From-

BADM Dept.
 • Meaning and Types of Expected
1 Service

• Factors That Influence Customer

2 Expectations of Service

• Current Issues Involving

3 Customer Service Expectations
1. Meaning and Types of
Expected Service
Customer Expectations of Service

Customer Expectations
 Beliefs about service delivery
 Serve as standards or reference
points against which performance is
judged.
 Customers compare their perceptions
of performance with these reference
points when evaluating service quality.
 Expected Service: Levels of Expectations

Possible Levels of Customer Expectation

Ideal Expectations or Desires
Desired Service
Quality Normative “Should” Expectations

Experience Based Expectation

Adequate Service
Acceptable Expectations
Quality
Minimum Tolerable Expectations
Possible Levels of Customer Expectations
Dual Customer Expectation Levels
Desired Service:
Level of service that
customer hopes to
receive
Adequate service:
Level of service the Gap between Zone of
Desired Service &
customer will accept Adequate service
Tolerance

Zone of Tolerance:
The extent to which
customer recognize
and are willing to
accept this variation.
The Zone of Tolerance

Range or window in which customers do not

notice service performance
When service falls outside this range(either
very high or very low), the service gets the
customer’s attention in either a positive or
negative way
Different customers possess
different Zone of tolerance
Some customers have narrow zones
of tolerance
They require tighter range of service
from providers
Others allow a greater range of
service
An individual customer’s zone of
tolerance vary for a number of
factors e.g. price, personal needs,
 Zones of Tolerance for
Different Service Dimensions
Desired Service

Desired Service
Zone
Level of
of Zone of Tolerance
Expectation Tolerance

Adequate Service Adequate Service

Most Important Factors Least Important factors

Source: Berry, Parasuraman, and Zeithaml (1993)

2. Factors That Influence
Customer Expectations of
Service
 Factors That Influence Desired
Service Expectations

Supplier
Internal Factors Controlled
Factors

Situational
External Factors
Factors
 Factors That Influence Desired
Service Expectations
 Internal Factors:
Factors which are within the customer. They
include-
 Individual Needs:- if customer feel lack of
something, he motivated to take action to fulfill it.
Maslow explain, needs exist in a hierarchy.
• Lower order needs- Physiological needs, Security
needs
• Higher order needs- Social needs, Esteem needs, Self
actualization need
 Level of Involvement:- if customer is more involved,
his expectations will be more & consumers become
very particular about the type of service they expect.
Factors That Influence Desired
Service Expectations
 Past experiences- The experience that a customer
has with the following are all important-
 Service provider
 A competing service in the same industry
 A related service in a different industry
E.g.- If the visit to a dentist leaves you satisfied then
you will expect the same service next time but if you
have had an unpleasant experience and for some
reason have to go to the same dentist, you will go
with lowered expectations.
Factors That Influence Desired
Service Expectations
 Personal Philosophy of the individual- Each of us
has our own standards and we view the word according
to these standards.
These standards have developed in our lives because of
our hereditary and our environment as we were growing
up.
 Demographical reason- expectations may vary
according to the demographic group one belongs to.
For e.g. men may have different expectations from
women when they go for a hair cut.
Older consumers may have different expectations from
younger ones,
Blue collar workers may have different expectations from
white collar workers.
Factors That Influence Desired
Service Expectations
 External Factors:- Several external factors can
influence customer expectation. These are-
 Competitive Options Available- Consumer’s
expectations are often impacted when they compare
one service provider with another.
 E.g.- If one mall provides free parking facility the
customer will start expecting it from another mall.
 Social Setting- people’s expectation often increase
when they are with others or in socially crucial
situations.
 E.g.- If you go out for a causal dinner with your family,
you may be more tolerant of delay but if you have taken
an important client out to dine, your expectations will
increase.
 Factors That Influence Desired
Service Expectations
 Word-of-mouth Communications- We vary often
ask our friends their opinion about a new movie which
has just released. We then go into the hall with a
certain level of expectations.
 Cultural Context and Norms Regarding the
Service- Expectations differ from country to country.
 E.g.- It may be acceptable for a train to arrive several
are hours late in India but in Switzerland the rail
schedules are very precise and customers set their
watches by arrival of a train. In that case the
expectation of customers regarding punctuality of
train services in Switzeland will be very high.
 Factors That Influence Desired
Service Expectations
 Situational Factors: Consumer expectations are
affected by many situational factors that include –
 Type of Service and Industry: Customer
expectations will also vary from one industry to
another reflecting industry reputations and past
experiences. In some countries, people may have
very low expectations. In some countries, people may
have very low expectations from government service
providers but may have very high expectations form
private service providers.
 Eg. -The expectations of the consumer taking his pet
to a vet for treatment will be very different from his
expectations when he visits the doctor himself for
treatment.
 Factors That Influence Desired
Service Expectations
 Reason for Purchase: The reason why a service is
purchased can have an impact upon consumer
expectations.
 Eg. - Suppose you hire a taxi for an out-of station
office trip your expectations will center around the
hiring cost (Which should match the allowance you
are given by your office) whereas if you hire a
limousine to impress your date your expectations will
center around luxury and style.
 Consumer’s Mood: Individual in a good mood may
be more tolerant of delay or inadequate service than
a consumer who is in a bad mood. That is why
service providers pay a lot of attention to setting the
mood.
 Factors That Influence Desired
Service Expectations
 Weather:- Imagine a situation where an aero plane is
caught up in a thunderstorm. The consumers will
focus their expectations on getting back on land
safety with no thought to delay. Thus, even the
weather can influence consumer expectations.
 Time constraints:- If a company has approached a
placement agency to fill up a post and needs to do so
really quickly. It may compromise on the qualifications
if the individual selected because it lacks the time to
find the person who fulfills all the required criteria.
Thus, Time constraints can influence consumer
expectations.
 Factors That Influence Desired
Service Expectations
 Critical Positioning- Emergencies and
catastrophes do influence consumer
expectations. Under normal circumstances,
consumers may have very high expectations
from hospital staff but if there is a disaster like
a fire or earthquake which has meant that the
hospital is overflowing with patients
consumers may become more tolerant.
 News in media- Any publicity- positive or
negative or any report in the media may have
an impact upon the consumer expectations.
Factors That Influence Desired
Service Expectations
 Supplier- Controlled Factors:- Supplier controlled
factors such as Advertising, pricing & the physical
appearance of the service facility and its
employees will greatly influence consumer
expectations.
 Promotion:- The promises that service providers
may make in advertisement & sales promotions will
create a certain level of expectations in the
customers.
 For example Management Institute mentions a
state of the art computer laboratory then the
students will join the institute with high
expectations from the computer facilities.
Factors That Influence Desired
Service Expectations
 Pricing:- The higher the price of a service, the
higher will be the consumer’s expectations.
 Example- If you pick the most expensive service
provider you will obviously expect the very best
from them.
 Positioning:- if the airlines has positioned itself as
a no- frills, low cost airline then consumer
expectations will be low but if the airlines has
positioned itself as a premium airlines then
consumer expectations will be very high.
 Factors That Influence Desired
Service Expectations
 Distribution:- When a service provider has many
outlets then a consumer who has used the service one,
forms a certain level of expectations.
 If the service provider is a single unit, consumers may
not know what to expect.
 E.g.- A family holiday McDonald’s, because it is familiar
and they have certain expectations from it.
 Service Personnel:- The attitude & behavior of
employees as well as what they say will influence
consumer expectations.
 E.g.- If the beautician promises you a glowing skin after
the facial she gives you, you will be expecting that.
Factors That Influence Desired
Service Expectations
 Accompanying Tangibles- The tangibles cues in
the service facility like décor, furniture, equipment
used, level of hygiene & cleanliness, displays and
dress of the personnel, etc.
 Other Customers- A customer who goes to a gym
may observe how the instructors treat and instruct
other consumers. Their expectations will therefore
be formed according to that.
 Image of the Firm- The goodwill and image that a
firm created for itself also influences the
expectations of consumers. We have a certain
image of ITC and expect an ITC hotel to live up to
our expectations.
 Managing Customer service
Expectations
 It is a critical component in the marketing plan of a
service business.
 Consumer expectation must be managed during the-
 pre purchase phase,
 the service encounter,
 the post purchase phase.
During the pre purchase
phase-
 Managing customer expectations during the pre-
purchase phase consist of 3 steps which are as
follows-
i) Learn what Customer expect:- Learning
customer expectations during the pre purchase
phase requires communication.
ii) Tell customer what they expect- Advertising,
sales personnel, tangible cues, point of purchase
displays and sales promotions some of the
methods that can be used.
iii) Consistently provide the service that
customer expect- Past experiences and word of
mouth are two critical variables used by
consumers in making purchase decision.
During the Service Encounter
 3 strategies can be used during the service
encounter to manage customer expectations
which are as follows-
 Service personnel must communicate with
the customer during the service encounter.
 If possible, service providers should modify
the service to meet the customer’s
expectations.
 If the service cannot be modified, the service
personnel should explain why the customer’s
expectations cannot be met.
The goal during this phase is to ensure the
service being provided matches the customer’s
expectations.
During the post-purchase
Phase
 Managing consumer expectations do not stop
after the service is performed.
 Service firms have 3 strategies they can use
after the service has been completed which are
as follows:-
 Companies should communicate with customers
immediately after the service is completed to see
if expectations were met.
 Firms can use a follow-up program, such as an
evaluation survey sent to the customer through
the mail or a phone call.
 Companies should have a procedure for dealing
with dissatisfy customers that will assist in
managing future expectations.
 Exceeding Customers Service
Expectations
 This strategy is appropriate for those
organizations which define service
quality as delighting the customers.
 It is concerned with trying to ensure
that there are no negative
experiences but also with trying to
exceed expectations by creating some
positive transaction outcomes.
Exceeding Customers Service
Expectations
 There are 3 approaches for exceeding
customer service expectation:-
1. Customer Relationship- Maintaining
customer relationship is one of the
approach for exceeding service
expectations.
2. Underpromise the Service:- The strategy
is underpromise and overdeliver. If the
promise is less than what will eventually
happen, customers can be delighted
frequently.
3. Unusual service as Unique:- A final way to
exceed the expectations without raising
them in the future is to position unusual
service as unique rather than standard.