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    Customer Expectations and Perceptions of Service

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    Shailendra Dasari
    1) There are two types of customer service expectations - desired service which is the ideal level, and adequate service which is the minimum acceptable level. The gap between these is called the "zone of tolerance." 2) Factors that influence expectations include customer needs, past experiences, available alternatives, and situational factors. Service providers should aim to meet or exceed desired expectations through reliability, communication, and customization. 3) Customer perceptions of service are influenced by how problems are handled, adaptability, spontaneity of employees, preexisting views of the company, and the price paid for the service. Meeting or exceeding expectations enhances satisfaction.

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    Customer Expectations and Perceptions of Service

    Uploaded by

    Shailendra Dasari
    88 views15 pages
    1) There are two types of customer service expectations - desired service which is the ideal level, and adequate service which is the minimum acceptable level. The gap between these is called the "zone of tolerance." 2) Factors that influence expectations include customer needs, past experiences, available alternatives, and situational factors. Service providers should aim to meet or exceed desired expectations through reliability, communication, and customization. 3) Customer perceptions of service are influenced by how problems are handled, adaptability, spontaneity of employees, preexisting views of the company, and the price paid for the service. Meeting or exceeding expectations enhances satisfaction.

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    Customer expectations and perceptions of service

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    1) There are two types of customer service expectations - desired service which is the ideal level, and adequate service which is the minimum acceptable level. The gap between these is called the "zone of tolerance." 2) Factors that influence expectations include customer needs, past experiences, available alternatives, and situational factors. Service providers should aim to meet or exceed desired expectations through reliability, communication, and customization. 3) Customer perceptions of service are influenced by how problems are handled, adaptability, spontaneity of employees, preexisting views of the company, and the price paid for the service. Meeting or exceeding expectations enhances satisfaction.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    88 views15 pages

    Customer Expectations and Perceptions of Service

    Uploaded by

    Shailendra Dasari
    1) There are two types of customer service expectations - desired service which is the ideal level, and adequate service which is the minimum acceptable level. The gap between these is called the "zone of tolerance." 2) Factors that influence expectations include customer needs, past experiences, available alternatives, and situational factors. Service providers should aim to meet or exceed desired expectations through reliability, communication, and customization. 3) Customer perceptions of service are influenced by how problems are handled, adaptability, spontaneity of employees, preexisting views of the company, and the price paid for the service. Meeting or exceeding expectations enhances satisfaction.

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    Customer Expectations and

    Perceptions of Service
    Shailendra Dasari
    Types of Service Expectations

    Desired Service and Adequate Service


    Desired Service
    What customer feels the service provider can
    offer and should offer
     Desired service expectations increase if the
    customer is experienced*
     Derived service expectations (customer’s
    customer) also influence desired service
    expectations
    Desired Service&Adequate Service

    ADEQUATE SERVICE
    Minimal level of service that a customer is
    willing to accept
     Expectations increase incase of an
    emergency
     Expectations will come down incase of a
    total service failure
    Zone of tolerance

    Def: Gap between customer’s desired service


    expectations and adequate service
    expectations Zone of Tolerance
    This zone varies from customer to customer and for the
    same customer in different situations
    On the dimension of reliability zone of tolerance
    is very narrow.
    It also narrows down when customers have
    alternatives
    Predicted Service: Service level which lies in the
    zone of tolerance
    Zone of Tolerance
    Factors that influence Customer
    Expectations of Desired Service
    1.Customer needs
    As explained by Maslow’s hierarchy of needs
    Physiological needs, safety needs, social needs, esteem
    needs, self actualization
    2.Enduring(lasting) Service Intensifiers
     Derived Service Expectations (customer’s customers’
    expectations)
     Customer’s philosophy regarding service (customer’s
    attitude and service provider’s conduct)
    E.g.-A retired banker knows more about service
    standards in a bank and therefore has a strong service
    philosophy
    Factors influencing expectations of
    Adequate Service

    1.Transitory(temporary) Service
    Intensifiers
    Factors that heighten the level of adequate
    service expectations and reduce the zone of
    tolerance
     Personal emergencies
     Failure of a service provider to offer quality
    service the first time ( poor reliability)
    Factors influencing expectations of
    Adequate Service

    2.Perceived service alternatives (customer’s


    perceptions of available alternatives)
    Adequate service expectations increase when
    there are alternatives available
    3.Customer’s self perceived service role
    Extent to which customer perceives she is
    capable of influencing the level of service
    (customer as a co producer)
    Factors influencing expectation of
    Adequate Service

    4.Situational Factors
    Factors which make a customer compromise on
    his adequate service expectations
    E.G Cable TV service affected by power failure
    Zone of tolerance increases in such situations
    5.Predicted Service Expectations
    Level of service a customer believes he will
    receive in the next transaction/encounter
    Managing Service Expectations

     Managing Promises
    Promise only what you are confident of
    delivering
    Under promise (playing it safe)-Will reduce
    competitive attractiveness
    Over promise-Increased expectations which can
    not be met
    Managing Service Expectations

     Reliability-Getting it right the first time


    When there is a service failure the first time customer’s
    zone of tolerance decreases .During service recovery
    customer’s expectations of desired and adequate
    service increase.
    Service providers should ensure that what has been
    promised is delivered correctly THE VERY FIRST
    TIME
     Effective communication
     Inform customers about the latest developments*
     Seek feed back from customers
    (complaints/suggestions)
    Exceeding Customer Service
    Expectations

    Customer Delight
    Surpassing customer’s expectations
    Outcome dimension of Service-Reliability, an
    effective differentiator.
    Process dimensions- Service providers should try
    and surpass their competitors
    Factors that influence Customer
    Perceptions-Service Encounter
    Factors influencing Customer Satisfaction
     Recovery
    Ability of service provider to correct the situation when a service
    failure occurs
     Adaptability
    Service provider’s ability to deal with special requests or needs of
    customers (special diet on flights)
     Spontaneity
    Voluntary action of front line employees of service provider in
    delivering a service (E.g.-setting up an additional counter for
    faster check out)
     Coping- Managing problematic customers and situations
    Factors that influence Customer
    Perceptions

    3.Image
    A customer who has a positive image about an
    organization may be more tolerant to some of
    their service lapses
    On the contrary if a customer has a negative
    image even a minor lapse results in increased
    dissatisfaction
    Factors that influence Customer
    Perceptions

    4.Price
    Price of a service influences customer’s
    perception of value, quality and satisfaction
     Lowly priced service-May create doubts about
    quality
     Highly priced service-May heighten customer
    expectations

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