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SVCM-C12- Customer Satisfaction & Service Quality (expectations…
SVCM-C12- Customer Satisfaction & Service Quality
definition
Customer satisfaction is a consumer's post-purchase evaluation of the overall service experience (processes and outcomes). It is an affective state or feeling reaction in which the consumers' needs, desires and expectations during the course of the service experience have been met or exceeded.
Service quality is the consumers' judgement about an entity's overall excellence or superiority. It can take on the transcendent approach (uncompromising standards), the product based approach ( a precise and measurable variable, reflecting the difference in the amount of some ingredient or attribute) or user-based approach (quality lies in the eyes of the beholder).
link between value,satisfaction
and customer retention (loyalty)
customer perceived value -> customer satisfaction and
customer value-> behavioural intention (loyalty)
Value consists of 1) performance (quality) value, social value (to ehance customers' self-concept, emotional value, interaction value and price.
satisfaction -> loyalty (but not linearly)- improvements in satisfaction initially result in a large increase in loyalty followed by a zone of indifference (plateau) until customer is delighted where significant improvements in loyalty is seen again.
expectations
Expectations are pre-purchase beliefs about service provision that act as a standard or reference point for judging post-purchase performance.
Consumers form their expectations from past experience, word of mouth, marketing comm mix and general attitudes towards a brand
disconfirmation of expectations paradigm- a high-quality service provider who decides to offer a no-frills products risks dissatisfaction with the cheaper brand (customer expectations > performance).
conversely a firm whose products have improved over earlier versions will benefit from the paradigm- customers will be pleasantly surprised when performance > expectations.
zone of indifference
The extent to which customers are willing to accept some degree of variation- the difference between a consumer's desired and just adequate (minimum) expectations.
when performance is within the zone, differences of expectations vs performance are assimilated and viewed favorably. adjust E or P to be in line with reality.
when performance is out of the zone, the contrast in variation will make it appear larger than it really is. poor P will be exaggerated while very high P will result in delight.
factors that cause difference in zone: 1) service attributes (the most important, the narrower the zone), 2) mood state 3) importance of occasion 4) psychological and social need 5) situational factors 6) first time vs service recovery situation
SERVQUAL
five dimensions are:
1) Tangibles (appearance of physical elements)
2) Reliability (dependable, accurate performance)
3) Responsiveness (promptness and helpfulness)
4) Assurance (competence, courtesy, credibility and security) 5) Empathy (easy access, good communications and customer understanding)
service quality shortfalls/gaps
Not knowing what customers expect (difference between management perception of customer expectations and expected service)
Specifying standards that do not accurately reflect what management believes to be customers' expectations
Service performance that does not match specifications
Not living up to the levels of service performance that are promoted and promised by marketing communications
other factors that
affect satisfaction
consumers' attribution to unexpected events
firm at fault- higher dissatisfaction
-partly blame himself, less dissatisfaction
incident is within control of firm= higher dissatisfaction
out of control, less dissatisfaction
likely to occur again = higher dissatisfaction
one-time unusual event, less dissatisfaction
equity theory- comparison of buyer input-outputs to sellers ratio
customer perceived value ( ratio of quality to price)