Consumer Expectations of Services Valarie A. Zeithaml & Mary Jo Bitner

Consumer Expectations Beliefs about a service delivery that serve as standards or reference points against which performance is judged. Types of Expectations Desired service -- the level of service the customer hopes to receive Adequate service -- the level of service the customer will accept

Dual Customer Expectation Levels Desired Service Zone of Tolerance Adequate Service

The Zone of Tolerance The extent to which customers recognize and are willing to accept variation in service performance Desired Service Zone of Tolerance Adequate Service

Zone of Tolerance and Importance of Service Dimensions As a service dimension becomes more important zone of tolerance will narrow and desired and adequate levels will increase

Different Service Dimensions Zones of Tolerance for Different Service Dimensions Desired Service Level of Expectation Zone of Tolerance Desired Service Adequate Zone of Tolerance Desired Service Adequate Service Adequate Service Most Important Factors Least Important Factors Source: Berry, Parasuraman, and Zeithaml (1993)

Zones of Tolerance for First-Time and Recovery Service Consumers have a narrower zone of tolerance and a higher set of expectations for a service recovery than for the first time service experience First-Time Service Outcome Process Recovery Service Outcome Process LOW HIGH Expectations

Factors that Influence Desired Service Expectations Enduring Service Intensifiers Desired Service Personal Needs Zone of Tolerance Adequate Service

Factors that Influence Desired Service Expectations Personal Needs --- states or conditions essential to the physical or psychological well being --- physical, social, psychological, and functional Enduring Service intensifiers --- individual stable factors that lead the customer to a heightened sensitivity derived service expectations personal service philosophy

Factors That Influence Adequate Service Expectations Are short-term in nature and fluctuate more than the factors that influence desired expectations

Factors that Influence Adequate Service Expectations Transitory Service Intensifiers Desired Service Perceived Service Alternatives Zone of Tolerance Self-Perceived Service Role Adequate Service Situational Factors

Factors That Influence Adequate Service Expectations Transitory service intensifiers --- short-term, individual factors that make a consumer more aware of the need for service Perceived Service Alternatives ---As the number of alternatives increases, the level of adequate service increases and the zone of tolerance narrows Situational Factors ---Temporary changes in the normal state of things tends to lower the level of adequate service expected and widen the zone of tolerance

Factors That Influence Adequate Service Expectations Self Perceived Service Role --- how well the customer perceives they are performing their own role in service delivery Predicted Service ---The level of service customers believe they are likely to get Implies some objective calculation of the probability of the performance in an individual transaction rather than overall relationship.

Factors that Influence Desired and Predicted Service Explicit Service Promises Implicit Service Promises Word-of-Mouth Desired Service Zone of Tolerance Past Experience Predicted Service Adequate Service

Factors that Influence Desired and Predicted Service Explicit Service Promises Implicit Service Promises Word of Mouth Past Experience

Factors that Influence Desired and Predicted Service Explicit personal and non- personal statements from the organization Advertising, personal selling, contracts, other communications usually increases desired level and narrows zone of tolerance

Factors that Influence Desired and Predicted Service Implicit service related cues Tangibles Price Distribution Past experience particular service within the same industry related services More the experience the narrower the Zone of Tolerance

Factors that Influence Desired and Predicted Service

What Are We Really Concerned About? How expectations are formed. Process through which expectations are raised or lowered. Impact on the width of the zone of tolerance. Conclusion Must manage expectations.

Role of Consumer Expectations During Prepurchase Phase higher expectations more likely to purchase. During Service Encounter expectations modified (however usually not desired or ideal) During Postpurchase Phase altered and impact over time Customer expectations must be managed