Chapter 5 – Customer Perceptions of Service
How customers perceive services, assessing whether the quality was good or bad and how satisfied they are.
Perceptions are related to expectations.
Satisfaction VS Service Quality
Satisfaction – Based on external factors such as situational and personal, and Service quality, product
quality and price.
Service Quality – Based on factors such as reliability, responsiveness, assurance, empathy, and tangibles.
Transaction VS Cumulative Perceptions
Customers will have perceptions of single transaction-specific encounters as well as overall company
What is Customer Satisfaction?
Satisfaction – Customer’s evaluation of whether a service has met his or her needs and expectations.
Failure to meet is seen as dissatisfaction. Satisfaction is dynamic. Although it’s measured at a particular
point in time, it can change over time.
What Determines Customer Satisfaction?
It’s influenced by specific product/service features, perceptions of quality and price in addition to personal
and situational factors.
Product and Service Features – Customer satisfaction is heavily determined by the customer’s
evaluation of the service features. Depending on the types of services, customers may make
tradeoffs, such as price VS quality.
Consumer Emotions – Emotions can affect perceptions of satisfaction. These emotions can be
per-determined (while on vacation) or induced during the consumption process.
Attributions for Service Success or Failure – Attributions, the perceived causes of events,
influence perceptions of satisfaction as well. When surprised by an outcome, customers tend to
seek reasons and their assessments can influence their satisfaction.
Perceptions of Equity or Fairness – Customers will ask themselves if they have been treated fairly
in comparison to other customers.
Other Consumers, Family Members, and Coworkers
Outcomes of Customer Satisfaction
Customer satisfaction is correlated with other measures of corporate earnings, stock value, and more.
Increasing levels can be linked to customer loyalty and profits.
Outcome, Interaction, and Physical Environment Quality
Consumers judge the quality of services via the technical outcome, process by which the outcome was
delivered, and the quality of the physical surroundings.
Service Quality Dimensions
Customers judge quality based on multiple factors.