Part 2 LISTENING TO CUSTOMER REQUIREMENTS McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Provider GAP 1 CUSTOMER Expected Service GAP 1 COMPANY Company Perceptions of Consumer Expectations Part 2 Opener McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Chapter Understanding Customer Expectations and Perceptions Through Marketing Research 5 • Using Marketing Research to Understand Customer Expectations • Elements in an Effective Services Marketing Research Program • Analyzing and Interpreting Marketing Research Findings • Using Marketing Research Information • Upward Communication McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved 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. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved 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 McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 5.1 Criteria for an Effective Service Research Program McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Portfolio of Services Research Research Objective Type of Research Identify dissatisfied customers to attempt recovery; identify most common categories of service failure for remedial action Customer Complaint Solicitation Assess company’s service performance compared to competitors; identify service-improvement priorities; track service improvement over time “Relationship” Surveys Obtain customer feedback while service experience is still fresh; act on feedback quickly if negative patterns develop Post-Transaction Surveys Use as input for quantitative surveys; provide a forum for customers to suggest service-improvement ideas Customer Focus Groups Measure individual employee service behaviors for use in coaching, training, performance evaluation, recognition and rewards; identify systemic strengths and weaknesses in service “Mystery Shopping” of Service Providers Measure internal service quality; identify employeeperceived obstacles to improve service; track employee morale and attitudes Employee Surveys Determine the reasons why customers defect Lost Customer Research To forecast future expectations of customers To develop and test new service ideas McGraw-Hill/Irwin Future Expectations Research ©2003. The McGraw-Hill Companies. All Rights Reserved Stages in the Research Process • • • • • • Stage 1 : Stage 2 : Stage 3 : Stage 4 : Stage 5 : Stage 6 : McGraw-Hill/Irwin Define Problem Develop Measurement Strategy Implement Research Program Collect and Tabulate Data Interpret and Analyze Findings Report Findings ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 5.3 Tracking of Customer Expectations and Perceptions of Service Reliability McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 5.4 Service Quality Perceptions Relative to Zones of Tolerance (by Dimensions) 9 8 7 O 6 O O O O 5 4 3 2 1 0 Reliability Retail Chain McGraw-Hill/Irwin Responsiveness Assurance Empathy Tangibles = Zone of Tolerance O = S.Q. Perception ©2003. The McGraw-Hill Companies. All Rights Reserved Service Quality Perceptions Relative to Zones of Tolerance (by Dimensions) 10 8 O O O O O 6 4 2 0 Reliability Responsiveness Computer Manufacturer McGraw-Hill/Irwin Assurance Empathy = Zone of Tolerance Tangibles O = S.Q. Perception ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 5.5 Importance/Performance Matrix Importance HIGH High Leverage Attributes to Improve Attributes to Maintain Low Leverage Attributes to Maintain LOW McGraw-Hill/Irwin Attributes to De-emphasize Performance HIGH ©2003. The McGraw-Hill Companies. All Rights Reserved