Chapter 5-1

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 Chapter 5-2

Part 3

UNDERSTANDING
CUSTOMER
REQUIREMENTS

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 Chapter 5-3

Provider Gap 1

CUSTOMER
Expected
Service

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

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 Chapter 5-4

Key Factors Leading to Provider Gap 1

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 Chapter
Chapter 5-5

Listening to Customers
through Research 5

 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

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 Chapter 5-6

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.
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 Chapter 5-7

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.
 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.

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 Chapter 5-8

Service Research Program

 A service research program can be defined

as the portfolio of research studies and
types needed to address research
objectives and execute an overall
measurement strategy.

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 Chapter 5-9

Criteria for an Effective Service

Research Program
 Includes qualitative and quantitative research
 Includes both perceptions and expectations 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

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 Chapter 5-10

Portfolio of Services Research:

Research Is NOT Just Surveys!
 Customer Complaint Solicitation
 Critical Incident Studies
 Requirements Research
 Relationship and SERVQUAL Surveys
 Trailer Calls or Posttransaction Surveys
 Service Expectations Meetings and Reviews
 Process Checkpoint Evaluations
 Mystery Shopping
 Customer Panels
 Lost Customer Research
 Future Expectations Research
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 Chapter 5-11

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
11
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 Chapter 5-12

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

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

• To monitor and track service performance

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

• To obtain immediate feedback on performance of service transactions

Posttransaction • To measure effectiveness of changes in service delivery
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

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 Chapter 5-13

Elements in an Effective Customer

Research Program for Services (cont.)
Market-oriented • To research customers in natural settings
ethnography • To study customers from other cultures in an unbiased way

Mystery • To measure individual employee performance for evaluation, recognition, or rewards

shopping • To identify systemic strengths and weaknesses in customer-contact services

Customer • To monitor changing customer expectations

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

Lost customer • To identify reasons for customer defection

research • To assess gaps between customer expectations and perceptions

Future • To forecast future expectations of customers

expectations • To develop and test new service ideas
research

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 Chapter 5-14

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)?© 2018 The McGraw-Hill Companies, All Rights Reserved
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 Chapter 5-15

SERVQUAL Attributes
(see Exhibit 5.2)
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
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 Chapter 5-16

Customer Journey and Experience

Map (Figure 5.2)

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 Chapter 5-17

Importance/Performance Matrix

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 Chapter 5-18

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.

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 Chapter 5-19

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

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 Chapter 5-20

Upward Communication
(see Exhibit 5.3)
Executive visits to • To gain firsthand knowledge about customers
customers

Executive listening to • To gain firsthand knowledge about customers

customers
Research on
intermediate • To gain in-depth information on end customers
customers
Employee internal • To improve internal service quality
satisfaction surveys

Employee visits or • To gain firsthand knowledge about employees

listening

Employee suggestions • To obtain ideas for service improvements

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 Chapter 5-21

Employees Provide Upward

Communication at Cabela’s (Exhibit 5.4)

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