Chapter-4 - Customer Expectations of Service

SERVICE SERVICE MARKETINGMARKETING

Customer Expectations of Service

Stanley S. RodrickStanley S. Rodrick

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Undoubtedly, the greatest gap between customer expectations and service delivery exists when customers travel from one country to another.

For example, in Japan the customer is supreme. At the morning of large departmental stores in Tokyo, sales personnel line up to welcome customers and bow as they enter.

Are beliefs about service delivery that serve as standards or reference points against which performance is judged.

Because customers compare their perceptions of performance with these reference points when evaluating service quality, thorough knowledge about expectations is critical to services marketers.

Knowing what the customer expects is the first and possibly most critical step in delivering quality service.

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Ideal Expectations: Customers has heard from various sources and made of the mind. Everyone says good restaurant. �

Normative  “Should” Expectations: Its expensive restaurant. It ought to be having good service. �

Experienced Based Norms: Restaurant is good. However service is slow at peak hours. �

Acceptable Expectations: I expect they serve adequately. �Minimum Tolerance Expectations: Visit this restaurant

because of price and not service

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Adequate Service

Desired ServiceDesired Service is a blend of what customers’ desire or believes “can be” and “should be”. It reflects the hopes of customers to be fulfilled.

Adequate Service is what is available at present. Adequate service represents minimum tolerance expectations.

Desired Service and Adequate Service

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Restaurants are classified in many ways :

Fast Food: Desired Service expectations are quick, convenient, tasty food, clean setting.

Expensive Restaurant: desired service elegant surroundings, gracious employees, candlelight, fine food.

Ethnic Restaurants

Airport Restaurants

Desired Service and Adequate Service of A Customer for Restaurant

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The adequate service expectation level on the other hand, may vary from different firms within category or subcategory.

Within the fast food restaurant, a customer may hold a higher expectation for McDonald’s than for Burger King, having experienced consistent service at McDonald’s over time and somewhat inconsistent service at Burger King.

Desired Service and Adequate Service of A Customer for Restaurant

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Adequate Service

Desired Service

Zone ofTolerance

Service vary across providers, across employees from the same provider and even with the same service employee.

The extent to which customers recognize and willing to accept this variation is called the:

ZONE OF TOLERANCE.

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If the service drops below adequate service – the minimum level considered acceptable – customers will be frustrated and most likely dissatisfied with the company.

If the service performance is above the zone of tolerance at the top end – where the performance exceeds desired service – customers will be very pleased and probably quite surprised as well.

Zone of

Tolerance

Desired Service

Adequate Service

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Bus StopBus Stop

Passengers waiting for the �bus…. �

If the service is higher than the zone of tolerance customer are very delighted. Ex: Arrives on time. �

If it is exceeding the zone of tolerance then customers are very unhappy.

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Different Customers Posses Different Different Customers Posses Different Zones of Tolerance…Zones of Tolerance…

Some customers have narrow zones of tolerance, requiring a tighter range of service from providers, whereas other customers allow a greater range of service.

Very busy customers would likely always be pressed for time, desire short wait times in general also hold constrained range for the length of acceptable wait times.

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Different Customers Posses Different Different Customers Posses Different Zones of Tolerance…Zones of Tolerance…

An individual customer’s zone of tolerance increases or decreases depending on a number of factors, including company – controlled factors such as price...

When price increase, customers tend to be less tolerant to poor service. In this case, the zone of tolerance decreases because the adequate service level shifts upward.

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Zones of Tolerance Vary for Service Zones of Tolerance Vary for Service DimensionsDimensions

Customers’ tolerance zones also vary for different service attributes or dimensions.

The more important the factor, the narrower the zone of tolerance is likely to be.

Customers are likely to be less tolerant about unreliable service (broken promisebroken promise or service service errorserrors) than other service deficiencies, which means that they have higher expectations for this factor.

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Zones of Tolerance for Different Service Zones of Tolerance for Different Service DimensionsDimensions

Level of

ExpectationZone

Of Tolerance

Desired Service

Adequate Service

Reliability

Zone of

Tolerance

Desired Service

Adequate Service

Empathy

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Because expectations play such a critical role in customer evaluation of services, marketers need and want to understand the factors that shape them.

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Sources of Desired Service ExpectationsSources of Desired Service Expectations

Personal Needs

Enduring ServiceIntensifiers Zone

of Tolerance

Desired Service

Adequate Service

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Personal Needs Personal Needs : : include physical, social, psychological categories.

Enduring Service Intensifiers Enduring Service Intensifiers : : are individual, stable factors that lead to heightened sensitivity to service

This can further divided into Derived Service Expectations and Personal service Philosophies

Sources of Desired Service ExpectationsSources of Desired Service Expectations

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Sources of Adequate Service ExpectationsSources of Adequate Service Expectations

Self-PerceivedService Role

Situational Factors

Perceived ServiceAlternatives

Transitory ServiceIntensifiers

Zone of

Tolerance

Desired Service

Adequate ServicePredictedService

PredictedService

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Sources of both Desired and Predicted Sources of both Desired and Predicted Service ExpectationsService Expectations When consumers are interested in purchasing services, When consumers are interested in purchasing services,

they are likely to seek or take in information from several they are likely to seek or take in information from several different sources.different sources.

For example: they may call up a store, ask a friend or For example: they may call up a store, ask a friend or deliberately track newspaper advertisements to find the deliberately track newspaper advertisements to find the needed service at the lowest price.needed service at the lowest price.

They may also receive service information by watching They may also receive service information by watching television, surfing the Internet or hearing an unsolicited television, surfing the Internet or hearing an unsolicited comment from a colleague about a service that was comment from a colleague about a service that was performed well.performed well.

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Sources of both Desired and Predicted Sources of both Desired and Predicted Service ExpectationsService Expectations In addition to these active and passive types of external In addition to these active and passive types of external

search for information, consumers may conduct an internal search for information, consumers may conduct an internal search by reviewing the information held in memory about search by reviewing the information held in memory about the service.the service.

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Sources of both Desired and Predicted Service Sources of both Desired and Predicted Service ExpectationsExpectations

Predicted Service

Explicit ServicePromises

Implicit ServicePromises

Word-of-Mouth

Past ExperienceZone

of Tolerance

Desired Service

Adequate Service

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Sources of both Desired and Predicted Sources of both Desired and Predicted Service ExpectationsService Expectations Explicit Service Promises Explicit Service Promises : are personal and non-personal : are personal and non-personal

statements about the service made by the organization to statements about the service made by the organization to customers.customers.

Personal – when they are communicated by the Personal – when they are communicated by the salespeople or service or repair personnelsalespeople or service or repair personnel

Non-personal - when they come from webpage, Non-personal - when they come from webpage, advertising, brochures and other written publications.advertising, brochures and other written publications.

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Sources of both Desired and Predicted Sources of both Desired and Predicted Service ExpectationsService Expectations Implicit Service Promises Implicit Service Promises : are service related cues other : are service related cues other

than the explicit promises that lead to inferences about what than the explicit promises that lead to inferences about what the service should and will be like.the service should and will be like.

These quality cues are dominated by price and the tangibles These quality cues are dominated by price and the tangibles associated with the service.associated with the service.

The higher the price and the more impressive the tangibles, The higher the price and the more impressive the tangibles, the more a customer will expect from the service.the more a customer will expect from the service.

Example: A customer who stays at an exclusive hotel is Example: A customer who stays at an exclusive hotel is likely to desire and predict a higher standard of service than likely to desire and predict a higher standard of service than from a hotel with less impressive facilities.from a hotel with less impressive facilities.

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Sources of both Desired and Predicted Sources of both Desired and Predicted Service ExpectationsService Expectations

Word of Mouth CommunicationWord of Mouth Communication::

These personal and sometimes non-personal statements These personal and sometimes non-personal statements made by parties other than the organization convey to made by parties other than the organization convey to customers what type of service will be like and influence both customers what type of service will be like and influence both predicted and desired service.predicted and desired service.

Word of Mouth Communication carries a particular weight as Word of Mouth Communication carries a particular weight as an information source because it is perceived as unbiased.an information source because it is perceived as unbiased.

Word of Mouth Communication tends to be more important in Word of Mouth Communication tends to be more important in services that are difficult to evaluate before purchase and services that are difficult to evaluate before purchase and before direct experience to them.before direct experience to them.

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Sources of both Desired and Predicted Sources of both Desired and Predicted Service ExpectationsService Expectations

Word of Mouth CommunicationWord of Mouth Communication:: Experts and including Consumer Reports, friends and family Experts and including Consumer Reports, friends and family

members and also the Internet forums are also word-of-mouth members and also the Internet forums are also word-of-mouth sources that affect the level of desired and predicted service.sources that affect the level of desired and predicted service.

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Sources of both Desired and Predicted Sources of both Desired and Predicted Service ExpectationsService Expectations

Past ExperiencePast Experience:: The customer’s previous exposure to service that is relevant to The customer’s previous exposure to service that is relevant to

the focal service, is also another force in shaping predictions the focal service, is also another force in shaping predictions and desires.and desires.

Example: Guests comparing each stay in a particular hotel Example: Guests comparing each stay in a particular hotel with all previous stays in that hotel. The guests can compare with all previous stays in that hotel. The guests can compare their experiences in other hotels and hotel chains.their experiences in other hotels and hotel chains.

Customers can also compare across industries: hospital Customers can also compare across industries: hospital patients compare hospital stays against the standard of hotel patients compare hospital stays against the standard of hotel visits.visits.

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