Lec 03 Customer Expectation.ppt

8/10/2019 Lec 03 Customer Expectation.ppt

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Sarif Mohammad Khan

Chapter - 3

Customer Expectationsof Service


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Customer Expectations are beliefs about servicedelivery that function as standards or reference

points against which performance is judged.

Customers compare their perceptions ofperformances with reference point to evaluate

service quality.


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What the customer expects is the first and possiblymost critical step in delivering quality service for theservice marketer.

Knowing customer expectation is difficult.

Considerable matters:

Type of expectation standardsFunction influence expectation

Role Play

Meet or exceed

Customer Expectations (2)


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Meaning and Types of Service

Expectations

The level of expectation can vary widely depredating onthe reference point the customer holds.

Types of Expectations:

1. Expected Service: Level of Expectationsa. Desired Service

The level of service the customer hopes to receive.

b. Adequate Service

The level of service the customer will accept.

2. The Zone of ToleranceThe extent to which customers recognize and are willing toaccept the variation of service.a. Different customer posses different Zones of Tolerance

b. Zones of Tolerance vary for service dimensions


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Ideal

Expectations

or desires

Normative

should

expectations

Experience-

based

norms

Acceptable

expectations

Minimum

Tolerable

expectations

Everyone says this restaurant

Is as good as one in France

And I want to go somewhere

Very special for my anniversary.

As expensive as this

Restaurant is, it ought to haveExcellent food and service

Most time this restaurant is very

Good, but when it gets busy the

Service is slow.

I expect this restaurantTo serve me in an

Adequate manner.

I expect terrible service

From this restaurant but come

Because the price is low.

High

Low

Most Customers

opinion

(Pizza Hut)

Pricing(New fast food)

Experience

(Nirob)

Meet up needs, noExtra benefit

( Canteen)

Restaurants of

Italy

Possible Levels of Customer

Expectations


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Desired Service (highest level)

Adequate Service (minimum)

Level of ServiceHopes to Receive

Level of serviceReady to accept

Fast Food:Quick,

convenient,Testy food in

a Cleansetting.

Restaurant:Elegant

SurroundingsGracious

EmployeesCandle lightFine food.

Expected Service: Level of

Expectations


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Desired Service

Adequate Service

Zone of

Tolerance

ZOTIt is the parameter or

The extent to which

customers are willing

to accept variation

Dont notice

1.

2.

3.

4.

5.

6Dissatisfaction

Service < A.S = Disappointed

Service D.S =Delighted

The Zone of Tolerance


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Different Customer Posses

Different Zones of Tolerance

Some customers have narrow zones oftolerance.

Busy customers Sudden price rise

Some customers have Widen zones oftolerance.

Scarce services


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Desired service

Adequate Service

Zone

ofTolerance

Desired Service

Adequate Service

Zone

of

Tolerance

Level of

Expectation

Most important factors Least important factors

Busy

Customers

Narrow

Sudden priceRise

Narrow

Zones of Tolerance for Different

Service Dimensions


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Factors that Influence Customer

Expectations

Expectations play such a critical role incustomer evaluation of service.

Marketers need and want to understand thefactors.

Marketers would also like to have controlover these factors.


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Factors that Influence Customer

Expectations

1. Sources of Desire Expectations

2. Sources of Adequate Expectations

3. Service Encounter Expectations Vs OverallService Expectations

4. Sources of both Desire and PredictedExpectations


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SM Sources of Desire Expectations

Enduring Service Intensifiers

Individuals and stable factors that lead the customer toa heightened sensitivity of service.

i.e. Derived service expectations: Expectation driven byanother person or group of people.

Personal needs

The customers underlying generic attitude about the

meaning of service and the proper conduct of serviceproviders.

i.e. Shaped by training and experience in the role.


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Enduring Serviceintensifiers

Personal needs

DesiredService

AdequateService

Zone

of

Tolerance

Sources of Desire Expectations


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Sources of Adequate

Expectations (1)

1. Transitory service intensifiers

2. Perceived service alternatives

3. Self-perceived service role

4. Situational factors5. Predicted service


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Sources of Adequate

Expectations (2)

Transitory service intensifiers

Temporary, usually short-term, individual

factors that make a customer more aware ofthe need for service.

i.e. Personal emergency situation- accident

Perceived service alternatives

Other providers from whom customer canobtain service.


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Sources of Adequate

Expectations (3)

Self-perceived

Customer perceptions of the degree to whichcustomers exert an influence on the level of

service they receive.i.e. Level of service expected- the degree ofdoneness.

Situational factors

Service performance conditions that customersview as beyond the control of the service

providers.

i.e. Poor telephone and internet service


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Sources of Adequate

Expectations (4)

Predicted service

The level of service the customers believe theyare likely to get.

i.e. Spend in the waiting room.


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Transitory service

intensifiers

Perceived servicealternatives

Self-perceived

Service role

Situational

factors

Desired Service

Adequate Service

Zone

of

Tolerance

Predicted

Service

Sources of Adequate

Expectations


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Service Encounter Expectations

Vs Overall Service Expectations

Service encounter as a discrete event occurringover a definable period of time.

Customer hold expectations of the quality of eachservice encounter

Like:

1. Minutes one might wait2. Speedy service


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Desired Service

Adequate Service

Zone

of

Tolerance

Explicit service

promises

Implicit service

promises

Word of mouth

Past experience

Predicted Service

Expected

Service

Sources of both Desire and

Predicted Expectations


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A Model of Customer Service

Expectations

Service Marketing Influencing Factors


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Factors (1)

1. Controllable Factor

a. Explicit service promises .

b. Implicit services promises

2. Less Controllable Factors

a. Enduring service intensifiers

b. Personal needs

c. Transitory service interferes

d. Word of mouth communications

e. Past Experience

f. Situational Factors

g. Predicted Service


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SM Service Marketing Influencing

Factors (2)

Controllable Factor

Explicit service promises 1. Realistic and accurate promises.

2. Contact people for feedback.

3. Price or advertising wars.

4. A service guarantee.

Implicit services promises 1. Service tangibles.

2. Price premiums.

Less Controllable Factors

Enduring service intensifiers 1. Use market research.

2. Personal service philosophies.

Personal needs 1. Educate customers

Transitory service interferes 1. Increase service delivery.


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Less Controllable Factors

Word of mouth communications 1. Stimulate word of mouthcommunications

2. Using testimonials and opinion leaders

3. Identify influencers and opinionleaders.

4. Use intensive with existing customers.

Past Experience 1. Marketing research to profile.

Situational Factors 1. Use service guarantee.

Predicted Service 1. Predictions of future serviceencounters.

Service Marketing Influencing

Factors (3)

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Issues Involving Customer Service

Expectations

1.What does a service marketer do if customerexpectations are unrealistic?

Fundamentals not fanciness, performances not emptypromises

Under promise, over delivery

Reality check

2. Should a company try to delight the customer?

Musts, satisfiers, delights

3. How does a company exceeds customers expectations?

Honoring promises

Dependable and accurate service providers

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4. Do customer service expectations continually escalate?

Competitive industry raises service standards ,such as,credit card industry.

Continuous monitoring

5. How does a service company stay ahead of competitionin meeting customer expectations?

If performance falls short of adequate service level, itcreates competitive disadvantages.

Issues Involving Customer Service

Expectations

Documents

Lec 03 Customer Expectation.ppt