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

• To monitor changing customer expectations

Customer 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)?
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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,
professional appearance
▪ Readiness to respond to customers’
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 • To gain in-depth information on end customers

intermediate 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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