customer expectation of service

8/8/2019 Customer Expectation of Service

1/28


2/28

Customer expectations are beliefs about

service delivery that serve as standards or

reference points against which performanceis judged.

Being wrong in judging customer

expectations may mean: Loosing customers to competitors

Spending resources on things that do not count

Compromising with survival


3/28

High

Low

Ideal expectation ordesires

Normative shouldexpectations

Experience basednorms

Acceptableexpectations

Minimum tolerableexpectations

When I visit this restaurantwe will have some real

experience of Chinese Food

From the looks of it, it seemsto be a good restaurant

When Raju cooks the food inthis restaurant is good

Iwant descent food and agood nights sleep, thatshould be available here

Although the food is not thebest but it is good enough for

everyday consumption


4/28

Desired Service: the level of service the

customer hopes to receive.

Adequate Service: the level of service thecustomer will accept.

The Zone of Tolerance: the extent to which

customers recognize and are willing to acceptvariations in service quality, that is thedifference between desired level and

adequate level of service.


5/28

Desired Service

Zone ofTolerance

Adequate Service


6/28

Different customers have different Zones of

Tolerance

Zones of Tolerance vary for ServiceDimensions: the more important the service

dimension the narrower is the zone of

tolerance


7/28

Desired Service

Zone ofTolerance

Adequate Service

Desired Service

Zone ofTolerance

Adequate Service

LevelofExpectation

Reliability Tangibility

Importance ofService Dimension


8/28

Sources ofDesired Service Expectation:

Personal Needs: those states or conditions essential to thephysical or psychological well-being of the consumer. They may be physical, social, psychological, and functional needs.

Lasting Service Intensifiers: are individual, stable factorsthat lead the customer to a heightened sensitivity toservice. Derived service expectations: when customers expectations are

driven by another person or group of people. Personal service philosophy: the customers underlying generic

attitude about the meaning of the service and the proper conductof service provider.


9/28

Sources of Adequate Service Expectations

Temporary service intensifiers

Perceived service alternatives

Customer self-perceived service role

Situational factors

Predicted service


10/28

Temporary service intensifiers

Short term, individual factors that make a customer moreaware of the need for service.

Perceived service alternatives Presence of other providers from whom the customer can

obtain service increases the adequate service level. Customers self-perceived service role

Customers belief about how well they are performingtheir role in service delivery. Informing desired level of service

Performing their own roles in service delivery

Complaining when the service is poor


11/28

Situational Factors

Service performance conditions that customers

view as beyond the control of service provider. Predicted Service

The level of service that the customers believethey are going to get.


12/28

Service Encounter Expectations Vs. Overall

Service Expectation

When the expectations are about individualservice encounters, customers are more specificand concrete, than about overall service quality.


13/28

Sources of both Desired and Predicted

Service Expectations

Explicit service promises Implicit service promises

Word-of-mouth communications

Past experience


14/28

If Customer Expectations are Unrealistic

Should a Company try to Delight Customers

Musts

Satisfiers

Delights Musts: their provision is notnoticeable but their absencewould be. Satisfiers: features that havethe potential to furthersatisfaction beyond the basicfunction of the product.Delights: features that are

unexpected and surprisingly

enjoyable.


15/28

How to Exceed Customer Expectations

Customer Service Expectations constantly

escalating How to stay ahead of Competition


16/28

ServiceQuality

ProductQuality

Price

SituationalFactors

CustomerSatisfaction

PersonalFactors

CustomerLoyalty

Reliability

Responsiveness

Assurance

Empathy

Tangibles


17/28

Service Quality Dimensions (SERVQUAL)

Reliability

Responsiveness Assurance

Empathy

Tangibles


18/28

Ability to perform the promised service

dependably and accurately

Promises about delivery, service provisions,problem resolution, and pricing.


19/28

Willingness to help customers and provide

prompt service.

Promptness in dealing with customerrequests, questions, complaints, and

problems.


20/28

Employees knowledge and courtesy and the

ability of the firm and its employees to inspire

trust and confidence. Especially relevant with high perceived risk

services, services high in credence quality.


21/28

Caring, individualized attention that the firm

provides to its customers

Conveying through personalized orcustomized service, that customers are

unique and special and their needs areunderstood.


22/28

Appearance of physical facilities, equipments,

personnel, and communication materials.


23/28

Service Reliability Responsiveness Assurance Empathy Tangibles

Car Repair Problem fixedthe first timeand ready whenpromised

Accessible, nowaiting, respondsto requests

Knowledgeablemechanics

Acknowledgescustomers bynames,remembers

previousproblems andpreferences

Repair facility,waiting area,uniforms.Equipment

Airline Flights topromiseddestinations,

depart andarrive onschedule

Prompt and speedysystem forticketing, in-flight

baggage handling

Trusted name,good safetyrecord,

competentemployees

Understandsindividualcustomer

needs,anticipatescustomer needs

Aircraft,ticketingcounters,

baggage area,uniform

MedicalCare

Appointmentsare kept onschedule,diagnoses

prove accurate

Accessible, nowaiting,willingness to listen

Knowledgeskills,credentials,reputation

Acknowledgespatients aspersons, listenwell, has

patience

Waiting room,exam room,equipment,written

materials


24/28

The service quality is perceived by theconsumer as a series of encounters or

moments of truth. Each encounter contributes to customersoverall satisfaction and willingness to dobusiness with the organization again.

Disney, for example, has identified thatcustomers have 74 service encounters in theirtheme parks. Negative experience in any onecan lead to a negative overall evaluation.


25/28

Remote Encounters: encounters without any

direct human contact. (ATM, Mail order, etc.)

Phone Encounters: Face-to-face Encounters


26/28

Recovery- Employee Response to ServiceDelivery System Failure

Adaptability- Employee Response toCustomer Needs and Requests

Spontaneity- Unprompted and UnsolicitedEmployee Actions

Coping- Employee Response to ProblemCustomers


27/28

For Satisfying SSTs Solved an intensified need

Better than alternative Did its job

For Dissatisfying SSTs Technology failure

Process failure Poor design

Customer driven failure


28/28

People

ProcessPhysicalEvidence

Contact employees Customerhimself/herself Other Customers

Operationalflowofactivities Steps in process Flexibilityvs. standardTechnology Vs human

Tangible communication Servicescape GuaranteesTechnologyWebsite

customer expectation of service

Documents