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  • Explicit Service PromisesPersonal or non-personal promises made by the firm about serviceWhen communicated or proposed by a salesperson it is PersonalWhen communication is throughAdsBrochuresAny other written communication it is Non-personalImplicit Service PromisesThese are cues are implied by the following:PricePhysical EvidenceAny other TangiblesLong waiting/ Queues?The higher the price the expectations rise is steeperA beautiful and elaborate menu card raises the expectations of the customerWords Of MouthThese can be again personal or non-personalWhen it is one-on-one it is Personal Word-of-mouth, again it can be:SoughtDispensedNon-personal Word-of-mouth are:Consumer reports, Press reports, Experts’ opinion are Past ExperiencesIt can be with the same SP or different SPsFor example:Your stay in HotelsAirlinesBuses- VRL intraOr with Mahesh, Pai etc
  • EMPATHYGiving Customers Individual AttentionEmployees Who Deal With Customers In A Caring FashionHaving The Customer’s Best Interest At HeartEmployees Who Understand The Needs Of Their CustomersConvenient Business HoursRELIABILITYProviding Service As PromisedDependability In Handling Customers’ Service ProblemsPerforming Services Right The First TimeProviding Services At The Promised TimeMaintaining Error-free RecordsRESPONSIVENESSKeeping Customers Informed As To When Services Will Be PerformedPrompt Service To CustomersWillingness To Help CustomersReadiness To Respond To Customers’ RequestsASSURANCEEmployees Who Instill Confidence In CustomersMaking Customers Feel Safe In Their TransactionsEmployees Who Are Consistently CourteousEmployees Who Have The Knowledge To Answer Customer QuestionsTANGIBLESModern EquipmentVisually Appealing FacilitiesEmployees Who Have A Neat, Professional AppearanceVisually Appealing Materials Associated With The Service
  • Transcript

    • 1. CONSUMER BEHAVIOR A typical Con’B template is: NEED RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES PURCHASE AND CONSUMPTION POST PURCHASE EVALUATION Is Con’ B different for Services?
    • 2. Stages in Consumer Decision Making and Evaluation of Services
    • 3. 4/3/2014 4 CON B “The consumer’s mind is still closed to us; it’s like a ‘Black Box’ that remains sealed. We can observe inputs to the box and the decisions made as a result, but we can never know how the act of processing inputs(information) truly happens.” -John E. G. Bateson, CEO, SHL group plc
    • 4. 4/3/2014 Consumer Behavior Model Cue: Refers to any object or phenomenon in the environment that is capable of eliciting a response. •Drive: Refers to a motivating force that directs behavior. •Stimulus: Refers to a cue that is external to the individual or a drive that is internal to the individual.
    • 5. 4/3/2014 6 Consumer Decision Process Comprises of three stages: Prepurchase Stage: All consumer activities occurring before and leading up to the acquisition of the service. Consumption Stage The stage of the consumer decision process in which the consumer purchases and uses the product. Post-purchase Evaluation Stage The stage of the consumer decision- making process during which the consumer determines whether the correct purchase decision was made. Continued
    • 6. 4/3/2014 7 Categories in Consumer Decision-Making and Evaluation of Services Information Search Evaluation of Alternatives Purchase and Consumption Post-Purchase Evaluation  Use of personal sources  Perceived risk  Evoked set  Emotion and mood  Service provision as drama  Service roles and scripts  Compatibility of customers  Attribution of dissatisfaction  Innovation diffusion  Brand loyalty
    • 7. 4/3/2014 Deepti Shetty 8 Prepurchase Stage First Phase is about various stimuli, like: Commercial cues:- Events or motivations that provide stimulus to the consumer and are promotional efforts on the part of the company. Social cues:- Events or motivations that provide stimulus to the consumer, obtained from the individual’s peer group or from significant others. Physical cues:- Motivation, such as thirst, hunger, or another biological cue that provides stimulus to the consumer. Continued
    • 8. 4/3/2014 Deepti Shetty 9 Prepurchase Stage Second Phase is about existence of a need, like: Problem awareness:- In which the consumer determines whether a need exists for the product. Shortage:- The need for a product or service as a result of the consumer's not having that particular product or service. Social cues:- Unfulfilled desire:- The need for a product or service as a result of a consumer's dissatisfaction with a current product or service. Continued
    • 9. 4/3/2014 Deepti Shetty 10 Prepurchase Stage Third Phase is about search for possible alternatives comprising of: Evoked set:- The limited set of "brands" that comes to the consumer's mind when thinking about a particular product category from which the purchase choice will be made. Internal search:- A passive approach to gathering information in which the consumer's own memory is the main source of information about a product. External search:- A proactive approach to gathering information in which the consumer collects new information from sources outside the consumer's own experience. Continued
    • 10. 4/3/2014 Deepti Shetty 11 Prepurchase Stage Fourth Phase is evaluation of alternatives in which the consumer places a “value/ rank" on each alternative by way of: Nonsystematic evaluation:- Choosing in a random fashion or by a "gut-level feeling" approach. Systematic evaluation:- Opt by using a set of formalized steps to arrive at a decision. Continued
    • 11. 4/3/2014 Deepti Shetty 12 Prepurchase Stage Linear compensatory approach:- A model whereby the consumer creates a global score for each brand by multiplying the rating of the brand on each attribute by the importance attached to the attribute and adding the score together. Lexicographic Approach:- A model whereby the consumer makes a decision by examining each attribute, starting with the most important, to rule out alternatives. Evaluation Phase Continued
    • 12. 4/3/2014 Deepti Shetty 13 Consumption Stage Consumption Process Phase - Includes the activities of buying, using, and disposing of a product/service. Here again, there could be alternatives, like: Store Choice:- The decision to purchase from a particular outlet or store. Non-store Choice:- The decision to purchase from a catalog, the Inter-net, or through mail order.
    • 13. 4/3/2014 Deepti Shetty 14 Postpurchase Evaluation Stage The stage at which the consumer determines whether the correct purchase decision was made and the result could be either Satisfaction or Dissonance. The dissent could be due to any of the following: Cognitive Dissonance:- Doubt in the consumer's mind regarding the correctness of the purchase decision. Continued
    • 14. 4/3/2014 Deepti Shetty 15 The Perceived Behavioral Control Conflicts in the Service Encounter
    • 15. 4/3/2014 Deepti Shetty 16 Consumer Evaluation Processes for Services Search Qualities attributes a consumer can determine prior to purchase of a product Experience Qualities attributes a consumer can determine after purchase (or during consumption) of a product Credence Qualities characteristics that may be impossible to evaluate even after purchase and consumption
    • 16. Managing Customer Expectation
    • 17. 4/3/2014 Deepti Shetty 18 Managing Expectations One way to influence customer satisfaction is to effectively manage consumer expectations prior to arrival. For example, Finland actively attempts to manage visitor expectations. In one attempt to manage tourist expectations about the country and people of Finland, the Helsinki Guide published the following list in its visitor publication: Continued
    • 18. 4/3/2014 Deepti Shetty 19 Finland-What It Is Not! •Finland is not a small country, nor is it close to the North Pole. •Finland is not awfully cold all the time, and polar bears do not roam the streets of Helsinki. •Finnish is not a Slavic language, and only very few Finns speak Russian, which, of course, is a pity. •Finland did not suffer too badly from any wartime occupation. •Finns and Lapps are not the same thing. •Finland is not, and has never' been, a member of the Eastern Bloc-if there is One any more. •Finns don’t drink as much as the rumors say, •Finns don't eat just fish. •Finland is not the country of limitless sex that it is made out to be. •Finland is not in a very uncomfortable position between East and West.
    • 19. 4/3/2014 Deepti Shetty 20 Continuum of Evaluation for Different Types of Products Difficult to evaluate Easy to evaluate High in search qualities High in experience qualities High in credence qualities Most Goods Most Services Credence Factor
    • 20. 4/3/2014 Deepti Shetty 21 NEED RECOGNITION Let’s use Maslow’s Hierarchy model Physiological Safety & Security Social Ego Kicks Self Actualization Does not differ drastically for Services
    • 21. 4/3/2014 Deepti Shetty 22 INFORMATION SEARCH PERSONAL SOURCES VS NONPERSONAL •FOR SERVICES USE OF PERSONAL SOURCES IS FAR HIGHER COMPARED TO GOODS AND THE REASONS ARE: •Most Service outlets are localized •Less of advertising or Mass Communication •Ban on Advertising and Promotion PERCEIVED RISK MUCH HIGHER FOR SERVICES Continued
    • 22. 4/3/2014 Deepti Shetty 23 Different Perceived Risks Financial Risk: - The possibility of a monetary, loss if the purchase goes wrong or fails to operate correctly. Performance Risk :- The possibility that the item or service purchased will not perform the task for which it was purchased. correctness of the purchase decision. Continued
    • 23. 4/3/2014 Deepti Shetty 24 Different Perceived Risks Physical Risk:- The possibility that if something does go wrong, injury could be inflicted on the purchaser. Social Risk:- The possibility of a loss in personal social status associated with a particular purchase. Psychological Risk:- The possibility that a purchase will affect an individual's self-esteem.
    • 24. 4/3/2014 Deepti Shetty 25 EVALUATION OF ALTERNATIVES EVOKED SET For Services this tends to be smaller because: Services are retailed at least not significantly In case of non-professional service needs many a times, the consumer may perform the service himself Technology:, for example Self Service Alternatives:- ATM, Internet Kiosks, Video/CD, Voicemail et al
    • 25. 4/3/2014 Deepti Shetty 26 PURCHASE AND CONSUMPTION WHAT DIFFERNTIATES SERVICE FROM GOODS: Moods and Emotions Service provision is multifaceted, more like a Drama ROLE PLAY SCRIPT COMPATIBILITY OF CONSUMERS:
    • 26. 4/3/2014 Deepti Shetty 27 POST PURCHASE PHASE Dissatisfaction: Not communicated often Innovation Diffusion Brand Loyalty
    • 27. 4/3/2014 Deepti Shetty 28 Categories in Consumer Decision-Making and Evaluation of Services Information Search Evaluation of Alternatives Purchase and Consumption Post-Purchase Evaluation  Use of personal sources  Perceived risk  Evoked set  Emotion and mood  Service provision as drama  Service roles and scripts  Compatibility of customers  Attribution of dissatisfaction  Innovation diffusion  Brand loyalty Culture  Values and attitudes  Manners and customs  Material culture  Aesthetics  Educational and social institutions
    • 28. 4/3/2014 Deepti Shetty 29 ROLE OF CULTURE •Values and Attitudes •Manners and Customs •Material culture •Aesthetics •Education and Learning
    • 29. 4/3/2014 Deepti Shetty 30 Global Feature: Differences in the Service Experience in the U.S. & Japan • Authenticity • Caring • Control Courtesy • Formality • Friendliness • Personalization • Promptness
    • 30. CUSTOMER EXPECTATIONS
    • 31. 4/3/2014 Deepti Shetty 32 Customer Expectations of Service • Recognize that customers hold different types of expectations for service performance. • Discuss controllable and uncontrollable sources of customer expectations. • Distinguish between customers’ global expectations of their relationships and their expectations of the service encounter. Continued
    • 32. 4/3/2014 Deepti Shetty 33 Customer Expectations of Service •Acknowledge that expectations are similar for many different types of customers. •Delineate the most important current issues surrounding customer expectations.
    • 33. 4/3/2014 Deepti Shetty 34 CUSTOMER EXPECTATIONS CE are beliefs about Service Delivery that function as standard / reference points against which performance is judged
    • 34. 4/3/2014 Deepti Shetty 35 DISCUSSION ON CE • What type of expectation standards do customers hold? • What factors influence CE? • What roles do these factors play in changing the CE? • Should a firm meet/exceed the CE?
    • 35. 4/3/2014 Deepti Shetty 36 POTENTIAL LEVELS OF CE Normative “should” Expectations Experience Based Norms Acceptable Expectations Ideal Expectations or Desires Minimum Tolerable Expectations “Everyone says this is College Is as good as IIM’s for an MBA and after all it’s a question of my future!” HIGH LOW “As it boasts of affiliation to VTU and it had be better good!” “Most of the times all students get placed but in times of recession the placement can be bad.” “ I expect sufferance for two years to get my MBA but have no choice as I failed in CAT.” “I expect the college to help me in getting an MBA and a job.” LEVELS OF CE OF AN MBA ASPIRANT
    • 36. 4/3/2014 Deepti Shetty 37 DUAL CUSTOMER EXPECTATION LEVELS Desired Service Adequate Service The level of service the customer hopes to receive, a blend of what the customer believes can be and should be The level of service the customer will accept.
    • 37. 4/3/2014 Deepti Shetty 38 Comment on Expectation Levels • Desired Service levels are more stable than Adequate Service levels: Desired Service expectations are ideal and do not change frequently because what one hopes for does not change frequently. Adequate Service expectations are constantly in flux, most likely rising incrementally as service is improved in a particular company or industry.
    • 38. 4/3/2014 Deepti Shetty 39 ZONE OF TOLERANCE Zone of Tolerance Desired Service Adequate Service
    • 39. 4/3/2014 Deepti Shetty 40 Most Important Factors Least Important Factors Level of Expectation Zone of Tolerance Desired Service Adequate Service ZONES OF TOLERANCE FOR DIFFERENT SD’s Desired Service Adequate Service Zone of Tolerance
    • 40. 4/3/2014 Deepti Shetty 41 Comment on Zone of Tolerance •Intuitively, it would seem that a firm would want its customers to have wide tolerance zones for service. If so, wouldn’t it be more difficult for firms with superior service to earn customer loyalty? •Would superior service firms be better off with narrow customers’ tolerance zones to reduce the competitive appeal of mediocre providers?
    • 41. 4/3/2014 Deepti Shetty 42 Comment on Zone of Tolerance •The wider customers’ zones of tolerance, the more willing they are to accept variations in service—both from the companies they currently patronize and competing companies. •Superior firms might well be better off if they try to narrow customers’ tolerance zones by managing customer expectations, educating customers, or otherwise demonstrating to customers the reasons why they should not tolerate lower levels of service.
    • 42. 4/3/2014 Deepti Shetty 43 FACTORS THAT INFLUENCE DESIRED SERVICE Enduring Service Intensifiers Personal Needs Desired Service Zone of Tolerance Adequate Service
    • 43. 4/3/2014 Deepti Shetty 44 •These are individual, stable factors that lead the customer to a heightened sensitivity to service. •It comprises of: Derived service expectations When CE’s are driven by another person or group of persons Personal service philosophy The underlying generic attitude about the meaning of service and conduct of SP’s Enduring Service Intensifiers
    • 44. 4/3/2014 Deepti Shetty 45 •Those states or conditions essential to the physical or psychological well being of the customer •They are Pivotal factors that shape what customers desire in service •These can be Psychological, Physical, Social or Functional Personal Needs
    • 45. 4/3/2014 Deepti Shetty 46 FACTORS THAT INFLUENCE ADEQUATE SERVICES Transitory Service Intensifiers Perceived Service Alternatives Desired Service Zone of Tolerance Adequate Service Self-Perceived Service Role Situational Factors Predicted Services
    • 46. 4/3/2014 Deepti Shetty 47 •Consists of temporary, short-term, individual factors that make customers more aware of their need for service •Personal emergencies raises the level of adequate service expectations and in particular the response from the SP’s Transitory Service Intensifiers
    • 47. 4/3/2014 Deepti Shetty 48 •Other Service Providers from whom the customer can get service •The larger is the set of alternatives the customer’s expectation od Adequate service looms larger •If the service is of the nature where customers can do it themselves then again the Adequate Service level shoots up Perceived Service Alternatives
    • 48. 4/3/2014 Deepti Shetty 49 •It is the degree to which customers believe they can influence the service they receive •In effect it is about active or passive participation of the customers in the SD •The more active a customer is, his expectation of Adequate Service level will be higher compared to other customers Self-Perceived Service Role
    • 49. 4/3/2014 Deepti Shetty 50 •Service conditions which are viewed by customers as beyond the control of Service Providers •These can reduce or enhance the Adequate Service level expectations: A general break-down of utility, an earth quake are probably good examples of reduced expectation from customers What situations could enhance CE? Situational Factors
    • 50. 4/3/2014 Deepti Shetty 51 The level of service customers believe they are most likely to get It implies a sort of an objective calculation of either the probability or estimate of an anticipated service performance level Predicted service are more individual transaction oriented than other factors, which tend to be general assessments Predicted Services
    • 51. 4/3/2014 Deepti Shetty 52 FACTORS THAT INFLUENCE DESIRED & PREDICTED SERVICES Explicit Service Promises Implicit Service Promises Desired Service Zone of Tolerance Adequate Service Words Of Mouth Past Experiences Predicted Services
    • 52. 4/3/2014 Deepti Shetty 53 First-Time Service Outcome Process Outcome Process Recovery Service ExpectationsLOW HIGH Source: Parasuraman, Berry and Zeithaml (1991) ZONES OF TOLERANCE FOR FIRST-TIME & RECOVERY SERVICE
    • 53. DISCUSSION How do the technology changes influence CE?
    • 54. Examples Interactive TV versus traditional TV Customized offerings of service from banks, Airlines Audiovisual rich teaching versus story telling? Note: All these need customers to participate in creating their own experiences, which means that CE’s will be shaped by what they do and not by what is presented to them. Passive customers may be disappointed( a la’ the early years of Internet. : New technologies do raise the CE Levels.
    • 55. DISCUSSION Should service marketers delight their customers?
    • 56. Delighting customers has a definite down side:  Results in the escalation of CE the next time they seek service.  Firms can exceed Desired Service—particularly in dimensions other than reliability—while at the same time alerting customers that the elevated service performance cannot be delivered on a routine basis.
    • 57. DISCUSSION What service companies have effectively built customer loyalty?
    • 58. Following firms have a reputation for impeccable service: Walt Disney theme parks Singapore Airlines Federal Express Marriott Hotels IIT’s/IIM’s Taj Hotels,
    • 59. 4/3/2014 Deepti Shetty 60 Mini Case Consider a small business preparing to buy a computer system: •Which of the influences on customer expectations do you believe will be pivotal? •Which factors will have the most influence? •Which factors will have the least importance in this decision?
    • 60. 4/3/2014 Deepti Shetty 61 Business purchase decisions as a category are generally more rational than personal choices and it is likely that company promotional material will be reviewed and that competing brands will be considered. Mini Case
    • 61. 4/3/2014 Deepti Shetty 62 The factors that may be most important include: • Perceived Service Alternatives •Explicit Service Promises •Enduring service intensifiers •Word of mouth Mini Case
    • 62. 4/3/2014 Deepti Shetty 63 The least important influencers in a decision of this type would be: • Transitory service intensifiers •Personal needs Note: Although one could argue that personal needs are always an important component of business purchase decisions Mini Case
    • 63. 4/3/2014 Deepti Shetty 64 INFLUENCING STRATEGIES Controllable Factors Possible Influence Strategies Explicit service promises Make realistic & accurate promises reflecting the service actually delivered & not on an idealized service version.. Get feedback on the accuracy of promises made. Avoid price / Ad wars because they take the focus off customers & escalate service promises. Formalize service promises through a service guarantee. Implicit service promise Ensure that tangibles accurately reflect the type and level of service provided. Ensure that price premiums can be justified by higher levels of performance.
    • 64. 4/3/2014 Deepti Shetty 65 INFLUENCING STRATEGIES Less Controllable Factors Possible Influence Strategies Enduring service intensifiers Use MR to determine sources of derived service expectations and their requirements. Focus advertising and marketing strategy on ways the service allows the focal customer to satisfy the requirements of the influencing customer. Use MR to profile personal service philosophies of customers and use this information in designing and delivering services. Personal needs Educate customers on ways the service addresses their needs. Transitory service Intensifiers Increase service delivery during peak periods or in emergencies.
    • 65. 4/3/2014 Deepti Shetty 66 INFLUENCING STRATEGIES Less Controllabl e Factors Possible Influence Strategies Perceived Service alternatives Be fully aware of competitive offerings and, where possible and appropriate, match them. Self- perceived role Educate customers to understand their roles and perform them better. Word-of- mouth communica tions Simulate word of mouth in advertising by using testimonials and opinion leaders. Identify influencers and opinion leaders for the service and concentrate marketing efforts on them. Use incentives with existing customers to encourage them to say positive things about the service.
    • 66. 4/3/2014 Deepti Shetty 67 INFLUENCING STRATEGIES Less Controlla ble Factors Possible Influence Strategies Past experience Use marketing research to profile customers' previous experience with similar services. Situational factors Use service guarantees to assure customers about service recovery regardless of the situational factors that occur. Predicted service Tell customers when service provision is higher than what can normally be expected so that predictions of future service encounters will not be inflated.
    • 67. 4/3/2014 Deepti Shetty 68 What Customers Want? Type of Customer Type of Customer Principal Expectations Automobile Repair Consumers Be competent, Explain things, Be respectful . Automobile Insurance Consumers Keep the customer informed, Be on their side, Play fair, Protect them from catastrophe, Provide prompt service. Hotel Consumers Provide a clean room, Provide a secure room, Treat them like a guest, Keep your promise.
    • 68. 4/3/2014 Deepti Shetty 69 What Customers Want? Type of Customer Type of Custom er Principal Expectations Property & Insurance Business customers Fulfill obligations, Learn their business and work with them, Protect them from catastrophe, Provide prompt service. Equipment Repair Business customers Share their sense of urgency, Be competent, Be prepared. CV Leasing/ Rental Business customers Keep the equipment running, Be flexible, Provide full service.
    • 69. CUSTOMER PERCEPTIONS
    • 70. 4/3/2014 Deepti Shetty 71 CUSTOMER PERCEPTION OF SERVICE •Customer Perceptions •Customer Satisfaction •Service Quality •Service Encounters: The Foundations for Satisfaction and Service Quality •Strategies for Influencing Customer Perceptions
    • 71. 4/3/2014 Deepti Shetty 72 CUSTOMER PERCEPTION •Customers perceive services in terms of the quality of the service and how satisfied they are overall with their experiences. •Be aware that the terms CS & SQ are not same! Although they have certain things in common, CS is a broader concept, whereas SQ assessment focuses specifically on dimensions of service. Based on this view, perceived SQ is a component of CS.
    • 72. 4/3/2014 Deepti Shetty 73 SQ and CS Service Quality say of a Resort is judged on attributes such as whether amenities are available and open at convenient hours, how responsive the staff are to customer needs and whether the facility is well- maintained. Customer Satisfaction with the Resort is a broader concept, which certainly is influenced by perceptions of service quality but that will also include perceptions of product quality (such as quality of F & B, rooms), price, personal factors such as the consumer’s emotional state, and even uncontrollable situational factors such as weather conditions.
    • 73. 4/3/2014 Deepti Shetty 74 COMMENTS •Because expectations are dynamic, evaluations may also shift over time-from person to person and from culture to culture. •All discussion of quality and satisfaction is based on Customers Perceptions of the service and not some predetermined objective criteria of what service is or should be.
    • 74. 4/3/2014 Deepti Shetty 75 SERVICE QUALITY (SQ) •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 Process Quality Physical Environment Quality
    • 75. •4/3/2014 •Deepti Shetty •76 •Explanation Take the example of a sit-in restaurant, here: •Outcome Quality: It would be the Meal •Process Quality: How it was served •Physical Environment Quality: The ambience, the décor etc.
    • 76. 4/3/2014 Deepti Shetty 77 SERVICE QUALITY DIMENSIONS- THE ERRATa EMPATHY RELIABILITY RESPONSIVENESS ASSURANCE TaNGIBLES S E R V E I C
    • 77. 4/3/2014 Deepti Shetty 78 THE 5 DIMENSIONS OF SQ Caring, individualized attention the firm provides its customers. Ability to perform the promised service dependably and accurately. Willingness to help customers and provide prompt service. Knowledge and courtesy of employees and their ability to convey trust and confidence. Physical facilities, equipment, and appearance of personnel Empathy Reliability Responsiveness Assurance Tangibles
    • 78. 4/3/2014 Deepti Shetty 79 CP OF SQ & CS Interaction Quality PE Quality Outcome Quality Price Product Quality Service Quality Situational Factors Personal Factors CUSTOMER SATISFACTON
    • 79. 4/3/2014 Deepti Shetty 80 What Determines CS? •Product and Service Features •Consumer Emotions •Attributions for Service Success or Failure •Perceptions of Equity or Fairness •Other Consumers, Family Members, and Coworkers
    • 80. 4/3/2014 Deepti Shetty 81 What Is CS? •Satisfaction is the consumer’s fulfillment response. •Satisfaction is the customers’ evaluation of a service in terms of whether that service has met their needs and expectations. •It is a judgment that a service feature or the service itself provides a pleasurable level of consumption related fulfillment.
    • 81. 4/3/2014 Deepti Shetty 82 OUTCOMES OF CS •Increased Customer Retention •Positive Word-Of-Mouth Communications •Increased Revenues REVENUE
    • 82. 4/3/2014 Deepti Shetty 83 THE SERVICE ENCOUNTER (SE) •It is where promises are kept or broken and where the proverbial rubber meets the road- some times called “real-time marketing.” •It is from these service encounters that customers build their perceptions. •The foundations for CS and SQ
    • 83. 4/3/2014 Deepti Shetty 84 THE SERVICE ENCOUNTER (SE) •Is The “Moment Of Truth” •Occurs Any Time The Customer Interacts With The Firm •Can Potentially Be Critical In Determining CS & Loyalty
    • 84. 4/3/2014 Deepti Shetty 85 RELATIONSHIP BETWEEN CS & LOYALTY IN COMPETITIVE INDUSTRIES 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.
    • 85. 4/3/2014 Deepti Shetty 86 TYPES OF SE • Remote Encounters • Phone Encounters • Face-to-face Encounters • Group Encounters
    • 86. 4/3/2014 Deepti Shetty 87 SE AS AN OPPORTUNITY •Build Trust •Reinforce Quality •Build Brand Identity •Increase Loyalty •Enhance CS and CP
    • 87. 4/3/2014 Deepti Shetty 88 Check-In Request Wake-Up Call Checkout Bellboy Takes to Room Restaurant Meal AN SE CASCADE FOR A HOTEL VISIT
    • 88. 4/3/2014 Deepti Shetty 89 Sales Call Ordering Supplies Billing Delivery and Installation Servicing AN SE CASCADE FOR AN INDUSTRIAL PURCHASE
    • 89. 4/3/2014 Deepti Shetty 90 AN SE CASCADE OF A MBA STUDENT ENROLL PEDOGOGICAL -Lectures -Workshops -Projects -Presentations -Tests et al ORIENTATION PLACEMENT EXAMINATION I EXAMINATION II CONVOCATION PEDOGOGICAL -Lectures -Workshops -Projects -Presentations -Tests et al SUMMER PROJECT
    • 90. 4/3/2014 Deepti Shetty 91 CRITICAL SE RESEARCH •GOAL - Understanding Actual Events & Behaviors That Cause CS Or Dissatisfaction In SE •METHOD - Critical Incident Technique (CIT)
    • 91. 4/3/2014 Deepti Shetty 92 CRITICAL SE RESEARCH •DATA - Stories From Customers & Employees •OUTPUT - Identification Of Themes Underlying Satisfaction & Dissatisfaction With SE’s

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