KING FAHD UNIVERSITY OF PETROLEUM AND KING FAHD UNIVERSITY OF PETROLEUM AND MINERALSMINERALS

CEM 515CEM 515

TERM PAPERTERM PAPER

CUSTOMER SATISFACTIONCUSTOMER SATISFACTION

(CUSTOMER REACTIONS TO WAITING)(CUSTOMER REACTIONS TO WAITING)

BYBY

FAWAZ AL-SHAHRANIFAWAZ AL-SHAHRANI

IDID# 200357570# 200357570

OUTLINE:OUTLINE:- IntroductionIntroduction

- Justice and service deliveryJustice and service delivery

- Managing procedural justice through waiting Managing procedural justice through waiting timetime

- Waiting in lineWaiting in line

- StudyStudy

- MeasuresMeasures

- DiscussionDiscussion

- The relationship between customer loyalty and The relationship between customer loyalty and customer satisfactioncustomer satisfaction

• INTRODUCTION:INTRODUCTION:

- - Waiting line is considered as an important part of Waiting line is considered as an important part of service experience.service experience.

- Having to wait is regarded as an inconvenience Having to wait is regarded as an inconvenience that negatively affects customer perceptions.that negatively affects customer perceptions.

JUSTICE AND SERVICE DELIVERY:JUSTICE AND SERVICE DELIVERY:

- The three major dimensions of justice:The three major dimensions of justice:

1.1. Distributive justiceDistributive justice

2.2. Procedural justiceProcedural justice

3.3. Interactional justice Interactional justice

MANAGING PROCEDURAL JUSTICE MANAGING PROCEDURAL JUSTICE THROUGH WAITING TIME:THROUGH WAITING TIME:

- How to decease the actual length of the waitHow to decease the actual length of the wait

( better technology, more service provider during ( better technology, more service provider during peak times)peak times)

- Managing perceived waiting time equals reducing - Managing perceived waiting time equals reducing the actual waiting time. the actual waiting time.

WAITING IN LINE:WAITING IN LINE:

- Commonly used at service organizationsCommonly used at service organizations

- Two types of waiting lines:Two types of waiting lines:

• Multiple-line, multiple server systemsMultiple-line, multiple server systems

Commonly found in grocery stores Commonly found in grocery stores

• Single-line, multiple server systems. A single line Single-line, multiple server systems. A single line is formed and the next available server serves is formed and the next available server serves the first customerthe first customer

(commonly found in banks) (commonly found in banks)

- When FIFO principle (first-in, first-out) is When FIFO principle (first-in, first-out) is violated, customer satisfaction will be affected.violated, customer satisfaction will be affected.

- Give that a single-line system will appear longer Give that a single-line system will appear longer but will move more quickly than a multiple-line but will move more quickly than a multiple-line systemsystem

- Customers can be expected to prefer single-line Customers can be expected to prefer single-line systems over multiple-line systems, because systems over multiple-line systems, because single-line can be characterized by faster and single-line can be characterized by faster and more visible progress.more visible progress.

- However, line speeds may differ due to However, line speeds may differ due to unpredictable circumstances (e.g. slow service unpredictable circumstances (e.g. slow service employee)employee)

- Customers fear of social injustice can often Customers fear of social injustice can often dominate queue-waiting times in determining dominate queue-waiting times in determining customer reactionscustomer reactions

- An increase in customers perceived waiting time An increase in customers perceived waiting time has been shown to have a negative relationship has been shown to have a negative relationship with overall service evaluations with overall service evaluations

STUDY:STUDY:- 170 customers of two fast-food restaurants were 170 customers of two fast-food restaurants were

asked to fill out a survey about their experience asked to fill out a survey about their experience at the restaurantat the restaurant

- Customers were observed as they entered the Customers were observed as they entered the restaurant and the actual waiting time was restaurant and the actual waiting time was recordedrecorded

- After customers had received their food, they After customers had received their food, they were asked to fill out a questionnairewere asked to fill out a questionnaire

MEASURES:MEASURES:- Reactions to the wait were assessed with two Reactions to the wait were assessed with two

sets of measure: effective reactions to the wait sets of measure: effective reactions to the wait and acceptability of the waitand acceptability of the wait

- Asking how reasonable/acceptable the amount Asking how reasonable/acceptable the amount of time waited wasof time waited was

DISSCUSSION:DISSCUSSION:

- Results show that the use of a single-line system Results show that the use of a single-line system reduces customers perceived waiting timereduces customers perceived waiting time

- Some people might prefer a single-line system Some people might prefer a single-line system because of the assurance that any customer because of the assurance that any customer arriving later will also be served laterarriving later will also be served later

- The extent to which customers rushed and feel The extent to which customers rushed and feel under time pressure may affect their reactionsunder time pressure may affect their reactions

THE RELATIONSHIP BETWEEN THE RELATIONSHIP BETWEEN CUSTOMER LOYALTY AND CUSTOMER CUSTOMER LOYALTY AND CUSTOMER SATISFACTION:SATISFACTION:

- It was found that when company retains just 5 It was found that when company retains just 5 percent more of its customers, profits increase percent more of its customers, profits increase by 25 percent to 125 percentby 25 percent to 125 percent

- The increased profit from loyalty comes from The increased profit from loyalty comes from reduced marketing costs, increased sales and reduced marketing costs, increased sales and reduced operational costsreduced operational costs

- Loyal customers not only require less Loyal customers not only require less information themselves, they also serve as an information themselves, they also serve as an information source for other customersinformation source for other customers

- Loyalty:Loyalty:

There are three distinctive approaches to measure There are three distinctive approaches to measure loyalty:loyalty:

1.1. Behavioural measurementsBehavioural measurements

2.2. Attitudinal measurementsAttitudinal measurements

3.3. Composite measurementsComposite measurements

THANK YOUTHANK YOU