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Customer Satisfaction

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      Customer Perceptions of Service
      (Chapter 4)

     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

                                               - Dwayne D. Gremler
2

      Two Types of Customers

     External Customers
      



     Internal Customers
      




                                - Dwayne D. Gremler
3

       Customer Satisfaction

     What is it?
       

     Failure to meet needs and expectations usually
      results in dissatisfaction.
     Satisfaction is thought to be




                                                - Dwayne D. Gremler
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       Customer Satisfaction

     satisfaction is thought to be influenced by:
       
       
       
       
       
     satisfaction can only be assessed following




                                                      - Dwayne D. Gremler
5

        Outcomes of Customer Satisfaction

    
    
    




                                      - Dwayne D. Gremler
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              Customer Satisfaction and Loyalty in
              Competitive Industries

                                                100%
                          Loyalty (retention)


                                                80%

                                                60%

                                                40%

                                                20%

                                                 0%
                                                    Very        Dissatisfied     Neither       Satisfied        Very
                                                 dissatisfied                  satisfied nor                  satisfied
                                                                               dissatisfied
    Figure 4.4
                                                                    Satisfaction measure
     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.



                                                                                                                         - Dwayne D. Gremler
7

        Service Quality

     is “the delivery of

    

    

     service quality dimensions




                                    - Dwayne D. Gremler
8

     Dimensions of Service Quality

        Reliability


    Responsiveness


                              Service
        Assurance
                              Quality

          Empathy


         Tangibles


                                      - Dwayne D. Gremler
9

      Service Quality Dimensions

     reliability                  (                )
      
     responsiveness               (                )
      
     assurance                    (                )
      
     empathy                      (                )
      
     tangibles                    (                )
      



                                    - Dwayne D. Gremler
10

       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:
        
        
        

                                                              - Dwayne D. Gremler
11

         A Service Encounter Cascade for a
         Hotel Visit


     Check-In

        Bellboy Takes to Room

                     Restaurant Meal

                             Request Wake-Up Call
                                               Checkout

                          Figure 4.5


                                                - Dwayne D. Gremler
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       Sources of Pleasure/Displeasure in
       Service Encounters

      Recovery
        
      Adaptability
        
      Spontaneity
        
      Coping
        



                                      - Dwayne D. Gremler
13

            The Evidence of Service from the
            Customer’s Point of View

                                               Contact employees
                                               Customer him/herself
                                               Other customers
        Operational flow of
         activities
        Steps in process
        Flexibility vs.
         standard
        Technology vs.
         human

                                                            Tangible
                                                             communication
                                                            Servicescape
                                                            Guarantees
                               Figure 4.7                   Technology


                                                               - Dwayne D. Gremler
14

     Strategies for Influencing Customer
     Perceptions

      effective
         emphasize


      use the


      assume ALL



                                    - Dwayne D. Gremler
15

          Recovery

          DO                    DON’T

        Acknowledge problem    Ignore customer
        Explain causes         Blame customer
        Apologize              Leave customer to fend for
                                 him/herself
        Compensate/upgrade
                                Downgrade
        Lay out options
                                Act as if nothing is wrong
        Take responsibility




                                                  - Dwayne D. Gremler
16

       Adaptability

        DO                           DON’T
      Recognize the seriousness    Promise, then fail to follow
       of the need                   through
      Acknowledge                  Ignore
      Anticipate                   Show unwillingness to try
      Attempt to accommodate       Embarrass the customer
      Explain rules/policies       Laugh at the customer
      Take responsibility          Avoid responsibility
      Exert effort to
       accommodate



                                                       - Dwayne D. Gremler
17

         Spontaneity

         DO                               DON’T
      Take time                       Exhibit impatience
      Be attentive                    Ignore
      Anticipate needs                Yell/laugh/swear
      Listen                          Steal from or cheat a
      Provide information (even if     customer
       not asked)                      Discriminate
      Treat customers fairly          Treat impersonally
      Show empathy
      Acknowledge by name



                                                         - Dwayne D. Gremler
18

         Coping


         DO                         DON’T

        Listen                    Take customer’s
        Try to accommodate         dissatisfaction personally
        Explain                   Let customer’s
        Let go of the customer     dissatisfaction affect others




                                                      - Dwayne D. Gremler

				
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