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Objectives for Chapter 5:Understanding Customer Expectations and Perceptions through Marketing Research Present the types of and guidelines for marketing research in services Show the ways that marketing research information can and should be used for services Describe the strategies by which companies can facilitate interaction and communication between management and customers Present ways that companies can and do facilitate interaction between contact people and management Common Research Objectives for Services To identify dissatisfied customers To discover customer requirements or expectations To monitor and track service performance To assess overall company performance compared to competition To assess gaps between customer expectations and perceptions To gauge effectiveness of changes in service To appraise service performance of individuals and teams for rewards To determine expectations for a new service To monitor changing expectations in an industry To forecast future expectations Figure 5-1Criteria for An Effective Services Research Program Portfolio of Services Research Stages in the Research Process Stage 1 : Define Problem Stage 2 : Develop Measurement Strate…………
A note on the PowerPoint Slides... These PowerPoint slides contain selected exhibits, figures and tables from the chapters as well as objectives for the chapters. For many chapters, we include extra lecture slides and in-class exercises that we have compiled and used in our classes. The lecture slides are not intended to provide full outlines or complete lectures for the chapters, but rather may be used selectively to enhance class sessions. Objectives for Chapter 1:Introduction to Services Explain what services are and identify service trends Explain the need for special services marketing concepts and practices Outline the basic differences between goods and services and the resulting challenges for service businesses Introduce the service marketing triangle Introduce the expanded services marketing mix Introduce the gaps model of service quality Challenges for Services Defining and improving quality Communicating and testing new services Communicating and maintaining a consistent image Motivating and sustaining employee commitment Coordinating marketing, operations and human resource efforts Setting prices Standardization versus personalization Examples of Service Industries H…………
Objectives for Chapter 6:Building Customer Relationships Explain relationship marketing, its goals, and the benefits of long-term relationships for firms and customers Explain why and how to estimate customer lifetime value Specify the foundations for successful relationship marketing--quality core services and careful market segmentation Provide you with examples of successful customer retention strategies Introduce the idea that “the customer isn’t always right” Relationship Marketing is a philosophy of doing business that focuses on keeping and improving current customers does not necessarily emphasize acquiring new customers is usually cheaper (for the firm)--to keep a current customer costs less than to attract a new one goal = to build and maintain a base of committed customers who are profitable for the organization thus, the focus is on the attraction, retention, and enhancement of customer relationships Lifetime Value of a Customer Assumptions Income Expected Customer Lifetime Average Revenue (month/year) Other Customers convinced via WOM Employee Loyalty Expenses Costs of Serving Customer Increase A Loyal Customer is One Who... Shows Behavioral Commitment buys from…………
Gaps Model of Service Quality Customer Gap: difference between expectations and perceptions Provider Gap 1: not knowing what customers expect Provider Gap 2: not having the right service designs and standards Provider Gap 3: not delivering to service standards Provider Gap 4: not matching performance to promises Objectives for Chapter 2:Consumer Behavior in Services Overview the generic differences in consumer behavior between services and goods Introduce the aspects of consumer behavior that a marketer must understand in five categories of consumer behavior: Information search Evaluation of service alternatives Service purchase and consumption Postpurchase evaluation Role of culture Consumer Evaluation Processes for Services Search Qualities attributes a consumer can determine prior to purchase of a product Experience Qualities attributes a consumer can determine after purchase (or during consumption) of a product Credence Qualities characteristics that may be impossible to evaluate even after purchase and consumption Figure 2-1Continuum of Evaluation for Different Types of Products Figure 2-2Categories in Consumer Decision-Making and Evaluation of Services Figure 2-3 Categ…………
Objectives for Chapter 3:Customer Expectations of Service Recognize that customers hold different types of expectations for service performance Discuss controllable and uncontrollable sources of customer expectations Distinguish between customers’ global expectations of their relationships and their expectations of the service encounter Acknowledge that expectations are similar for many different types of customers Delineate the most important current issues surrounding customer expectations McGraw-Hill 2000 The McGraw-Hill Companies * S M S M McGraw-Hill 2000 The McGraw-Hill Companies Chapter 3 CUSTOMER EXPECTATIONS OF SERVICES Figure 3-1 Dual Customer Expectation Levels Adequate Service Desired Service Zone of Tolerance Figure 3-2 The Zone of Tolerance Adequate Service Desired Service Zone of Tolerance Figure 3-3 Zones of Tolerance for Different Service Dimensions Most Important Factors Least Important Factors Level of Expectation Source: Berry, Parasuraman, and Zeithaml (1993) Adequate Service Desired Service Zone of Tolerance Desired Service Adequate Service Zone of Tolerance Desired Service Adequate Service Figure 3-4 Zones of Tolerance for First-Time and Recovery Service…………
Objectives for Chapter 4:Customer Perceptions of Service  Provide you with definitions and understanding of customer satisfaction and service quality Show that service encounters or the “moments of truth” are the building blocks of customer perceptions Highlight strategies for managing customer perceptions of service Figure 4-1Customer Perceptions of Service Quality and Customer Satisfaction Factors Influencing Customer Satisfaction Product/service quality Product/service attributes or features Consumer Emotions Attributions for product/service success or failure Equity or fairness evaluations Outcomes of Customer Satisfaction Increased customer retention Positive word-of-mouth communications Increased revenues Figure 4-3 Relationship between Customer Satisfaction and Loyalty in Competitive Industries Service Quality The customer’s judgment of overall excellence of the service provided in relation to the quality that was expected. Process and outcome quality are both important. The Five Dimensions of Service Quality Ability to perform the promised service dependably and accurately. Knowledge and courtesy of employees and their ability to convey trust and confidence. Physic

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