LEARNING OBJECTIVES

CUSTOMER
EXPECTATIONS „ To understand
– that customers hold different types of expectations
for service performance
– controllable and uncontrollable sources of
customer expectations
– that expectations are similar for many different
types of customers
Services Marketing & Management – the most important current issues surrounding
Amos Owen Thomas customer expectations

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Dual Customer
DEFINING EXPECTATIONS Expectation Levels
„ Standard of comparison
Desired Service
– this may be purely subjective or based on
collective previous experiences
Zone of
„ Are dynamic Tolerance

– they will change with new experience and

information Adequate Service
„ Must be managed
– critical for an organisation to predict, understand
and manage their consumers’ expectations
Source: Ziethaml & Bitner (2001)

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Factors that Influence

DEFINING EXPECTATIONS Desired Service

„ Desired service Enduring Service

– based on personal needs and wants: Intensifiers

• hopes and wishes for the service Desired

Service
– derived expectations: Personal Needs
• intensified by others’ expectations Zone
of
– personal service philosophies: Tolerance

• based on own experience as provider Adequate

Service

Source: Ziethaml & Bitner (2001)

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 DEFINING EXPECTATIONS DEFINING EXPECTATIONS

„ Adequate service „ Adequate service (cont.)

– transitory service intensifiers: – situational factors:
• short-term needs and situations • acknowledged as beyond control of provider
– perceived service alternatives: – predicted service:
• lack of and settling for less • estimate of next encounter, not total service
– self-perceived service role:
• customer’s sense of responsibility

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Factors that Influence

Adequate Service DEFINING EXPECTATIONS
Transitory Service
Intensifiers
„ The zone of tolerance
– extent to which customers are able to to
Desired
Service
accept heterogeneity of service:
Perceived Service
Alternatives • range within which customers do not notice
Zone
of performance quality
Tolerance
Self-Perceived – range beyond which customers have
Service Role Adequate clearly negative or positive reaction:
Service
• more a function of adequate service
Situational
Factors Source: Ziethaml & Bitner (2001)
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Amos Owen Thomas (c)

Zones of Tolerance for Zones of Tolerance for

Different Service Dimensions First-
First-Time and Recovery Service
Source: Berry, Parasuraman, and Zeithaml (1993)

Level First-Time Service

of Desired Service
Expectation Outcome
Zone of Desired
Tolerance Desired Service Process
Service
Adequate Service
Zone
of Recovery Service
Tolerance
Outcome
Adequate Process
Adequate Service
Service

LOW Expectations HIGH

Most Important Factors Least Important Factors
Source: Parasuraman, Berry and Zeithaml (1991)

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MARKETING IMPLICATIONS MARKETING IMPLICATIONS

„ Risk reduction „ Implicit promises

– standardise the service process – ensure tangibles reflect level of service
– provide guarantees: service recovery – justify pricing with quality of service
„ Explicit promises „ Image management
– provide realistic information/get feedback – encourage word-of-mouth & opinion
– educate customer on service & their role leaders
– highlight firm’s reputation via testimonials

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Factors that Influence

Desired and Predicted Service OTHER INFLUENCES
Source: Ziethaml & Bitner (2001) Explicit Service
Promises „ Prior attitudes towards brands
– are thought to influence expectations
Implicit Service „ Attribution theory
Promises
– Causal:
• who is to blame for satisfaction or dissatisfaction?
Desired Word-of-Mouth
– Control:
Service
• is the cause of dissatisfaction in the control of the
Zone company?
Past Experience
of – Stability:
Tolerance
• is the satisfaction or dissatisfaction likely to recur?
Adequate Predicted
Service Service Amos Owen Thomas (c) SERVICES MARKETING & MANAGEMENT CnsExpc: 16

OTHER INFLUENCES MANAGING EXPECTATIONS

„ Equity theory „ Beware of over-selling

– concerned with perceived fairness – promising more than is delivered will result in
dissatisfaction
• comparison of the ratio of the buyer’s inputs to
the outputs received „ Customer expectations are dynamic
– may change or fluctuate in extended duration
„ Personal Involvement services
– the degree of the customer’s involvement „ Self-fulfilling prophecy
with the service
– customers’ expectations may become a reality
• will affect their expectations and evaluation

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IMPACT OF CULTURE CONCLUSIONS

„ Consumers low on power distance „ Decision-making & buyer behaviour

– had a higher overall expectation of service – different for services and for goods
„ Consumers high on individualism
„ Models of service consumption
– had high overall service expectations with an
emphasis on high empathy and assurance – the stages are problematic
„ Consumers high on uncertainty avoidance – no clear alternatives yet
– had very high overall service expectations on „ Challenge of consumer expectations
processes and outcomes
– complex, but manageable

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SOURCES
Lovelock, Christopher et al (1998) Services Marketing. Frenchs
Forest, NSW: Pearson Education Australia.
Parasuraman, Berry and Zeithaml (1991) Services Marketing.
Zeithaml, Valarie A. & Bitner, Mary Jo (2001) Services Marketing:
Integrating Customer Focus Across the Firm 3rd edition, Boston:
McGraw-Hill

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