4 Chapter Customer Expectations of Service  Meaning and Types of Service Expectations  Factors that Influence Customer Expectations of Service  Issues Involving Customer Service Expectations

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Customer Expectations of Service (Chapter 4) Customer Expectations: Beliefs about service delivery that function as standards or reference points against which performance is judged (p. 81)

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Figure 4.2 Possible Levels of Customer Expectations

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Customer Expectations (p.86) Desired service: the level of service the customer hopes to receive - the “________” level of performance. Adequate Service: the level of service customer will accept. Desired Service Zone of Tolerance Adequate Service

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Most Important Factors (reliability) Least Important Factors (tangibles) Level of Expectation Adequate Service Desired Service Zone of Tolerance Zone of Tolerance Desired Service Adequate Service Figure 4.5 Zones of Tolerance for Different Service Dimensions As a service dimension increases in importance, zone of tolerance narrows and adequate service levels increase

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Lasting Service Intensifiers Lasting Service Intensifiers Personal Needs Zone of Tolerance Desired Service Adequate Service Figure 4.6 Factors That Influence Desired Service

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Factors that Influence Desired Service Personal Needs: physical, social, psychological, and functional Lasting Service Intensifiers: individual, stable factors that lead to heightened sensitivity to service. Derived service expectations: expectations driven by another person or group of people. Personal service philosophy: customer’s underlying generic attitude about the meaning of service and the proper conduct of service providers

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Self-Perceived Service Role Self-Perceived Service Role Situational Factors Situational Factors Perceived Service Alternatives Perceived Service Alternatives Temporary Service Intensifiers Temporary Service Intensifiers Zone of Tolerance Desired Service Adequate Service Figure 4.7 Factors That Influence Adequate Service Predicted Service Predicted Service

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Factors That Influence Adequate Service Factors that influence adequate service expectations are ____________ in nature and fluctuate ________ than factors that influence desired service expectations

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Factors that Influence Adequate Service Transitory service intensifiers: temporary, short-term, individual factors that make a customer more aware of the need for service. Ex: Personal emergency situations raise the level of adequate service expectations Perceived service alternatives : other providers from whom the customer can obtain the same service. Ex: more perceived alternatives available, higher the levels of adequate service ______________________________________

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Factors that Influence Adequate Service Customer’s self-perceived service role: degree to which customers exert an influence on the level of service they receive. Ex: If we believe we are doing our part in the delivery, our expectations of adequate service is heightened Situational Factors: service performance conditions that are viewed as ________________________ of service provider. Ex: Expectations of adequate service is lowered because of situational factors Predicted service: level of service we believe we are likely to get. Ex: If we predict good service, our expectations of adequate service is likely to be ________________.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Predicted Service Explicit Service Promises Explicit Service Promises Implicit Service Promises Implicit Service Promises Word-of-Mouth Past Experience Zone of Tolerance Desired Service Adequate Service Figure 4.8 Factors That Influence Desired and Predicted Service

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Factors that Influence Desired and Predicted Service Explicit service promises : personal and non-personal statements about the service made by the organization to customers. “Everything we sell is our own design and our own make and we guarantee it without reservation” (J Crew) Implicit service promises: service related ______ that lead to inferences about what the service should and will be like.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Factors that Influence Desired and Predicted Service Word of mouth communication : perceived as unbiased. ____________________________________ Past experience: customer’s previous exposure to service that is relevant to the focal service

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Issues Involving Customer Service Expectations  Let customers know the reasons desired service is not being provided at the present time and describe efforts planned to address them.  Delighting customers may raise expectations and make it more difficult to satisfy customers in the future.  Developing a customer relationship is one approach for exceeding customer expectations.  Adequate service expectations rise as quickly as service delivery or promises rise.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Implications for Customers  Set realistic expectations – “expand” your zone of tolerance  Understand your service provider  Be knowledgeable