“ The real issue is value, not price.” - Robert T. Lindgren
Understanding Customer Needs Customer Care
Objectives <ul><li>Describe customer service </li></ul><ul><li>Discuss the implications of achieving good customer service...
Learning Criteria <ul><li>Describe the differing and specific needs of a range of business and services customers </li></u...
Needs, Wants, and Demands <ul><li>A human  need  is a state of felt deprivation </li></ul><ul><li>Wants  are how people co...
Understanding Customer Needs <ul><li>Customers of a Service Organization. </li></ul><ul><li>Internal Customers. </li></ul>...
Customer satisfaction Source; Johnson and Clark 2009
The satisfaction continuum Source; Johnson and Clark 2009
Customer Delivered Value
Values: <ul><li>A combination of our beliefs, perceptions, and ideas about the appropriate response to a situation. </li><...
Customer Delivered Value <ul><li>Customer-delivered value  is the difference between total customer value and total custom...
Customer Satisfaction <ul><li>Buying decisions are based on judgments formed about the value of marketing offers </li></ul...
Product Quality <ul><li>Quality is THE vital area in hospitality </li></ul><ul><li>Product features enhance customer satis...
Expectations: <ul><li>Our personal vision of the result that will come from our experience. </li></ul>
Levels of Expectations <ul><li>Primary expectations: the customer’s most basic requirements of an interaction. </li></ul><...
Expectations – key influences Source; Johnson and Clark 2009
Techniques for Exceeding Customers’ Expectations <ul><li>Become familiar with your customers. </li></ul><ul><li>Ask your c...
Range of expectations and the zone of tolerance or acceptable outcomes Source; Johnson and Clark 2009
Credibility: <ul><li>Made up of the combination of our current knowledge, reputation, and professionalism. </li></ul>
Tips for cultivating credibility <ul><li>Practice consistency </li></ul><ul><li>Keep your word </li></ul><ul><li>Develop y...
<ul><li>Does the strive for quality always add to the cost of production? </li></ul><ul><li>Discuss… </li></ul>
Five Premises of Consumer Behaviour <ul><li>Consumer behaviour is purposeful and goal oriented </li></ul><ul><li>The consu...
Buyer Decision Process
Purchase Decision
Expectations – key influences
Service Excellence
Moments of Truth <ul><li>Each customer contact is called a moment of truth. </li></ul><ul><li>You have the ability to eith...
Reputation Management: <ul><li>The process of identifying how a company is perceived and establishing a action plan to cor...
A company with a good reputation <ul><li>Is very responsive to customers </li></ul><ul><li>Is a company you can trust </li...
A company with a good reputation (continued) <ul><li>Is a good citizen </li></ul><ul><li>Is a progressive company </li></u...
Managing perceptions Johnston, Robert (1995)
Figure 4.14   Adequate performance satisfies the customer Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exp...
Figure 4.15   Using enhancers to delight the customer Adapted from Johnston, Robert (1995) ‘The zone of tolerance: explori...
Figure 4.16   A dissatisfying outcome Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relations...
Figure 4.17   Enhancers compensate for failure Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the ...
Figure 4.18   Dissatisfaction shifts the zone of tolerance Adapted from Johnston, Robert (1995) ‘The zone of tolerance: ex...
Figure 4.19   Delight shifts the zone of tolerance Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring ...
Seminar <ul><li>Favourite Brands and why… </li></ul>
Next week <ul><li>Kanos model – look up </li></ul>
 
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5 Understanding Customer Needs

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Transcript of "5 Understanding Customer Needs"

  1. 1. “ The real issue is value, not price.” - Robert T. Lindgren
  2. 2. Understanding Customer Needs Customer Care
  3. 3. Objectives <ul><li>Describe customer service </li></ul><ul><li>Discuss the implications of achieving good customer service </li></ul><ul><li>Discuss the insights obtained from a the triangle of services marketing </li></ul>
  4. 4. Learning Criteria <ul><li>Describe the differing and specific needs of a range of business and services customers </li></ul><ul><li>Provide customer care and service in a business and services environment </li></ul><ul><li>Explain the benefits of improved customer service to a given business and services operation. </li></ul>
  5. 5. Needs, Wants, and Demands <ul><li>A human need is a state of felt deprivation </li></ul><ul><li>Wants are how people communicate their needs </li></ul><ul><li>When backed by buying power, wants become demands </li></ul>
  6. 6. Understanding Customer Needs <ul><li>Customers of a Service Organization. </li></ul><ul><li>Internal Customers. </li></ul><ul><li>External Customers. </li></ul><ul><li>Measurement of Service Quality. </li></ul><ul><li>Employee Research. </li></ul>
  7. 7. Customer satisfaction Source; Johnson and Clark 2009
  8. 8. The satisfaction continuum Source; Johnson and Clark 2009
  9. 9. Customer Delivered Value
  10. 10. Values: <ul><li>A combination of our beliefs, perceptions, and ideas about the appropriate response to a situation. </li></ul>
  11. 11. Customer Delivered Value <ul><li>Customer-delivered value is the difference between total customer value and total customer cost of a marketing offer </li></ul><ul><li>Customer satisfaction depends on the product’s performance relative to a buyer’s expectations </li></ul><ul><li>Companies must be customer centered and deliver superior value to target customers </li></ul>
  12. 12. Customer Satisfaction <ul><li>Buying decisions are based on judgments formed about the value of marketing offers </li></ul><ul><li>Customer expectations are based on past buying experiences </li></ul><ul><li>Today’s most successful companies are raising expectations and delivering performance to match </li></ul>
  13. 13. Product Quality <ul><li>Quality is THE vital area in hospitality </li></ul><ul><li>Product features enhance customer satisfaction </li></ul><ul><li>Freedom from deficiencies increases customer satisfaction </li></ul><ul><li>Produces Competitive Advantage </li></ul>
  14. 14. Expectations: <ul><li>Our personal vision of the result that will come from our experience. </li></ul>
  15. 15. Levels of Expectations <ul><li>Primary expectations: the customer’s most basic requirements of an interaction. </li></ul><ul><li>Secondary expectations: Expectations based on our previous experiences that are enhancements to our primary expectations. </li></ul>
  16. 16. Expectations – key influences Source; Johnson and Clark 2009
  17. 17. Techniques for Exceeding Customers’ Expectations <ul><li>Become familiar with your customers. </li></ul><ul><li>Ask your customers what their expectations are. </li></ul><ul><li>Tell your customers what they can expect. </li></ul><ul><li>Live up to their expectations. </li></ul><ul><li>Maintain consistency. </li></ul>
  18. 18. Range of expectations and the zone of tolerance or acceptable outcomes Source; Johnson and Clark 2009
  19. 19. Credibility: <ul><li>Made up of the combination of our current knowledge, reputation, and professionalism. </li></ul>
  20. 20. Tips for cultivating credibility <ul><li>Practice consistency </li></ul><ul><li>Keep your word </li></ul><ul><li>Develop your expertise </li></ul><ul><li>Become a teammate with your coworkers </li></ul><ul><li>Show your dedication to customers </li></ul><ul><li>Treat all of your customers and coworkers with the same high level of respect </li></ul><ul><li>Apologize if you are wrong </li></ul><ul><li>Remember that credibility is much harder to regain than it is to keep </li></ul>
  21. 21. <ul><li>Does the strive for quality always add to the cost of production? </li></ul><ul><li>Discuss… </li></ul>
  22. 22. Five Premises of Consumer Behaviour <ul><li>Consumer behaviour is purposeful and goal oriented </li></ul><ul><li>The consumer has free choice </li></ul><ul><li>Consumer behaviour is a process </li></ul><ul><li>Consumer behaviour can be influenced </li></ul><ul><li>There is a need for consumer education </li></ul>
  23. 23. Buyer Decision Process
  24. 24. Purchase Decision
  25. 25. Expectations – key influences
  26. 26. Service Excellence
  27. 27. Moments of Truth <ul><li>Each customer contact is called a moment of truth. </li></ul><ul><li>You have the ability to either satisfy or dissatisfy them when you contact them. A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer. </li></ul>
  28. 28. Reputation Management: <ul><li>The process of identifying how a company is perceived and establishing a action plan to correct, maintain, or enhance the company’s reputation. </li></ul>
  29. 29. A company with a good reputation <ul><li>Is very responsive to customers </li></ul><ul><li>Is a company you can trust </li></ul><ul><li>Delivers on its promises to customers </li></ul><ul><li>Provides excellent value to customers </li></ul><ul><li>Has excellent communications </li></ul><ul><li>Is ethical and honest </li></ul><ul><li>Conducts business in a human/caring way </li></ul><ul><li>Has excellent top management </li></ul><ul><li>Is able to adapt to changes in the industry </li></ul>
  30. 30. A company with a good reputation (continued) <ul><li>Is a good citizen </li></ul><ul><li>Is a progressive company </li></ul><ul><li>Is cooperative </li></ul><ul><li>Has a record of strong financial performance </li></ul><ul><li>Treats employees with respect </li></ul><ul><li>Is a technological leader in the industry </li></ul><ul><li>Is committed to the environment </li></ul><ul><li>Complies with state/federal regulations </li></ul><ul><li>Is successful in diversifying operations </li></ul>
  31. 31. Managing perceptions Johnston, Robert (1995)
  32. 32. Figure 4.14 Adequate performance satisfies the customer Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46–61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
  33. 33. Figure 4.15 Using enhancers to delight the customer Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
  34. 34. Figure 4.16 A dissatisfying outcome Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
  35. 35. Figure 4.17 Enhancers compensate for failure Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
  36. 36. Figure 4.18 Dissatisfaction shifts the zone of tolerance Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
  37. 37. Figure 4.19 Delight shifts the zone of tolerance Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
  38. 38. Seminar <ul><li>Favourite Brands and why… </li></ul>
  39. 39. Next week <ul><li>Kanos model – look up </li></ul>

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