consumer perception of services

7/29/2019 Consumer Perception of Services

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Consumer Perceptionof Services


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Customer Perception

The process by which an individual selects,

organizes and interprets stimuli into a

meaningful and coherent picture of theworld

Depends upon

Expectations

Motive


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Consumer Expectations

Pre-trial beliefs about a service that function

as standards against which performance is

judged.


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Types of Expectations

Desired service -- the level of service the

customer hopes to receive

Adequate service -- the level of service the

customer will accept


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Figure 3-1

Dual Customer

Expectation Levels

Adequate Service

Desired Service

Zone ofTolerance


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The Zone of Tolerance---The extent to which customers

recognize and are willing to acceptvariation in service performance

Adequate Service

Desired Service

Zone ofTolerance


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Zone of Tolerance andImportance of Service

Dimensions

as a service dimension becomes more

important zone of tolerance will narrow anddesired and adequate levels will increase


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Factors That Influence Adequate

Service Expectations Perceived Service

Alternatives----

As the number ofalternatives increases,

the level of adequate

service increases and

the zone of tolerancenarrows


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Service Expectations Situational

Factors Temporary changes in

the normal state of

things ---- tends to

lower the level of

adequate serviceexpected and widen the

zone of tolerance


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Situational Factors

Reason for purchase

Consumer mood

Weather

Time constraints

Emergency


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Service Expectations Self Perceived Service

Role --- how well the

customer perceivesthey are performing

their own role in

service delivery

Fi


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Figure 3-7

Factors that InfluenceDesired and Predicted Service

DesiredService

AdequateService

Zoneof

Tolerance

Predicted

Service

Explicit ServicePromises

Implicit ServicePromises

Word-of-Mouth

Past Experience


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Satisfaction Vs Service

Quality


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Service Quality

The customers judgment of overall

excellence of the service provided inrelation to the quality that was expected.

Process and outcome quality are both

important.


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Perceived service Quality

Experienced Service Quality

Outcome Dimension

Process related dimension Expected Service Quality

Marketing communication

Image of Organization

Word of mouth

Customer needs


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Dimensions of Service

Quality

ServiceQuality

Reliability

Responsiveness

Assurance

Empathy

Tangibles

S i Q lit


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Service Quality(SERVQUAL) Attributes

Providing service as promised

Dependability in handling customersservice problems

Performing services right the first time

Providing services at the promised time

Maintaining error-free records

Keeping customers informed as towhen services will be performed

Prompt service to customers

Willingness to help customers

Readiness to respond to customers

requests

RELIABILITY

RESPONSIVENESS

Employees who instill confidence incustomers

Making customers feel safe in theirtransactions

Employees who are consistently courteous

Employees who have the knowledge toanswer customer questions

ASSURANCE

Giving customers individual attention

Employees who deal with customers in acaring fashion

Having the customers best interest at heart

Employees who understand the needs oftheir customers

Convenient business hours

EMPATHY

Modern equipment

Visually appealing facilities

Employees who have a neat,

professional appearance Visually appealing materials associated

with the service

TANGIBLES


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The Service Encounter

is the moment of truth

occurs any time the customer interacts with the firm

can potentially be critical in determining customer satisfaction and

loyalty

types of encounters:

remote encounters

phone encounters

face-to-face encounters

is an opportunity to: build trust reinforce quality build brand identity increase loyalty


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Causes of Service Quality

Gaps (CustomerDissatisfaction)

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The Gaps Model of Service Quality

The Customer Gap

The Provider Gaps: Gap 1not knowing what customers expect

Gap 2not having the right service designs and

standards

Gap 3not delivering to service standards

Gap 4not matching performance to promises

Putting It All Together: Closing the Gaps


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Perceived

Service

Expected Service

CUSTOMER

COMPANY

Customer

Gap

Gap 1

Gap 2

Gap 3

ExternalCommunications to

CustomersGap 4Service

Delivery

Customer-DrivenService Designs and

Standards

Company Perceptions ofConsumer Expectations

Gaps Model of ServiceQuality


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Gap 1

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Customer Expectations(Expected Service)

Managements Perception

of Customer Expectations

1. Lack of Market Research

Orientation;

2. Inadequate upward

communication;

3. Too many levels of

management

G M d l f S i


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Customer Gap:difference between customer expectations and

perceptions

Provider Gap 1 (The Knowledge Gap):

not knowing what customers expect

Provider Gap 2 (The Service Design & Standards Gap):

not having the right service designs and standards

Provider Gap 3 (The Service Performance Gap):not delivering to service standards

Provider Gap 4 (The Communication Gap):

not matching performance to promises


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Provider Gap 1: Not knowing what customers expect

Provider Gap 2: Not selecting the right service designs and standards

Provider Gap 3: Not delivering to service standards

Provider Gap 4: Not matching performance to promises

Customer

Expectations

CustomerPerceptions

Key Factors Leadingto the Customer Gap

Customer

Gap


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Customer Expectations

Company Perceptions ofCustomer Expectations

Inadequate marketing research orientationInsufficient marketing researchResearch not focused on service qualityInadequate use of market research

Lack of upward communicationLack of interaction between management and customersInsufficient communication between contact employees and managersToo many layers between contact personnel and top management

Insufficient relationship focusLack of market segmentationFocus on transactions rather than relationships

Focus on new customers rather than relationship customers Inadequate service recovery

Lack of encouragement to listen to customer complaintsFailure to make amends when things go wrongNo appropriate recovery mechanisms in place for service failures

Key Factors Leading toProvider Gap 1

Gap

1


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Gap 2

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Service Quality Specifications

Management Perceptions of

Customer Expectations

1. Inadequate management

commitment to Service

Quality

2. Perception of infeasibility

3. Absence of goal setting


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Customer-Driven ServiceDesigns and Standards

Management Perceptions ofCustomer Expectations

Poor service designUnsystematic new service development processVague, undefined service designs

Failure to connect service design to service positioning Absence of customer-driven standards

Lack of customer-driven service standardsAbsence of process management to focus on customer

requirementsAbsence of formal process for setting service quality goals

Inappropriate physical evidence and servicescape

Failure to develop tangibles in line with customer expectationsServicescape design that does not meet customer and

employee needsInadequate maintenance and updating of the servicescape


Gap

2


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Gap 3

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Service Delivery

Service Quality Specifications

1. Role ambiguity

2. Role conflict

3. Poor technology

4. Lack of team work

5. Poor employee job fit

K F L di


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Service Delivery

Customer-Driven ServiceDesigns and Standards

Deficiencies in human resource policiesIneffective recruitmentRole ambiguity and role conflictPoor employee-technology job fit

Inappropriate evaluation and compensation systemsLack of empowerment, perceived control, and teamwork

Customers who do not fulfill rolesCustomers who lack knowledge of their roles and responsibilitiesCustomers who negatively impact each other

Problems with service intermediariesChannel conflict over objectives and performance

Difficulty controlling quality and consistencyTension between empowerment and control

Failure to match supply and demandFailure to smooth peaks and valleys of demandInappropriate customer mixOverreliance on price to smooth demand


Gap

3


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Gap 4

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Service Delivery

External

Communications

to Customers

1. Propensity to over-

promise

2. Inadequate horizontal

communication


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Service Delivery

Lack of integrated services marketing communicationsTendency to view each external communication as independentNot including interactive marketing in communications planAbsence of strong internal marketing program

Ineffective management of customer expectationsAbsence of customer expectation management through all forms of

communicationLack of adequate education for customers

OverpromisingOverpromising in advertisingOverpromising in personal sellingOverpromising through physical evidence cues

Inadequate horizontal communicationsInsufficient communication between sales and operationsInsufficient communication between advertising and operationsDifferences in policies and procedures across branches or units

External Communications to

Customers


Gap

4


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Past ExperiencePersonal Needs

Expected Service

Perceived Service

Service Delivery Externalcommunication

to consumers

Word-of-mouth

Communication

Converting perceptions into

service quality specifications

Management perceptions of

consumer expectations

GAP 5

GAP

2

GAP

3

GAP

4

GAP 1

Marketer

Service Provider


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Perceived

Service

Expected Service

CUSTOMER

COMPANY

Customer

Gap

Gap 1

Gap 2

Gap 3

ExternalCommunications to

CustomersGap 4Service

Delivery

Customer-DrivenService Designs and

Standards

Company Perceptions ofConsumer Expectations


consumer perception of services

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