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Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.

Valarie A Zeithaml | Mary Jo Bitner

6E
Dwayne D. Gremler | Ajay Pandit

Integrating Customer Focus Across the Firm

SERVICES MARKETING
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
LISTENING TO CUSTOMERS
THROUGH RESEARCH
55
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
 Using Customer Research to Understand
Customer Expectations
 Elements in an Effective Service Marketing
Research Program
 Analyzing and Interpreting Customer
Research Findings
 Using Marketing Research Information
 Upward Communication

5-3
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Provider Gap 1

Expected Service

CUSTOMER

COMPANY
Gap 1:
The Listening Gap Company
Perceptions of
Customer
Expectations

5-4
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5-5
Key Factors Leading to Provider Gap 1
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Objectives for Chapter 5:
Listening to Customers through Research

 Present the types of and guidelines for


customer research in services.
 Show how customer 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.

5-6
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Common Research Objectives for
Services
 To discover customer requirements or expectations for service.
 To monitor and track service performance.
 To assess overall company performance compared with that of
competition.
 To assess gaps between customer expectations and perceptions.
 To identify dissatisfied customers, so that service recovery can
be attempted.
 To gauge effectiveness of changes in service delivery.
 To appraise the service performance of individuals and teams
for evaluation, recognition, and rewards.
 To determine customer expectations for a new service.
 To monitor changing customer expectations in an industry.
 To forecast future expectations of customers.
5-7
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Criteria for an Effective
Service Research Program
 Includes both qualitative and quantitative
research
 Includes both expectations and perceptions of
customers
 Balances the cost of the research and the value of
the information
 Includes statistical validity when necessary
 Measures priorities or importance of attributes
 Occurs with appropriate frequency
 Includes measures of loyalty, behavioral
intentions, or actual behavior
5-8
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Portfolio of Services Research:
Research Is NOT Just Surveys!
 Customer Complaint Solicitation
 Critical Incident Studies
 Requirements Research
 Relationship and SERVQUAL Surveys
 Trailer Calls or Post transaction Surveys
 Service Expectations Meetings and Reviews
 Process Checkpoint Evaluations
 Mystery Shopping
 Customer Panels
 Lost Customer Research
 Future Expectations Research
5-9
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Common Means for
Answering Questions

 Ask customers directly


 mail, phone, face-to-face, online
 one-on-one, in groups, formal/informal
 Observing customers
 anthropological tools, qualitative depth
 Get information from employees and front
line service providers
 Database marketing research
 use customer information files
 “capture” behavior through data analysis

5-10
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Elements in an Effective Customer
Research Program for Services
Complaint ●
To identify and attend to dissatisfied customers
To identify common service failure points
Solicitation

Critical Incident ●


To identify “best” practices” at transaction level
To identify customer requirements as input for quantitative studies
To identify common service failure points
Studies


To identify systemic strengths and weaknesses in customer-contact services

Relationship ●


To monitor and track service performance
To assess overall company performance compared with that of competition
To determine links between satisfaction and behavioral intentions
Surveys


To assess gaps between customer expectations and perceptions

Post-transaction ●


To obtain immediate feedback on performance of service transactions
To measure effectiveness of changes in service delivery
To assess service performance of individuals and teams
Surveys


To use as input for process improvements; to identify common service failure points


To identify/attend to dissatisfied customers
Social Media ●


To encourage word of mouth
To measure the impact of other advertising

5-11
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Elements in an Effective Customer
Research Program for Services (continued)
Market-oriented ●
To research customers in natural settings
To study customers from other cultures in an unbiased way
Ethnography


To measure individual employee performance for evaluation, recognition, or
Mystery Shopping rewards

To identify systemic strengths and weaknesses in customer-contact services


To monitor changing customer expectations
Customer Panels ●
To provide a forum for customers to suggest and evaluate new service
ideas


To identify reasons for customer defection
Lost Customer Research ●
To assess gaps between customer expectations and perceptions

Future Expectations ●
To forecast future expectations of customers
To develop and test new service ideas
Research

5-12
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Sample Questions for
Critical Incident Studies
 Think of a time when, as a customer, you had
a particularly satisfying (dissatisfying)
interaction with an employee of
______________.

 When did the incident happen?

 What specific circumstances led up to this


situation?

 Exactly what was said and done?

 What resulted that made you feel the 5-13


Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
SERVQUAL Attributes
RELIABILITY EMPATHY
 Providing service as promised  Giving customers individual attention
 Dependability in handling customers’  Employees who deal with customers in a
service problems caring fashion
 Performing services right the first time  Having the customer’s best interest at heart
 Providing services at the promised time  Employees who understand the needs of their
 Maintaining error-free records customers
 Convenient business hours
RESPONSIVENESS
 Keeping customers informed as to when TANGIBLES
services will be performed  Modern equipment
 Prompt service to customers  Visually appealing facilities
 Willingness to help customers  Employees who have a neat, professional
 Readiness to respond to customers’ appearance
requests  Visually appealing materials associated
with the service
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
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Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Service Quality Perceptions Relative to
Zones of Tolerance by Dimensions
Figure 5.2

9
8
7 O
O O
6 O O
5
4
3
2
1
0

Reliability Responsiveness Assurance Empathy Tangibles

Retail Chain = Zone of Tolerance O= Service Quality Perception

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Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Importance/Performance Matrix
Figure 5.3

HIGH
High  
Leverage
Attribute Importance

 
 

 
Attributes to Improve Attributes to Maintain



  Low
Leverage

Attributes to Maintain Attributes to De-emphasize

LOW Attribute Performance HIGH

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Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Using Marketing Research Information

Understanding how to make the best use of


research – to apply what has been learned to the
business – is a key way to close the gap between
customer expectations and management
perceptions of customer expectations.

5-17
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
Upward Communication

Research for upward communication


 Executive visits to customers
 Executive or management listening to
customers
 Research on intermediate customers
 Research on internal customers
 Executive or management listening
approaches to employees
 Employee suggestions

5-18
Copyright © 2013 by McGraw Hill Education (India) Private Limited. All rights reserved.
5-19
Employees Provide Upward
Communication at Cabela’s

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