Customers Satisfaction and Service Quality
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This document discusses customer satisfaction and service quality. It defines customer satisfaction as a customer's judgment about whether a product or service has met their expectations. Service quality is evaluated based on dimensions like reliability, responsiveness, assurance, empathy, and tangibles. Reliability is the most important dimension and refers to a company's ability to perform services dependably and accurately. The other dimensions evaluate how promptly a company helps customers, inspires trust and confidence, treats customers as individuals, and represents the service physically.
Customers Satisfaction and Service Quality
- 1. Service Quality Dr. Amitabh Mishra 1 SATISFACTION AND SERVICE QUALITY
- 3. Customer Satisfaction “Customer satisfaction is the customer’s fulfillment response. It is a judgment that a product/service feature or product/services itself provide a pleasurable level of consumption related fulfillment”. Oliver Dr. Amitabh Mishra
- 4. Customer Satisfaction “Customer satisfaction is the individual customer’s perception of the performance of the goods/services in relation to his or her expectations” Schiffman & Kanuk Dr. Amitabh Mishra
- 5. • Consumer buy goods and services to meet specific needs. In many instances, purchase of goods or services may be seen as offering the best solution to meet particular need. • Consumers may compare what they received against what they expected, especially when it cost them money, time or effort that could have been developed to obtaining an alternative solution. Dr. Amitabh Mishra 5
- 6. Determinants of Customer Satisfaction • Following factors influence the customer satisfaction- 1) Product and service features. 2) Customers emotions. 3) Attributes for service success or failure. 4) Perception of fairness or equity. 5) Other consumers, family and co-workers.Zeithmal & Bitner Dr. Amitabh Mishra, giBS Rohini
- 7. Service Quality Dr. Amitabh Mishra, giBS Rohini 7 • Some authors use satisfaction and quality interchangeable. • Although, satisfaction and quality have certain things common, but satisfaction is generally viewed as a broader concept. • Whereas, service quality assessment focus specifically on dimensions of services quality. • Based on this view, “perceived service quality is a component of customer satisfaction”
- 8. Service Quality Dr. Amitabh Mishra 8 TECHNICAL OUTCOME QUALITY SERVICE QUALITY PHYSICAL ENVIRONMENT QUALITY INTERACTION QUALITY PRODUCT QUALITY PRICE SITUATIONAL FACTOR CUSTOMER SATISFACTION PERSONAL FACTOR RELIABILITY RESPONSIVE- -NESS ASSURANCE EMPATHY TANGIBLES
- 9. Service Quality (What customers evaluate in judging the quality?/Service based components of quality) Dr. Amitabh Mishra
- 10. • Service quality is critical component of customers perception • As a result of the intangible nature of many services and the customers involvement in service production it may be harder to evaluate the quality of service than goods Zeithmal & Bitner Dr. Amitabh Mishra
- 11. Service Quality Dr. Amitabh Mishra 11 SERVICE BASED COMPONENT OF QUALITY (What customers evaluate in judging the quality?) • Research suggest that customer do not perceive the quality in unidirectional way, but rather judge quality based on multiple factors. • According to Michael Brady and Joseph Cronin, customers judge the quality of services based on following- – Technical out come quality (Actual output delivered) – Interaction/functional quality (Process of delivery) and, – Physical environment quality (Physical surroundings) Zeithmal & Bitner
- 12. • Example of a restaurant: – Customer’s perception of the meal (Technical outcome quality) – How meal was served and how the employees interact with customer (Interaction Quality) – The décor and surroundings (Physical environment quality) Service Quality Dr. Amitabh Mishra 12
- 13. Service Quality Dr. Amitabh Mishra 13 • In some cases all the three aspects of the services are likely to be important to overall assessment of quality (such as Restaurant). • But in few cases only two or one aspect play role. • Technical outcome quality is not always evident, because the technical outcome of many services are highly complex and some times ambiguous. As technical outcome of lawyers, engineers, doctors, etc.
- 14. Dimensions of Service Quality Dr. Amitabh Mishra
- 15. Consumer evaluate service quality on few quality dimensions. Parasuraman, Zeithmal & Berry identified five specific dimensions of service quality that apply across the variety of service industries. 1) Reliability 2) Responsiveness 3) Assurance 4) Empathy 5) Tangibles Service Quality Dr. Amitabh Mishra 15
- 16. 1. Reliability: Delivering on promises • Reliability is defined as “the ability to perform the promised services dependably and accurately.” • Company must deliver on its promises about- – Delivery – Service provision – Problem resolution and – Pricing Service Quality Dr. Amitabh Mishra 16
- 17. Of the 5 dimensions, reliability has been constantly shown to be the most important determinant of perception of service quality. Dr. Amitabh Mishra
- 18. 2. Responsiveness: Willingness to help/ promptness • Responsiveness means- “the willingness to help customers promptly” • This dimension emphasizes on attentiveness and promptness in dealing with customer’s request, questions, complaints, & problems. Service Quality Dr. Amitabh Mishra 18
- 19. • Responsiveness is communicated to customers by- – The length of time they have to wait for- • Assistance • Answer to questions or • Attention to problems Service Quality Dr. Amitabh Mishra 19
- 20. 3. Assurance: Inspiring trust & confidence. • Assurance is defined as- “employees knowledge, courtesy and the ability of the firm & its employee to inspire trust & confidence”. • This dimension is particularly important for services that- – The customers perceive as involving high risk. and/or – About which they feel uncertain about the ability to evaluate. Service Quality Dr. Amitabh Mishra 20
- 21. Service Quality Dr. Amitabh Mishra 21 • Example- • Banking • Insurance • Medical • Legal services • Trust and confidence may be embodied in the person who link the customer to the company. Such as- • Insurance agent • Lawyers • Consultant
- 22. Service Quality Dr. Amitabh Mishra 22 • In other situation, trust and confidence are embodied in the organization itself. • Visible evidence of degree, honors, awards and special certificates may give a new customer confidence in professional service providers.
- 23. 4. Empathy: Treating customers as individuals. • Empathy is defined as “the caring, individualized attention the firm provides its customers” – The essence of empathy is conveying, through personalized or customized services, that customers are unique. – Personnel at small service firms often know customers by name & build relationship that reflect their personal knowledge of customer requirement and preferences. When such small firms compete with larger firms, the ability to be empathic may give small firm clear advantage. Service Quality Dr. Amitabh Mishra 23
- 24. 5. Tangibles: Representing the service physically. “Tangibles are defined as the appearance of the physical facility, equipment, personnel and equipment.” • All of these provide physical representation or image of the service that customers (particularly new) will use to evaluate quality. • Appearances • Physical facilities • Equipment, People and materials. Service Quality Dr. Amitabh Mishra 24
- 25. Service Quality Dr. Amitabh Mishra 25 • Service industries that emphasize tangibles in their strategies are- – Hospitality services where the customers visit the establishment to receive the services, such as- • Restaurant & Hotels, • Retail stores & • Entertainment companies.
- 26. Service Quality Dr. Amitabh Mishra 26 • Some times the customers will use all the dimensions to determine service quality perception, at other times not. – In remote encounter such as with ATM empathy is not likely to be relevant dimension. – In a phone encounter tangibles will not be relevant.