Amity School of Architecture and Planning

Amity School of Architecture and Planning

Bachelors of Architecture
V year, lX Semester
Session 2019-2020

Architecture and Marketing Skills (ARCH516)

 Amity School of Architecture and Planning

CUSTOMER PERCEPTIONS OF SERVICE

 Customer Perceptions of
Service Quality and Amity School of Architecture and Planning

Customer Satisfaction
Reliability Situational
Factors
Responsiveness Service
Quality

Assurance
Customer
Empathy Satisfaction
Product
Quality
Tangibles

Personal
Price Factors
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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
 Amity School of Architecture and Planning

Relationship between Customer Satisfaction and Loyalty in Competitive Industries

100%

Loyalty (retention) 80%

60%

40%

20%

0%
Very Dissatisfied Neither Satisfied Very
dissatisfied satisfied nor satisfied
dissatisfied

Satisfaction measure

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.
 Amity School of Architecture and Planning

Service Quality

• The customer’s judgment of overall excellence of the

service provided in relation to the quality that was
expected.
• Process and outcome quality are both important.
 Amity School of Architecture and Planning

The Five Dimensions of Service Quality

Reliability Ability to perform the promised service
dependably and accurately.
Knowledge and courtesy of employees
Assurance and their ability to convey trust and
confidence.
Tangibles Physical facilities, equipment, and
appearance of personnel.
Empathy
Caring, individualized attention the firm
Responsiveness provides its customers.
Willingness to help customers and provide
prompt service.

SERVQUAL Attributes
RELIABILITY
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
RESPONSIVENESS
Keeping customers informed as to
when services will be performed
Prompt service to customers
Willingness to help customers
Readiness to respond to customers’
requests
Amity School of Architecture and Planning
ASSURANCE
Employees who instill confidence in
customers
Making customers feel safe in their
transactions
Employees who are consistently courteous
Employees who have the knowledge to answe
customer questions
EMPATHY
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
TANGIBLES
Modern equipment
Visually appealing facilities
Employees who have a neat,
professional appearance
Visually appealing materials
associated with the service
 Amity School of Architecture and Planning

Choose a services industry and spend 30 minutes brainstorming specific

requirements of customers in each of the five service quality dimensions.
Be certain the requirements reflect the customer’s point of view.
Reliability:

Assurance:

Tangibles:

Empathy:

Responsiveness:
 Amity School of Architecture and Planning
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
 Amity School of Architecture and Planning

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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Common Themes in Critical Service Encounters Research

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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Recovery

DO DON’T
• Acknowledge problem • Ignore customer
• Explain causes • Blame customer
• Apologize • Leave customer to
• Compensate/upgrade fend for him/herself
• Lay out options • Downgrade
• Take responsibility • Act as if nothing is
wrong
 Amity School of Architecture and Planning

Adaptability
• DO DON’T
• Recognize the seriousness of the Promise, then fail to
need follow through
• Acknowledge Anticipate Ignore
• Attempt to accommodate Show unwillingness to try
• Explain rules/policies Take Embarrass the customer Laugh
responsibility at the customer Avoid
• Exert effort to responsibility
accommodate
 Amity School of Architecture and Planning

Spontaneity
DON’T
DO
• Exhibit impatience
• Take time Be attentive
• Ignore
• Anticipate needs Listen • Yell/laugh/swear
• Provide information (even if not asked) • Steal from or cheat a
• Treat customers fairly Show empathy customer
Acknowledge by name • Discriminate
• Treat impersonally
 Amity School of Architecture and Planning

Coping

DO DON’T

• Listen • Take customer’s

dissatisfaction
• Try to accommodate
personally
• Explain
• Let customer’s
• Let go of the customer dissatisfaction affect
others
 Amity School of Architecture and Planning

Evidence of Service from the Customer’s Point of View

⚫ Contact employees
⚫ Customer him/herself
⚫Operational flow of ⚫ Other customers
activities
People
⚫ Steps in process
⚫Flexibility vs.
standard
⚫Technology vs. Physical ⚫Tangible
human Process
Evidence communication
⚫ Servicescape
⚫ Guarantees
⚫ Technology
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UNDERSTANDING CUSTOMER
EXPECTATIONS AND
PERCEPTIONS THROUGH
MARKETING RESEARCH
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Understanding Customer Expectations and Perceptions

through
Marketing Research
Present the types of and guidelines for marketing
research in services
Show the ways that marketing research information
can and should be used for services
Describe the strategies by which companies can
facilitate interaction and communication between
management and customers
Present ways that companies can and do facilitate
interaction between contact people and management
 Amity School of Architecture and Planning

Common Research Objectives for Services

To identify dissatisfied customers
To discover customer requirements or expectations
To monitor and track service performance
To assess overall company performance compared to
competition
To assess gaps between customer expectations and
perceptions
To gauge effectiveness of changes in service
To appraise service performance of individuals and teams
for rewards
To determine expectations for a new service
To monitor changing expectations in an industry
To forecast future expectations
 Criteria for An Effective Amity School of Architecture and Planning
Services Research Program

Includes
Perceptions
and
Expectations
Occurs of
Customers
with
Appropriate Research Includes
Frequency Measures
Objectives of
Loyalty or
Behavioral
Measures Intentions
Priorities
or
Importance
Includes
Statistical
Validity
When Necessary
 Portfolio of Services Research Amity School of Architecture and Planning

Research Objective Type of Research

Identify dissatisfied customers to attempt recovery;
identify most common categories of service failure Customer Complaint
for remedial action
Solicitation
Assess company’s service performance compared to
competitors; identify service-improvement priorities; track
service improvement over time “Relationship” Surveys
Obtain customer feedback while service experience is still
fresh; act on feedback quickly if negative patterns develop Post-Transaction Surveys
Use as input for quantitative surveys; provide a
forum for customers to suggest service-improvement
ideas
Customer Focus Groups
Measure individual employee service behaviors for use in
coaching, training, performance evaluation, recognition and
rewards; identify systemic strengths and weaknesses in “Mystery Shopping” of
service
Service Providers
Measure internal service quality; identify employee-
perceived obstacles to improve service; track
employee morale and attitudes Employee Surveys
Determine the reasons why customers defect

To forecast future expectations of customers Lost Customer Research

To develop and test new service ideas Future Expectations Research
 Amity School of Architecture and Planning

Stages in the Research Process

• Stage 1 : Define Problem
• Stage 2 : Develop Measurement Strategy
• Stage 3 : Implement Research Program
• Stage 4 : Collect and Tabulate Data
• Stage 5 : Interpret and Analyze Findings
• Stage 6 : Report Findings
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BUILDING CUSTOMER RELATIONSHIPS

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Building Customer Relationships

Explain relationship marketing, its goals, and the benefits of
long-term relationships for firms and customers
Explain why and how to estimate customer lifetime value
Specify the foundations for successful relationship
marketing--quality core services and careful market
segmentation
Provide you with examples of successful customer retention
strategies
Introduce the idea that “the customer isn’t always right”
 Amity School of Architecture and Planning

Relationship Marketing

is a philosophy of doing business that focuses on keeping

and improving current customers
does not necessarily emphasize acquiring new customers
is usually cheaper (for the firm)--to keep a current customer
costs less than to attract a new one
goal = to build and maintain a base of committed customers
who are profitable for the organization
thus, the focus is on the attraction, retention, and
enhancement of customer relationships
 Amity School of Architecture and Planning

A Loyal Customer is One Who

Shows Behavioral Commitment

– buys from only one supplier, even though other options exist
– increasingly buys more and more from a particular supplier
– provides constructive feedback/suggestions
Exhibits Psychological Commitment
– wouldn’t consider terminating the relationship--
psychological commitment
– has a positive attitude about the supplier
– says good things about the supplier
 Amity School of Architecture and Planning

Customer Loyalty Exercise

• Think of a service provider you are loyal to.

• What do you do (your behaviors, actions, feelings)
that indicates you are loyal?
• Why are you loyal to this provider?
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Benefits to the Organization of Customer Loyalty

• loyal customers tend to spend more with the
organization over time
• on average costs of relationship maintenance are
lower than new customer costs
• employee retention is more likely with a stable
customer base
• lifetime value of a customer can be very high
 Amity School of Architecture and Planning

Benefits to the Customer

• inherent benefits in getting good value

• economic, social, and continuity benefits
– contribution to sense of well-being and quality
of life and other psychological benefits
– avoidance of change
– simplified decision making
– social support and friendships
– special deals
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“The Customer Isn’t Always Right”

• Not all customers are good relationship customers:

– wrong segment
– not profitable in the long term
– difficult customers
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Strategies for Building Relationships

• Foundations:
– Excellent Quality/Value
– Careful Segmentation
• Bonding Strategies:
– Financial Bonds
– Social & Psychological Bonds
– Structural Bonds
– Customization Bonds
• Relationship Strategies Wheel
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Customer Goals of Relationship Marketing

Enhancing

Retaining

Satisfying

Getting
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Underlying Logic of Customer Retention Benefits to the Organization

Customer Satisfaction

Customer Retention & Quality

Increased Profits Service

Employee Loyalty
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Steps in Market Segmentation and

Targeting for Services

STEP 1: STEP 2: STEP 3: STEP4: STEP 5:

Identify Bases Develop Develop Ensure that
Profiles of Measures of Select the Segments Are
for Target
Segmenting Resulting Segment Compatible
Segments Attractive- Segments
the Market
ness