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Customer Expectations Customer Expectations of Services

Pre-trial beliefs about a service that function as standards against which performance is judged.

Types of Expectations
Desired service -- the level of service the customer hopes to receive Adequate service -- the level of service the customer will accept

Models of service quality

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The evolution of service quality

Disconfirmation of expectations The Nordic model The three component model The Gaps model of service quality & SERVQUAL

Disconfirmation of expectations (Oliver 1980)

Frequently Asked Questions About Customer Expectations

Should a company aim to delight the customer? How does a company exceed customer service expectations? Do customer service expectations continually escalate? Is it a better strategy to under-promise and over-deliver? How does a service company stay ahead of competition in meeting customer expectations?

The Nordic model

(Gronroos 1990)

Represents the service experience on the basis of functional and technical elements Technical quality refers to what the customer receives from the service Functional quality refers to service delivery Model emphasises companies must be careful what they promise

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The three-component model Rust &

Oliver (1994)

Customer expectations of service

Types of expectations customers hold for service performance Sources of customer expectations

Source: Rust & Oliver, 1994. p. 11

Possible Levels of Customer Expectations

Dual customer expectations levels and the Zone of Tolerance

Desired Service

Zone of Tolerance

Adequate Service

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Zones of Tolerance for Different Service Dimensions

Desired Service

Factors That Influence Desired Service

Level of Expectation

Zone of Tolerance
Adequate Service

Lasting Service Intensifiers

Desired Service Desired Service Zone of Tolerance Adequate Service Adequate Service
Personal Needs

Zone of Tolerance

Reliability

Tangibles

Source: L. L. Berry, A. Parasuraman, and V. A. Zeithaml, Ten Lessons for Improving Service Quality, Marketing Science Institute, Report No. 93-104 (May 1993).

Factors That Influence Adequate Service

Temporary Service Intensifiers

Factors That Influence Desired and Predicted Service

Explicit Service Promises

Desired Service
Perceived Service Alternatives

Implicit Service Promises

Zone of Tolerance Adequate Service

Predicted Service

Desired Service

Word-of-Mouth

Self-Perceived Service Role

Zone of Tolerance Adequate Service

Past Experience

Situational Factors

Predicted Service

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Zone of Tolerance and Importance of Service Dimensions

as a service dimension becomes more important zone of tolerance will narrow and desired and adequate levels will increase

Factors that Influence Desired Service

Personal Needs --states or conditions essential to the physical or psychological well being --- physical, social, psychological, and funtional

Factors that Influence Desired Service

Enduring Service intensifiers --individual stable factors that lead the customer to a heightened sensitivity
derived service expectations personal service philosophy

Factors That Influence Adequate Service Expectations

Are short-term in nature and fluctuate more than the factors that influence desired expectations

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Factors that Influence Desired and Predicted Service

Explicit Service Promises Implicit Service Promises Word-of-Mouth

Factors that Influence Desired and Predicted Service Explicit Service Promises Implicit Service Promises Word of Mouth Past Experience particular service within the same industry related services
More experience the narrower the Zone of Tolerance

Desired Service Zone of Tolerance Adequate Service

Past Experience

Predicted Service

Factors that Influence Desired and Predicted Service Explicit --- personal and nonpersonal statements from the organization--Advertising, personal selling, contracts, other communications --- usually increases desired level and narrows zone

Customer Expectations
Ideal --- wished for level. Desired --- wants or hopes to receive. Adequate --- minimum level of service Customers will tolerate. Zone of tolerance --- area between adequate and ideal. Predicted --- believe will receive; takes in all the circumstances and modifies expectations.

Implicit--- ---service related cues

-Tangibles - Price -- price directly related to predicted service and inversely related to width of zone. Distribution - multiple outlets

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Role of Customer Expectations

During Prepurchase Phase --- higher expectations more likely to purchase. During Service Encounter --expectations modified (however usually not desired or ideal) During Postpurchase Phase --altered and impact over time

Managing Customer Expectations

Customer expectations must be managed.

Managing Customer Expectations During Prepurchase Phase

Learn what customers expect. Ask employees and customers. Tell customers what to expect. All factors above line of visibility Consistently provide the service customers expect. Forms concrete expectations

Managing Customer Expectations During Service Encounter

Communicate with customers during the service. If possible, modify the service to meet customer expectations. Explain why service cannot be modified.

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Managing Customer Expectations During Postpurchase Phase

Communicate - expectations were met? Develop a follow-up program. Develop a procedure for dealing with dissatisfied customers.