Flashcards in Chapter 4 - Customer Perceptions of Services Deck (38):
Define the customer
It is anyone who receives the company's services including:
-External customers (outside organization, business customers, suppliers, partners, and consumers)
-Internal Customers (inside the organization, e.g. other departments and fellow employees)
Can we define suppliers as being the companies customer?
Yes, because they receive some of the company's services
What are some things that influence customer satisfaction?
-specific product or service feature
-attributions for service success or failure (things responsible such as storm before flight)
-perceptions of equity or fairness
-other consumers, family members, and coworkers
What are 3 common outcomes of customer satisfaction?
1. Increased customer retention
2. Positive word-of-mouth communications
3. Increased Revenues
As satisfaction increases, loyalty does too. Is this a linear relationship?
Nope, going from very dissatisfied to dissatisfied increases loyalty a lot less than jumping from satisfied to very satisfied makes a big increase to loyalty. Its a logarithmic curve up
What is service quality?
It is customers long-term cognitive evaluations of a firms service delivery.
How is service quality defined?
Defined by customers, subjectively. No matter how unfair you think their judgement is
Is service quality an objective quality?
it is perceived quality as seen through the eyes of customers
Service quality assessments are formed on judgements of what three things?
1. Outcome Quality
2. Interactions quality
3. Physical environment quality
What are the 5 dimensions of service quality?
What is SERVQUAL?
It is a way for delivery 5 dimensions of service quality
What is service reliability?
It is about delivering dependable, accurate service as promised consistently over time.
What are 5 points about reliability?
1. Providing servce as promised
2. Dependability in handling customers service problems
3. To be continued
What are 4 factors with responsiveness?
1. Keeping customers informed as to when services will be performed
2. Prompt service to customers
3. Willingness to help customers
4. Readiness to respond to customers' request
What are 4 factors to assurance
1. Employees who install confidence in customers
2. Making customers feel safe with transactions
3. Employees who are consistently courteous
4. Employees who have knowledge to answer customer questions
What are 5 factors to empathy
1. Giving customers individual attention
2. Employees who deal with customers in a caring fashion
What are 4 factors to tangibles?
1. Modern equipment
2. Visually appealing facilities
3. Employees who have a neat, professional appearance
4. visually appealing materials associated with the service
What are the 5 components to service quality perception?
What are the five factors that go into customer satisfaction?
1. service quality
2. product quality
4. situational factors
5. personal factors
Define customer satisfaction
Satisfaction is the customer's evaluation of a product or service in terms of whether that product or service has met the customers needs and expectations
What are the 5 PERSONAL factors that determine customer satisfaction?
1. Product and service features
(does it have a pool and do I like to swim)
2. Customer emotions
(Happy services providers make happy customrs)
3. Attribution for service success or failure
(what caused it, was I shitty at dieting, or is the bowflex garbage)
4. Perception of Equity and Fairness
(That table sat after me and already has food, grr)
5. Other customers, family members, and coworkers
(So when I go to Gojis with people, do they like it as much as me?)
What is the ACSI?
The American Customer Satisfaction Index
where each 250 customers of specific companies are chosen to be surveyed and rate satisfaction to give macro level countrywide satisfaction
Firms with higher customer satisfaction did what?
Gave shareholders more return, higher profitability, greater MVA (market value added) etc.
What does the curve look like with loyalty and satisfaction?
It is logarithmically upward sloping. So as you approach 5/5, people are really getting loyal! 1-4, not so much.
In the case of pure services, what is the dominant element in customer's evaluations?
What is the tangible service quality dimension?
-appearance of physical facilities, equipment, personal, and communication materials
What is the empathy service quality dimension?
caring, individualized attention given to customers
What is the assurance service quality dimension?
employees knowledge and courtesy and their ability to inspire trust and confidence
What is E-S-QUAL
Like SERVQUAL, but instead its electronic service quality
extent to which website facilitates efficient and effective shopping, purchasing, and delivery.
What are the 4 core dimensions that customers use to judge websites at which they experience no questions or problems?
What are the 3 dimensions that customers use to judge recovery service when they have problems or questions?
(ease and speed of access and using site)
(sites promise about delivery etc are fulfilled)
3. System availability
(Correct technical functioning of site, is it up?)
(is site safe and protects cust info)
(how do they handle)
(how do they compensate for problems)
(availability of assistance through tel or chat)
From the customers point of view, what are the two most important points where the most vivid impression of service occurs?
1. Service encounter
2. Moment of truth
This is where promises are kept or broken
Why is each individual service interaction important?
Because it just takes one out of 74 during the contact between customer and company to create a negative overall impression
What are the three general types of service encounters?
1. Remote encounters
(Such as an ATM encounter)
2. Technology-mediated encounters
(Such as over telephone or live chat)
3. Face-to-face encounters
What are 4 sources of pleasure and displeasure in service encounters?
(employee response to service delivery failures)
(Employee response to customer needs and requests)
(unprompted and unsolicited employee actions)
(Employee Response to Problem customers)
What are three stores of satisfying SSTs (self-service technologies)?
1. Solved an intensified need
2. Better than the alternative
3. Did its job
What are four stores of dissatisfying SSTs (self-service technologies)?
1. tech failure
2. process failure
3. poor design
4. customer-driven failure