Chap005

Chapter5-1

Customer Perceptions of Service

5

 Customer Perceptions
 Customer Satisfaction
 Service Quality
 Service Encounters: The Building Blocks for
Customer Perceptions

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All

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Objectives for Chapter 5:
Consumer Perceptions of Service
 Provide a solid basis for understanding what influences customer perceptions of service and the relationships among customer satisfaction, service quality, and individual service encounters.  Demonstrate the importance of customer satisfaction—what it is, the factors that influence it, and the significant outcomes resulting from it.
 Develop critical knowledge of service quality and its five key dimensions: reliability, responsiveness, empathy, assurance, and tangibles.  Show that service encounters or the “moments of truth” are the essential building blocks from which customers form their perceptions. 5-3

The customer is . . .
Anyone who receives the company’s services, including:
 external customers (outside the organization, business customers, suppliers, partners, end consumers)  internal customers (inside the organization, e.g., other departments, fellow employees)

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Customer Perceptions of Quality and
Customer Satisfaction

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Factors Influencing Customer
Satisfaction
 Product quality
 Service quality
 Price
 Specific product or service features
 Consumer emotions
 Attributions for service success or failure
 Perceptions of equity or fairness
 Other consumers, family members, and coworkers
 Personal factors
 Situational factors

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ASQI and Market Value Added

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Geek Squad’s Focus on Responsiveness

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How Customers Judge the Five
Dimensions of Service Quality

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Outcomes of Customer Satisfaction
 Increased customer retention
 Positive word-of-mouth communications
 Increased revenues

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ASCI and Annual Percentage Growth in S&P 500 Earnings

Source: C. Fornell “Customer Satisfaction and Corporate