mkt exam # 3

components of a service quality information system

-customer research -non-customer research -after sales surveys -focus group interviews -mystery shopping -employee surveys -total market service quality surveys

11.4) Factors influencing customer satisfaction ratings

-customers are genuinely satisfied -response bias -data collection method-higher results from personal/phone interviews than mail and self administered ones (as much as 10% difference)

13.3) Identifying the root cause of the service failure

-locus: Who is responsible for the failure? Provider, the firm, the customer or external forces? -stability: Is the cause likely to recur? -controllability: Did the responsible party have control over the failure?

12.3) factors influencing the standards gap

-management doesn't believe it should meet customer requirements -corporate sets priorities that interfere -not worth the effort/hard to understand

12.3) factors effecting the communications gap

-overpromising -horizontal communication (does the left side know what the right side is doing)

12.3)factors influencing the knowledge gap

-research orientation (firm's attitude toward conducting consumer research) -upward communication (flow of info from front-line to upper levels of the org) -levels of management (complexity of org, the number of levels between top management and the customers)

12.4) Dimensions of SERVQUAL

-tangibles (physical appearance, modern equipment, neat employee appearance) -reliability (timely, able to solve customer problems, error-free) -responsiveness (always willing to help, communicate with them, never too busy to respond to customer requests) -assurance (customers feel confident, safe, treated w kindness, knowledgeable) -empathy (individual attention given, hours are convenient to customers, has customers best interest)

13.2) types of complainers

-the meek customer (generally never complains) -the agressive customer (complains on a regular basis, loudly) -the high-roller customer (expects the best and is willing to pay for it) -the rip off customer -the chonic complainer- is never satisfied but continues to return- looking for sympathy and are happy with any attention

12.3) factors influencing the delivery gap

-willingness to perform -employee-job fit (degree to which employees can perform a service to specifications -role conflict -role ambiguity (poor understanding of what to do/their purpose) -dispersion of control (out of their control) -learned helplessness ( feel inadequate due to dispersion of control) -inadequate support (lack of management help to help employees to perform)

12.4) criticisms of SERVQUAL

1) length of the questionnaire 2) the validity of five dimensions

14.3) why is customer retention important?

1) lots of changes in the marketing environment: not as many new customers and current customers are spending less 2) increase in competition 3) rising costs of marketing 4) changes in the channels of distribution: physical distance is increasing 5) customers have changed: more informed, command income, and are skeptical

13.4) basic rules of thumb for customer service recovery

1) measure the costs 2) actively encourage complaints 3) anticipate needs for recovery 4) train employees 5) empower the front line (bend the rules) 6) respond quickly 7) close the loop, make customers feel important

12.4) SERVQUAL final thoughts

1) the importance of contact personnel-customer perceptions of service are heavily dependent on the attitudes and performance of contact personnel 2) process is as important as outcome-how the service is delivered is just as important as the frequency and nature of the service 3) consumer perceptions are unpredictable- ratings of service quality dimensions may be influenced by factors that are outside the organization's control and may not be readily apparent to managers 4) assessing the criticisms of SERVQUAL-SERVQUAL remains an often used instrument to assess service quality and issues in the e-business

11.6) Reasons firms lose customers even tho they're satisfied (5)

1. Firms evaluate if current needs are being met but not future needs 2. Firms focus on registered complaints (but many customers don't complain) 3. Customer satisfaction research focuses on global attributes and ignores operational elements like "the firm provides good service" 4. Excludes the firm's employees from the research process 5. Some firms think the customers don't know what they want and ignore the customer ***listening to customers is sometimes not good, they rejected VCR, chrystler mini van, CNN, fedex, etc

11.3) very satisfied/dissatisfied approach

5 point likert scale of "how satisfied are you?"

12.4) SERVQUAL

A 44 item scale that measures customer expectations and perceptions regarding five service quality dimensions

13.1) Service Recovery

A firm's reaction to a complaint that results in customer satisfaction and goodwill

13.3) compensatory strategies

A set of recovery strategies that compensate the customers to offset the costs of the service failure ex: traits, discount, coupon, free upgrade, free product

13.4) service recovery paradox

A situation in which the customer rates performance higher if a failure occurs and the contact personnel successfully recover from it than if the service had been delivered correctly the first time

service quality information system

An ongoing research process that provides relevant data on a timely basis to managers, who use the data in decision making

13.1) service failures

Breakdowns in the delivery of service; service that does not meet customer expectations.

13.2) reflexive complaints

Complaints directed at some inner aspect of the complainer ex: "i wasn't clear about how i wanted my steak to be cooked."

13.2) ostensive complaints

Complaints directed at someone or something outside the realm of the complainer. ex: "the chef overcooked the steak!'

13.3) core service failures

Failures in the core service offering of the firm including unavailable service, unreasonably slow service, and other core service failures.

14.3) customer retention

Focusing the firm's marketing efforts toward the existing customer base. -markets are stagnant -rising costs of marketing

13.3) mechanistic processes

Formalized step-by-step processes that are developed to facilitate the firm's failure analysis and service recovery efforts

13.3) organic processes

Informal sets of values and beliefs that comprise the firm's service recovery culture

11.7) zone of tolerance

Level of quality ranging from high to low and reflecting the difference between desired service and adequate service; expands and contracts across customers and within the same customer, depending on the service and the conditions under which it is provided

11.7) Factors influencing service expectations: Desired Service (6) 4) implicit service promises

Obligations to which the firm commits itself by means of the tangibles surrounding the service and the price of the service

11.7) Factors influencing service expectations: Desired Service (6) 3) explicit service promises

Obligations to which the firm commits itself through its advertising, personal selling, contracts, and other forms of communication

11.7) Factors influencing service expectations: Desired Service (6) 1) enduring service intensifiers

Personal factors that are stable over time and increase a customer's sensitivity to how a service should be best provided

12.3) knowledge gap

The difference between what consumers expect of a service and what management perceives the consumers to expect ex: an architect not understanding a home buyer's wishes

11.7) desired service

The level of service quality a customer actually wants from a service encounter

12.4) How SERVQUAL is set up

Two sections. First section is 22 questions that ask respondents to record their expectations. Second section asks respondents to record their perceptions. Then, the mean of the expectation questions are compared to the mean of the perception questions. The mean expectation score is subtracted from the mean perception score (P-E), giving us a gap score.

11.4) social desirability bias

a bias in survey results because of respondents tendencies to provide information they believe is socially appropriate "if you don't have anything nice to say then don't say anything at all"

11.4) response bias

a bias in survey results because of responses being received from only a limited group among the total survey participants

13.2) exit

a complaining outcome in which the consumer stops going to/using the project

13.2) retaliation

a complaining outcome in which the consumer takes action deliberately to damage the physical operation or hurt future business

13.2) voice

a complaining outcome in which the consumer verbally communicates dissatisfaction

personal service philosophies

a customer's own internal views of the meaning of service and the manner in which service providers should conduct themselves (part of service intensifier)

11.7) Factors influencing service expectations: Desired Service (6) 2) personal needs

a customer's physical, social, and psychological needs

14.3) consequent marketing

a marketing strategy for constantly seeking new customers by offering discounts and markdowns and developing promotions that encourage new business

11.7) perceived service adequacy

a measure of service quality derived by comparing adequate service and perceived service

11.7) perceived service superiority

a measure of service quality derived by comparing desired service expectations and perceived service received

13.3) restoration strategies

a set of recovery strategies by offering a substitute, corrections to the original, or identical offering

13.3) role conflict

a situation in which an employee is caught between the opposing wishes of the firms customers and the firm's management

13.3) role ambiguity

a situation in which the employee doesn't know how to preform his or her job

12.2) service quality

an attitude formed by a long term overall evaluation of a firms performance

13.3) service recovery culture

an informal set of beliefs, behaviors, and practices that set the tone for how the firm wishes to address customer complaints

11.7) Factors influencing service expectations: Adequate Service (5) 4) situational factors

circumstances that lower the service quality but that are beyond the control of the service provider

11.7) Factors influencing service expectations: Adequate Service (5) 2) Perceived Service Alternatives

comparable services customers believe they can obtain elsewhere and/or produce themselves

11.2) expectancy disconfirmation model

comparing customer expectations to their perceptions leads customers to have their expectations confirmed or disconfirmed

13.2) instrumental complaints

complaints expressed for the purpose of altering an undesirable state of affairs ex: sending a undercooked steak back

13.2) noninstrumental complaints

complaints expressed without expectation that an undesirable state will be altered ex: a complaint to a friend about the poor condition in a hotel room

12.2) customer satisfaction vs. service quality

customer satisfaction: short term transaction that has a specific measure service quality: attitude formed by long term, overall evaluation and performance *intertwined, but not the same

derived expectations

expectations appropriated from and based on the expectations of others (part of service intensifiers)

13.3) failures relating to unprompted or unsolicited employee actions

failures relating to level of attention, unusual employee actions, violations of cultural norms, gestalt, and responses to adverse conditions

13.3) failures relating to problematic customers

failures relating to the customer's own misbehavior, including drunkness, verbal and physical abuse, violations of company policies, and uncooperative customers.

11.7) Factors influencing service expectations: Adequate Service (5) 5) predicted service

function of a firms explicit and implicit service promises, word of mouth communications, and customers past experiences. customers form judgements about the predicted services that's likely to occur and set adequate service expectations simultaneously.

11.4) data collection model

higher levels of satisfaction are obtained by personal interviews and phone surveys compared with questions from mail or self administered questionnaires.

11.3) scale of 100 approach

how satisfied are you 1-100 -means diff things to diff customers

13.3) interactional justice

human content (like empathy and friendliness) demonstrated by service personnel during the process

11.3) indirect measures of customer satisfaction

includes tracking and monitoring sales records, profits, and customer complaints

11.6) does customer satisfaction translate into customer retention?

no, high satisfaction ratings does NOT mean the retaining of customers

11.3) direct measures of customer satisfaction

obtained directly from customers using surveys

11.2) positive disconfirmation

performance exceeds expectations, leads to delighted customers

11.2) negative disconfirmation

performance is less than expected, leads to dissatisfaction

11.7) Factors influencing service expectations: Adequate Service (5) 1) Transitory Service Intensifiers

personal, short-term factors that heighten a customer's sensitivity to service

12.4) What is a gap score?

positive gap scores means customer perceptions were higher than expectations. negative gap scores mean customer perceptions were lower than expectations, and a gap score that is zero means perceptions have met customer expectations.

13.3) unresponsive strategies

purposely doesn't respond to customer complaints

13.3) reimbursement strategies

refund or store credit

13.3) failtures relating to customer needs and requests

service failures relating to the implicit and explicit needs of customers, including special needs, customer errors, and disruptive others

11.4) benchmarking

setting standards against which to compare future data collected to

12.4) tangibles dimension

the SERVQUAL assessment of a firm's ability to manage its tangibles: architecture, design, layout, carpeting, desks. lighting. equipment and facilities, and personnel and communications materials

12.4) empathy dimension

the SERVQUAL assessment of a firm's ability to put itself in its customer's place giving customers individual attention, operating hours are convenient to all customers, has employees who give you personal attention, has best interests at heart, understands your specific needs

12.4) the responsiveness dimension

the SERVQUAL assessment of a firm's commitment to providing its services in a timely manner when the service will be preformed, giving prompt service, willing to help, are never too busy to respond to requests

12.4) assurance dimension

the SERVQUAL assessment of a firm's competence, courtesy to its customers and security of its operations instilling confidence in customers, making customers feel safe with transactions, being courteous, having the knowledge to answer questions

12.4) the reliability dimension

the SERVQUAL assessment of a firm's consistency and dependability in service performance timely, able to solve customer problems, error-free ex: the cable company being late and only offering an apology

12.3) communications gap

the difference between the actual quality of service delivered and what they communicate in their communications ex: promising one kind of service and a customer receives a different type of service. a customer who orders something off a menu that isn't available

12.3) delivery gap

the difference between the quality standards set for service delivery and the actual quality of service delivery ex: if the architect does not follow the standards of the buyer's wishes

12.3) standards gap

the difference between what management perceives consumers to expect and the quality specifications set for service delivery ex: an architect not being able to preform the buyer's wishes after understanding them

13.1) reasons why there's service failures

the four I's intangibility inventory inconsistency inseparability

11.4) are customer surveys worth it?

the information provided is invaluable

11.7) Factors influencing service expectations: Adequate Service (5) 3) self-perceived service role

the input a customer believes he or she is required to present in order to produce a satisfactory service encounter

11.4) timing of the question

the length of time after the act of purchase that questions are asked *the highest is immediately after purchase and decreases over time

11.7) predicted service

the level of service quality a consumer believes is likely to occur

11.7) adequate service

the level of service quality a customer is willing to accept

11.4) mood

the mood of the customer completing the survey can impact satisfaction ratings

11.4) question content

the ordering of questions and whether or not answers asked earlier influence answers to subsequent questions.

13.3) distributive justice

the outcomes associated with the service recover process (compensation)

11.7) Factors influencing service expectations: Desired Service (6) 6) past experience

the previous service encounters a customer has had with a service provider

13.3) procedural justice

the process the customer endures during the service recovery process (time is an example)

11.3) The combined approach

the very dissatisfied/satisfied likert scale with the addition of the "what could the firm have done better?"

11.4) question form

the way the question is phrased i.e. positively or negatively

13.2) why don't customers complain

they don't think it'll do any good, intangibility and inseparability, it's uncomfortable, blame themselves for not being straight forward, not qualified enough to voice a complaint

11.7) Factors influencing service expectations: Desired Service (6) 5) word of mouth communications

unbiased information from someone who has been through the service i.e. friends, family, or consultants

13.3) apologetic strategies

verbally apologizing either from the service provider or upper management

13.2) why do customers complain

wanting an undesired situation to be corrected, release of a pressure valve, venting their feelings, related to control, solicit empathy and test for consensus, to create an impression

13.3) perceived justice

when customers weigh their inputs against their outputs when forming recovery evaluations