuality (on time performance)
Brand Image
Knowing what customer expects is prime to deliveringQuality Service.
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Our Goal for the day Types of Customer Service Expectations
Factors that influence Customer Service Expectation
Issues involving Customer Service Expectation
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Caselet You have planned a dinner with your best friend whom you
have been with now for the past 10 years. It is just for a quick catch up on recent things
What would be your ideal setting for this dinner?
It is just a quick catch up.We have known each other for long.
Any restaurant where we can catch for a quick while will do
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CaseletYou have planned a dinner with your friend whom you
have known for the past 3 months. It is social dinner to know more about each other
What would be your ideal setting for this dinner?
It is just a quick catch up.
We are on our way to building up a strong friendship.
A good restaurant where we can have good food and talk
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CaseletYou have planned a dinner with a group of friends
from your school. This is your first group dinner after you all have
com leted our schoolin
What would be your ideal setting for this dinner?
Meeting after a long time.
Let me check if anyone knows a good place for thisgathering.
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CaseletYou have planned a dinner with your client with whom
you are expecting a huge order that will help you scalenew heights in business.
What would be your ideal setting for this dinner?
Very important client. Needs to be taken care off.
Expensive restaurant and excellent food is what I want!!!
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CaseletYou have planned a dinner with your Fianc.
This is a dinner to celebrate the anniversary of yourcommittment to each other.
What would be your ideal setting for this dinner?
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Possible levels of customer expectation
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Desired level of service
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Levels of Expectation The highest level of expectation is termed as the
desired service Level of this service is what the customer wished for
es re serv ce s a en o w a cus omer e eves
can be and should be
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CaseletWhat is the ideal company you would like to work for?
What is the role you are expecting in that company?
God forbid! If the company does not have a vacancy orthe role is not available.
What will you do?
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Levels of Expectation
Adequate Service represents the minimum tolerableexpectation. It is the bottom level of performance
.
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Levels of Expectation Do customers hold the same level of expectation for
service firms of the same industry?
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Zone of Tolerance Services are Heterogeneous.
Depends on employee and customer action
erv ce may vary etween prov ers
It may vary within the same provider
It may also vary with the same employee
The extent to which the customers are willing to acceptthis variation is called as the Zone of Tolerance
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Zone of Tolerance
Zone of Tolerance
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Zone of Tolerance Different customers possess different zone of tolerance
Narrow zone of Tolerance means tighter ranger ofserv ce rom t e prov er
Price is an important factor in Zone of Tolerance.When Price increase tolerance reduces. This is because
the adequate service pushes up.
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Zone of Tolerance It varies for different service attributes or dimensions.
The more important the factor, the narrower is thezone.
Your promised your friend to return an amount heloaned you in 10 days. He missed the date.
What is the level of trust you have on your friend?
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Zone of Tolerance
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First-Time and Recovery Service
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Our Goal for the day Types of Customer Service Expectations
Factors that influence Customer Service Expectation
Issues involving Customer Service Expectation
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Desired Service Expectation Personal Needs
These are states or conditions for essential to thephysical or psychological well being of a customer.
It is the customers generic attitude about the meaning ofservice and proper conduct of a service provider.
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Caselet Recollect the eg. of the financial advisor:
My friend benefited with is service I did not like the advisor
y r en prov e a e ree om o m n
recommending the investments He needed a person to take care of the excess money he hasgenerated.
My expectations from him were limited to providing meguidance to schemes where I could earn more than mycurrent earnings .
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Your ExpectationYou with your family are out for a dinner.
You ordered your dinner and have been served.
You need some more Rotis and asked the waiter toget t em or you
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Expectation of Service In the case of the Financial advisor the personal need
was different and hence the expectation of service wasalso different
In the restaurant you ordered for more rotis expectingthat you will be provided with rotis immediately asyou have already been served
(This is the least you expect as service in a restaurant!!!)
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Factors that Influence Desired Service
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Adequate Service Expectation Level of service which customer finds acceptable.
The determinants of Adequate Service are short term. Temporary service intensifiers
In case of a breakdown of the car on the highway
erce ve serv ce a erna ves
Investing in a mutual fund SIP V/s. recurring deposit in a Bank
Choice between driving to work or hiring a cab.
Customer self perceived service role
A customer will be dissatisfied if he is asked to reiterate the car problems which hehas already mentioned while booking the service.
Zone of tolerance increases if the cutomer is not fulfilling his duties Situational factors
Gujrat Earthquake in 2002 or Tsunami in 2005. Cutomer tolerance level increasedwith insurance Cos.
Predicted Service
Already know the service you will get. Eg is visiting an Udipi restaurant for a snack
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Factors that influence Adequate Service
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C f i !!!
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Confusion!!!Predicted Service Desired Service
It is an estimate of the servicethat the customer will receive
Desired service expectationsare global assessments
rather than in overall
relationship with the serviceprovider.
It is almost an estimation ofwhat will happen in the nexttransaction,
service transaction.
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Sources of Desired and Predicted
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Service ExpectationExplicit Service
Promises
Implicit ServicePromises
PredictedService
Word-of-Mouth
Past ExperienceZone
of
Tolerance
Desired Service
Adequate Service
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O G l f th d
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Our Goal for the day Types of Customer Service Expectations
Factors that influence Customer Service Expectation
Issues involving Customer Service Expectation
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Issues Customer Service Expectation
Un-realistic Expectations
Customer Delight Exceed Expectation
Raising the bar
Stay ahead of Competition.
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Wh i C t ?
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Who is a Customer? The most important person in any business.
He/she is not dependent on us, but we are on him/her. He/she not an interruption for our work, but rather
t e purpose or t.
Does us a favor when he/she calls, we are not doinghim/her a favor serving them
Is part of our business, not an outsider
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A customer is
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A customer is Is a human being like us, with the same feelings and
emotions Is not someone to argue with, or match wits with
r ngs us t e r wants, t s our o to u t ese
needs and wants Is deserving of the most courteous and attentive
service we can provide
Is the life blood of every business
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The Golden Rule
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The Golden Rule
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The Platinum Rule
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The Platinum Rule
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Customer Perceptions
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Customer Perceptions Perceptions are Dynamic, evaluation may shift from
time to time - person to person culture to culture
qua y serv ce o ay may ecome a norm
tomorrow
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Example for our daily life
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Example for our daily life Did we ever imagine 15 years back that home delivery
of food could get pegged to 30 minutes Dominos has set a standard.
We as consumers of services would expect that the
food be delivered to us whether it is Dominos or anyother restaurant within 30 minutes.
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Example from our daily life
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Example from our daily lifeAt a multiplex - movie theatre, we are now served with
eatable and drinks at our seat.
our ews
I get my eatables on my seat and can enjoy the movieswithout missing any part
What a disturbance; these guys have an art to disturbyou during the most critical scene / dialogue
Compiled by Prof. Ajay Raheja ([email protected])Compiled by Ajay Raheja ([email protected])
What is Customer Satisfaction?
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What is Customer Satisfaction? Quote from Richard L Oliver
Everyone know what satisfaction is, untill asked togive definition. Then it seems nobody knows
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What is customer satisfaction?
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What is customer satisfaction? Satisfaction can be viewed as contentment
Satisfactions can be associated with Feeling of pleasure
Fee ing o appiness
Surprise in a positive way (may lead to delight) Removal of negative
Sense of relief
Feeling of ambivalence
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What determines Csat?
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What determines Csat? Personal factors play a very important role :
Mood or emotional state of mind. Situational factors
p n on o r en s an am y
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Experience from our daily life
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Experience from our daily lifeYou are out on a vacation with your friends to Goa. You
have booked yourself a nice exotic resort in Goa.What will you judge in the resort to state that you were
Resort ambience, features such as the pool, access tocasino, access to the golf facility, restaurants, room
comfort, helpfulness and courtesy of the staff. Mostimportant the Price
Customer Satisfaction is determined by - Product and Service Feature
Experience from our daily life
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Experience from our daily lifeYou are out on a vacation with your friends to Goa. You
have booked yourself a nice exotic resort in Goa.You and your friends are having a fun time. One of
himself and had to be hospitalized. What as a customer will be your Csat level?
Customer Satisfaction is determined by - Customer Emotion
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Experience from our daily life
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Experience from our daily lifeAfter buying and using Sandhi Sudha, you were
surprised by the results / outcome. Outcome Possibilities
1. ou rea y overcame t e pa n
(2.) Your pain did not subsideWill Sandhi Sudha take responsibility of the outcome?
Customer Satisfaction is determined by - Product / Service Success
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Experience from our daily life
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Experience from our daily lifeYour mom asked you to buy a kilo of Tomatoes on your
way back home.You stopped at the market and bought the Tomatoes as
.
While making the payment he took Rs. 20 from you,while the other lady who was also buying the Tomatoesof the equal quantity paid Rs. 15?
Are you Ok with the purchase?
Customer Satisfaction is determined by - Perception of Equity / Fairness
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Experience from our daily life
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Experience from our daily lifeYou are out on a vacation with your friends to Goa. You
have booked yourself a nice exotic resort in Goa.Will your level of satisfaction depend on the
C Sat is determined by - Other customers, family and friends
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What is customer satisfaction?
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What is customer satisfaction? Satisfaction can be viewed as contentment
Satisfactions can be associated with Feeling of pleasure
Fee ing o appiness
Surprise in a positive way (may lead to delight) Removal of negative
Sense of relief
Feeling of ambivalence
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Outcome of Customer Satisfaction
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Outcome of Customer Satisfaction Increased customer retention
Positive word-of-mouth communications Increased revenues 100%
)
0%
20%
40%
60%
80%
Verydissatisfied
Dissatisfied Neithersatisfied
nordissatisfied
Satisfied Verysatisfied
Loyalty
(rete
ntio
Satisfaction measure
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Satisfaction V/s. Service Quality
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Satisfaction V/s. Service Quality Satisfaction is viewed as broader concept while Service
Quality focused specifically on the dimension of theservice.
.
Customer judge quality of service based on theirperception of outcome
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Satisfaction V/s. Service Quality
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Satisfaction V/s. Service Quality
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Dimensions of Service Quality
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Dimensions of Service QualityReliability
Responsiveness
ServiceQuality
Assurance
Empathy
TangiblesTEARR
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Five Dimension of Service Quality Providing service as promisedRELIABILITY
Giving customers individual attentionEMPATHY
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y Providing service as promised
Dependability in handling customersservice problems
Performing services right the first time
Providing services at the promised time
Maintaining error-free records
Giving customers individual attention
Employees who deal with customers in acaring fashion
Having the customers best interest at heart
Employees who understand the needs oftheir customers
Convenient business hours
Keeping customers informed as towhen services will be performed
Prompt service to customers Willingness to help customers
Readiness to respond to customersrequests
Employees who instill confidence incustomers
Making customers feel safe in theirtransactions
Employees who are consistently courteous
Employees who have the knowledge to
answer customer questions
ASSURANCE
Modern equipment
Visually appealing facilities Employees who have a
neat, professional appearance
Visually appealing materials associatedwith the service
TANGIBLES
Service Encounters
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It is the moment of truth occurs any time the customer interacts with the firm can potentially be critical in determining customer satisfaction
and loyalty
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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What was your service encounter
when you visited a hotel last time?
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y
Check-In
Bellbo Takes to Room
Request Wake-Up Call
Checkout
Restaurant Meal
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Example of Service Encounter of an
office purchase
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Critical Service Encounters
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GOAL
understanding actual events and behaviors thatcause customer dis/satisfaction in serviceencounters
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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Critical Incidents Technique Study
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Think of a time when, as a customer, you had a
particularlysatisfying (dissatisfying) interaction withan employee of __________
What specific circumstances led up to this situation?
Exactly what was said and done?
What resulted that made you feel the interaction wassatisfying (dissatisfying)?
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Themes in Critical Service Encounters
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Recovery
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DO DONT
Acknowledge problem
Explain causes
Ignore customer Blame customer
Apologize
Compensate/upgrade
Lay out options
Take responsibility
eave customer to en orhim/herself
Downgrade
Act as if nothing is wrong
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Adaptability
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DO DONT
Recognize the seriousness ofthe need
Promise, then fail to followthrough
Ac now e ge
Anticipate Attempt to accommodate
Explain rules/policies
Take responsibility
Exert effort to accommodate
Ignore
Show unwillingness to try Embarrass the customer
Laugh at the customer
Avoid responsibility
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Spontaneity
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DO DONT
Take time
Be attentive
Exhibit impatience
Ignore
Anticipate needs
Listen Provide information (even if
not asked)
Treat customers fairly
Show empathy
Acknowledge by name
Yell/laugh/swear
Steal from or cheat acustomer
Discriminate
Treat impersonally
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Coping
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DO DONT
Listen
Take customers
Explain
Let go of the customer
Let customers
dissatisfaction affect others
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The Evidence of Service from the
Customers Point of View Contact employees
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Operational flow of
activities
Contact employees
Customer him/herself
Other customers
PEOPLE
Flexibility vs.
standard Technology vs.
human
Tangible
communication Servicescape Guarantees Technology
PROCESS PHYSICALEVIDENCE
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