3.1 customer expectations

Customer Customer expectationsexpectations

of serviceof service

Customer Customer expectationsexpectations

of serviceof service

CHAPTER 3CHAPTER 3

CHAPTER 3i)Meaning of customer expectationsii)types and influencing factors, (desired

service adequate service, zone of tolerance, sources)

iii)Customer perceptions: - Customer satisfaction;

iv)service quality and service encounters.v) Customer relationship and marketing

research 

i. MEANING AND TYPE OF CUSTOMER EXPECTATIONS

CUSTOMER EXPECTATIONS OF SERVICE

• Beliefs of service delivery that function as standards against which performance is judged.

• Being no delivering the service to customer means wasting money, time and resources

Possible levels of customer expectations

Ideal expectations or desires

Normative expectations

Experienced based norms

Acceptable expectations

Minimum tolerance expectations

high

low

Possible level of customer expectations

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

• Normative expectations: Its expensive restaurant . It ought to be having good service.

• Experienced based: 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

QUESTION on service expectations

• You go to a minimum tolerance restaurant paid little money, served immediately and the food was very good.

• You also went to high tolerance hotel, paid lot of money, was served but not fantastic food.

• Which restaurant would you judge to be best?• The answer is likely to depend a great deal on

the reference point brought to the experience.

Types of serviceDesired service and adequate service

Desired 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 of a customer for

restaurantRestaurants are classified in many ways :Fast food: Desired Service

expectations is quick, convenient, tasty food, clean setting.

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

Ethnic restaurant

• Adequate service expectations among the same industry are also varying.

• Ex: a Customer may expect a good service from Mc Donalds but not from Pizza HUT, Dominos.

kingfisher

Zone of toleranceDesired service

Adequate service

Zone oftolerance

The Zone of tolerance:

Service varies with the industry, across employees, and the same employee.

The extent to which customers recognize and are willing to accept this variation is called Zone of tolerance.

• What happens when the service drops below adequate level????????

• If the service drops below adequate service the minimum level considered acceptable customers will be frustrated and their satisfaction with the company will be undermined

Bus stop…..• Passenger 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.

• An airline customer zone of tolerance is narrow when customer comes late for the flight.

• On the other hand zone of tolerance of customer is higher if he arrives on time.

• Zone of tolerance is the window in which the customers will not notice the service provided by the service providers.

• Ex: a time frame of 5 to 10 minutes is given by a customer for service delivery.

Analyze the zone of tolerance

• Grocery stores? • Payment of bills at a government

department• Standing on a queue at bus stop.

Zone tolerance varies for services

1. Repairs or maintenance personnel of Electronic item arriving to your home.

• If a customer is busy he has less time to wait.

• If a customer is at home he could wait for any hours.

2. Banking services:Customers wait for hours to carry on

transactions within the bank.

ii. FACTORS THAT INFLUENCE CUSTOMER EXPECTATIONS OF SERVICE

Sources of desired service expectations

1. Personal needs: those states or conditions essential for the well being of the customer.

They fall into• physical, • social,• psychological and • functional.

Physical need…… food!!!!

• A cricket fan who regularly goes to watch cricket after work hope to get good food from the vendor on a timely bases.

• While a fan who had his lunch has low level of desired service from the vendor.

• Desired service expectations will vary based on physical conditions of the customer…

• Need for food• Health facilities• Shelter and stay……….

b)Social need• Social needs of customer is when

he looks for good music, entertainment from a hotel service and travel service providers.

• Party with friends and relatives• Dance and music, parks…………

U explain ?• psychological need• Functional need

• Psychological needunderstanding, compassion, attention, strength, trust,

self-esteem, and companionship. • Functional need- Based on the work or operations process, support

guidance, assistance

2. Lasting service intensifiers: are stable factors which heightens the sensitivity to service.

(a)Derived service expectation: customers expectations are depending/ driven by a another individual/ or group.

( derived means obtain or receive from source)

For group also depends upon one individual. ex:?????????

Ex: Food for the family is generally decided by an individual,

a party organized in a firm, a vacation for a familyTravel and transportation decided

by the leader for the class.

• (b) personal service philosophy: the customers understanding or experience in that part of the service have strong philosophy of service.

• Ex: a receptionist, waiter, a broker, telephone operator , cashier. Etc.

Sources of adequate service expectations

1. Transitory service intensifiers2. perceived service alternatives3. Customers self perceived service

role4. Situational factors5. Predicted service

1. Transitory service intensifiers: makes a customer more aware of the need for service.

(transitory - lasting only a short time)

Personal emergency situations where services are immediately needed

• EX: Accident : Customers look for the vehicle insurance company only when their vehicle is broken down.

• Mechanic services………• Here the level of adequate service

expectations is high.

• Ex: breakdown of office equipmentRepairman's service

2. perceived service alternatives: Customers when they have multiple service providers to choose from their level of adequate service are higher.

• EX: Customer of airlines from a city and Village.

• Village customer would not mind getting delayed, or rescheduling.

• What about city traveler??????

3. Customers self perceived service role: when a adequate service is expected from the service provider in specific level.

Ex: food cooked , fried, overcooked.Hair style, design of building,

• EX: customers request for a bank statement for a specified date, transactions…..

4. Situational factors: When calamites occurred like Bombing of railway tracks in mumbai, or in bangalore customers are very patient.

Floods, rains, calamities, curfew….

5. Predicted service: How the customer predicts the service of a service provider will have influence on the adequate service.

Ex: waiting for a doctor, food at restaurant, getting ticket on Train service

Sources of both desired and predicted service

expectations

Factors that influence desired and predicted service:

1. Explicit services promises2. Implicit service promises3. Word of mouth communications4. Past experience

Desired service

Adequate service

Zone of tolerance

Predicted service

Past experience

Word of mouth

Implicit service promises

Explicit service promises

1. Explicit services promises: personal and on personal statements about the service made by the org.

Personal – made by the salespeople.Non personal coming from advertisement,

sales promotion, brochures, etc. These promises influence the desired and

predicted service

• 2. Implicit service promises: is based on the quality and prices of the service. Higher the price higher will be the service quality.

• 3. Word of mouth: friends, relatives, consumer reports etc

• 4. Past experience:

Customer service expectations

• Influence by variety of factors some are controllable and others less controllable by service marketers.

1. Controllable: Explicit service promises and implicit service promises.

2.Less controllable factors

Enduring service intensifiers, Personal needs, transitory service intensifiers,perceived service alternatives,self perceived service role,word of mouth, past experience, situational factors, predicted service.

Customers want service which is basic, simple and full fill their needs.

• They want planes to take off…….• Hotel rooms to be clean and food

served on time ………..• Service providers keep up-with

their schedules………

Service customers want the simple and basics

Type of service

Type of customer

Principal expectations

1. Automobile insurance

consumer Fix right parts, Explain the reason why he needs repair..?

2. Hotel consumer Provide clean roomsprompt service treatment like guest…

Make a chart for……..1. Property and casualty insurance2. Equipment repair

Type of service Type of customer

Principal expectations

1. Property and casualty insurance

2. Equipment repair

Business customers

Business customers

Provide prompt service, full obligations…..

Keep all parts for repairSpeedy and be competent

Exercises ???????• Can you list some unrealistic

service expectations?• List 5 incidents when a service

company has exceeded your expectations? How did you react to the service?

Should the Service provider try to delight the Customer????

• Delight means providing positive emotional state that results from having one’s expectations

exceeded to a surprising degree.

Positively outrageous service Unexpected Random extraordinary

positive service

iii)Customers perceptions of service

• Quality of service, and how satisfied they are overall with their experiences.

“Service quality and customer satisfaction.”

Customer perception of service

• Service drops below adequate service …………… Customers are frustrated, loyalty is at crisis.

• Service performance exceeds desired service customers are very pleased.

• Zone tolerance is the window were customers do not notice service performance.

• Anything behind customers are sure to notice

• Customers perceive services in terms of quality of service and how satisfied they are with the overall experiences.

• Companies recognize quality and satisfaction

Customer Satisfaction

Customer satisfaction- Customers evaluation of a service, whether the service has met the needs and expectations.

Failure to meet the need or expectations is dissatisfaction

Satisfaction can also be viewed as fulfillment, contentment, pleasure, delight , relief.

1. Product and Service features- facilities, price, comforts,

(Restaurants, hotels, transport agencies)

Product and service features for a resort hotel

• Pool area• Access to gold facilities• Restaurants• Room comfort• courtesy of staff• Room price……..

2.Consumer emotions: moods, stable, frame of mind, feelings.

( adventure clubs service, legal services )

• Consumers emotions can also affect their perception of satisfaction of services

• Positive emotions increase the level of satisfaction

• Negative emotions decrease the level of satisfaction

3. Attributions for service success or failure

(Perceived causes of events – influence perceptions)

Health clubs to loose weight

4. Perceptions of equity: Consumers ask question like have I been

treated fairly?

Did other customer get better treatment?

Was the other student more favourable to the faculty?????

Why my food looks different?????

• 5. Other consumers, family members and co workers

Their experience can influence on the perception of the consumers