customer expectation through marketing research
DESCRIPTION
Determining the expectations and perceptions of customers through Marketing ResearchTRANSCRIPT
![Page 1: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/1.jpg)
CUSTOMER EXPECTATIONS AND
PERCEPTIONS THROUGH MARKETING RESEARCH
![Page 2: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/2.jpg)
WHY RESEARCH FOR SERVICES?
To discover requirement or expectation for services To monitor and track service performance To identify dissatisfied customers and need of service
recovery To forecast future expectations of customers To determine customers expectation for a new service
![Page 3: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/3.jpg)
CRITERIA FOR EFFECTIVE RESEARCH PROGRAM
Includes both qualitative and quantitative research Includes both expectation and perception of
customers. Includes statistical validity when necessary. Includes measurement of loyalty, behavioral
intensions or actual behavior. Balance cost of research and value of information
![Page 4: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/4.jpg)
CRITERIA FOR AN EFFECTIVE SERVICES RESEARCH PROGRAM
ResearchObjectives
Includes
Qualitativ
e
Research
IncludesQuantitative
Research IncludesPerceptions
and Expectations
of Customers
IncludesMeasures
ofLoyalty orBehavioralIntentions
Balances Cost
and Value of
InformationIncludesStatisticalValidity
When Necessary
Measures Priorities
or Importance
Occurswith
AppropriateFrequency
![Page 5: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/5.jpg)
ELEMENTS IN SERVICE MARKETING RESEARCH PROGRAM
Complaint solicitation Critical incident studies Reuirement research Relationship and SERVQUAL survey
![Page 6: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/6.jpg)
PORTFOLIO OF SERVICES RESEARCH
Customer Complaint Solicitation
“Relationship” Surveys
Post-Transaction Surveys
Customer Focus Groups
“Mystery Shopping” of Service Providers
Employee Surveys
Lost Customer Research
Identify dissatisfied customers to attempt recovery; identify most common categories of service failure for remedial action
Obtain customer feedback while service experience is still fresh; act on feedback quickly if negative patterns develop
Use as input for quantitative surveys; provide a forum for customers to suggest service-improvement ideas
Assess company’s service performance compared to competitors; identify service-improvement priorities; track service improvement over time
Measure individual employee service behaviors for use in coaching, training, performance evaluation, recognition and rewards; identify systemic strengths and weaknesses in service
Measure internal service quality; identify employee-perceived obstacles to improve service; track employee morale and attitudes
Determine the reasons why customers defect
Research Objective Type of Research
Future Expectations ResearchTo forecast future expectations of customersTo develop and test new service ideas
![Page 7: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/7.jpg)
STAGES IN THE RESEARCH PROCESS
Stage 1 : Define Problem Stage 2 : Develop Measurement Strategy Stage 3 : Implement Research Program Stage 4 : Collect and Tabulate Data Stage 5 : Interpret and Analyze Findings Stage 6 : Report Findings
![Page 8: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/8.jpg)
FIGURE 5-6
IMPORTANCE/PERFORMANCE MATRIX
HIGH
HIGHLOW
Performance
Impo
rtan
ce
Attributes to Improve Attributes to Maintain
HighLeverage
Attributes to De-emphasizeAttributes to Maintain
LowLeverage
![Page 9: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/9.jpg)
DELIVERING AND PERFORMING SERVICE
DELIVERING AND PERFORMING SERVICE
![Page 10: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/10.jpg)
SERVICE CULTURE
“A culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers, is considered a natural way of life and one of the most important norms by everyone in the organization.”
- Christian Gronroos (1990)
![Page 11: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/11.jpg)
THE CRITICAL IMPORTANCE OF SERVICE EMPLOYEES
They are the service.They are the organization in the customer’s eyes.They are the brand.They are marketers.Their importance is evident in:
the services marketing mix (people)the service-profit chainthe services triangle
![Page 12: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/12.jpg)
THE SERVICES MARKETING TRIANGLE
Internal Marketing
Interactive Marketing
External Marketing
Company(Management)
CustomersEmployees
“Enabling the promise”
“Delivering the promise”
“Making the promise”
Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler
![Page 13: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/13.jpg)
THE SERVICE PROFIT CHAIN
Source: An exhibit from J. L. Heskett, T. O. Jones, W. E. Sasser, Jr., and L. A. Schlesinger, “Putting the Service-Profit Chain to Work,” Harvard Business Review, March-April 1994, p. 166.
![Page 14: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/14.jpg)
SERVICE EMPLOYEES
Who are they?“boundary spanners”
What are these jobs like?emotional labormany sources of potential conflict
person/roleorganization/client interclient
quality/productivity tradeoffs
![Page 15: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/15.jpg)
BOUNDARY SPANNERS INTERACT WITH BOTH INTERNAL AND EXTERNAL CONSTITUENTS
Internal Environment
External Environment
![Page 16: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/16.jpg)
BOUNDARY-SPANNING WORKERS JUGGLE MANY ISSUESPerson versus role
Organization versus client
Client versus client
![Page 17: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/17.jpg)
HUMAN RESOURCE STRATEGIES FOR DELIVERING SERVICE QUALITY THROUGH PEOPLE
Provideneeded support
systems
Hire theright people
Retain thebest
people
Developpeople to
deliverservicequality
Hire for servicecompetencies and
serviceinclinationCompete for
the bestpeople
Measure andreward strong
serviceperformers
Treatemployees
ascustomers
Includeemployees in
the company’s
visionDevelop
service-orientedinternal
processes
Providesupportivetechnology
andequipment
Measureinternal service
quality
Promoteteamwork
Empower employees
Train fortechnical and
interactiveskills
Be the preferredemployer
Customer-OrientedServiceDelivery
![Page 18: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/18.jpg)
EMPOWERMENT
Benefits:quicker responses to
customer needs during service delivery
quicker responses to dissatisfied customers during service recovery
employees feel better about their jobs and themselves
employees tend to interact with warmth/enthusiasm
empowered employees are a great source of ideas
great word-of-mouth advertising from customers
Drawbacks:potentially greater dollar
investment in selection and training
higher labor costspotentially slower or
inconsistent service delivery
may violate customers’ perceptions of fair play
employees may “give away the store” or make bad decisions
![Page 19: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/19.jpg)
TRADITIONAL ORGANIZATIONAL CHART
Manager
Supervisor
Front-lineEmployee
Customers
Front-lineEmployee
Front-lineEmployee
Front-lineEmployee
Supervisor
Front-lineEmployee
Front-lineEmployee
Front-lineEmployee
Front-lineEmployee
![Page 20: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/20.jpg)
CUSTOMER-FOCUSED ORGANIZATIONAL CHART
Manager
Supervisor
Front-lineEmployee
Customers
Front-lineEmployee
Front-lineEmployee
Front-lineEmployee
Supervisor
Front-lineEmployee
Front-lineEmployee
Front-lineEmployee
Front-lineEmployee
![Page 21: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/21.jpg)
TABLE 13.1
LEVELS OF CUSTOMER PARTICIPATION ACROSS DIFFERENT SERVICES
Source: Adapted from A. R. Hubbert, “Customer Co-Creation of Service Outcomes: Effects of Locus of Causality Attributions,” doctoral dissertation, Arizona State University, Tempe, Arizona, 1995.
![Page 22: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/22.jpg)
HOW CUSTOMERS WIDEN THESERVICE PERFORMANCE GAPLack of understanding of their roles
Not being willing or able to perform their roles
No rewards for “good performance”
Interfering with other customers
Incompatible market segments
![Page 23: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/23.jpg)
IMPORTANCE OF OTHER (“FELLOW”) CUSTOMERSIN SERVICE DELIVERYOther customers can detract from satisfaction:
disruptive behaviorsoverly demanding behaviorsexcessive crowdingincompatible needs
Other customers can enhance satisfaction:mere presencesocialization/friendshipsroles: assistants, teachers, supporters, mentors
![Page 24: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/24.jpg)
CUSTOMER ROLES IN SERVICE DELIVERY
Productive Resources
Contributors to Service Quality and Satisfaction
Competitors
![Page 25: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/25.jpg)
SERVICES PRODUCTION CONTINUUM
1 2 3 4 5 6
Gas Station Illustration1. Customer pumps gas and pays at the pump with automation2. Customer pumps gas and goes inside to pay attendant3. Customer pumps gas and attendant takes payment at the pump4. Attendant pumps gas and customer pays at the pump with automation5. Attendant pumps gas and customer goes inside to pay attendant6. Attendant pumps gas and attendant takes payment at the pump
Customer Production Joint Production Firm Production
![Page 26: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/26.jpg)
CUSTOMERS AS PRODUCTIVE RESOURCES
customers can be thought of as “partial employees”contributing effort, time, or other resources to the
production process
customer inputs can affect organization’s productivity
key issue:should customers’ roles be expanded? reduced?
![Page 27: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/27.jpg)
CUSTOMERS AS COMPETITORScustomers may “compete” with the service
provider“internal exchange” vs. “external exchange”internal/external decision often based on:
expertise capacityresources capacitytime capacityeconomic rewardspsychic rewardstrustcontrol
![Page 28: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/28.jpg)
STRATEGIES FOR ENHANCING CUSTOMER PARTICIPATION
![Page 29: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/29.jpg)
STRATEGIES FOR ENHANCINGCUSTOMER PARTICIPATIONDefine customers’ jobs
helping oneselfhelping otherspromoting the company
Recruit, educate, and reward customersrecruit the right customerseducate and train customers to perform effectivelyreward customers for their contributionsavoid negative outcomes of inappropriate customer
participationManage the customer mix
![Page 30: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/30.jpg)
CHARACTERISTICS OF SERVICE THAT INCREASE THE IMPORTANCE OF COMPATIBLE SEGMENTS
Source: Adapted from C. I. Martin and C. A. Pranter, “Compatibility Management: Customer-to-Customer Relationships in Service Environments,” Journal of Services Marketing, 3, no. 3 (Summer 1989), pp. 5–15.
![Page 31: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/31.jpg)
MANAGING CAPACITY AND DEMANDWeek 10
![Page 32: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/32.jpg)
DEMAND PATTERN
Predictable cycles Random Demand fluctuations Demand pattern by market segment
![Page 33: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/33.jpg)
TABLE 14.2 CONSTRAINTS ON CAPACITY
Nature of the constraint Type of serviceTime Legal
ConsultingAccountingMedical
Labor Law firmAccounting firmConsulting firmHealth clinic
Equipment Delivery servicesTelecommunicationUtilitiesHealth club
Facilities HotelsRestaurantsHospitalsAirlinesSchoolsTheatersChurches
![Page 34: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/34.jpg)
MANAGING DEMAND AND CAPACITY
Strategies for matching supply and demand through
(a) shifting demand to match capacity or (b) adjusting capacity to meet demand.
![Page 35: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/35.jpg)
FIGURE 14.1VARIATIONS IN DEMANDRELATIVE TO CAPACITY
![Page 36: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/36.jpg)
STRATEGIES FOR SHIFTING DEMAND TO MATCH CAPACITY
Use signage to communicate busy days and times.
Offer incentives to customers for usage during non-peak times.
Take care of loyal or “regular” customers first.
Advertise peak usage times and benefits of non-peak use.
Charge full price for the service--no discounts.
• Use sales and advertising to increase business from current market segments.
• Modify the service offering to appeal to new market segments.
• Offer discounts or price reductions.
• Modify hours of operation.• Bring the service to the
customer.
Demand Too High Demand Too LowShift Demand
![Page 37: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/37.jpg)
SHIFTING DEMAND TO MATCH CAPACITY
Vary service offering Communicat with customers Modify timing and location of service offering Differentiate on price
![Page 38: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/38.jpg)
STRATEGIES FOR ADJUSTING CAPACITY TO MATCH DEMAND
Stretch time, labor, facilities and equipment.
Cross-train employees. Hire part-time employees. Request overtime work from employees. Rent or share facilities. Rent or share equipment. Subcontract or outsource activities. Outsource.
• Perform maintenance, renovations.
• Schedule vacations.
• Schedule employee training.
• Lay off employees.
Demand Too High Demand Too LowFlex Capacity
![Page 39: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/39.jpg)
ADJUSTING CAPACITY TO MATCH DEMAND
Stretch existing capacity Stretch time Stretch labour Stretch facilities Stretch equipments
AIGNING CAPACITY WITH DEMAND FLUCTUATIONS Use part time employees Outsourcing Rent or share facilities or equipments Cross train employees Modify or move facilities and equipment
![Page 40: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/40.jpg)
WAITING ISSUES (MAISTER, 1986) unoccupied time feels longer preprocess waits feel longer anxiety makes waits seem longer uncertain waits seem longer than finite waits unexplained waits seem longer unfair waits feel longer longer waits are more acceptable for “valuable”
services solo waits feel longer
![Page 41: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/41.jpg)
WAITING LINE STRATEGIESEmploy operational logic
modify operationsadjust queuing system
Establish a reservation process
Differentiate waiting customersImportant customerurgency of the jobduration of the service transactionpayment of a premium price
![Page 42: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/42.jpg)
FIGURE 14.6WAITING LINE CONFIGURATIONS
![Page 43: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/43.jpg)
SERVICE PROVIDER PARTICIPANTS
service principal (originator)creates the service concept
(like a manufacturer)
service deliverer (intermediary)entity that interacts with the customer in the execution
of the service
(like a distributor/wholesaler)
![Page 44: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/44.jpg)
SERVICES INTERMEDIARIESFranchisees
service outlets licensed by a principal to deliver a unique service concept it has created e.g., Jiffy Lube, Blockbuster, McDonald’s
Agents and Brokersrepresentatives who distribute and sell the services of
one or more service suppliers e.g., travel agents, independent insurance agents
Electronic Channelsall forms of service provision through electronic means
e.g., ATMs, university video courses, TaxCut software
![Page 45: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/45.jpg)
BENEFITS AND CHALLENGES FORFRANCHISEES OF SERVICEBenefits:
An established business format
National or regional brand marketing
Minimized risk of starting a business
Challenges:EncroachmentDisappointing profits
and revenuesLack of perceived
control over operationsHigh fees
![Page 46: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/46.jpg)
BENEFITS AND CHALLENGES IN DISTRIBUTING SERVICES THROUGH AGENTS AND BROKERSBenefits:
Reduced selling and distribution costs
Intermediary’s possession of special skills and knowledge
Wide representationKnowledge of local
marketsCustomer choice
Challenges:Loss of control over
pricingRepresentation of
multiple service principals
![Page 47: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/47.jpg)
BENEFITS AND CHALLENGES IN ELECTRONIC DISTRIBUTION OF SERVICESBenefits:
Consistent delivery for standardized services
Low costCustomer convenienceWide distributionCustomer choice and
ability to customizeQuick customer
feedback
Challenges:Price competitionInability to customize
with highly standardized services
Lack of consistency due to customer involvement
Changes in consumer behavior
Security concernsCompetition from
widening geographies
![Page 48: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/48.jpg)
COMMON ISSUES INVOLVING INTERMEDIARIESconflict over objectives and performance
difficulty controlling quality and consistency across outlets
tension between empowerment and control
channel ambiguity
![Page 49: Customer expectation through Marketing Research](https://reader036.vdocuments.site/reader036/viewer/2022081412/54517493af79591d308b47c8/html5/thumbnails/49.jpg)
STRATEGIES FOR EFFECTIVE SERVICE DELIVERY THROUGH
INTERMEDIARIESControl Strategies:
MeasurementReview
Partnering Strategies:Alignment of goalsConsultation and
cooperation
Empowerment Strategies:Help the intermediary
develop customer-oriented service processes
Provide needed support systems
Develop intermediaries to deliver service quality
Change to a cooperative management structure