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4 Chapter Customer Expectations of Service Meaning and Types of Service Expectations Factors that Influence Customer Expectations of Service Issues Involving Customer Service Expectations

4 Chapter Customer Expectations of Service Meaning and Types of Service Expectations Factors that Influence Customer Expectations of Service Issues

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4ChapterChapter

Customer Expectations of ServiceCustomer Expectations of Service

Meaning and Types of Service Expectations

Factors that Influence Customer Expectations of Service

Issues Involving Customer Service Expectations

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Customer Expectations of Service(Chapter 4)

Customer Expectations of Service(Chapter 4)

Customer Expectations:Beliefs about service delivery that function as standards or reference points against which performance is judged (p. 81)

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Figure 4.2

Possible Levels of Customer ExpectationsFigure 4.2

Possible Levels of Customer Expectations

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Customer Expectations (p.86)Customer Expectations (p.86)

Desired service: the level of service the customer hopes to receive - the “________” level of performance.

Adequate Service: the level of service customer will accept.

Desired Service

Zone of Tolerance

Adequate Service

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Most Important Factors (reliability) Least Important Factors (tangibles)

Level of

Expectation

Adequate Service

Desired Service

Zone ofTolerance

Zone of

Tolerance

Desired Service

Adequate Service

Figure 4.5 Zones of Tolerance for

Different Service Dimensions

Figure 4.5 Zones of Tolerance for

Different Service Dimensions

As a service dimension increases in importance, zone of tolerance narrows and adequate service levels increase

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Lasting ServiceIntensifiers

Lasting ServiceIntensifiers

Personal NeedsPersonal Needs Zone of

Tolerance

Desired Service

Adequate Service

Figure 4.6

Factors That Influence Desired ServiceFigure 4.6

Factors That Influence Desired Service

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Factors that Influence Desired Service Factors that Influence Desired Service

Personal Needs: physical, social, psychological, and functional

Lasting Service Intensifiers: individual, stable factors that lead to heightened sensitivity to service.

Derived service expectations: expectations driven by another person or group of people.

Personal service philosophy: customer’s underlying generic attitude about the meaning of service and the proper conduct of service providers

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Self-PerceivedService Role

Self-PerceivedService Role

Situational Factors

Situational Factors

Perceived ServiceAlternatives

Perceived ServiceAlternatives

Temporary ServiceIntensifiers

Temporary ServiceIntensifiers

Zone of

Tolerance

Desired Service

Adequate Service

Figure 4.7

Factors That Influence Adequate ServiceFigure 4.7

Factors That Influence Adequate Service

PredictedService

PredictedService

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Factors That Influence Adequate ServiceFactors That Influence Adequate Service

Factors that influence adequate service expectations are ____________ in nature and fluctuate ________ than factors that influence desired service expectations

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Factors that Influence Adequate ServiceFactors that Influence Adequate Service

Transitory service intensifiers: temporary, short-term, individual factors that make a customer more aware of the need for service.Ex: Personal emergency situations raise the level of adequate service expectations

Perceived service alternatives: other providers from whom the customer can obtain the same service.Ex: more perceived alternatives available, higher the levels of adequate service ______________________________________

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Factors that Influence Adequate ServiceFactors that Influence Adequate Service

Customer’s self-perceived service role: degree to which customers exert an influence on the level of service they receive.

Ex: If we believe we are doing our part in the delivery, our expectations of adequate service is heightened

Situational Factors: service performance conditions that are viewed as ________________________ of service provider.

Ex: Expectations of adequate service is lowered because of situational factors

Predicted service: level of service we believe we are likely to get.

Ex: If we predict good service, our expectations of adequate service is likely to be ________________.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Predicted Service

Explicit ServicePromises

Explicit ServicePromises

Implicit ServicePromises

Implicit ServicePromises

Word-of-MouthWord-of-Mouth

Past ExperiencePast ExperienceZone

of Tolerance

Desired Service

Adequate Service

Figure 4.8

Factors That Influence Desired and Predicted Service

Figure 4.8

Factors That Influence Desired and Predicted Service

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Factors that Influence Desired and Predicted Service

Factors that Influence Desired and Predicted Service

Explicit service promises: personal and non-personal statements about the service made by the organization to customers.

“Everything we sell is our own design and our own make and we guarantee it without reservation” (J Crew)

Implicit service promises: service related ______ that lead to inferences about what the service should and will be like.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Factors that Influence Desired and Predicted Service

Factors that Influence Desired and Predicted Service

Word of mouth communication: perceived as unbiased.

____________________________________

Past experience: customer’s previous exposure to service that is relevant to the focal service

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Issues Involving Customer Service ExpectationsIssues Involving Customer Service Expectations

Let customers know the reasons desired service is not being provided at the present time and describe efforts planned to address them.

Delighting customers may raise expectations and make it more difficult to satisfy customers in the future.

Developing a customer relationship is one approach for exceeding customer expectations.

Adequate service expectations rise as quickly as service delivery or promises rise.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Implications for Customers Implications for Customers

Set realistic expectations – “expand” your zone of tolerance

Understand your service provider

Be knowledgeable