This document summarizes key aspects of customer perceptions of service, including customer satisfaction, service quality, service encounters, and strategies for influencing customer perceptions. It discusses factors that influence customer satisfaction and the relationship between satisfaction and loyalty. It also describes the five dimensions of service quality and provides examples of types of service encounters. The document advocates for effective recovery strategies, adaptability, spontaneity, and coping skills to influence customer perceptions positively.

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