SERVICES MARKETING Session 3

21st July 2017

SESSION OBJECTIVES
Summary from last session Customer Perception
Article Review (From 15th July -1) Group Exercise
Presentation by Group 3 Article Review -1
Article Review (From15th July -2) Presentation by Group X
Customer Expectation of Services Article Review - 2
SUMMARY FROM THE LAST SESSIONS
Classification of Services
Why and How What are Services
Service Experience Services
What defines service experience(SW,SS,SC,SP)
Physical stages of service experience Characteristics of Services
Consumer Behavior Economic Sectors
Theoretical Approaches (Eco, Pschy, Beh, Cogni)
Customer Gap Share of Service Sector in Economy
Consumer Buying Behavior process Factors affecting Services Sector
Pre-purchase
Service Encounter Importance of Services Sector
Post-Purchase
GAP MODEL OF SERVICE QUALITY
Expected
Service

Customer Gap
Perceived
Service
Company
Gap 1 Service Gap External Communications
Delivery 4 to the Customers
Gap 3
Customer-driven Service
Designs and Standards
Gap 2
Company Perceptions of
Customer Expectations
CONSUMER BUYING DECISION STAGES
Need Information Evaluation of Decision or Purchase & Post-purchase
Recognition Search Alternatives Reservation Consumption Evaluation

Pre-purchase Stage Service Encounter Post-purchase Stage

Need Recognition
Information Search
Physiological Evaluation of Alternatives
Pre- Safety Personal Decision or
Purchase Social Impersonal Evoked Set Reservation
Stage Esteem Multi-attribute model
Self-Actualization Risk Mitigation
Service Attributes
Trade offs
Perceived Risk (FFTPPSS)
Service Expectations
CONSUMER BUYING DECISION STAGES
High Hair cut Emphasis on
Service Purchase and Nursing home Service Personal

Encounter Consumption Restaurant

Service Setting as: Airline Travel

Moments of Truth Taxi Hire
Movie Theatre Management Consulting
Servuction Model
Car Repair
Service as Theatre
Subway Retail Banking
Customer Contact
Laundry
High
Insurance
Low

Post-purchase Post Purchase

Stage Evaluation Emphasis on Service
Internet Banking

Positive Disconfirmation Equipment

Low
Confirmation
Negative Disconfirmation
Refer Services Marketing by Lovelock and Wirtz
 SERVICE EXPECTATION
Service
Belief Service Standards/ Quality
Delivery as Reference Points to Performance Evaluation

Hot Coffee should be served hot in clean crockery

Expectation Standards
Influencers
Service
Importance of Service Expectations Expectation
Service Evaluation Service Evaluation

How to meet and exceed Expectations? Service Service

Perception Management
Customer Marketing
SERVICE EXPECTATION Desired Service Wished For

Minimum
Adequate Service Tolerable/
Acceptable

Delight
Desired Service
Company Controlled
Zone of Customer Specific
Situation based
Tolerance Attributes in service

Adequate Service
Dissatisfaction
FACTORS AFFECTING CUSTOMER EXPECTATIONS
Enduring Derived
Explicit Service Desired Service Service
Promises Intensifiers Personal
Philosophy
Implicit Service
Promises
Zone of Personal
Tolerance Needs
Word of Mouth

Past Experience Predicted

Adequate Service Service

Transitory Perceived Self-

Situational
Service Service perceived
Factors
Intensifiers Intensifiers Service Role
CUSTOMER PERCEPTIONS OF SERVICES
Perceptions
against what?
Reliability Expectations
Responsiveness
Interaction Situational
Assurance
Quality Factors
Empathy
Tangibles Service
Quality Delight
Reliability Pleasure
Responsiveness Physical Customer Contentment
Assurance Environment Satisfaction
Product Dissatisfaction
Empathy Quality
Tangibles Quality

Reliability Personal
Responsiveness Factors
Outcome Price
Assurance
Quality
Empathy
Tangibles
DETERMINANTS OF CUSTOMER SATISFACTION
Product and Service Features
Consumer Emotions
Attributions for success or failures
Perceptions of Equity or Fairness
Other Consumers, Family Members and Coworkers
Some New Thoughts on Conceptualizing Perceived Service Quality: A Hierarchical Approach
Michael K. Brady & J. Joseph Cronin Jr
AMA June 2011
SERVICE QUALITY RATER MODEL
Reliability: did the company provide the promised service
consistently, accurately, and on a timely basis?
Assurance: do the knowledge, skills, and credibility of the
employees inspire trust and confidence? (High Risk Services)
Tangibles: are the physical aspects of the service (offices,
equipment, or employees) appealing?
Empathy: is there a good relationship between employees and
customers and the employees understand the customer well?
Responsiveness: does the company provide fast, high-quality
service to customers and listens to them?
SERVICE ENCOUNTER- PLEASURE & DISPLEASURE
Recovery I didnt have an flyer
An inebriated appointment but my
onreservation
the flight doctor
started
They
The hotel missed
not my
only room
kept a coffee but
pot outside the my
Response to gave
troubling me
othertime adjusting
passengers his
when lunch
the break
attendants
roommanager
but gave
also me aa suite
placed bowl atofthe same
fruits price
since I was
failures ----------------------------------------------------------
calmed him down by offering him coffee and
----------------------------------------------------------
flying very early in the atmorning
I was to receive
engaging assistance the airport by the
him inreservation
conversation
Adaptability They missed my room and they
----------------------------------------------------------
airlines due to my broken ankle but the steward
----------------------------------------------------------
Response to needs didnt give
I needed us any
aupfew explanation.
more minutes They didnt
to finalize even
the
didnt
A person show
in theandand
movie later claiming
hallnostarted I was
talking late by
loudly
and requests menu apologize
when the gave
waitress assistance at all
20
on minutes
phone and showing uptold
the guards
me
onlygot she
at into couldtime
his lunch read
a violent
a map faster than I read the menu
Spontaneity altercation with the person
Unprompted and Unsolicited
Employee actions

Coping
Employee Response to Problem Customers