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CONSUMER’S EVALUATION OF SERVICE
Surprising facts about what consumers want from pharmacists
David Holdford, RPh, MS, PhDProfessor, School of PharmacyVirginia Commonwealth University
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Slides to Accompany Chapter 10 in “Marketing for Pharmacists”
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Learning ObjectivesDefine the key terms including: satisfaction, dissatisfaction, service quality, value, expectations, technical quality, and functional quality
Discuss why pharmacists should care about patient perceptions of service
List the 10 dimensions of service quality that patients use to evaluate pharmaceutical services
Describe the two dimensions of service quality most important in determining overall perceptions of service
Compare and contrast affective loyalty and behavioral loyalty
Explain why dissatisfaction is more important than satisfaction in determining patient perceptions of service
Suggest things pharmacists can do to understand and influence patient perception of services
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HOW DO PATIENTS ASSESS THEIR SERVICE EXPERIENCES?
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CustomerSatisfaction
Situational Factors
CustomerLoyalty
Individual CharacteristicsPrice
Product Quality
ServiceQuality
Antecedents and Consequences of Customer Satisfaction
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CustomerSatisfaction
Situational Factors
CustomerLoyalty
Individual CharacteristicsPrice
Product Quality
ServiceQuality
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WHAT IS SATISFACTION?
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Satisfaction results when a customer concludes that a transaction meets or exceeds expectations
Dissatisfaction results when it fails to meet expectations
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Comparing Service Performance with Expectations
Comparison of Performance with
ExpectationsMeets
Expectations
Does Not MeetExpectations
ExceedsExpectations
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Comparing Service Performance with Expectations
Comparison of Performance with
ExpectationsMeets
Expectations
Does Not MeetExpectations
ExceedsExpectations
There are 3 basic outcomes associated with evaluations of service performances
1.
2.
3.
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Consequences of Service1. Bad service = dissatisfaction = lost customers
2. OK service = not dissatisfied or mild satisfaction = customers continue to do business with you until something better comes along
3. Great service = delight = loyalty
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EXPECTATIONS
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Zone of Tolerance
Level ofService
Given byPharmacy
EXPECTATIONS OF SERVICE EXIST
ON A CONTINUUM
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Zone of Tolerance
Level ofService
Given byPharmacy
Service Most Desiredby Customer
Service DeemedMinimally Acceptable
Zone of Tolerance Service HereIs Deemed MerelyAdequate
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Zone of Tolerance
Level ofService
Given byPharmacy
Service Most Desiredby Customer
Service DeemedMinimally Acceptable
Zone of Tolerance
THIS IS WHERE CUSTOMERS ARE MOST SATISFIED, EVEN DELIGHTED, WITH THE
SERVICE
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PERCEIVED VALUE
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PERCEIVED VALUEWhat you get for what you give
Perceived utility of product and services
Perceptions of what has been paid
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SERVICE QUALITY
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Service quality describes customer perceptions of the quality of services over time
Not price, product, or other non-service related issues
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CustomerSatisfaction
Situational Factors
CustomerLoyalty
Individual CharacteristicsPrice
Product Quality
ServiceQuality
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CONSUMERS ARE UNABLE TO ASSESS SOME ELEMENTS OF SERVICES
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FOR EXAMPLE, HOW DO YOU KNOW YOUR MECHANIC DID A GOOD JOB ON YOUR CAR?
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HOW DO PATIENTS KNOW THEIR PHARMACIST DID A GOOD JOB ON THEIR MEDICATION REVIEW?
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Consumer’s Ability to Assess Aspects of Services
Services Provided
Attributes that can be evaluated
Attributes that can be evaluated prior to
receiving the service
Attributes that can be evaluated only after experiencing them
Attributes that can never be evaluated
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ImplicationsConsumers have trouble evaluating many
aspects of pharmacist servicesMany professional attributes can never be validly assessed
Therefore, consumers rely on those things they can easily assess E.g., fast, friendly, appearance, time spent, price
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HOWEVER,PHARMACISTS CAN HELP PATIENTS ASSESS PROFESSIONAL ATTRIBUTES OF CARE…
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BY DESCRIBING WHAT THEY ARE DOING
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“CAN I SCHEDULE YOU FOR MEDICATION CHECK-UP? I WILL
REVIEW YOUR MEDICATIONS WITH YOU TO SEE IF ANY CHANGES ARE
NEEDED.
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FUNCTIONAL QUALITY VERSUS TECHNICAL QUALITY IN SERVICES
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A PATIENT’S ASSESSMENT OF THE PERFORMANCE OF A
PHARMACIST IS A FUNCTION OF TWO THINGS
OverallEvaluation ofService
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DID THEY GET ACHIEVE A THERAPEUTIC BENEFIT
BASED UPON WHAT THE PHARMACIST DID?
TechnicalQuality (TQ)- the end result of the care
OverallEvaluation ofService
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TechnicalQuality (TQ)- the end result of the care
FunctionalQuality (FQ)- how care was delivered
OverallEvaluation ofService
HOW WAS THE CARE DELIVERED? WAS IT FAST?
FRIENDLY? PLEASANT?
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Which is more important on average in patient perceptions of services, FQ or TQ?
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DIMENSIONS OF SERVICE QUALITY
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SERVICE QUALITY IS A MULTI-DIMENSIONAL CONSTRUCT
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10 GENERIC DIMENSIONS HAVE BEEN IDENTIFIED
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CustomerSatisfaction
Situational Factors
CustomerLoyalty
Individual CharacteristicsPrice
Product Quality
ServiceQuality
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Dimensions of Service Quality
Reliability -- performing service correct the 1st time
Responsiveness -- willingness and ability to provide prompt service
Competence -- Knowledge and skill of customer-contact personnel
Communication -- explaining service in a way that can be understood
Credibility -- trustworthiness of personnel
Security -- Confidentiality of transactions
Understanding/knowing the customer -- making effort to ascertain a customer’s specific needs
Access -- Ease of contacting the service firm
Courtesy -- Friendliness of personnel
Tangibles -- appearance of facilities and personnel
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ANY DIMENSION CAN DETERMINE A CONSUMER’S JUDGMENT OF SERVICE, BUT SOME ARE MORE IMPORTANT THAN OTHERS
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Dimensions of Service Quality
1. Reliability -- performing service correct the 1st time
2. Responsiveness -- willingness and ability to provide prompt service
Competence -- Knowledge and skill of customer-contact personnel
Communication -- explaining service in a way that can be understood
Credibility -- trustworthiness of personnel
Security -- Confidentiality of transactions
Understanding/knowing the customer -- making effort to ascertain a customer’s specific needs
Access -- Ease of contacting the service firm
Courtesy -- Friendliness of personnel
Tangibles -- appearance of facilities and personnel
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Summarizing the Findings about Service Quality
Patients focus on those things they can assess (search & experience qualities).
They use the process (FQ) of service as a surrogate of the outcome (TQ).
Reliability and responsiveness are most important to patients although any dimension can affect patronage and continuing loyalty.
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RELATIONSHIP BETWEEN LOYALTY AND SATISFACTION
Satisfied patients are more loyal….
But not always
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CustomerSatisfaction
Situational Factors
CustomerLoyalty
Individual CharacteristicsPrice
Product Quality
ServiceQuality
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Satisfaction/Loyalty Relationship
Loyalty
Satisfaction
Hi
Low
Apostles
1 2 3 4 5Very
dissatisfiedVery
Satisfied
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Satisfaction/Loyalty Relationship
Loyalty
Satisfaction
Hi
Low
Zone ofIndifference
1 2 3 4 5Very
dissatisfiedVery
Satisfied
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Satisfaction/Loyalty Relationship
Loyalty
Satisfaction
Hi
Low
Zone of Defection
1 2 3 4 5Very
dissatisfiedVery
Satisfied
Subversives
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IDEALLY, YOU WANT YOUR SERVICE TO GENERATE MORE APOSTLES AND FEWER SUBVERSIVES
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Satisfaction StrategiesAvoid Causing Subversives
Avoid serious interpersonal or technical errors
Keep promises, Be responsive, Show respect
Demonstrate you care
Preserve and Create Apostles
Give patients exceptional service experiences
Make them feel that they got something of real value
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Assessing Patient Perceptions
Observation
Employee feedback
Patient complaints
Patient interviews
Patient surveys
Critical incident surveys
Focus groups
Mystery (secret) shoppers
Sales figures
Social media chatter
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Observation - Observing patient interactions with pharmacists and technicians can identify service problems. Observation can identify unproductive practices, length of time spent in various activities, and customer responses.
Employee feedback - Employees know many of the problems within service systems and can suggest solutions. They can also assess the quality of internal marketing initiatives. Employee feedback should be solicited with any service venture.
Patient complaints - Patient complaints can help identify which aspects of service are most irritating. Complaints may indicate just the tip of the iceberg and reveal a serious service problem. Service recovery strategies should be developed to deal with complaints. Complaints on social media sites like Yelp can help identify areas needing improvement.
Patient interviews - Patients can be interviewed formally or casually about their assessments of pharmacist services. Most good pharmacists ask patients how they are doing and how they can improve.
Patient surveys - Surveys can solicit patient feedback about service while experiences are still fresh in the patient’s mind. The shorter and more accessible the survey, the better.
Critical incident surveys - Critical incident surveys are designed to identify particularly good and bad services. Patients are asked to describe the details of service incidents that stand out in their minds (e.g., “Describe a particularly good or bad experience you had with a pharmacist”).
Focus groups - Focus groups are gatherings of patients who are invited to discuss issues of importance. They can be used to solicit quick, informal insight into service problems.
Mystery Shoppers - Mystery, or secret, shoppers are often used to supplement patient feedback. They provide analysis of specific service features that patient feedback may overlook. A mystery shopper who visits a pharmacy typically has a checklist for assessing aspects of service such as whether the pharmacist greeted the patient, offered to counsel about the medications, was friendly and helpful, checked the patient profile, and completed other required tasks. Most patients are not able to assess the service experience as critically or in as much detail as trained and observant mystery shoppers can.
Sales figures - Sales figures are the ultimate measure of patient satisfaction. Patient perceptions of service should be linked to total sales, repeat sales, and other sales figures to identify which measures are most predictive of sales.
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- Peter F. Drucker
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THE MOST IMPORTANT THING IN COMMUNICATION IS TO HEAR WHAT ISN'T BEING SAID
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SummaryPatient perceptions are important as proxies for patient behavior (I.e., association with patient loyalty, word-of-mouth, and profitability).
Pharmacists should attempt to
make their services reliable and responsive.
minimize negative service experiences.
monitor patient perceptions of service.
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SEE MARKETING FOR
PHARMACISTS FOR
MORE DETAILS
D HOLDFORD