Chapter 7 Consumers’ Evaluation of Service

1. Chapter 7Consumers’ Evaluation of Service Chapter 7 slides for Marketingfor Pharmacists, 2nd Edition

2. 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 and influence patient perception of services.

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

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

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

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

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

8. 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.

9. Service Elements Assessed by Consumers TIP Evaluations are multidimensional.

10. Consumer’s Ability to Assess Services

11. 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.

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

13. Dimensions of service quality • Reliability-- performing service correctly the first time • Responsiveness -- willingness and ability to provide prompt service • Competence -- knowledge and skill of customer-contact 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

14. 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.

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

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

17. 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

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

19. 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.

20. Questions?