Services Marketing

Unit 5:
Measuring & Monitoring
Customer Satisfaction
Customer Satisfaction with
Service Experience
Services Marketing

 Satisfaction: attitude-like judgment following a

service purchase or series of service interactions
 Whereby customers have expectations prior to
consumption, observe service performance, compare it
to expectations
 Satisfaction judgments are based on this
comparison
 Positive disconfirmation (better)
 Confirmation (same)
 Negative disconfirmation (worse)
Customer Delight:
Going Beyond Satisfaction
Services Marketing

 Research shows that delight is a function of three

components
 Unexpectedly high levels of performance
 Arousal (e.g., surprise, excitement)
 Positive affect (e.g., pleasure, joy, or happiness)

 Strategic links exist between customer satisfaction

and corporate performance
 By creating more value for customers (increased
satisfaction), the firm creates more value for the
owners
Customer Delight:
Going Beyond Satisfaction
Services Marketing

 Best Practice in Action 2.1:

Progressive Insurance
Delights Its Customers
 Provided excellent customer
service which allowed them
to lower costs and also
increase customer
satisfaction and retention
Customer Perceptions of Quality
and Customer Satisfaction
Services Marketing
Factors Influencing
Customer Satisfaction
Services Marketing
 Product/service quality
 Specific product or service features
 Consumer emotions
 Attributions for service success or failure
 Perceptions of equity or fairness
 Other consumers, family members, and coworkers
 Price
 Personal factors
 the customer’s mood or emotional state
 situational factors
Outcomes of
Customer Satisfaction
Services Marketing
 Increased customer retention
 Positive word-of-mouth communications

 Increased revenues
Methods of Measuring
Customer Satisfaction Services Marketing
Service Quality
Services Marketing
 The customer’s judgment of overall excellence of
the service provided in relation to the quality that
was expected.
 Service quality assessments are formed on
judgments of:
 outcome quality
 interaction quality
 physical environment quality
 The Five Dimensions of
Service Quality Services Marketing
Ability to perform the promised service
Reliability dependably and accurately.

Knowledge and courtesy of employees and

Assurance their ability to inspire trust and
confidence.

Tangibles Physical facilities, equipment, and

appearance of personnel.

Caring, individualized attention the firm

Empathy provides its customers.

Willingness to help customers and provide

Responsiveness prompt service.
The Service Encounter
Services Marketing
 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
Relationship Marketing
Services Marketing
 is a philosophy of doing business, a strategic orientation,
that focuses on keeping current customers and improving
relationships with them
 does not necessarily emphasize acquiring new customers

 is usually cheaper (for the firm)

 keeping a current customer costs less than attracting a new one

 thus, the focus is less on attraction, and more on retention

and enhancement of customer relationships
Benefits of Relationship
Marketing
Services Marketing
 Benefits for Customers:  Benefits for Firms:
 Receipt of greater  Economic benefits:
increased revenues
value reduced marketing and
 Confidence benefits: administrative costs
trust regular revenue stream
confidence in provider  Customer behavior benefits:
reduced anxiety strong word-of-mouth
endorsements
 Social benefits:
customer voluntary performance
familiarity social benefits to other
social support customers mentors to other
personal relationships customers
 Special treatment  Human resource management
benefits: benefits:
special deals easier jobs for employees
social benefits for employees
price breaks
employee retention
Levels of Relationship
Strategies Services Marketing

Stable
Volume and pricing Bundling and
frequency cross selling
rewards

1.
Integrated Continuous
Financial
information relationships
systems bonds

4. Excellent 2.
Joint service Personal
Structural Social
investments relationships
bonds & value bonds

Shared Social bonds

processes 3.
among
and Customization customers
equipment Bonds

Anticipation/ Customer
innovation intimacy
Mass
customization
Services Marketing