Customer Perceptions :

The mind of humans perceive the whole picture of certain

thing, idea, or situation by a set of stimuli thro all our
sensory organs, and kept in the memory in a systematic
way. Sometimes, even if the perceiver is not aware or
interested, these are preserved in the sub-conscious
memory and later can be used. In our context of services
marketing, perception can be defined as a customers
judgement about the service experience and pertains to the
aspects of value of service delivery, service quality &
customer satisfaction. Perceptions change over time, differ
person to person, and from one culture to another.

Factors that influence Customer Perceptions :

The above mentioned perceptions are influenced by
several factors, like the following :
1. Service Encounter : This is the most important factor
named as moments of truth where the interaction
between the customer & the service personnel takes
place. This is the weakest link in the chain & most
perceptions are built around this experience.

a. Types of Service Encounters :

i. Remote Encounters are where there is no human
contact or interaction. Its normally thro some machines or
a third object, like ATMs, Tele-banking, internet order, etc.
ii. Phone Encounters are thro phones or
telecommunications where contact with the persons can be
made.
iii. Face-to-Face Encounters are the direct contact
between the customer & the service personnel in person.
Exchange of verbal communication, interaction of ideas,
take place.
b. Factors leading to satisfaction or dissatisfaction :
i. Recovery : Employee Response to Service Delivery
System Failures How nicely the service staff handles the
negative situation, and helps the customer to find an
alternative facility.
ii. Adaptability : Employee Response to Customer
Needs & Requests How adaptable the service personnel
is to the special / additional request / need of the
customers.
iii. Spontaneity : Unprompted & Unsolicited Employee
Action How willingly the service personnel provide the
service with a smile, agility, with interest, or a positive
attitude.
iv. Coping : Employee Response to Problem
Customers How the service people handle what is known
as problem customers. Some customers make
unreasonable request or they dont cooperate with the
system, statutory rules, regulation, law etc. Its the most
difficult part and requires a lot of understanding, patience,
tactics, etc.
2. Service Evidence :
a. Service Personnel :
i. Contact Employees
ii. Customer himself
iii. Other Customers
 b. Process of Service Delivery :
i. Operational Flow of Activities
ii. Steps in Process
iii. Flexibility versus Standard
iv. Technology versus Human
c. Physical Environment :
i. Tangible Communication
ii. Servicescape
iii. Guarantees, and/or Warranties
iv. Technology
v. Websites
d. Shaping the first impression of the customer
e. Managing the trust of the customer
f. Facilitating Quality Service
g. Providing s sensory stimulation to customers
h. Changing the image of service organisations
i. Instilling the service philosophy in the employees of
the Firm
3. Image : This is the image, reputation, or the standing of
an organisation in the local level or corporate level, which
has a substantial influence in a customers perception.
4. Price : Because of the intangible nature of the services,
the price is the only benchmark for judging the value,
quality & satisfaction it delivers. Low price my induce doubt
in the mind of a customer, and high price will create a high
expectation, which needs to be catered to.

Strategies for influencing Customer Perceptions. :

We have just seen the factors responsible for influencing
the perception of customers. Now we will see the strategies
that need to be developed, with the help of the above
factors by managing them :
1. Enhance Customer Satisfaction through Service
Encounters : The service Firms should train & educate
their service personnel for positive service encounters,
with respect to :
a. Recovery by planning for effective recovery,
b. Adoptability by facilitating adaptability and flexibility,
c. Spontaneity by encouraging spontaneity,
d. Coping by helping employees cope with problem
customers,
e. The five dimensions of service quality by managing
the dimensions of quality at the encounter level and
relating every encounter to one of the dimensions.
2. Reflect Evidence of Service : The evidence of service
people, process, physical evidence discussed earlier
provides a framework for planning the marketing
strategies that address the expanded marketing mix
elements (4Ps to 7Ps). These new elements or a subset
of them cover essentially tangibilise the service for the
customer and thus represent important means for
creating positive perceptions. Because of their
importance the new elements need to be treated as
 strategic marketing variables, as are the product, price,
place, promotions, the traditional mix elements.
3. Communicate & create a Realistic Image : Not only
promises be made, they must be kept, there by
enhancing the image, reputation of a service
organisation. By this a positive word-of-mouth can be
created and spread.
4. Enhance Customer Perception of Quality & Value thro
Pricing : Similarly the pricing is also very critical &
customers must feel that the service is worth the price
they pay for. Service marketers should adopt a pricing
strategy that can give a hint about the true value &
quality of service.