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MKT 723 (71)
Chapter 5

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MKT 723
Armand Gervais

Chapter 5 – Customer Perceptions of Service Customer Perceptions 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 perceptions. Customer Satisfaction 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. Service Quality 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.  Technical Outcome  Interaction  Physical Environment Service Quality Dimensions Customers judge quality based on multiple factors. 
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