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SM
SM
Sarif Mohammad Khan
Chapter - 3
Customer Expectationsof Service
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SM Customer Expectations (1)
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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SM
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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SM
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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SM
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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SM
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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SM Service Marketing Influencing
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