Customer

Customer expectations
expectations
of
of service
service
CHAPTER 3
 CHAPTER 3
i)Meaning of customer expectations
ii)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 high
or desires

Normative expectations

Experienced based norms

Acceptable expectations

Minimum tolerance
expectations 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 service
Desired 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
restaurant
Restaurants 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 tolerance
Desired service

Zone of
tolerance

Adequate service
 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 need
understanding, 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 family
Travel 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 intensifiers
2. perceived service alternatives
3. Customers self perceived service
role
4. Situational factors
5. 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 equipment
Repairman'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 promises
2. Implicit service promises
3. Word of mouth communications
4. Past experience
 Explicit service
Desired service promises

Implicit service
promises
Zone of
tolerance Word of mouth

Past experience

Adequate service Predicted

service
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 Type of Principal
service customer expectations
1. consumer Fix right parts,
Automobile Explain the reason why
insurance he needs repair..?
2. Hotel consumer Provide clean rooms
prompt service
 treatment like guest…
 Make a chart for……..
1. Property and casualty insurance
2. Equipment repair
Type of service Type of Principal expectations
customer
1. Property and Business Provide prompt service,
casualty customers full obligations…..
insurance
2. Equipment Business Keep all parts for repair
repair customers Speedy 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