Consumer Expectations of Services

What do you see?

Now what do you see?

Consumer Expectations

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

Figure 3-1

Dual Customer Expectation Levels

Desired Service Zone of Tolerance

Adequate Service

The Zone of Tolerance--Tolerance

The extent to which customers recognize and are willing to accept variation in service performance
Desired Service

Zone of Tolerance
Adequate Service

Figure 3-3

Zones of Tolerance for Different Service Dimensions

Desired Service

Level of Expectation

Zone of Tolerance
Adequate Service

Desired Desired Service Service Zone of Tolerance Adequate Adequate Service Service

Most Important Factors Least Important Factors Source: Berry, Parasuraman, and Zeithaml (1993)

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

Figure 3-4

Zones of Tolerance for First-Time and Recovery Service

First-Time Service Outcome Process

Recovery Service Outcome Process LOW

Source: Parasuraman, Berry and Zeithaml (1991)

Expectations

HIGH

Zones of Tolerance for First-Time and Recovery Service

Consumers have a narrower zone of tolerance and a higher set of expectations for a service recovery than for the first time service experience.

Figure 3-5

Factors that Influence Desired Service

Enduring Service Intensifiers

Desired Service Personal Needs Zone of Tolerance Adequate Service

Factors that Influence Desired Service

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

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

Figure 3-6

Factors that Influence Adequate Service

Transitory Service Intensifiers Desired Service Zone of Tolerance Adequate Service

Perceived Service Alternatives

Self-Perceived Service Role

Situational Factors

Factors That Influence Adequate Service Expectations

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

Factors That Influence Adequate Service Expectations

Transitory service intensifiers --short-term, individual factors that make a consumer more aware of the need ofr service

Factors That Influence Adequate Service Expectations

Perceived Service Alternatives---As the number of alternatives increases, the level of adequate service increases and the zone of tolerance narrows

Factors That Influence Adequate Service Expectations

Situational Factors

Temporary changes in the normal state of things ---- tends to lower the level of adequate service expected and widen the zone of tolerance

Situational Factors

Reason for purchase Consumer mood Weather Time constraints Emergency

Factors That Influence Adequate Service Expectations

Self Perceived Service Role --how well the customer perceives they are performing their own role in service delivery

Figure 3-7

Factors that Influence Desired and Predicted Service

Explicit Service Promises Implicit Service Promises Word-of-Mouth

Desired Service Zone of Tolerance Adequate Service

Past Experience

Predicted Service

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

Chapter 3: Customer Expectations of Recognize that customers hold different Service types of expectations for service

performance Discuss controllable and uncontrollable sources of customer expectations Distinguish between customers global expectations of their relationships and their expectations of the service encounter Acknowledge that expectations are similar for many different types of customers Delineate the most important current issues surrounding customer expectations

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

Implicit--- ---service related cues -Tangibles -

Price -- price directly related to predicted service and inversely related to width of zone.

Service Related Cues Other Tangibles -

Service personnel Tangible cues Other customers Firm image - if high than zone widens Pre-service

Consumer Expectations

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

Model of Consumer Expectations

Ideal Service Desired Service
Zone of Tolerance Adequate Service

Predicted Service

Source: Adapted from Valarie A. Zeithaml, Leonard L. Berry, and A. Parasuraman, The Nature and Determinants of Customer Expectations of Services Journal of Academy of Marketing Science, Vol.. 21 (Winter 1993), pp.. 1-12

What Are We Really Concerned About?

How expectations are formed. Process through which expectations are raised or lowered. Impact on the width of the zone of tolerance. Conclusion ---- Must manage expectations.

Internal Antecedents of Consumer Expectations

Past experience --- has greatest impact.

particular service within the same industry related services

More experience the narrower the Zone of

External Antecedents of Consumer Expectations Competitive

Competitive options-We try harder Social contextoften increase Word-of-mouth communication --strongest source of information

Firm-Produced Antecedents of Consumer Expectations

Promotions -usually increases desired level and narrows zone Price -- price directly related to predicted service and inversely related to width of zone.

Role of Consumer 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 Consumer Expectations During Prepurchase Phase w

w

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

Managing Consumer Expectations During Service Encounter

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

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

Managing Consumer Expectations During Postpurchase Phase

DEFINING PERCEPTION
The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world.

INFLUENCES ON PERCEPTION

Physiology: Differences in sensory abilities Age: Changes attitudes on time; more experience the older we get Culture: Different beliefs Social Roles: Different roles we take on during our lives (sister, brother, wife, husband, student, instructor, etc.) Cognitive Abilities: Think multi dimensionally about different situations

FACTORS INFLUENCING PERCEPTION

Characteristics of the perceiver:
The perceptual process is influenced by the perceivers: Past experiences. Needs or motives. Personality. Values and attitudes.

Characteristics of the setting:

The perceptual process is influenced by the settings: Physical context. Social context. Organizational context.

Characteristics of the perceived: The perceptual process is influenced by characteristics of the perceived person, object, or event, such as:
Contrast. Intensity. Figure-ground separation. Size. Motion. Repetition or novelty.

FACTORS INFLUENCING PERCEPTION

Factors in the perceiver Attitudes Motives Interests Experience Expectations

Factors in the situation Time Work Setting Social Setting

Perception

Factors in the Target Novelty Motion Sounds Size Background Proximity Similarity