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Understanding Customer Delight and Outrage

Schneider and Bowen

Satisfaction A persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her pre-purchase expectations.

Met-Expectancy Model

roduct matches expectations !" Satisfaction roduct delivers less than expected !" #issatisfaction roduct delivers more than expected !" Satisfaction leading to delight

Shortcomings of Expectancy Models

Meeting expectations must go $eyond those $ased on relia$ility performance to include expectations related to responsiveness% assurance% and empathy. &dentifying specifics of expectations varies from $usiness to $usiness. ersonal expectations are related to internal standards that lac' a$solute frames of reference.

(hy a )eeds-*ased Model

eople strive to satisfy core needs in life at a level more fundamental and compelling than meeting specific expectations as consumers.

+ustomers are people first and consumers second.

Expectations ,S )eeds

)eeds focus on o$taining -hat one see's from life as a person. Expectations focus on a delivery attri$ute% not the customer. )eeds center on the customer and his.her internal state.

/he desired outcome of expectations is getting -hat one anticipates from a service encounter as a consumer.

)eeds Affect #elight.0utrage

0utrage 1ustice Self-Esteem Security #elight

Security

Security2 the need to feel unthreatened $y physical or economic harm Most people are una-are of the security needs until a situation arrives Examples 2o 3ire in a hotel o +redit cards o Airports

1ustice

1ustice 2 /he service promise . . . includes the implicit promise of fair play. +ustomers expect service companies to treat them fairly4 they $ecome angry and mistrustful -hen they perceive other-ise E.g2 o Airlines try to serve their customers e5ually $usiness class and economy class 6ong term auto policy holders are provided -ith tan'ful of free gasoline% oil change or car-ash
o

Self-Esteem
Service 3irm can enhance feelings of self--orth $y ac'no-ledging the customers perspective% importance% and rights /op service firms treat the customer as an important individual% not 7ust as a mem$er of a certain class of consumers. Sharing information also reaffirms customer feelings of competency.

hysicians -ho are un-illing to explain the details of a diagnosis to a patient or airline personnel -ho dismiss passenger 5ueries a$out flight delays are assuming lac' of interest or intellect in their 8audience.9 roviding choices ma'e the customers feel competent *oo' my tic'et site provide customer the choice to a particular offer from a group of offers.

Managing +ustomer )eeds

Service consists of exchange relationship +ustomers exchange their money and loyalty for -hat gratification +ompanies follo- various strategies to manage customer needs Managing stock to meet customer needs Stoc' management involves creating a $alance $et-een meeting customers: needs -hilst at the same time minimising -aste.

;uman <esource Management

;iring2 0utline ho- they are expected to act in a customer contact position. /raining rograms2 teach employees a$out the firms service-5uality norms $y emphasi=ing the need-gratification $ehaviours erformance Management Systems2 is service5uality management that provides an opportunity to recogni=e and re-ard employees -ho accomplish specific difficult% $ut attaina$le% service goals.

/echnology > ersonali=ation

&nformation technologies are central in catering to and affirming customer needs. Many emergent forms of self-service devices% such as informational 'ios's and voice mail systems% allo- customers to act on their o-n $ehalf. &nformation technologies allo- companies to collect demographic% historical% $ehavioral% and even psychological data a$out their customers. /his ena$les companies to tailor recognition and re-ard programs to longterm customers and to identify ne- customers for special attention.

*an'ing - /echnology led $an'ing services - More personali=ed services - &nternet > Mo$ile technology - *usiness &ntelligence

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