MODULE: 3 – PART 2

CONCEPTUAL FRAMEWORK: THE GAPS MODEL OF SERVICE QUALITY

The GAP Model of Service Quality helps the company to understand the Customer Satisfaction.
In-Service Industry, the GAP Model is widely used to understand the various deviations that are
occurring in the process of service delivery to potential customers.
GAP Model creates a roadmap for the overall service delivery process and identifies the gap
between the processes so that the complete model works efficiently and effectively. This helps
the service providers to map the inefficiency that is occurring in the service delivery process.

The GAP Model of Service quality helps to identify the gaps between the perceived service and
the expected service. Five Gaps occur in the Service Delivery Process. They are:
1. The gap between Customer Expectation and Management Perception
2. The gap between Service Quality Specification and Management Perception
3. The gap between Service Quality Specification and Service Delivery
4. The gap between Service Delivery and External Communication
5. The gap between the Expected Service and Experienced Service.

GAP 1: Gap between Management Perception and Customer Expectation

This gap arises when the management or service provider does not correctly
analyze what the customer wants or needs. It also arises due to insufficient
communication between contact employees and managers. There is a lack of
market segmentation. This Gap occurs due to insufficient market research. For
Instance- A café owner may think that the consumer wants a better ambience in
the café, but the consumer is more concerned about the coffee and food they
serve.
GAP 2: Gap between Service Quality Specification and Management Perception
This gap arises when the management or service provider might correctly
comprehend what the customer requires, but may not set a performance
standard. It can be due to poor service design, Inappropriate Physical evidence,
Unsystematic new service Development process.
An example would be restaurant Managers who may tell the waiters to provide
the order of the consumer quick, but do not specify “How Quick”.
GAP 3: Gap between Service Quality Specification and Service Delivery
This gap may arise in situations existing to the service personnel. It may occur
due to improper training, incapability or unwillingness to meet the set service
standards. It can be due to inappropriate evaluation and compensation systems.
Ineffective Recruitment is the main cause of this gap.
The failure to match the supply and demand can create this gap. There is also a
lack of empowerment, Perceived Control, and framework. An example would be
a restaurant having very specific standards of the food communicated but the
restaurant staff may not be given proper instruction as to how to follow these
standards.
GAP 4: Gap between External Communication and Service Delivery
Consumer Expectations are highly influenced by the statements made by the
company representatives and advertisements. This gap arises when these
assumed expectations are not fulfilled at the time of Delivery of Service.
An example would be a restaurant that has printed on its menu that it serves
100% Vegetarian Food but in reality, it serves Non-Vegetarian Food as well. In
this situation, consumer expectations are not met.

GAP 5: Gap between Experienced Service and Expected Service

This gap arises when the consumer misunderstands the service quality. For
Instance, A Restaurant Manager may keep visiting their consumer to ensure
quality check and consumer satisfaction, but the consumer may interpret this as
an indication that something is fishy or there is something wrong in the service
provided by the restaurant staff.

IMPROVING SERVICE QUALITY AND PRODUCTIVITY

What is Service Quality?
Service Quality is defined as an evaluation of how well the delivered service
matches consumer expectations. It is done to assess the deviations that are
occurring while delivering the services to potential customers.
Businesses that meet or succeed expectations are considered to have high service
quality. Service Quality defines the retention power of the company concerning its
customers. Customer Retention is the best measure of Service Quality.
The Five Dimensions of Service Quality
1. Reliability - It is the ability to perform the set service dependably and accurately.
It focuses on providing the services right the first time and maintaining error-free
records.
2. Assurance - It is the Knowledge and Courtesy of Employees and their ability to
convey trust and confidence. Employees who instil confidence in customers and
Make Customers feel safe in their transactions.
3. Tangibles - It contains Physical Facilities, Modern Equipment, appearance of
personnel, Visually appealing materials associated with service.
4. Empathy - Caring, Individual Attention a firm provides to its customers.
Convenient business hours, Having the customer’s best interest at heart.
5. Responsiveness - Willingness to help customers and provide prompt services.
Readiness to respond to customers’ inquiries.

SERVQUAL MODEL: (5 Gaps)

In order to provide services, companies must be aware of what their clients expect from
them. Therefore, the SERVQUEAL model identifies five gaps that can occur between
the client's expectations and the services provided by the organization. These include:
1. Knowledge Gap
A gap in the service arises if the organization is not aware of what customer
wants. If the organization fails to understand customers' expectations, it will
prevent them from serving customers better.
2. Standards Gap
The organization has already formulated its ideas about what kind of services the
customer wants. These ideas do not match up with what customers really want.
There is, therefore, a high chance that the organization will translate them
incorrectly into a quality policy and set of rules.
3. Delivery Gap
Let's assume that the organization has clearly understood what the customer
wants (no knowledge gap) and has appropriately formulated the customer's
needs into their policies and work processes (no standard gap). Still, there is a
possibility that the organization might fail to deliver the service in the planned
way. This will be the delivery gap.
4. Communications Gap
To avoid creating false expectations or misleading promises, organizations
should ensure that their external communications accurately reflect what they
can deliver. Over-promise and under-delivery could raise customer expectations
high, and the organization fails to deliver at that standard. This will be the
communication gap.
To reduce the risk of communication gaps, organizations should ensure that they
communicate clearly about their products or services.
5. Satisfaction Gap
Customers are unhappy because they expect a certain level of service but get
something different. Eventually, customers will be dissatisfied with the product or
service they receive.

CUSTOMER BEHAVIOR in MARKETING

Decoding the processes behind customers’ decisions means that we can use that info to boost
revenue.
MEANING of CONSUMER BEHAVIOR

Consumer behavior is the study of consumers and the processes they use to choose, use
(consume), and dispose of products and services, including consumers’ emotional,
mental, and behavioral responses.
Consumer behavior incorporates ideas from several sciences including psychology, biology,
chemistry, and economics.
CHARACTERISTICS of CONSUMER BEHAVIOR
There are four factors that determine the characteristics of consumer behavior: personal,
psychological, social, and cultural. All factors have a major impact on a consumer’s behavior
and the characteristics that define a customer will change as her/his life changes.

IMPORTRANCE OF UNDERSTANDING CONSUMER BEHAVIOR

Studying consumer behavior is important because it helps marketers understand what
influences consumers’ buying decisions.
By understanding how consumers decide on a product, they can fill in the gap in the
market and identify the products that are needed and the products that are obsolete.
Studying consumer behavior also helps marketers decide how to present their products in
a way that generates a maximum impact on consumers. Understanding consumer buying
behavior is the key secret to reaching and engaging your clients, and converting them to
purchase from you.
A consumer behavior analysis should reveal:
What consumers think and how they feel about various alternatives (brands,
products, etc.);
What influences consumers to choose between various options;
Consumers’ behavior while researching and shopping;

How consumers’ environment (friends, family, media, etc.) influences their

behavior.

Consumer behavior is often influenced by different factors. Marketers should study

consumer purchase patterns and figure out buyer trends.
In most cases, brands influence consumer behavior only with the things they can control;

CATEGORIES of FACTORS that INFLUENCE CONSUMER BEHAVIOR

1. Personal factors: an individual’s interests and opinions can be influenced by
demographics (age, gender, culture, etc.).
2. Psychological factors: an individual’s response to a marketing message will depend on
their perceptions and attitudes.
3. Social factors: family, friends, education level, social media, income, all influence
consumers’ behavior.
TYPES OF CONSUMER BEHAVIOR
1. Complex buying behavior
This type of behavior is encountered when consumers are buying an
expensive, infrequently bought product. They are highly involved in the
purchase process and consumers’ research before committing to a high-value
investment. Imagine buying a house or a car; these are an example of a
complex buying behavior.
2. Dissonance-reducing buying behavior
The consumer is highly involved in the purchase process but has difficulties
determining the differences between brands. ‘Dissonance’ can occur when the
consumer worries that they will regret their choice.
Imagine you are buying a lawnmower. You will choose one based on price
and convenience, but after the purchase, you will seek confirmation that
you’ve made the right choice.

3. Habitual buying behavior

Habitual purchases are characterized by the fact that the consumer has very
little involvement in the product or brand category. Imagine grocery shopping:
you go to the store and buy your preferred type of bread. You are exhibiting a
habitual pattern, not strong brand loyalty.

4. Variety seeking behavior

In this situation, a consumer purchases a different product not because they
weren’t satisfied with the previous one, but because they seek variety. Like
when you are trying out new shower gel scents.

Knowing what types of customers your e-store attracts will give you a better idea
about how to segment customer types.

WHAT AFFECTS CONSUMER BEHAVIOR?

Many things can affect consumer behavior, but the most frequent factors influencing consumer
behavior are:
1. Marketing campaigns
Marketing campaigns influence purchasing decisions a lot. If done right and
regularly, with the right marketing message, they can even persuade
consumers to change brands or opt for more expensive alternatives.
Marketing campaigns, such as Facebook ads for eCommerce, can even be
used as reminders for products/services that need to be bought regularly but
are not necessarily on customers’ top of mind (like an insurance for example).
A good marketing message can influence impulse purchases.

2. Economic conditions
For expensive products especially (like houses or cars), economic conditions
play a big part. A positive economic environment is known to make
consumers more confident and willing to indulge in purchases irrespective of
their financial liabilities.
The consumer’s decision-making process is longer for expensive purchases
and it can be influenced by more personal factors at the same time.

3. Personal preferences
Consumer behavior can also be influenced by personal factors: likes, dislikes,
priorities, morals, and values. In industries like fashion or food, personal
opinions are especially powerful.
Advertisements can influence behavior but, at the end of the day, consumers’
choices are greatly influenced by their preferences. If you’re vegan, it doesn’t

matter how many burger joint ads you see, you’re not gonna start eating meat
because of that.
4. Group influence
Peer pressure also influences consumer behavior. What our family members,
classmates, immediate relatives, neighbors, and acquaintances think or do can
play a significant role in our decisions.
Social psychology impacts consumer behaviour. Choosing fast food over
home-cooked meals, for example, is just one of such situations. Education
levels and social factors can have an impact.

5. Purchasing power
Last but not least, our purchasing power plays a significant role in influencing
our behavior. Unless you are a billionaire, you will consider your budget
before making a purchase decision.
The product might be excellent, the marketing could be on point, but if you
don’t have the money for it, you won’t buy it.

Segmenting consumers based on their buying capacity will help marketers determine eligible
consumers and achieve better results.

CUSTOMER BEHAVIOR TACTICS

DISCOVER ADVANCE CONSUMER BEHAVIOR TACTIS.

Customer behavior patterns
Buying behavior patterns are not synonymous with buying habits. Habits are developed as
tendencies towards an action and they become spontaneous over time, while patterns show a
predictable mental design.
Each customer has his unique buying habits, while buying behavior patterns are collective and
offer marketers a unique characterization. Customer behavior patterns can be grouped into:
1. Place of purchase
Most of the time, customers will divide their purchases between several stores
even if all items are available in the same store. Think of your favorite
hypermarket: although you can find clothes and shoes there as well, you’re
probably buying those from actual clothing brands.
When a customer has the capability and the access to purchase the same
products in different stores, they are not permanently loyal to any store, unless
that’s the only store they have access to. Studying customer behavior in terms
of choice of place will help marketers identify key store locations.

2. Items purchased
Analyzing a shopping cart can give marketers lots of consumer insights about
the items that were purchased and how much of each item was purchased.
Necessity items can be bought in bulk while luxury items are more likely to be
purchased less frequently and in small quantities.
The amount of each item purchased is influenced by the perishability of the
item, the purchasing power of the buyer, unit of sale, price, number of
consumers for whom the item is intended, etc.

3. Time and frequency of purchase

Customers will go shopping according to their feasibility and will expect service
even during the oddest hours; especially now in the era of e-commerce where
everything is only a few clicks away.
It’s the shop’s responsibility to meet these demands by identifying a purchase
pattern and match its service according to the time and frequency of purchases.
One thing to keep in mind: seasonal variations and regional differences must also
be accounted for.
4. Method of purchase
A customer can either walk into a store and buy an item right then and there or
order online and pay online via credit card or on delivery.
The method of purchase can also induce more spending from the customer (for
online shopping, you might also be charged a shipping fee for example).
The way a customer chooses to purchase an item also says a lot about the type of
customer he is. Gathering information about their behavior patterns helps you
identify new ways to make customers buy again, more often, and higher values.
Think about all the data you’ve already collected about your customers. The
purchase patterns are hiding in your e-store’s analytics and you can either look for
insights manually or integrate a tool with your eCommerce platform to get
automated insights about behavior patterns.

Customer behavior segmentation

Customer segmentation and identifying types of buyers have always been important.
Now that personalization and customer experience are factors that determine a business’
success, effective segmentation is even more important.
Only 33% of the companies that use customer segmentation say they find it significantly
impactful, so it’s important to find the segmentation technique that brings clarity and
suits your business.
Most marketers use six primary types of behavioral segmentation.
1. Benefits sought
A customer who buys toothpaste can look for four different reasons: whitening,
sensitive teeth, flavor, or price.

When customers research a product or service, their behavior can reveal valuable
insights into which benefits, features, values, use cases, or problems are the most
motivating factors influencing their purchase decision.
When a customer places a much higher value on one or more benefits over the others,
these primary benefits sought are the defining motivating factors driving the purchase
decision for that customer.
2. Occasion or timing-based
Occasion and timing-based behavioral segments refer to both universal and personal
occasions.
Universal occasions apply to the majority of customers or target audience. For
example, holidays and seasonal events when consumers are more likely to
make certain purchases.
Recurring-personal occasions are purchasing patterns for an individual
customer that consistently repeat over a while. For example birthdays,
anniversaries or vacations, monthly purchases, or even daily rituals such as
stopping for a cup of coffee on the way to work every morning.
Rare-personal occasions are also related to individual customers, but are more
irregular and spontaneous, and thus more difficult to predict. For example,
attending a friend’s wedding.

3. Usage rate
Product or service usage is another common way to segment customers by behavior,
based on the frequency at which a customer purchases from or interacts with a
product or service. Usage behavior can be a strong predictive indicator
of loyalty or churn and, therefore, lifetime value.

1. Brand loyalty status

Loyal customers are a business’s most valuable assets. They are cheaper to retain,
usually have the highest lifetime value, and can become brand advocates.
By analyzing behavioral data, customers can be segmented by their level of loyalty so
marketers can understand their needs and make sure they are satisfying them.
Loyal customers are the ones who should receive special treatment and privileges
such as exclusive rewards programs to nurture and strengthen the customer
relationship and incentivize continued future business.

5. User status
There are many different possible user statuses you might have depending on your
business. A few examples are:
Non-users
Prospects
First-time buyers
Regular users
Defectors (ex-customers who have switched to a competitor).

6. Customer journey stage

Segmenting the audience base on buyer readiness allows marketers to align
communications and personalize experiences to increase conversion at every stage.
Moreover, it helps them discover stages where customers are not progressing so they can
identify the biggest obstacles and opportunities for improvement, even on post-purchase
behaviors.

RFM MODEL (SEGMENTATION)

This approach is popular among eCommerce marketers because it helps them create customer
experiences around the information they’ve got about each customer segment.
RFM is a behavioral segmentation model and the three letters come from Recency, Frequency,
and Monetary Value.
Here’s what these variables show you:
Recency = how recent a customer placed the last order on your website;
Frequency = how many times a customer purchased something from your website in the
analyzed period of time;
Monetary Value = how much each customer spent on your website since the first order.
The RFM model analysis can be executed in 2 ways:
Manually – exporting your database in a spreadsheet and analyzing your customers
following the rules for RFM analysis;
Automatically – through certain tools that are creating RFM dashboards.
RFM segmentation and analysis can reveal who your most loyal and profitable customers are
and
also:
Reveal what brands and products are dragging your business down;
Build custom recommendations for your customers;
Solve certain Customer Experience problems.

Before making decisions based on gut feeling regarding your customers and your audience,
observe their behavior, listen to them and build a relationship that will make them stay loyal no
matter how aggressive your competitors are.
What are the characteristics of consumer behavior?
There are four factors that determine the characteristics of consumer behavior: personal,
psychological, social, and cultural. All factors have a major impact on a consumer’s behavior
and the characteristics that define a customer will change as her/his life changes.

MODEL of CONSUMER CHOICE

The more a small businessman understands how consumers make their choices -- their buying
decisions -- the better the company marketing mix can be designed. According to authors
‘Philip Kotler and Gary Armstrong’, the basic model of consumer decision making involves a
5 step process:
Step 1: need recognition;
Step 2: information search;
Step 3: evaluation of alternatives;
Step 4: purchase decision;
Step 5: post purchase behavior.
Consumers use this model unconsciously for buying decisions as trivial as a candy bar and as
complex as a car with different results, because everyone is subject to influences that are
uniquely theirs. They come from different families or social classes, have different attitudes
and perceptions, and have different life experiences.
Model 1: An Economic Model
Under this model, consumers make very rational, economic choices, rigidly adhering to
the five-step process.
They allocate their limited resources to achieve the best utility for their purchases.
The consumer reviews all of the choices available, compares features and benefits and
makes a logical decision.
The small businessman looking to appeal to this consumer will make as much
information as possible readily available.
Comparison charts might be posted at the store.

Additional information might be available through a web site and from a staff well-
educated about the products for sale.

Model 2: A Passive Model

Here, consumers are more irrational and make impulsive decisions.

They can be easily manipulated by promotion and advertising.

Their buying decisions are based more on wanting a product than needing a product.
Businessmen should focus on creating that want with exciting advertising that appeals
to the emotions of the buyer.
Extensive use should be made of in-store materials that call attention to special deals
and increase impulse buying.
Large displays and signage also help create that want.
The staff should be very outgoing and positive.
Model 3: A Cognitive Model
These consumers are thinking problem-solvers, a blend of the economic consumers and
passive consumers.
They will work through the 5 step process.
o For example, their information search might not include all the information
available, but will conclude when they feel they have a comfortable
understanding of the features and benefits of products that meet their needs.
These consumers will respond to promotions based upon the consumer receiving good
value for their money. As long as they are convinced they are getting a good deal, they
can be motivated by promotion and advertising to make the purchase.

Model 4: An Emotional Model

According to Consumer Behavior experts, some consumers make purchases based on
emotions like joy, love, fear or hope.
Many hope to preserve a sense of the past.
o Example: Anheuser-Busch, for example, taps into this appeal around the
Thanksgiving and Christmas holidays, when it rolls out commercials with the
famous Budweiser Clydesdales pulling a sleigh down a snow filled lane. The ads
feature fireplaces and show an entire family sitting down for a holiday dinner.
They don’t talk about price or the features of their beer, they just tie it to the
emotions consumers have of wonderful holidays from the past. Small businesses
need to determine what emotional connection their target market has to their
products and build their promotional programs around it.

MODULE 5 – PART 4 - COSTUMER EXPERIENCE

What is customer experience (CX)?

Customer experience, or CX for short, is a term used to describe the customer
interactions with your business across multiple levels. The experience they have with
your customer support team is part of CX, but it isn’t everything. Customer experience
could be anything from navigating your mobile app or website to consuming your
marketing campaigns or directly using your product or service.

Two types of customer experience:

1. Direct customer experience refers to any interaction initiated by the customer. This
includes the purchasing lifecycle, the experience of using the product or service, and
any interaction they have with your team.

2. Indirect customer experience refers to the passive encounters with your company. This
can mean your marketing efforts and also external advocacy or opposition, such as
reviews, word-of-mouth communication, and external media coverage.

Understanding customer experience vs. customer service

Customer experience and customer service are often used interchangeably. This
can be problematic, as customer service is only one part of the customer
experience.

Customer service refers to the direct interactions between you and the customer.
This happens when a customer requires assistance or help through any of the
different communication channels you might offer. This could include:

Face-to-face interactions at a shop or office space

Over the phone
Via email
On social media
Through chatbots
On website support pages

Good customer service is vital to harnessing a good customer experience, and it is only one
part
of a bigger concept. CX goes beyond customer service to practically every aspect of your
organization. It’s more than how long it takes your team to follow up on a query or whether or
not they manage to successfully address a complaint. It’s also about the design of your product,
the music you play in your store, the reviews written about you on Yelp, and so much more.

Why CX is important for your business

Many companies see positive CX as a competitive differentiator. Improving CX will reap
many benefits for your business:
It helps you better understand your customers. To improve consumer
experience, you first need to understand your customers and how they’re
interacting with you. This means learning more about your users and their
behaviors. With this information, you can offer more personalized experiences
across all customer touchpoints to increase your value proposition.
It increases customer loyalty and retention. Customer experience is the single
largest determinant of your retention rate. A good experience harnesses loyalty,
which drives your retention rate. The higher your retention rate, the more your
business grows. According to this Zendesk report, 61% of customers will end
their engagement with a company after having a bad experience.

It improves your brand value. Positive perceptions of your company’s brand

increase its value. The better your reputation as a brand, the more it’s worth.
Understanding how your customers feel about your brand can help you take the
steps needed to shift perceptions in a positive direction.

It attracts new customers. Customers are more likely to promote your brand
after having good experiences. Satisfied customers are your best ambassadors and
are likely to bring in new customers through word-of-mouth, posting good

reviews, and leaving glowing recommendations. High-quality customer

experience is a great way to increase your net promoter score (NPS).

It limits your costs. Gaining CX insight sheds light on what’s currently working
and what isn’t. By understanding what isn’t working, you can stop spending
money on the elements of your business that aren’t meeting customers
expectations. Instead, you can spend on things that are addressing customer needs
and pain points, and will ultimately drive revenue for your business.

It reduces customer complaints. Happy customers are less likely to complain,

and fewer complaints mean less customer churn. It also means your contact center
is spending less time putting out fires and more time nurturing quality
relationships with your users.

Key components of customer experience

These four components give you a clearer picture of the quality of your customer interactions
and how to improve them.
1. A customer-centric culture: Customer service should be a priority for every member of
your team, not just your customer service center. You need to create a sense of
ownership and shared responsibility toward creating positive customer experiences.
This starts with creating positive employee experiences. Team members who feel valued
and who understand the organization’s goals are more likely to embody them when
interacting with the customer.
2. Well-designed touchpoints: What does your customer journey map look like? What are
the likely customer perceptions at each touchpoint? Quality CX comes from ensuring
that every touchpoint is optimized to satisfy customer needs. This includes things like
intuitive web design, friendly customer service, and a well-designed product.
Understanding your user journey is an ongoing process and by doing so, you’re more
likely to ensure customer retention.

3. Consistent quality: Your company’s goal of delivering quality CX should always be

front-of-mind for your team. A bad experience can have negative effects on your
organization. Delivering good CX is an ongoing effort and must be delivered
consistently if you’re going to retain customers and maintain your brand reputation.
4. Customer satisfaction: Customer satisfaction is a good indicator of overall CX. It’s
also one that can be measured quickly and easily at every touchpoint and interaction.

It’s a great way to gauge the type of experience a customer has with you in real-time.
The method used for measuring customer satisfaction should be accurate and provide
you with the insights needed to constantly improve.

Traits of a quality customer experience

Offering quality customer experience involves understanding your customer needs and
expectations and trying to satisfy them across all points in their journey with your business.
Using feedback to learn more about your customers: By obtaining feedback from your
customers, you learn more about who they are, what they need, and how they perceive
your organization. Understanding this helps you provide a better experience and
ultimately harness greater customer value.
Implementing systems for collecting, analyzing, and utilizing customer
feedback: These systems should be designed in a way to make them easily replicated on
a regular basis. This way, you ensure the information you’re receiving about your
customers is consistent and accurate.
Finding ways to reduce friction throughout the customer journey: Understanding
your buyer personas and their experiences helps you identify the points where they’re
likely to abandon their journey. With this in mind, you’re able to take the right steps and
implement initiatives to avoid these points of friction.

What stops companies from tackling bad CX

Not all companies give the same level of importance to avoiding a bad customer experience.
Very often, the problem is not denial, but the approach being taken to solve it. This inertia is
normally caused by:
Expecting the CRM to do all the work. Many companies invest a lot of time,
energy, and money into customer relationship management (CRM) software,
assuming this will solve all of their CX problems. CRMs can provide you with great
information about your customers (such as their history with customer service and
product returns), but they don’t capture experience-specific information. This is
where customer experience management comes in. CEM is focused on providing a
more holistic view of customer experience. It also provides you with this information
in real-time.
Fear of the data. Some business leaders are likely to avoid collecting data on
customer experience because they don’t feel data-savvy enough. While the thought of

carrying out data collection and analysis might feel daunting, avoiding it altogether
can lead to bigger consequences further down the line.
Not having the right tools to understand and optimize your CX. When it comes to
CX, data is your secret weapon. That’s why it’s important to invest in easy-to-use,
self-service data analysis tools that will help you obtain the most accurate data and
know what to do with it.

MODULE 5 – PART 5 - COSTUMER EXPECTION of SERVICE

Factors Influencing Customer Expectation of Service

It is quite essential for marketers to know the factors which affect the expectations of the
customers. The personal needs of the individual, such as values, norms, personality type,
qualifications, and living standards, play a dominant role in affecting expectations. Clearly,
external factors like reference groups, friends, and the family of the person play a dominant role
in shaping the expectation level of the customer.
The factors affecting the service expectations of the customers are shown in the figure given
below.
Factors Affecting Desired Service Expectations

a. Enduring Service Intensifiers

Service-related sensitivity and expectations are very high in some customers;
accordingly, they are more demanding as compared to others.
Such kind of high customer sensitivity or expectation related to service develops due
to the presence of some individual factors, named, Enduring service intensifiers.
They affect the desired service expectations of the customers. These enduring service
intensifiers are of the following types:

1. Derived Service Expectations

The first enduring service intensifier is the derived service expectations. When
the service expectations of a customer are derived from the expectations of
other persons or the group, it is called derived service expectation.
2. Personal Service Philosophies
Another enduring service intensifier is the personal service philosophies of the
customer.
Different customers have different attitudes towards the understanding of a
particular service and its way of service delivery.

Customers who have been in the service industry in the past or are currently
working in such organizations understand the nature of service very closely.
The service expectations of such customers will be more intensified due to
their personal philosophies about the service.
3. Personal Service Needs
`
Another factor affecting the service expectation of the customers is their
individual service needs or requirements. Such needs can fall into different
categories like physical, psychological, functional, or social needs.

Factors Affecting Adequate Service Expectations

The factors affecting the adequate service expectations of the customers are as
follows:
1. Temporary Service Intensifiers
These are the short-term factors that make the customers realize more
about the need for services. Such factors emerge in case of a personal
emergency.

2. Perceived Service Alternatives

Another factor affecting adequate service expectation is the perceived
service alternatives.
Service alternatives are the service provider alternatives available to the
customer. Availability of perceived service alternatives is the situation
where a customer may/may not find proper service provider alternatives
nearby him/her.
3. Customer’s Self-perceived Service Role
Customers’ adequate service expectations are also affected by their
respective perceived service role.
4. Situational Factors
These factors also affect the adequate service expectations of the
customers.

5. Predicted Service
The final factor affecting the adequate service expectation is the predicted
service, i.e., the believed service level that the customers are likely to get.
It is an objective estimate of the level of the services they expect to receive.

Factors Affecting Both Desired and Predicted Service Expectations

The factors affecting both the desired and predictive service expectations are as follows:

1. Explicit Service Promises

These refer to the direct or indirect marketing statements committed by the
service organizations regarding the level of services offered.
a. Direct marketing refers to personal communication where the
salesperson or the receptionist commits to the services.
b. Indirect communication refers to those marketing statements which
are communicated through the mass media such as television,
newspaper, etc.
It is quite clear that such direct and indirect marketing statements are
planned by the service organizations, and they have an influence on the
desired and predicted service expectations of the customers.
Most of the time, promises made by the service providers are exaggerated,
and rarely are they kept. Thus, adequate service expectations are also
influenced by such explicit service promises.

2. Implicit Service Promises

These refer to some other service-related cues which will help in
influencing the customer expectations for the services.
One such factor is the price. Usually, most customers believe that higher
prices will help in ensuring better services, which (hen influences the
desired service level.
3. Word-of-Mouth Communications

Desired and predicted service expectations are also influenced by word-

of-mouth communications.

It refers to the feedback which people share about the services provided by
different service organizations.
As it is considered to be an objective source of information, it greatly
influences the service expectation of the customers.
Customers cannot expect certain services unless they experience them;
that is why they prefer word-of-mouth communication.
Experts, experienced people like friends and relatives, consumer
feedbacks, etc., are the sources of word-of-mouth communication.
4. Past Experience
Past experience also affects the desired and predicted service expectations
of the customers.
It is acquired through the personal experience of the customers and also
helps in shaping up the desired and expected service levels. It can emerge
by directly comparing the current services with the previous ones.