Customer Expectations of Service

Possible Levels of Customer Expectations

Dual Customer Expectation Levels Level of service the customer hopes to receive Desired Service Level of service the customer will accept Represents minimum tolerable expectation Adequate Service What is your expectations from IMT ?

The Zone of Tolerance Delight Desired Service The extent to which customers recognize and are willing to accept variation Zone of Tolerance Adequate Service Frustration Different customers have different zones of tolerance

Zones of Tolerance for Different Service Dimensions Desired Service Level of Expectation Zone of Tolerance Desired Service Zone of Tolerance Adequate Service Adequate Service Most Important Factors Least Important Factors

Factors That Influence Desired Service Individual, stable factors Derived Service Expectations Lasting Service Intensifiers Personal Service Philosophy Desired Service Zone of Tolerance Personal Needs Physical, Social, Psychological, functional Adequate Service

Factors That Influence Adequate Service Short term, individual factors Temporary Service Intensifiers Desired Service Alternative service options Perceived Service Alternatives Zone of Tolerance Customer Influence e.g. VLCC, Marks Self-Perceived Service Role Adequate Service Beyond the control of service provider e.g. Network congestion Situational Factors

Factors Influencing Desired and Predicted Service Personal/ Non-personal Statements by service provider Explicit Service Promises Implicit Service Promises Inferences from service Related cues Word-of-Mouth Personal/ Non-personal Statements by others Desired Service Zone of Tolerance Past Experience Predicted Service Adequate Service Level of service customers believe

Internal Antecedents of Consumer Expectations Individual needs Level of involvement Past experience Service philosophy

External Antecedents of Consumer Expectations Competitive options Social context Word-of-mouth communication

Group Exercise McDonalds : Group 1 Fortis Hospital: Group 2 Big Bazaar : Group 3 PVR Cinema : Group 4 Hotel Taj : Group 5 Kingfisher Airlines : Group 6 Desired Service Zone of Tolerance Adequate Service

Word-of-Mouth Communications Strongest source of information Types of sources Personal sources Expert sources Derived sources Video on WOM

Situational Factors Impacting Consumer Expectations Reason for purchase Consumer mood Weather Time constraints Emergency

Firm-Produced Antecedents of Consumer Expectations Promotions Price Distribution Service personnel Other customers Firm image Pre-service waiting Tangible cues

Tangible Cues Interior of facility Exterior of facility Furniture Interior décor Equipment Cleanliness Point-of-purchase displays Appearance of service personnel

Role of Consumer Expectations During Pre-Purchase Phase During Service Encounter During Post-Purchase Phase

Managing Consumer Expectations During Pre-Purchase Phase Learn what customers expect. Tell customers what to expect. Consistently provide the service customers expect.

Managing Consumer Expectations During Service Encounter Communicate with customers during the service. If possible, modify the service to meet customer expectations. Explain why service cannot be modified. Starbucks

Managing Consumer Expectations During Post-Purchase Phase Communicate to see if expectations were met. Develop a follow-up program. Develop a procedure for dealing with dissatisfied customers.

Case Study Scandinavian Airlines System

Video Passion for Customers