CUSTOMER EXPECTATIONS 6TH EDITION SLIDES for CUSTOMER EXPECTATIONS McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Customer Expectations of Service Chapter 3 Customer Expectations of Service Service Expectations: Beliefs about service delivery that function as standards or reference points against which performance is judged. 3-2

customers hold different types of expectations for service performance

Possible Levels of Customer Expectations 3-6

More about Customer Expectations Reference points my vary depending on the person and the situation Knowing what customers expect is critical in delivering quality service Services are heterogeneous – performance may vary across providers, across EEs from the same providers, and even with the same service EE.

Dual Customer Expectation Levels HOPE TO RECEIVE MINIMUM ACCEPTABLE 3-8

The Zone of Tolerance: the extent to which customers recognize and are willing to accept this variation 3-9

The Zone of Tolerance ← Delights ← Desirables ← Musts Desired Service Adequate Service ← Musts 3-10

Zones of Tolerance (ZoT) The range of expectations between desired and adequate… can be wide or narrow can change over time can vary among individuals may vary with the type of product/service 3-11

Zones of Tolerance for Different Service Dimensions 3-12

Factors That Influence Desired Service 3-13

Factors That Influence Adequate Service 3-14

Factors That Influence Desired and Predicted Service 3-15