Consumer Evaluation Processes for Services

Search Qualities

attributes a consumer can determine prior to purchase

of a product
Experience Qualities

attributes a consumer can determine after purchase (or

during consumption) of a product

Credence Qualities

characteristics that may be impossible to evaluate even

after purchase and consumption

3 broad stages of Consumer Behaviour
Consumer Choice
o Need Recognition
o Information Search
o Evaluation of alternatives
o Purchase
Consumer Experience
Post Experience Evaluation
Consumer Experience
Service as Process
Service provision as Drama
Service Roles & Scripts
The Compatibility of Service Customers
Customer coproduction
Moods & Emotions
Post Experience Evaluation
Word of Mouth Communication
Attribution of Dissatisfaction
Positive or Negative Biases
Brand Loyalty
CUSTOMER EXPECTATIONS
OF
SERVICES
Customer expectations are beliefs about service

delivery that serve as standards or reference points

against which performance is judged.
Dual Customer Expectation Levels

Desired Service

Adequate Service
Desired Service: The level of service the customer

hopes to receive – the “wished for” level of

performance.
Adequate Service: The level of service the customer

will accept- minimum tolerable expectation.

The Zone of Tolerance

Desired Service

Zone of
Tolerance

Adequate Service
Zone of Tolerance: The extent to which customers recognize

and are willing to accept the variations in service delivery.

If the service level lies in the ZOT, customers would not notice

the service performance.

ZOT can expand and contract for a given customer.

Different customers possess different ZOT.

External factors like price also alters a customer’s ZOT.

ZOT vary for service dimensions.

 Factors that Influence
Desired Service

Enduring Service
Intensifiers

Desired
Service
Personal Needs
Zone
of
Tolerance

Adequate
Service
Personal Needs: Those states or conditions essential to the

physical or psychological well being of the customer.

Lasting service intensifiers: individual, stable factors that

lead the customer to heightened sensitivity to service.

 Derived service expectation: occur when customer
expectations are driven by another person or group of
people.
 Personal service philosophy: the customer’s underlying
generic attitude about the meaning of service and the
proper conduct of service providers.
 Factors that Influence
Adequate Service

Temporary Service
Intensifiers

Desired
Perceived Service Service
Alternatives
Zone
of
Tolerance
Self-Perceived
Service Role Adequate
Service

Situational
Factors
Temporary service intensifiers: consists of short term,

individual factors that make a customer more aware of the

need for service. Any emergency like ambulance etc.

Perceived service alternatives: are the other providers from

whom the customer can obtain service. The customer’s

perception that service alternative exist raises the level of
adequate service and narrows the zone of tolerance.
Self perceived service role: Customer’s expectations are partly

shaped by how well they believe they are performing their own
roles in service delivery.
 Their ZOT seems to expand i.e., the level of service considered
to be adequate lowers – when they sense they are not fulfilling
their roles.
• Situational factors: Service performance conditions that
customers view as beyond the control of the service provider.
In that case the customers may accept lower levels of adequate
service.
Predictive service: The level of service that customer

believe they are likely to get

If customers predict good service, their level of adequate

service are likely to be higher than if they predict poor

service.
Predicted service is typically an estimate or calculation of

the service that a customer will receive in an individual

transaction rather than in the overall relationship with a
service provider.
CUSTOMER PERCEPTIONS
OF
SERVICE
 SERVICE QUALITY
Service: It is what is provided by SERVICE
PROVIDERS
Ex: Bank, Insurance, Hospital etc…..

Quality: It means “what customer wants”

a)Within a given time
b)At a price
c)What he/she willing to pay
What is Service Quality?
This takes place when there is an encounter between
Customer & Service Provider.

So Customer Satisfaction with Service Quality can be

measured by comparing the perceptions of Service
Received with Service Expected.

Service Expected – Service Received = Customer Satisfaction

• S.R > S.E Then Service is of……….
• S.E = S.R Then Service is……….
• S.R < S.E Then Service is………
 Reliability
Situational
Factors
Responsiveness Service
Quality

Assurance
Customer
Empathy Satisfaction
Product
Quality
Tangibles

Personal
Price Factors
Customer Satisfaction
Satisfaction is the customer’s evaluation of a

product or service in terms of whether that product

or service has met the customer’s needs and
expectations.
Factors Influencing Customer Satisfaction
Product/service attributes or features
Consumer Emotions
Attributions for product/service success or failure
Other consumers, Family members and Coworkers
Outcomes of Customer Satisfaction

Increased customer retention

Positive word-of-mouth communications
Increased revenues
Service Quality
A critical element of customer perceptions.

The customer’s judgment of overall excellence of the

service provided in relation to the quality that was

expected.
What is that customers evaluate when
judging service quality?
Outcome
Interaction
Physical Environment
 The Five Dimensions of
Service Quality
Reliability Ability to perform the promised service
dependently and accurately. Ex-Pass
book
Assurance Knowledge and courtesy of employees
and their ability to convey trust and
Tangibles confidence.
Physical facilities, equipment, and
Empathy appearance of personnel.
Caring, individualized attention the
Responsiveness firm provides its customers.
Willingness to help customers and
provide prompt service. Ex-Hotel
Choose a services industry and spend 10 minutes
brainstorming specific requirements of customers in each
of the five service quality dimensions. Be certain the
requirements reflect the customer’s point of view.

Reliability:

Assurance:

Tangibles:

Empathy:

Responsiveness:
RELIABILITY: Delivering on Promises
 Ability to perform the promised service dependably
and accurately
 Dependability in handling customers’ service problems
 Performing services right the first time
 Providing services at the promised time
 Maintaining error-free records
 FedEx – when it absolutely, positively has to get there.
RESPONSIVENESS : Being Willing to
Help
 Attentiveness and promptness in dealing with customer
requests, questions, complaints and problems
 Keeping customers informed as to when services will be
performed
 Prompt service to customers
 Willingness to help customers
 Readiness to respond to customers’ requests
ASSURANCE: Inspiring Trust &
Confidence

 Employees who instill confidence in customers

 Making customers feel safe in their transactions
 Employees who are consistently courteous
 Employees who have the knowledge to answer
customer questions
 FedEx – ‘Relax, its FedEx’
EMPATHY- Treating Customers as
Individuals

 Giving customers individual attention

 Employees who deal with customers in a caring fashion
 Having the customer’s best interest at heart
 Employees who understand the needs of their
customers
 Convenient business hours
TANGIBLES: Representing the Service
physically

 Modern equipment
 Visually appealing facilities
 Employees who have a neat, professional appearance
 Visually appealing materials associated with the service
E- Service Quality dimensions
Efficiency
Fulfillment
System Availability
Privacy
Responsiveness
Compensation
Contact
 The Service Encounter
is the “moment of truth”

occurs any time the customer interacts with the firm

can potentially be critical in determining customer

satisfaction and loyalty

types of encounters:

remote encounters

phone encounters

face-to-face encounters
is an opportunity to:

build trust

reinforce quality

build brand identity

increase loyalty
 A Service Encounter Cascade for a
Hotel Visit

Check-In
Check-In

Bellboy
BellboyTakes
Takesto
toRoom
Room

Restaurant
RestaurantMeal
Meal

Request
RequestWake-Up
Wake-UpCall
Call

Checkout
Checkout
 A Service Encounter
Cascade for an Industrial Purchase

Sales
SalesCall
Call

Delivery
Deliveryand
andInstallation
Installation

Servicing
Servicing

Ordering
OrderingSupplies
Supplies

Billing
Billing