Chapter 7 Consumers Evaluation of Service Chapter 7

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Chapter 7 Consumers’ Evaluation of Service Chapter 7 slides for Marketing for Pharmacists, 2

Chapter 7 Consumers’ Evaluation of Service Chapter 7 slides for Marketing for Pharmacists, 2 nd Edition

Learning Objectives Define the following terms: satisfaction, dissatisfaction. service quality, value, expectations, search and

Learning Objectives Define the following terms: satisfaction, dissatisfaction. service quality, value, expectations, search and nonsearch characteristics of services, experience and credence qualities of services, technical quality and functional quality. Discuss why pharmacists should care about patient perceptions of service. List the 10 dimensions of service quality that patients use to evaluate pharmaceutical services. Describe the two dimensions of service quality most important in determining overall perceptions of service. Compare and contrast affective loyalty and behavioral loyalty. Explain why dissatisfaction is more important than satisfaction in determining patient perceptions of service. Suggest things pharmacists can do to understand influence patient perception of services.

Effect of Expectations and Performance on Satisfaction TIP Perceptions are most important.

Effect of Expectations and Performance on Satisfaction TIP Perceptions are most important.

Factors Affecting Customer Satisfaction Individual’s Personal Characteristics Situational Factors Product Quality Customer Satisfaction Service

Factors Affecting Customer Satisfaction Individual’s Personal Characteristics Situational Factors Product Quality Customer Satisfaction Service Quality Price

Comparing Service Performance with Expectations Patient Comparison of Performance with Expectations Does Not Meet

Comparing Service Performance with Expectations Patient Comparison of Performance with Expectations Does Not Meet Expectations Dissatisfaction (Negative Disconfirmation) Meets Expectations Mild Satisfaction (Simple Confirmation) Exceeds Expectations Delight (Positive Disconfirmation)

Consequences of service Bad service = dissatisfaction = lost customers OK service = not

Consequences of service Bad service = dissatisfaction = lost customers OK service = not dissatisfied/mild satisfaction = customers until something better comes along Great service = delight = loyalty

Zone of Tolerance Service Most Desired by Customer Level of Service Given by Pharmacy

Zone of Tolerance Service Most Desired by Customer Level of Service Given by Pharmacy Zone of Tolerance Merely Adequate Service Deemed Minimally Acceptable

Expectations, performance, and satisfaction Patient satisfaction is caused by expectations and perceptions of service

Expectations, performance, and satisfaction Patient satisfaction is caused by expectations and perceptions of service performance. Lower expectations are easier to meet. Simply meeting expectations provides little competitive advantage.

Service Elements Assessed by Consumers TIP Evaluations are multidimensional.

Service Elements Assessed by Consumers TIP Evaluations are multidimensional.

Consumer’s Ability to Assess Services

Consumer’s Ability to Assess Services

Implications Consumers have trouble evaluating many aspects of pharmacist services. Many have credence qualities.

Implications Consumers have trouble evaluating many aspects of pharmacist services. Many have credence qualities. Therefore, they rely on those things they can easily assess. e. g. , fast, friendly, appearance, time spent, price Pharmacists can help patients assess credence qualities of care.

Another way of examining service quality: Patients assess both…. Functional Quality (FQ) Technical Quality

Another way of examining service quality: Patients assess both…. Functional Quality (FQ) Technical Quality (TQ) - how care was delivered - the end result of the care Overall Evaluation of Service What is most important in overall assessment of care?

Dimensions of service quality Reliability -- performing service correctly the first time Responsiveness --

Dimensions of service quality Reliability -- performing service correctly the first time Responsiveness -- willingness and ability to provide prompt service Competence -- knowledge and skill of customercontact personnel Communication -- explaining service in a way that can be understood Credibility -- trustworthiness of personnel Security -- confidentiality of transactions Understanding/knowing the customer -- making effort to ascertain a customer’s specific needs Access -- ease of contacting the service firm Courtesy -- friendliness of personnel Tangibles -- appearance of facilities and personnel

Findings about service quality Patients focus on those things they can assess (search and

Findings about service quality Patients focus on those things they can assess (search and experience qualities). They use the process (FQ) of service as a surrogate of the outcome (TQ). Reliability and responsiveness are most important to patients, although any dimension can affect patronage.

Relationship Between Loyalty and Satisfaction TIP Satisfied patients are not always loyal.

Relationship Between Loyalty and Satisfaction TIP Satisfied patients are not always loyal.

Perceptions and outcomes of service Service Quality Value Satisfaction Perceptions of Service • Loyalty,

Perceptions and outcomes of service Service Quality Value Satisfaction Perceptions of Service • Loyalty, • Word-of-Mouth • Frequency and Volume of Purchases

Satisfaction strategies Avoid causing subversives Avoid serious interpersonal or technical errors Keep promises, be

Satisfaction strategies Avoid causing subversives Avoid serious interpersonal or technical errors Keep promises, be responsive, show respect Demonstrate you care Preserve and create apostles Give patients exceptional service experiences Make them feel that they got something of real value

Assessing patient perceptions Observation Employee feedback Patient complaints Patient interviews Patient surveys Sales figures

Assessing patient perceptions Observation Employee feedback Patient complaints Patient interviews Patient surveys Sales figures Critical incident surveys Focus groups Mystery (secret) shoppers Service audits The most important thing in communication is to hear what isn't being said. - Peter F. Drucker

Summary Patient perceptions are important as proxies for patient behavior (i. e. , association

Summary Patient perceptions are important as proxies for patient behavior (i. e. , association with patient loyalty, word of mouth, and profitability). Pharmacists should attempt to Make their services reliable and responsive. Minimize negative service experiences. Monitor patient perceptions of service.

Questions?

Questions?

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