S M Khan 27/11/2010

1
S
M

S
M
Sarif Mohammad Khan

Chapter - 3
Customer Expectations
of Service
S M Khan 27/11/2010
2
S
M
Customer Expectations (1)
Customer Expectations are beliefs about service
delivery that function as standards or reference
points against which performance is judged.

Customers compare their perceptions of
performances with reference point to evaluate
service quality.
S M Khan 27/11/2010
3
S
M
What the customer expects is the first and possibly
most critical step in delivering quality service for the
service marketer.

Knowing customer expectation is difficult.

Considerable matters:
Type of expectation standards
Function influence expectation
Role Play
Meet or exceed
Customer Expectations (2)
S M Khan 27/11/2010
4
S
M
Meaning and Types of Service
Expectations
The level of expectation can vary widely depredating on
the reference point the customer holds.

Types of Expectations:
1. Expected Service: Level of Expectations
a. Desired Service
The level of service the customer hopes to receive.
b. Adequate Service
The level of service the customer will accept.

2. The Zone of Tolerance
The extent to which customers recognize and are willing to
accept the variation of service.
a. Different customer posses different Zones of Tolerance
b. Zones of Tolerance vary for service dimensions
S M Khan 27/11/2010
5
S
M
Ideal
Expectations
or desires
Normative
should
expectations
Experience-
based
norms
Acceptable
expectations
Minimum
Tolerable
expectations
Everyone says this restaurant
Is as good as one in France
And I want to go somewhere
Very special for my anniversary.
As expensive as this
Restaurant is, it ought to have
Excellent food and service
Most time this restaurant is very
Good, but when it gets busy the
Service is slow.
I expect this restaurant
To serve me in an
Adequate manner.
I expect terrible service
From this restaurant but come
Because the price is low.
High
Low
Most Customers
opinion
(Pizza Hut)
Pricing
(New fast food)
Experience
(Nirob)
Meet up needs, no
Extra benefit
( Canteen)
Restaurants of
Italy
Possible Levels of Customer
Expectations
S M Khan 27/11/2010
6
S
M
Desired Service (highest level)
Adequate Service (minimum)

Level of Service
Hopes to Receive
Level of service
Ready to accept
Fast Food:
Quick,
convenient,
Testy food in
a Clean
setting.

Restaurant:
Elegant
Surroundings
Gracious
Employees
Candle light
Fine food.


Expected Service: Level of
Expectations
S M Khan 27/11/2010
7
S
M
Desired Service
Adequate Service
Zone of
Tolerance
ZOT
It is the parameter or
The extent to which
customers are willing
to accept variation
Dont notice
1.
2.

3.
4.




5.
6 Dissatisfaction
Service < A.S = Disappointed
Service D.S =Delighted
The Zone of Tolerance
S M Khan 27/11/2010
8
S
M
Different Customer Posses
Different Zones of Tolerance
Some customers have narrow zones of
tolerance.
Busy customers
Sudden price rise

Some customers have Widen zones of
tolerance.
Scarce services
S M Khan 27/11/2010
9
S
M
Desired service
Adequate Service
Zone
of
Tolerance
Desired Service
Adequate Service
Zone
of
Tolerance
Level of
Expectation

Most important factors
Least important factors
Busy
Customers
Narrow

Sudden price
Rise
Narrow
Zones of Tolerance for Different
Service Dimensions
S M Khan 27/11/2010
10
S
M
Factors that Influence Customer
Expectations
Expectations play such a critical role in
customer evaluation of service.

Marketers need and want to understand the
factors.

Marketers would also like to have control
over these factors.
S M Khan 27/11/2010
11
S
M
Factors that Influence Customer
Expectations
1. Sources of Desire Expectations

2. Sources of Adequate Expectations

3. Service Encounter Expectations Vs Overall
Service Expectations

4. Sources of both Desire and Predicted
Expectations
S M Khan 27/11/2010
12
S
M
Sources of Desire Expectations
Enduring Service Intensifiers
Individuals and stable factors that lead the customer to
a heightened sensitivity of service.
i.e. Derived service expectations: Expectation driven by
another person or group of people.

Personal needs
The customers underlying generic attitude about the
meaning of service and the proper conduct of service
providers.
i.e. Shaped by training and experience in the role.
S M Khan 27/11/2010
13
S
M
Enduring Service
intensifiers
Personal needs
Desired
Service
Adequate
Service
Zone
of
Tolerance
Sources of Desire Expectations
S M Khan 27/11/2010
14
S
M
Sources of Adequate
Expectations (1)

1. Transitory service intensifiers
2. Perceived service alternatives
3. Self-perceived service role
4. Situational factors
5. Predicted service

S M Khan 27/11/2010
15
S
M
Sources of Adequate
Expectations (2)
Transitory service intensifiers
Temporary, usually short-term, individual
factors that make a customer more aware of
the need for service.
i.e. Personal emergency situation- accident

Perceived service alternatives
Other providers from whom customer can
obtain service.
S M Khan 27/11/2010
16
S
M
Sources of Adequate
Expectations (3)
Self-perceived
Customer perceptions of the degree to which
customers exert an influence on the level of
service they receive.
i.e. Level of service expected- the degree of
doneness.
Situational factors
Service performance conditions that customers
view as beyond the control of the service
providers.
i.e. Poor telephone and internet service

S M Khan 27/11/2010
17
S
M
Sources of Adequate
Expectations (4)

Predicted service
The level of service the customers believe they
are likely to get.
i.e. Spend in the waiting room.
S M Khan 27/11/2010
18
S
M
Transitory service
intensifiers
Perceived service
alternatives
Self-perceived
Service role
Situational
factors
Desired Service
Adequate Service
Zone
of
Tolerance
Predicted
Service
Sources of Adequate
Expectations
S M Khan 27/11/2010
19
S
M
Service Encounter Expectations
Vs Overall Service Expectations
Service encounter as a discrete event occurring
over a definable period of time.

Customer hold expectations of the quality of each
service encounter

Like:
1. Minutes one might wait
2. Speedy service
S M Khan 27/11/2010
20
S
M
Desired Service
Adequate Service
Zone
of
Tolerance
Explicit service
promises
Implicit service
promises
Word of mouth
Past experience
Predicted Service
Expected
Service
Sources of both Desire and
Predicted Expectations
S M Khan 27/11/2010
21
S
M
A Model of Customer Service
Expectations



Service Marketing Influencing Factors
S M Khan 27/11/2010
22
S
M
Service Marketing Influencing
Factors (1)
1. Controllable Factor
a. Explicit service promises .
b. Implicit services promises
2. Less Controllable Factors
a. Enduring service intensifiers
b. Personal needs
c. Transitory service interferes
d. Word of mouth communications
e. Past Experience
f. Situational Factors
g. Predicted Service
S M Khan 27/11/2010
23
S
M
Service Marketing Influencing
Factors (2)
Controllable Factor
Explicit service promises 1. Realistic and accurate promises.
2. Contact people for feedback.
3. Price or advertising wars.
4. A service guarantee.

Implicit services promises 1. Service tangibles.
2. Price premiums.

Less Controllable Factors

Enduring service intensifiers 1. Use market research.
2. Personal service philosophies.

Personal needs 1. Educate customers

Transitory service interferes 1. Increase service delivery.
S M Khan 27/11/2010
24
S
M
Less Controllable Factors

Word of mouth communications 1. Stimulate word of mouth
communications
2. Using testimonials and opinion leaders
3. Identify influencers and opinion
leaders.
4. Use intensive with existing customers.

Past Experience 1. Marketing research to profile.

Situational Factors 1. Use service guarantee.

Predicted Service 1. Predictions of future service
encounters.
Service Marketing Influencing
Factors (3)
S M Khan 27/11/2010
25
S
M
Issues Involving Customer Service
Expectations
1.What does a service marketer do if customer
expectations are unrealistic?
Fundamentals not fanciness, performances not empty
promises
Under promise, over delivery
Reality check

2. Should a company try to delight the customer?
Musts, satisfiers, delights

3. How does a company exceeds customers expectations?
Honoring promises
Dependable and accurate service providers
S M Khan 27/11/2010
26
S
M
4. Do customer service expectations continually escalate?
Competitive industry raises service standards ,such as,
credit card industry.
Continuous monitoring

5. How does a service company stay ahead of competition
in meeting customer expectations?
If performance falls short of adequate service level, it
creates competitive disadvantages.
Issues Involving Customer Service
Expectations