You are on page 1of 33

Consumer Perception of Services

Customer Perception
The process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world Depends upon Expectations Motive

Consumer Expectations

Pre-trial beliefs about a service that function as standards against which performance is judged.

Types of Expectations

Desired service -- the level of service the customer hopes to receive Adequate service -- the level of service the customer will accept

Figure 3-1

Dual Customer Expectation Levels


Desired Service Zone of Tolerance

Adequate Service

The Zone of Tolerance--The extent to which customers recognize and are willing to accept variation in service performance
Desired Service

Zone of Tolerance
Adequate Service

Zone of Tolerance and Importance of Service Dimensions

as a service dimension becomes more important zone of tolerance will narrow and desired and adequate levels will increase

Factors That Influence Adequate Service Expectations

Perceived Service Alternatives---As the number of alternatives increases, the level of adequate service increases and the zone of tolerance narrows

Factors That Influence Adequate Service Expectations

Situational Factors
Temporary changes in the normal state of things ---- tends to lower the level of adequate service expected and widen the zone of tolerance

Situational Factors

Reason for purchase Consumer mood Weather Time constraints Emergency

Factors That Influence Adequate Service Expectations

Self Perceived Service Role --- how well the customer perceives they are performing their own role in service delivery

Figure 3-7

Factors that Influence Desired and Predicted Service


Explicit Service Promises Implicit Service Promises Word-of-Mouth

Desired Service Zone of Tolerance Adequate Service

Past Experience

Predicted Service

Satisfaction Vs Service Quality

Service 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.

Perceived service Quality

Experienced Service Quality Outcome Dimension Process related dimension Expected Service Quality Marketing communication Image of Organization Word of mouth Customer needs

Dimensions of Service Quality Reliability


Responsiveness

Assurance

Service Quality

Empathy

Tangibles

Service Quality (SERVQUAL) Attributes


RELIABILITY

EMPATHY
Giving customers individual attention Employees who deal with customers in a caring fashion Having the customers best interest at heart Employees who understand the needs of their customers Convenient business hours

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

TANGIBLES

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 answer customer questions

Modern equipment Visually appealing facilities Employees who have a neat, professional appearance Visually appealing materials associated with the service

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

Causes of Service Quality Gaps (Customer Dissatisfaction)

19

The Gaps Model of Service Quality

The Customer Gap The Provider Gaps:


Gap 1 not knowing what customers expect Gap 2 not having the right service designs and standards Gap 3 not delivering to service standards Gap 4 not matching performance to promises

Putting It All Together: Closing the Gaps

Gaps Model of Service Quality


Expected Service CUSTOMER Customer Gap Perceived Service
Service Delivery
External Communications to Customers

COMPANY
Gap 3 Gap 1 Gap 2

Gap 4

Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations

Gap 1
Customer Expectations (Expected Service)

1.

Lack of Market Research Orientation;

2.
3.

Inadequate upward communication;


Too many levels of management

Managements Perception of Customer Expectations


22

Gaps Model of Service Quality

Customer Gap: difference between customer expectations and perceptions Provider Gap 1 (The Knowledge Gap): not knowing what customers expect Provider Gap 2 (The Service Design & Standards Gap): not having the right service designs and standards Provider Gap 3 (The Service Performance Gap): not delivering to service standards Provider Gap 4 (The Communication Gap): not matching performance to promises

Key Factors Leading to the Customer Gap


Customer Gap Customer Expectations

Provider Gap 1: Not knowing what customers expect Provider Gap 2: Not selecting the right service designs and standards Provider Gap 3: Not delivering to service standards Provider Gap 4: Not matching performance to promises

Customer Perceptions

Key Factors Leading to Provider Gap 1


Customer Expectations

Gap 1

Inadequate marketing research orientation


Insufficient marketing research Research not focused on service quality Inadequate use of market research

Lack of upward communication


Lack of interaction between management and customers Insufficient communication between contact employees and managers Too many layers between contact personnel and top management

Insufficient relationship focus


Lack of market segmentation Focus on transactions rather than relationships Focus on new customers rather than relationship customers

Inadequate service recovery


Lack of encouragement to listen to customer complaints Failure to make amends when things go wrong No appropriate recovery mechanisms in place for service failures

Company Perceptions of Customer Expectations

Gap 2
Management Perceptions of Customer Expectations

1.

2. 3.

Inadequate management commitment to Service Quality Perception of infeasibility Absence of goal setting

Service Quality Specifications


26

Key Factors Leading to Provider Gap 2


Customer-Driven Service Designs and Standards

Gap 2

Poor service design Unsystematic new service development process Vague, undefined service designs Failure to connect service design to service positioning Absence of customer-driven standards Lack of customer-driven service standards Absence of process management to focus on customer requirements Absence of formal process for setting service quality goals Inappropriate physical evidence and servicescape Failure to develop tangibles in line with customer expectations Servicescape design that does not meet customer and employee needs Inadequate maintenance and updating of the servicescape

Management Perceptions of Customer Expectations

Gap 3
Service Quality Specifications

1. 2. 3. 4. 5.

Role ambiguity Role conflict Poor technology Lack of team work Poor employee job fit

Service Delivery
28

Key Factors Leading to Provider Gap 3


Customer-Driven Service Designs and Standards

Gap 3

Deficiencies in human resource policies


Ineffective recruitment Role ambiguity and role conflict Poor employee-technology job fit Inappropriate evaluation and compensation systems Lack of empowerment, perceived control, and teamwork

Customers who do not fulfill roles


Customers who lack knowledge of their roles and responsibilities Customers who negatively impact each other

Problems with service intermediaries


Channel conflict over objectives and performance Difficulty controlling quality and consistency Tension between empowerment and control

Failure to match supply and demand


Failure to smooth peaks and valleys of demand Inappropriate customer mix Overreliance on price to smooth demand

Service Delivery

Gap 4
Service Delivery

1. 2.

Propensity to overpromise Inadequate horizontal communication

External Communications to Customers


30

Key Factors Leading to Provider Gap 4


Service Delivery

Gap 4

Lack of integrated services marketing communications Tendency to view each external communication as independent Not including interactive marketing in communications plan Absence of strong internal marketing program Ineffective management of customer expectations Absence of customer expectation management through all forms of communication Lack of adequate education for customers Overpromising Overpromising in advertising Overpromising in personal selling Overpromising through physical evidence cues Inadequate horizontal communications Insufficient communication between sales and operations Insufficient communication between advertising and operations Differences in policies and procedures across branches or units

External Communications to Customers

Marketer

Word-of-mouth Communication

Personal Needs

Past Experience

Expected Service
GAP 5

Perceived Service

GAP 1

GAP 3

Service Delivery
GAP 4

External communication to consumers

GAP 2

Converting perceptions into service quality specifications

Management perceptions of consumer expectations


Service Provider

32

Gaps Model of Service Quality


Expected Service CUSTOMER Customer Gap Perceived Service
Service Delivery
External Communications to Customers

COMPANY
Gap 3 Gap 1 Gap 2

Gap 4

Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations