Part 3

UNDERSTANDING
CUSTOMER
REQUIREMENTS

5-1
Provider Gap 1

CUSTOMER
Expected
Service

COMPANY
Gap 1: Company
The Listening Gap Perceptions of
Customer
Expectations

5-2
Key Factors Leading to Provider Gap 1

5-3
 Chapter
Listening to Customers 5
through Research
 Using Customer Research to Understand Customer
Expectations
 Elements in an Effective Service Marketing Research
Program
 Analyzing and Interpreting Customer Research Findings
 Using Marketing Research Information
 Upward Communication

5-4
Objectives for Chapter 5:
Listening to Customers through Research
 Present the types of and guidelines for customer research
in services.

 Show how customer 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.
5-5
Common Research Objectives for Services
 To discover customer requirements or expectations for
service.
 To monitor and track service performance.
 To assess overall company performance compared with that
of competition.
 To assess gaps between customer expectations and
perceptions.
 To identify dissatisfied customers, so that service recovery
can be attempted.

5-6
Common Research Objectives for Services
(continued)
 To gauge effectiveness of changes in service delivery.
 To appraise the service performance of individuals and
teams for evaluation, recognition, and rewards.
 To determine customer expectations for a new service.
 To monitor changing customer expectations in an industry.
 To forecast future expectations of customers.
Criteria for an Effective
Service Research Program
 Includes both qualitative and quantitative research
 Includes both expectations and perceptions of customers
 Balances the cost of the research and the value of the
information
 Includes statistical validity when necessary
 Measures priorities or importance of attributes
 Occurs with appropriate frequency
 Includes measures of loyalty, behavioral intentions, or
actual behavior
5-8
Portfolio of Services Research:
Research Is NOT Just Surveys!
 Customer Complaint Solicitation
 Critical Incident Studies
An interview procedure in which customers are asked to provide verbatim
stories about satisfying and dissatisfying service encounters.
 Requirements Research
Identifying the benefits and attributes expected in a service
 Relationship and SERVQUAL Surveys
Helps to identify relationship strengths and weakness

5-9
Portfolio of Services Research:
Research Is NOT Just Surveys! (CONT.)
 Trailer Calls or Post transaction Surveys
 Service Expectations Meetings and Reviews
for B-2-B setting
 Process Checkpoint Evaluations
for professional services
 Mystery Shopping- workers maybe evaluated any time
 Customer Panels
 Lost Customer Research- why you left the service
 Future Expectations Research
Common means for answering questions

 Ask customers directly

 mail, phone, face-to-face, online
 one-on-one, in groups, formal/informal
 Observing customers
 anthropological tools, qualitative depth
 Get information from employees and front line service
providers
 Database marketing research
 use customer information files
 “capture” behavior through data analysis

5-11
Elements in an Effective Customer Research
Program for Services
Complaint • To identify and attend to dissatisfied customers
solicitation • To identify common service failure points

• To identify “best” practices” at transaction level

• To identify customer requirements as input for quantitative
Critical studies
incident • To identify common service failure points
studies • To identify systemic strengths and weaknesses in customer-
contact services

• To monitor and track service performance

• To assess overall company performance compared with that of
Relationshi competition
p surveys • To determine links between satisfaction and behavioral intentions
• To assess gaps between customer expectations and perceptions

5-12
Elements in an Effective Customer Research
Program for Services (continued)
• To obtain immediate feedback on performance of service
transactions

• To measure effectiveness of changes in service delivery

Posttransactio
n surveys
• To assess service performance of individuals and teams

• To use as input for process improvements; to identify common

service failure points

• To identify/attend to dissatisfied customers

Social media • To encourage word of mouth

• To measure the impact of other advertising

5-13
Elements in an Effective Customer Research
Program for Services (continued)
• To research customers in natural settings
Market-
oriented
ethnography • To study customers from other cultures in an unbiased
way

• To measure individual employee performance for

evaluation, recognition, or rewards
Mystery
shopping
• To identify systemic strengths and weaknesses in
customer-contact services

• To monitor changing customer expectations

Customer
panels • To provide a forum for customers to suggest and evaluate
new service ideas

5-14
Elements in an Effective Customer Research
Program for Services (continued)

• To identify reasons for customer defection

Lost customer
research • To assess gaps between customer expectations and
perceptions

Future
• To forecast future expectations of customers
expectations
research • To develop and test new service ideas

5-15
Sample Questions for Critical Incident
Studies
 Think of a time when, as a customer, you had a particularly satisfying
(dissatisfying) interaction with an employee of ______________.

 When did the incident happen?

 What specific circumstances led up to this situation?

 Exactly what was said and done?

 What resulted that made you feel the interaction was satisfying
(dissatisfying)?

5-16
SERVQUAL Attributes
RELIABILITY EMPATHY
 Providing service as promised  Giving customers individual attention
 Dependability in handling customers’  Employees who deal with customers in a
service problems caring fashion
 Performing services right the first time  Having the customer’s best interest at heart
 Providing services at the promised time  Employees who understand the needs of
 Maintaining error-free records their customers
 Convenient business hours
RESPONSIVENESS
 Keeping customers informed as to when TANGIBLES
services will be performed  Modern equipment
 Prompt service to customers  Visually appealing facilities
 Willingness to help customers  Employees who have a neat,
 Readiness to respond to customers’ professional appearance
requests  Visually appealing materials
associated with the service
ASSURANCE
 Employees who instill confidence in customers
 Making customers feel safe in their transactions
 Employees who are consistently courteous
 Employees who have the knowledge to answer
customer questions
5-17
Figure 5.2: Service Quality Perceptions
Relative to Zones of Tolerance by Dimensions
9
8
7 O
O O
6 O O
5
4
3
2
1
0

Reliability Responsiveness Assurance Empathy Tangibles

Retail Chain = Zone of Tolerance O= Service Quality Perception

5-18
Figure 5.3: Importance/Performance
Matrix
HIGH
High  
Leverage
Attribute Importance

 
 

 
Attributes to Improve Attributes to Maintain



  Low
Leverage

Attributes to Maintain Attributes to De-emphasize

LOW Attribute Performance HIGH

5-19
Using Marketing Research Information

 Understanding how to make the best use of

research – to apply what has been learned to
the business – is a key way to close the gap
between customer expectations and
management perceptions of customer
expectations.

5-20
Upward Communication

 Research for upward communication

 Executive visits to customers
 Executive or management listening to customers
 Research on intermediate customers
 Research on internal customers
 Executive or management listening approaches to
employees
 Employee suggestions

5-21
Employees Provide Upward
Communication at Cabela’s

5-22