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Customer expectation
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- 2. 1 • Meaning andTypes of Expected Service 2 • Factors That Influence Customer Expectations of Service 3 • Current Issues Involving Customer Service Expectations
- 3. 1. Meaning andTypes of Expected Service
- 4. Customer Expectations ofService Customer Expectations Beliefs about service delivery Serve as standards or reference points against which performance is judged. Customers compare their perceptions of performance with these reference points when evaluating service quality.
- 5. Expected Service: Levelsof Expectations Possible Levels of Customer Expectation Ideal Expectations or Desires Normative “Should” Expectations Experience Based Expectation Acceptable Expectations Minimum Tolerable Expectations Desired Service Quality Adequate Service Quality
- 6. Possible Levels ofCustomer Expectations
- 7. Dual Customer ExpectationLevels Desired Service: Level of service that customer hopes to receive Adequate service: Level of service the customer will accept Zone of Tolerance: The extent to which customer recognize and are willing to accept this variation. Zone of Tolerance Gap between Desired Service & Adequate service
- 8. TheZoneofTolerance Range or windowin which customers do not notice service performance When service falls outside this range(either very high or very low), the service gets the customer’s attention in either a positive or negative way
- 9. Different customers possess differentZone of tolerance Some customers have narrow zones of tolerance They require tighter range of service from providers Others allow a greater range of service An individual customer’s zone of tolerance vary for a number of factors e.g. price, personal needs,
- 10. Zones of Tolerancefor Different Service Dimensions Source: Berry, Parasuraman, and Zeithaml (1993) Most Important Factors Adequate Service Desired Service Zone of Tolerance Zone of Tolerance Desired Service Adequate Service Least Important factors Level of Expectation
- 11. 2. Factors ThatInfluence Customer Expectations of Service
- 12. Factors That InfluenceDesired Service Expectations Internal Factors External Factors Situational Factors Supplier Controlled Factors
- 13. Factors That InfluenceDesired Service Expectations Internal Factors: Factors which are within the customer. They include- Individual Needs:- if customer feel lack of something, he motivated to take action to fulfill it. Maslow explain, needs exist in a hierarchy. • Lower order needs- Physiological needs, Security needs • Higher order needs- Social needs, Esteem needs, Self actualization need Level of Involvement:- if customer is more involved, his expectations will be more & consumers become very particular about the type of service they expect.
- 14. Factors That InfluenceDesired Service Expectations Past experiences- The experience that a customer has with the following are all important- Service provider A competing service in the same industry A related service in a different industry E.g.- If the visit to a dentist leaves you satisfied then you will expect the same service next time but if you have had an unpleasant experience and for some reason have to go to the same dentist, you will go with lowered expectations.
- 15. Factors That InfluenceDesired Service Expectations Personal Philosophy of the individual- Each of us has our own standards and we view the word according to these standards. These standards have developed in our lives because of our hereditary and our environment as we were growing up. Demographical reason- expectations may vary according to the demographic group one belongs to. For e.g. men may have different expectations from women when they go for a hair cut. Older consumers may have different expectations from younger ones, Blue collar workers may have different expectations from white collar workers.
- 16. Factors That InfluenceDesired Service Expectations External Factors:- Several external factors can influence customer expectation. These are- Competitive Options Available- Consumer’s expectations are often impacted when they compare one service provider with another. E.g.- If one mall provides free parking facility the customer will start expecting it from another mall. Social Setting- people’s expectation often increase when they are with others or in socially crucial situations. E.g.- If you go out for a causal dinner with your family, you may be more tolerant of delay but if you have taken an important client out to dine, your expectations will increase.
- 17. Factors That InfluenceDesired Service Expectations Word-of-mouth Communications- We vary often ask our friends their opinion about a new movie which has just released. We then go into the hall with a certain level of expectations. Cultural Context and Norms Regarding the Service- Expectations differ from country to country. E.g.- It may be acceptable for a train to arrive several are hours late in India but in Switzerland the rail schedules are very precise and customers set their watches by arrival of a train. In that case the expectation of customers regarding punctuality of train services in Switzeland will be very high.
- 18. Factors That InfluenceDesired Service Expectations Situational Factors: Consumer expectations are affected by many situational factors that include – Type of Service and Industry: Customer expectations will also vary from one industry to another reflecting industry reputations and past experiences. In some countries, people may have very low expectations. In some countries, people may have very low expectations from government service providers but may have very high expectations form private service providers. Eg. -The expectations of the consumer taking his pet to a vet for treatment will be very different from his expectations when he visits the doctor himself for treatment.
- 19. Factors That InfluenceDesired Service Expectations Reason for Purchase: The reason why a service is purchased can have an impact upon consumer expectations. Eg. - Suppose you hire a taxi for an out-of station office trip your expectations will center around the hiring cost (Which should match the allowance you are given by your office) whereas if you hire a limousine to impress your date your expectations will center around luxury and style. Consumer’s Mood: Individual in a good mood may be more tolerant of delay or inadequate service than a consumer who is in a bad mood. That is why service providers pay a lot of attention to setting the mood.
- 20. Factors That InfluenceDesired Service Expectations Weather:- Imagine a situation where an aero plane is caught up in a thunderstorm. The consumers will focus their expectations on getting back on land safety with no thought to delay. Thus, even the weather can influence consumer expectations. Time constraints:- If a company has approached a placement agency to fill up a post and needs to do so really quickly. It may compromise on the qualifications if the individual selected because it lacks the time to find the person who fulfills all the required criteria. Thus, Time constraints can influence consumer expectations.
- 21. Factors That InfluenceDesired Service Expectations Critical Positioning- Emergencies and catastrophes do influence consumer expectations. Under normal circumstances, consumers may have very high expectations from hospital staff but if there is a disaster like a fire or earthquake which has meant that the hospital is overflowing with patients consumers may become more tolerant. News in media- Any publicity- positive or negative or any report in the media may have an impact upon the consumer expectations.
- 22. Factors That InfluenceDesired Service Expectations Supplier- Controlled Factors:- Supplier controlled factors such as Advertising, pricing & the physical appearance of the service facility and its employees will greatly influence consumer expectations. Promotion:- The promises that service providers may make in advertisement & sales promotions will create a certain level of expectations in the customers. For example Management Institute mentions a state of the art computer laboratory then the students will join the institute with high expectations from the computer facilities.
- 23. Factors That InfluenceDesired Service Expectations Pricing:- The higher the price of a service, the higher will be the consumer’s expectations. Example- If you pick the most expensive service provider you will obviously expect the very best from them. Positioning:- if the airlines has positioned itself as a no- frills, low cost airline then consumer expectations will be low but if the airlines has positioned itself as a premium airlines then consumer expectations will be very high.
- 24. Factors That InfluenceDesired Service Expectations Distribution:- When a service provider has many outlets then a consumer who has used the service one, forms a certain level of expectations. If the service provider is a single unit, consumers may not know what to expect. E.g.- A family holiday McDonald’s, because it is familiar and they have certain expectations from it. Service Personnel:- The attitude & behavior of employees as well as what they say will influence consumer expectations. E.g.- If the beautician promises you a glowing skin after the facial she gives you, you will be expecting that.
- 25. Factors That InfluenceDesired Service Expectations Accompanying Tangibles- The tangibles cues in the service facility like décor, furniture, equipment used, level of hygiene & cleanliness, displays and dress of the personnel, etc. Other Customers- A customer who goes to a gym may observe how the instructors treat and instruct other consumers. Their expectations will therefore be formed according to that. Image of the Firm- The goodwill and image that a firm created for itself also influences the expectations of consumers. We have a certain image of ITC and expect an ITC hotel to live up to our expectations.
- 26. Managing Customer service Expectations It is a critical component in the marketing plan of a service business. Consumer expectation must be managed during the- pre purchase phase, the service encounter, the post purchase phase.
- 27. During the prepurchase phase- Managing customer expectations during the pre- purchase phase consist of 3 steps which are as follows- i) Learn what Customer expect:- Learning customer expectations during the pre purchase phase requires communication. ii) Tell customer what they expect- Advertising, sales personnel, tangible cues, point of purchase displays and sales promotions some of the methods that can be used. iii) Consistently provide the service that customer expect- Past experiences and word of mouth are two critical variables used by consumers in making purchase decision.
- 28. During the ServiceEncounter 3 strategies can be used during the service encounter to manage customer expectations which are as follows- Service personnel must communicate with the customer during the service encounter. If possible, service providers should modify the service to meet the customer’s expectations. If the service cannot be modified, the service personnel should explain why the customer’s expectations cannot be met. The goal during this phase is to ensure the service being provided matches the customer’s expectations.
- 29. During the post-purchase Phase Managing consumer expectations do not stop after the service is performed. Service firms have 3 strategies they can use after the service has been completed which are as follows:- Companies should communicate with customers immediately after the service is completed to see if expectations were met. Firms can use a follow-up program, such as an evaluation survey sent to the customer through the mail or a phone call. Companies should have a procedure for dealing with dissatisfy customers that will assist in managing future expectations.
- 30. Exceeding Customers Service Expectations This strategy is appropriate for those organizations which define service quality as delighting the customers. It is concerned with trying to ensure that there are no negative experiences but also with trying to exceed expectations by creating some positive transaction outcomes.
- 31. Exceeding Customers Service Expectations There are 3 approaches for exceeding customer service expectation:- 1. Customer Relationship- Maintaining customer relationship is one of the approach for exceeding service expectations. 2. Underpromise the Service:- The strategy is underpromise and overdeliver. If the promise is less than what will eventually happen, customers can be delighted frequently. 3. Unusual service as Unique:- A final way to exceed the expectations without raising them in the future is to position unusual service as unique rather than standard.