Your SlideShare is downloading. ×
0
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning is a ...

519

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
519
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. C hapter 12 D EFINING A ND M EASURING C USTOMER S ATISFACTION
  • 2. AMERICAN CUSTOMER SATISFACTION INDEX (ACSI) <ul><li>Top Firms (all produce goods) </li></ul><ul><ul><li>Dole Food </li></ul></ul><ul><ul><li>Mars </li></ul></ul><ul><ul><li>H.J. Heinz </li></ul></ul><ul><ul><li>Proctor &amp; Gamble </li></ul></ul><ul><ul><li>PepsiCo </li></ul></ul><ul><ul><li>Honda </li></ul></ul><ul><ul><li>Mercedes-Benz </li></ul></ul><ul><ul><li>Maytag </li></ul></ul>
  • 3. AMERICAN CUSTOMER SATISFACTION INDEX (ACSI) <ul><li>Bottom Firms (all produce services) </li></ul><ul><ul><li>Internal Revenue Service </li></ul></ul><ul><ul><li>Police </li></ul></ul><ul><ul><li>U.S. Postal Service </li></ul></ul><ul><ul><li>Continental Airlines </li></ul></ul><ul><ul><li>McDonald’s </li></ul></ul><ul><ul><li>BankAmerica Corp. </li></ul></ul><ul><ul><li>Unicom (electric utilities) </li></ul></ul><ul><ul><li>Ramada </li></ul></ul><ul><ul><li>Aetna Life &amp; Casualty (insurance) </li></ul></ul>
  • 4. RECIPE FOR CUSTOMER SERVICE DISASTERS <ul><li>Labor shortages </li></ul><ul><ul><li>motivated employees are difficult to find </li></ul></ul><ul><ul><ul><li>who can blame them… </li></ul></ul></ul><ul><ul><ul><ul><li>low pay </li></ul></ul></ul></ul><ul><ul><ul><ul><li>no career paths </li></ul></ul></ul></ul><ul><ul><ul><ul><li>no respect </li></ul></ul></ul></ul><ul><ul><ul><ul><li>little training in customer relations </li></ul></ul></ul></ul>
  • 5. RECIPE FOR CUSTOMER SERVICE DISASTERS <ul><li>Automation </li></ul><ul><ul><li>effectiveness was sacrificed in the name of efficiency </li></ul></ul><ul><ul><li>general feeling that companies are continuing to distance themselves from their customers </li></ul></ul><ul><ul><ul><li>examples are numerous … </li></ul></ul></ul><ul><ul><ul><ul><li>mounting frustrations with automated phone and other service delivery systems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>e-commerce strategies should take note! </li></ul></ul></ul></ul>
  • 6. RECIPE FOR CUSTOMER SERVICE DISASTERS <ul><li>Customers are tougher to please </li></ul><ul><ul><li>increasingly educated </li></ul></ul><ul><ul><li>more informed </li></ul></ul><ul><ul><li>more discretionary income </li></ul></ul><ul><ul><ul><li>not at the mercy of shop keepers anymore </li></ul></ul></ul><ul><ul><li>expectations have increased </li></ul></ul>
  • 7. RECIPE FOR CUSTOMER SERVICE DISASTERS <ul><li>Skyrocketing inflation </li></ul><ul><ul><li>efforts to reduce prices </li></ul></ul><ul><ul><ul><li>services were slashed </li></ul></ul></ul><ul><ul><li>price competition ensued (price wars) </li></ul></ul><ul><ul><ul><li>firms once again cut costs </li></ul></ul></ul><ul><ul><ul><ul><li>service was sacrificed again </li></ul></ul></ul></ul><ul><ul><ul><ul><li>interestingly, advertising was also cut during a time customers were attempting to make more informed decisions </li></ul></ul></ul></ul>
  • 8. THE IMPORTANCE OF CUSTOMER SATISFACTION <ul><li>The average business does not hear from 96% of its unhappy customers </li></ul><ul><li>For every complaint received, 26 customers actually have the same problem </li></ul><ul><li>The average person with a problem tells 9 or 10 people </li></ul><ul><ul><li>13% tell more than 20 </li></ul></ul>
  • 9. THE IMPORTANCE OF CUSTOMER SATISFACTION <ul><li>Customers who have their complaints resolved tell an average of 5 people </li></ul><ul><li>Complainers are more likely to do business with you again than non-complainers </li></ul><ul><ul><li>54-70% if the complaint is resolved at all </li></ul></ul><ul><ul><li>95% if the complaint is resolved quickly </li></ul></ul>
  • 10. WHAT IS CUSTOMER SATISFACTION/DISSATISFACTION? <ul><li>Expectancy Disconfirmation Model </li></ul><ul><ul><li>Confirmation </li></ul></ul><ul><ul><ul><li>perceptions = expectations </li></ul></ul></ul><ul><ul><li>Negative Disconfirmation </li></ul></ul><ul><ul><ul><li>perceptions &lt; expectations </li></ul></ul></ul><ul><ul><li>Positive Disconfirmation </li></ul></ul><ul><ul><ul><li>perceptions &gt; expectations </li></ul></ul></ul>
  • 11. THE BENEFITS OF CUSTOMER SATISFACTION <ul><li>Positive word-of-mouth </li></ul><ul><li>Purchase more frequently </li></ul><ul><li>Less likely to be lost to competitors </li></ul><ul><li>Insulated from price competition </li></ul><ul><li>Positive work environments </li></ul>
  • 12. THE BENEFITS OF CUSTOMER SATISFACTION SURVEYS <ul><li>Provides a formal means of customer feedback </li></ul><ul><li>Conveys a caring message to customers </li></ul><ul><li>Used to evaluate employee performance </li></ul><ul><ul><li>Merit and compensation reviews </li></ul></ul><ul><ul><li>Employee training programs </li></ul></ul><ul><li>Comparison against competition </li></ul><ul><li>Provide information for advertising </li></ul>
  • 13. MEASURING CUSTOMER SATISFACTION <ul><li>Indirect Measures </li></ul><ul><ul><li>sales records, profits, customer complaints </li></ul></ul><ul><li>Direct Measures </li></ul><ul><ul><li>The Scale of 100 Approach </li></ul></ul><ul><ul><ul><li>Federal Express’ original approach (score = 83) </li></ul></ul></ul><ul><ul><li>The “Very Dissatisfied/Very Satisfied” Approach </li></ul></ul><ul><ul><li>The Combined Approach </li></ul></ul>
  • 14. MEASURING CUSTOMER SATISFACTION <ul><li>FedEx’s “Hierarchy of Horrors” </li></ul><ul><ul><li>wrong-day delivery </li></ul></ul><ul><ul><li>right day, late delivery </li></ul></ul><ul><ul><li>pick-up not made </li></ul></ul><ul><ul><li>lost package </li></ul></ul><ul><ul><li>customer misinformed by FedEx </li></ul></ul><ul><ul><li>billing and paperwork mistakes </li></ul></ul><ul><ul><li>employee performance failures </li></ul></ul><ul><ul><li>damaged packages </li></ul></ul>
  • 15. UNDERSTANDING CUSTOMER SATISFACTION RATING <ul><li>Virtually all self-reports of customer satisfaction possess a distribution that is ………………??? </li></ul>High dissatisfaction High satisfaction Conceptual Distribution of Satisfaction Measurements Source: Robert A. Peterson and William R. Wilson, “Measuring Customer Satisfaction: Fact and Artifact,” Journal of the Academy of Marketing Science 20,1 (1992), p. 61.
  • 16. SAMPLING OF SATISFACTION RESULTS Source: Robert A. Peterson and William R. Wilson, “Measuring Customer Satisfaction: Fact and Artifact,” Journal of the Academy of Marketing Science 20,1 (1992), p. 61.
  • 17. FACTORS INFLUENCING CUSTOMER SATISFACTION RATINGS <ul><li>Customers are genuinely satisfied </li></ul><ul><li>Response bias </li></ul><ul><li>Data collection method </li></ul><ul><ul><li>personal vs. non-personal </li></ul></ul><ul><li>Question form </li></ul><ul><ul><li>satisfied vs. dissatisfied </li></ul></ul>
  • 18. RESPONSE BY QUESTION FORM Source: Robert A. Peterson and William R. Wilson, “Measuring Customer Satisfaction: Fact and Artifact,” Journal of the Academy of Marketing Science 20,1 (1992), p. 65.
  • 19. FACTORS INFLUENCING CUSTOMER SATISFACTION RATINGS <ul><li>Question context </li></ul><ul><ul><li>General question prior to specific question </li></ul></ul><ul><li>Timing of question </li></ul><ul><ul><li>Recent vs. Past Purchase </li></ul></ul><ul><li>Social desirability bias </li></ul><ul><li>Mood </li></ul>
  • 20. CUSTOMER SATISFACTION: HOW GOOD IS GOOD ENOUGH? <ul><li>Should a firm invest $100,000 to attempt to improve ratings from 95% to 98%? </li></ul><ul><li>Depends Upon: </li></ul><ul><ul><li>satisfaction ratings of other firms </li></ul></ul><ul><ul><li>dollar investment needed relative to the impact on the bottom line by increasing market share </li></ul></ul><ul><ul><li>number of time periods needed to recoup the investment </li></ul></ul><ul><ul><li>opportunity costs associated with other uses of the firm’s funds </li></ul></ul>
  • 21. CUSTOMER SATISFACTION MODELS <ul><li>[Panels A, B, and C of Figure 12.3, p.309.] </li></ul><ul><li>Babich Satisfaction Models Illustrate: </li></ul><ul><ul><li>the value of knowing competitive ratings </li></ul></ul><ul><ul><li>high customer satisfaction scores make the firm more resistant to competitive efforts to increase their market share </li></ul></ul>
  • 22. CRITICISMS OF CUSTOMER SATISFACTION RESEARCH <ul><li>Does not necessarily translate into customer retention </li></ul><ul><li>Focus is on current needs only </li></ul><ul><li>Focuses on registered complaints </li></ul><ul><li>Fails to involve employee viewpoints </li></ul><ul><li>Fails to involve customer viewpoints </li></ul><ul><li>surveys are generally designed internally by middle and upper managers </li></ul>
  • 23. CUSTOMER SATISFACTION: A CLOSER LOOK
  • 24. The Zone of Tolerance Source: Valerie A. Zeithaml, Leonard L. Berry, and A. Parasuraman, “The Nature and Determinants of Customer Expectations of Service,” Journal of the Academy of Marketing Science 21,1 (1993), pp. 1-12. Expected service Desired service Zone of tolerance Adequate service
  • 25. Factors Influencing Expected Service Source: Adapted from Valerie A. Zeithaml, Leonard L. Berry, and A. Parasuraman, “The Nature and Determinants of Customer Expectations of Service,” Journal of the Academy of Marketing Science 21,1 (1993), pp. 1-12. <ul><li>Enduring service </li></ul><ul><li>intensifiers </li></ul><ul><li>Derived expectations </li></ul><ul><li>Personal service </li></ul><ul><li>philosophies </li></ul>Personal needs <ul><li>Transitory service </li></ul><ul><li>intensifiers </li></ul><ul><li>Emergencies </li></ul><ul><li>Service problems </li></ul>Perceived service alternatives Self-perceived service role <ul><li>Situational factors </li></ul><ul><li>Bad weather </li></ul><ul><li>Catastrophe </li></ul><ul><li>Random over-demand </li></ul><ul><li>Explicit service </li></ul><ul><li>promises </li></ul><ul><li>Advertising </li></ul><ul><li>Personal selling </li></ul><ul><li>Contracts </li></ul><ul><li>Other communications </li></ul><ul><li>Implicit service promises </li></ul><ul><li>Tangibles </li></ul><ul><li>Price </li></ul><ul><li>Word-of-mouth </li></ul><ul><li>Personal </li></ul><ul><li>“ Expert” ( Consumer Reports, </li></ul><ul><li>publicity, consultants, </li></ul><ul><li>surrogates) </li></ul>Past experience Predicted service Expected service Desired service Zone of tolerance Adequate service Perceived service

×