6-1

Chapter 6
Listening to Customers through Research
 6-2

Provider Gap 1
 6-3

Key Factors Leading to Provider Gap 1

 6-4
Listening to Customers
through Research
 Using Marketing Research to Understand Customer
Expectations and Perceptions.

 Elements in an Effective Services Marketing Research

Program

 Analyzing and Interpreting Marketing Research Findings

 Model Services Marketing Research Programs

 Using Marketing Research Information

 Upward Communication
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
 6-5

Listening to Customers through Research

 Finding out what customers expect is essential to

providing service quality.

 Marketing research is a key vehicle for
understanding customer expectations and
perceptions of services.
 Marketing research must focus on service issues
such as what features are most important to
customers, what levels of these features customers
expect, and what customers think the company can
and should do when problems occur in service
delivery.
 6-6

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.
 6-7

Need for Research in Services

 First, services research must continually

monitor and track service performance
because performance is subject to human
variability and heterogeneity.

 A second distinction in services research is

the need to consider and monitor the gap
between expectations and perceptions
 6-8

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
 6-9

Portfolio of Services Research

Research Objective Type of Research
Identify dissatisfied customers to attempt recovery;
identify most common categories of service failure
Customer Complaint
for remedial action Solicitation
Assess company’s service performance compared to
competitors; identify service-improvement priorities; “Relationship” Surveys
track service improvement over time

Obtain customer feedback while service experience is Post-Transaction Surveys

fresh; act on feedback quickly if negative patterns develop
Customer Focus Groups
Use as input for quantitative surveys; provide a forum
for customers to suggest service-improvement ideas
“Mystery Shopping” of
Measure individual employee service behaviors for use
in coaching, training, performance evaluation, Service Providers
recognition and rewards; identify systemic strengths
and weaknesses in service
Employee Surveys
Measure internal service quality; identify employee-
perceived obstacles to improve service; track
employee morale and attitudes
Lost Customer Research
Determine the reasons why customers defect
Future Expectations Research
Forecast future expectations of customers; develop
and test new service ideas

To identify service problems and solve them .

Process Check point Evaluatio
 6-10

Stages in the (Marketing) Research

Process

STAGE
3:

Define Creating Choosing Selecting Collect Interpret Report

Problem the The The and and Findings
and Research Research Research Sampling Tabulate Analyze
Objectives design Methodology Procedure Data Findings
 6-11

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
 6-12

Tracking of Customer Expectations and

Perceptions of Service Reliability
 6-13

Service Quality Perceptions

Relative to Zones of Tolerance
 6-14

Service Quality Perceptions

Relative to Zones of Tolerance

10

8
O O O O
O
6

Reliability Responsiveness Assurance Empathy Tangibles

Computer Manufacturer = Zone of Tolerance O = S.Q. Perception

 Service Quality (SERVQUAL) Questionnaire
Items
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 TANGIBLES
when 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
ã 2005 - Dwayne D. Gremler
 6-16

Importance/Performance Matrix
 6-17

Critical Service Encounters Research

 Goal:
 understanding actual events and behaviors that cause
customer dis/satisfaction in service encounters
 Method:
 Critical Incident Technique
 Data:
 stories from customers and employees
 Output:
 identification of themes underlying satisfaction and
dissatisfaction with service encounters
 6-18

Sample Questions for Critical

Incidents Technique Study
 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)?
 6-19

McDonald’s Creates Health-Conscious

Panel to Do Research and Pass it On

 Mom's Quality Consultants at McDo

nalds
 Women, especially moms, tend to
get information and form opinions
by talking with others
 Selected 6 moms to bring “fully
inside the company”—to visit
restaurants, processing plants,
orchards, and test kitchens
 Will keep an online journal for 3
months
 6-20

UPWARD COMMUNICATION

 allows management to truly understand

customer expectations
 can help to close the gap between expectations
and perceptions.
Research for Upward Communication
 Executive Visits to customers
 Management listening to customers
 Research on Intermediate customers
 Management listening approach to employees
 Employees suggestions.
 6-21

Exercise

If you are the marketing director of your

university, what type of research would be
essential for understanding both internal and
external customers? If you could choose
only three types of research, which one
would you select? Why?