CUSTOMER PERSEPTIONS OF

SERVICES
BY
Syed Ghous Ali Shah
Email: ghousali@lrk.szabist.edu.pk
Session 4
Class BBA 7

Customer perception
Factors which influence consumers
perceptions
Factors which influence satisfaction
Dimensions of service quality
Service encounters

Satisfaction and Service Quality

Factors Influencing
Customer Satisfaction
Product/service quality
Specific product or service features
Consumer emotions
Attributions for service success or failure

Factors Influencing
Customer Satisfaction
Perceptions of equity or fairness
Other consumers, family members, and
coworkers
Price
Personal factors
the customers mood or emotional state
situational factors

Outcomes of
Customer Satisfaction
Increased customer retention
Positive word-of-mouth communications
Increased revenues

Relationship between Customer Satisfaction and

Loyalty in Competitive Industries

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.

Service Quality
The customers judgment of overall excellence
of the service provided in relation to the
quality that was expected.
Service quality assessments are formed on
judgments of:
outcome quality
interaction quality
physical environment quality
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The SERVQUAL dimensions

Perceived Service Quality

Reliability (dependability, accurate performance)

Assurance (competence, courtesy, credibility & security)
Tangibles (appearance of physical elements)
Empathy (easy access, good communications & customer
understanding)

Responsiveness (promptness & helpfulness)

9

The Five Dimensions of

Service Quality
Reliability

Ability to perform the promised service

dependably and accurately.

Assurance

Knowledge and courtesy of employees and

their ability to inspire trust and
confidence.

Tangibles

Physical facilities, equipment, and

appearance of personnel.

Empathy
Responsiveness

Caring, individualized attention the firm

provides its customers.

Willingness to help customers and provide

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prompt service.

RELIABILITY

SERVQUAL Attributes

Providing service as promised

Dependability in handling customers service
problems
Performing services right the first time
Providing services at the promised time
Maintaining error-free records

n
n
n
n

EMPATHY
n
n
n

RESPONSIVENESS
n
n
n
n

Keeping customers informed as to when

services will be performed
Prompt service to customers
Willingness to help customers
Readiness to respond to customers
requests

ASSURANCE
n
n
n
n

n
n

Giving customers individual attention

Employees who deal with customers in a caring
fashion
Having the customers best interest at heart
Employees who understand the needs of their
customers
Convenient business hours

TANGIBLES
n
n
n
n

Modern equipment
Visually appealing facilities
Employees who have a neat, professional
appearance
Visually appealing materials associated with
the service

Employees who instill confidence in customers

Making customers feel safe in their transactions
Employees who are consistently courteous
Employees who have the knowledge to answer
customer questions
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E-Service Quality

Efficiency
Fulfillment
Reliability
Privacy
Responsiveness
Compensation
Contact
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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

13

A Service Encounter Cascade

for a Hotel Visit

Check-In
Bellboy Takes to Room
Restaurant Meal
Request Wake-Up Call
Checkout

14

A Service Encounter
Cascade for an Industrial Purchase

Sales Call

Delivery and Installation

Servicing

Ordering Supplies
Billing

15

Critical Service Encounters Research

GOAL:

understanding actual events and behaviors that cause

customer dis/satisfaction in service encounters

METHOD:
Critical Incident Technique

DATA:
stories from customers and employees

OUTPUT:
identification of themes underlying satisfaction and
dissatisfaction with service encounters

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Sample Questions for Critical Incidents

Technique Study
Think of a time when, as a customer, you had a particularly satisfying
(dissatisfying) interaction with an employee of ______________.
When did the incident happen?
What specific circumstances led up to this situation?
Exactly what was said and done?

What resulted that made you feel the interaction was satisfying
(dissatisfying)?

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Common Themes in Critical

Service Encounters Research

Recovery:

Adaptability:

employee response
to service delivery
system failure

employee response
to customer needs
and requests

Coping:

Spontaneity:

employee response
to problem customers

unprompted and
unsolicited employee
actions and attitudes
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Recovery
DO
Acknowledge problem
Explain causes
Apologize
Compensate/upgrade
Lay out options
Take responsibility

DONT
Ignore customer
Blame customer
Leave customer to fend for
him/herself
Downgrade
Act as if nothing is wrong
Pass the buck
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Adaptability
DO
Recognize the seriousness
of the need
Acknowledge
Anticipate
Attempt to accommodate
Adjust the system
Explain rules/policies
Take responsibility

DONT
Ignore
Promise, but fail to follow
through
Show unwillingness to try
Embarrass the customer
Laugh at the customer
Avoid responsibility
Pass the buck
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Spontaneity
DO
Take time
Be attentive
Anticipate needs
Listen
Provide information
Show empathy

DONT
Exhibit impatience
Ignore
Yell/laugh/swear
Steal from customers
Discriminate

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Coping
DO
Listen
Try to accommodate
Explain
Let go of the customer

DONT
Take customers
dissatisfaction personally
Let customers
dissatisfaction affect
others

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Evidence of Service from the

Customers Point of View

Operational flow of
activities

People

Contact employees
Customer him/herself
Other customers

Steps in process

Flexibility vs. standard

Technology vs. human

Process

Physical
Evidence

Tangible
communication

Servicescape
Guarantees
Technology

Source: From Managing the Evidence of Service by M. J. Bitner from The Service Quality Handbook, eds. E. E.
Scheuing and W. F. Christopher (1993), pp. 358-70.

Website
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Strategies for Influencing Customer

Perceptions
Measure and manage customer satisfaction
Aim for customer quality and satisfaction in every
service encounter
1. Plan for effective recovery
2. Facilitate adaptability and flexibility
3. Encourage spontaneity
4. Help employees cope with problem customers
5. Manage the dimensions of quality at the encounter
level
Manage the evidence of service to reinforce
perception
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Exercise to
Identify Service Attributes
In groups of five, choose a services industry and spend 10 minutes brainstorming
specific requirements of customers in each of the five service quality dimensions.
Be certain the requirements reflect the customers point of view.

Reliability:
Assurance:
Tangibles:

Empathy:
Responsiveness:
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