How can struggling companies provide customer satisfaction?
How can struggling companies provide customer satisfaction?
November 17, 2022

By Carla Childers, Ph.D. There is no doubt that service providers have faced exceptional
challenges during the pandemic, but the damaging impact on consumers’ perceptions
of service quality is not new. Customer satisfaction has been on the decline for over
a decade in the United States. The pandemic has simply exacerbated the decline. In
simple terms, both customer satisfaction and service quality are based on consumer
perceptions of their experiences versus their antecedent expectations. If a consumer’s
expectations are confirmed, satisfaction is said to be achieved. Similarly, if a service
is performed at the anticipated level, a consumer will perceive it to be of good quality.
Thus, consumer expectations play a major role in determining service outcomes. According
to the national American Customer Satisfaction Index (ASCI), customer satisfaction
is currently at its lowest level in 17 years. A variety of industries continue to
struggle to deliver high quality service amid ongoing supply-chain issues, staff shortages
and wavering consumer expectations. Many companies have had to change key aspects
of their businesses—product offerings, days/hours of operation, pay rates and logistical
processes—just to remain afloat. But the pandemic revealed some interesting consumer
reactions to these changes. It was astounding, for example, to see people rally
around restaurants, especially locally owned ones, to provide continued support during
shutdowns. Their hearts filled with compassion for small-business owners, and social
media was inundated with consumers’ appeals to others to patronize these businesses
in part so they could pay their employees. Then, as employees increasingly chose not
to return to work at restaurants and other low-wage jobs, people voiced their outrage
at business owners for their pay rates and shifted their solidarity a bit. All the
while, we saw an increase in consumer complaints about individuals not wanting to
work, long wait times, stores being out of stock, providers raising prices, and unfavorable
service encounters. These things are interrelated and have caused a snowball effect.
It is important for service providers to effectively manage consumer expectations.
During the pandemic, it was not uncommon to see signs on retailers’ doors stating
that “customers may experience longer than normal wait times due to staff shortages.”
At least upon encountering such a sign, the customer knew what to expect and had a
choice of whether to proceed in their patronage. Likewise, if a professor has a larger-than-normal
class size, it may be wise to remove from the syllabus promises of replying to calls
and emails within 24 hours or returning graded assignments within three days. In other
words, providers must be careful not to overpromise. Still, ever-changing consumer
expectations will always create challenges. It is not feasible to change service delivery
procedures every time consumers shift the bar. Instead, providers should focus on
the basics of service quality, such as being reliable, responsive and trustworthy.
At the same time, consumers must carry some of the responsibility by not holding providers
to unreasonable expectations, showing kindness to service workers, and continuing
to advocate for fairness across the board. It is unlikely that overall customer satisfaction
and service quality ratings will improve significantly in the near future. Research
shows that those ratings are not completely reliable and must be coupled with other
measures to truly understand consumer behavior. Yet, in the meantime, hopefully marketers
have gained valuable insight from the pandemic that will make the overall service
experience better for all. Dr. Carla Childers is an associate professor of Marketing at Bellarmine whose research
interests lie in the areas of consumer behavior and services marketing. Her publications
cover topics including service quality, place branding, hospitality and tourism, and
marketing pedagogy. New Marketing degree Beginning this fall, Bellarmine University’s W. Fielding Rubel School of Business is offering a bachelor’s degree in Marketing. The new Marketing major will prepare
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