1. Chapter 5 --- Understanding Customer Expectations and Perceptions Through Marketing Research
Donna J. Hill, Ph.D.
Fall 2000

2. Company Perceptions of Consumer Expectations
Provider GAP 1
CUSTOMER
Expected Service
GAP 1
Company Perceptions of Consumer Expectations
COMPANY
Part 2 Opener

3. Common Research Objectives for Services
To identify dissatisfied customers
To discover customer requirements or expectations
To monitor and track service performance
To assess overall company performance compared to competition
To assess gaps between customer expectations and perceptions
To gauge effectiveness of changes in service
To appraise service performance of individuals and teams for rewards
To determine expectations for a new service
To monitor changing expectations in an industry
To forecast future expectations

4. Research --- Key Vehicle for Understanding Expectations and Perceptions
Most critical stage -- defines the problem and research objectives
Eight Key Criterion for an Effective Research Program

5. Figure 5-1 Criteria for An Effective Services Research Program
Includes
Quantitative
Research
Includes
Qualitative
Research
Includes
Perceptions
and
Expectations of
Customers
Occurs
with
Appropriate
Frequency
Research
Objectives
Includes
Measures of
Loyalty or
Behavioral
Intentions
Measures
Priorities or
Importance
Balances Cost
and Value of
Information
Includes
Statistical
Validity
When Necessary

6. Qualitative Research complaint solicitation critical incident studies
Qualitative research is conducted to clarify problem definition and prepare for more formal empirical research
complaint solicitation
critical incident studies
requirements research
service expectation meetings and reviews
ethnography studies
customer panels ?
Lost customer research
future expectations research

7. Quantitative Research
Also called descriptive or empirical research can be used to test hypothesis
Relationship surveys (SERQUAL is a type)
Trailer Calls (Post-transaction surveys)
Process checkpoint evaluations
Mystery shopping
Database marketing research

8. Measures Priorities or Importance
Direct importance measures
Indirect importance measures

9. Portfolio of Services Research
Research Objective
Type of Research
Identify dissatisfied customers to attempt recovery; identify most common categories of service failure for remedial action
Customer Complaint Solicitation
“Relationship” Surveys
Post-Transaction Surveys
Customer Focus Groups
“Mystery Shopping” of Service Providers
Employee Surveys
Lost Customer Research
Assess company’s service performance compared to competitors; identify service-improvement priorities; track service improvement over time
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
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
To forecast future expectations of customers
To develop and test new service ideas
Future Expectations Research

10. 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

11. SERVQUAL A type of relationship survey
Uses 21 questions based on five dimensions. (asked twice, once for expectation and once for perception.
Compute the difference between the ratings customers assign to the paired expectation/perception statements.
Uses mean scores on statements making up dimension
See appendix on pages

12. Zone of Tolerance Charts
Used to report findings on two levels of customer expectations
desired service and
adequate service
Along with customer perceptions of company performance

13. Service Quality Perceptions Relative to Zones of Tolerance
Figure 5-6
Service Quality Perceptions
Relative to Zones of Tolerance
by Dimensions 9 8 7 6 5 4 3 2 1 O O O O O
Reliability Responsiveness Assurance Empathy Tangibles
Retail Chain
Zone of Tolerance S.Q. Perception O

14. Figure 5-6 Importance/Performance Matrix
HIGH  
High
Leverage
Attributes to Improve
Attributes to Maintain    
Importance 
Low
Leverage   
Attributes to Maintain
Attributes to De-emphasize
LOW
HIGH
Performance