1. 1
Customer Perceptions of Service
(Chapter 5)
 - Dwayne D. Gremler
 Customer Satisfaction
 influencing factors, outcomes
 satisfaction and loyalty
 Service Quality
 dimensions
 Service Encounters
 types of encounters
 sources of pleasure/displeasure
 Strategies for Influencing Customer Perceptions

2. 2
 - Dwayne D. Gremler
Two Types of Customers
 External Customers

 Internal Customers


3. 3
 - Dwayne D. Gremler
Customer Satisfaction
 What is it?

 Failure to meet needs and expectations usually
results in dissatisfaction.
 Satisfaction is thought to be

4. 4
 - Dwayne D. Gremler
Customer Satisfaction
 satisfaction is thought to be influenced by:





 satisfaction can only be assessed following

5. 5
Satisfaction and Service Quality
 - Dwayne D. Gremler
Figure 5.1

6. 6
Outcomes of Customer Satisfaction
 - Dwayne D. Gremler




7. 7
Customer Satisfaction and Loyalty in
Competitive Industries
 - Dwayne D. Gremler
100%
80%
60%
40%
20%
0%
Very
dissatisfied
Dissatisfied Neither
satisfied nor
dissatisfied
Satisfied Very
satisfied
Satisfaction measure
Loyalty (retention)
Figure 5.4
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.

8. 8
 - Dwayne D. Gremler
Service Quality
 is “the delivery of


 service quality dimensions

9. 9
 - Dwayne D. Gremler
Dimensions of Service Quality
Service
Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles

10. 10
 - Dwayne D. Gremler
Service Quality Dimensions
 reliability ( )

 responsiveness ( )

 assurance ( )

 empathy ( )

 tangibles ( )


11. 11
Service Quality (SERVQUAL) Attributes
 - Dwayne D. Gremler
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
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
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

12. 12
 - Dwayne D. Gremler
The Service Encounter
 is the “moment of truth”


 types of encounters:



 is an opportunity to:
 build trust, reinforce quality, increase loyalty
 sequential service encounter examples:




13. 13
A Service Encounter Cascade for a
Hotel Visit
 - Dwayne D. Gremler
Check-In
Request Wake-Up Call
Checkout
Bellboy Takes to Room
Restaurant Meal
Figure 5.5

14. 14
Sources of Pleasure/Displeasure in
Service Encounters
 - Dwayne D. Gremler
 Recovery

 Adaptability

 Spontaneity

 Coping


15. 15
The Evidence of Service from the
Customer’s Point of View
 Contact employees
 Customer him/herself
 Other customers
 - Dwayne D. Gremler
 Operational flow of
activities
 Steps in process
 Flexibility vs.
standard
 Technology vs.
human
 Tangible
communication
 Servicescape
 Guarantees
 Technology
Figure 5.7

16. 16
Strategies for Influencing Customer
Perceptions
 - Dwayne D. Gremler
 effective
 emphasize
 use the
 assume ALL

17. 17
 - Dwayne D. Gremler
Recovery
DO DON’T
 Acknowledge problem
 Explain causes
 Apologize
 Compensate/upgrade
 Lay out options
 Take responsibility
 Ignore customer
 Blame customer
 Leave customer to fend for
him/herself
 Downgrade
 Act as if nothing is wrong

18. 18
 - Dwayne D. Gremler
Adaptability
DO DON’T
 Recognize the seriousness
of the need
 Acknowledge
 Anticipate
 Attempt to accommodate
 Explain rules/policies
 Take responsibility
 Exert effort to
accommodate
 Promise, then fail to follow
through
 Ignore
 Show unwillingness to try
 Embarrass the customer
 Laugh at the customer
 Avoid responsibility

19. 19
 - Dwayne D. Gremler
Spontaneity
DO DON’T
 Take time
 Be attentive
 Anticipate needs
 Listen
 Provide information (even if
not asked)
 Treat customers fairly
 Show empathy
 Acknowledge by name
 Exhibit impatience
 Ignore
 Yell/laugh/swear
 Steal from or cheat a
customer
 Discriminate
 Treat impersonally

20. 20
 - Dwayne D. Gremler
Coping
DO DON’T
 Listen
 Try to accommodate
 Explain
 Let go of the customer
 Take customer’s
dissatisfaction personally
 Let customer’s
dissatisfaction affect others