1. Customer Expectation Research
March 16, 2017

2. What are your expectations for this course?
1. K
2. A
3. E
4. P

3. What is our learning goal for this course?
You need to master basic knowledge of service quality, service marketing, and service innovation.
You need to improve your analytical ability to service quality issues.
You need to improve your critical thinking skill.
You need to familiar the specification of the assignment, and citation, and paper writing, include the paper format and master of writing skill of Chinese and English.

4. What is our learning goal for this class teaching?
For the system improvement, we need to have some consultants and tutor or counselor to support teachers’ learning and preparing teaching and making research.
Especially for computer skill.

5. Learning goal of this class teaching
What are customer’s expectations for service?
What are determinants of service quality?
What are dimensions of quality for goods/services?

6. What are your Basic Expectations for Services?

7. Basic Expectations Faster, Cheaper, Better
The first dimension, time, represents how quickly, easily, or conveniently a product or service can be obtained.
The second dimension, cost, equates to how expensive the item is.
The third dimension, quality, is the most difficult one to characterize.(product and service)

8. Ten Determinants of Service Quality
Research by Len Berry, Parasuraman, and Valerie Zeithaml in the early 1980s provided a strong foundation for understanding the attributes of service quality.

9. Ten Determinants of Service Quality
Reliability: Consistency of performance and dependability; performing the right service right the first time; honoring promises; accuracy.
What is the suitable Chinese expression of such determinant “Reliability”? 可靠性
2. Responsiveness: Willingness or readiness of employees to provide service; timeliness.
Following 9 determinants are needed to give them some precisely expressions, which are your good time to learn or to improve your Chinese!

10. Ten Determinants of Service Quality
3.Competence: Possession of the skills and knowledge required to perform the service. 4.Access: Approachability and ease of access; waiting time; hours of operation.

11. Ten Determinants of Service Quality
5. Courtesy: Politeness, respect, consideration, and friendliness of contact personnel.
6. Communication: Keeping customers informed in language they can understand; listening to customers; adjusting language to different needs of different customers; explaining the service itself, how much it will cost, and how problem will be handled.

12. Ten Determinants of Service Quality
7.Credibility: Trustworthiness, believability, honesty; company reputation; personal characteristics of personnel.
8. Security: Freedom from danger, risk, or doubt; physical safety; financial security; confidentiality.

13. Ten Determinants of Service Quality
9. Understanding the customer: making the effort to understand the customer’s needs; learning the customer’s specific requirements; providing individualized attention; recognizing the regular customer.
10. Tangibles: Physical evidence of the service; physical facilities; appearance of personnel; tools or equipment used to provide service; physical representation of the service, such as a plastic credit card or a bank statement; other customers in the service facility.

14. Five “ Rater” Criteria
As an outgrowth of Berry, Parasuraman and Zeithaml’s work in developing the ten determinants of service quality, acronym “Rater” formed, from ten determinants to only five elements. 1 . Reliability: Ability to perform the promised service dependably and accurately. 2. Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence.

15. Five “ Rater” Criteria
3, Tangibles: Physical facilities, equipment, and appearance of personnel.
4. Empathy: Caring, individualized attention the firm provides its customers.
5. Responsiveness: Willingness to help customers and provide prompt service.

16. Performance level Needed to Satisfy Expectations
In essence, in order to measure quality, you begin by defining the characteristics that are important to customers.

17. Three levels of hierarchy
KANO Model

18. Prof.Noriaki Kano (狩野纪昭)
KANO Model was developed by Professor Noriaki Kano, which is a useful tool to make customer need classification, are also used in analysis processes of customer satisfaction with product function and quality.

19. Five Classification of Quality Attributes
Must-be Quality/ Basic Quality ——基本(必备)型需求,
One-dimensional Quality/ Performance Quality ——期望（一元）型需求
Attractive Quality/ Excitement Quality —兴奋（魅力）型需求
Indifferent Quality/Neutral Quality, ——无差异型需求反向
Reverse Quality——（逆向）型需求

20. Implicit, Explicit, and Latent Requirements
Three levels of a progressive hierarchy :
base expectations
specifications/requirements
delight
Those are always assumed to present. And will be included without any discussion with the dealer.
This is the level at which explicit trade-offs are made and terms negotiated.

21. Implicit, Explicit, and Latent Requirements
Thomas Edison’s invention of the light bulb is an example. The electric light satisfied latent requirements for bright, safe, reliable, and inexpensive lighting. It represented a level of delight.

22. Specifications and Requirements
Level 3
Value-added
Characteristics and features that customers did not expect
(Latent)
Delight
Specifications and Requirements
Base Expectations
Level 2
Options and trade-offs
Available for selection
By customers
(Explicit)
Level 1
Minimum performance levels always assumed present
(Implicit)
Figure Level of Customers’ Expectations

23. Service Relative to Expectations
High
Neutral
Low
Below
Met
Exceeds
Resulting
Satisfaction
Characteristic Level
Delight
Specifications
Base expectations
Service Relative to Expectations
Figure Satisfaction versus Expectations. Source: Adapted from conversations with B. Zions, The Quality Network, 1990.

24. Garvin’s Eight Dimensions of Quality
Prof. David Garvin, Harvard University.
All of them, you can try to learn some terms in Chinese.

25. Garvin’s Eight Dimensions of Quality
1. Performance: The product’s primary operating characteristic. For example, performance of an automobile includes traits such as acceleration, handling, cruising speed, and comfort; performance of an airline includes on-time arrival.

26. Eight Dimensions of Quality
2. Features: Secondary aspects of performance. These are the “ bells and whistles” that supplement the basic functions. Examples include free drinks on planes and sunroofs on cars. The line separating primary performance characteristics from secondary features is often difficult to draw. Further, customers define value in terms of flexibility and their ability to select among available features, as well as the quality of those features.

27. Eight Dimensions of Quality
3. Reliability: Probability of successfully performing a specified function for a specified period of time under specified conditions. Reliability of durable goods is often measured as the mean time to first failure or mean time between failures. These measures, however, require a product to be in use for a specified period of time and are not relevant in the case of products and services that are consumed instantly.

28. Eight Dimensions of Quality
4.Conformance: Degree to which a product’s design and operating characteristics meet established standards. Although this is sometimes defined as “ conformance to requirements,” a sounder analysis will be obtained by examining each characteristic’s divergence from its target value.

29. Eight Dimensions of Quality
5. Durability: A measure of product life. Durability can be defined as the amount of use obtained from a product before it deteriorates to the point that replacement is preferred over repair. Durability is closely linked to both reliability and service ability. Consumers weigh the expected costs of future repairs against the investment in and operating expenses of a newer, more reliable model.

30. Eight Dimensions of Quality
6 Serviceability: The speed, courtesy, competence, and ease of repair. The cost of repairs includes more than the simple out-of-pocket costs. Serviceability covers this full dimension by recognizing the loss and inconvenience due to downtime of equipment, the nature of dealings with service personnel, and the frequency with which repairs fail to correct the outstanding problems.

31. Eight Dimensions of Quality
7. Aesthetics: How a product looks, fells, sounds, tastes, or smells. Aesthetics is largely a matter of personal judgment and a reflection of individual preference; it is a highly subjective dimension.

32. Eight Dimensions of Quality
8. Perceived quality: Reputation. Consumers do not always have complete information about a product’s or service’s attributes; indirect measures or perceived quality may be their only basis for comparing brands.

33. Summary (1)
Customer tend to perceive the quality of services by comparing the actual level experience to their expectations. The process of satisfying customers therefore begins by fully understanding their expectations.
Faster, better, cheaper is the most fundamental set of characteristics to describe how customers define value and provides a springboard for understanding other, more complex models.

34. Summary (2)
All products and services contain some elements of service quality.

35. Three level hierarchy
Three level hierarchy helps in the analysis of performance measures. As the base level are the implicit expectations, which must never be violated.
The intermediate level contains the explicit specifications, which can be discussed and negotiated.
The highest level addresses latent requirements, which might not be evident to customers but which, when provided, will lead to their delight.

36. Summary (3)
Furthermore, customers’ expectations escalated, features that currently delight customers may eventually become embedded in their base expectations.
Building an understanding of customer satisfaction and relative importance customers attach to each quality characteristic is a complex and difficult task.
Once understood, customers’ expectations must then be translated into product and service specifications.

37. Questions for Discussion
Suppose you are coming from a service firm.
Who are your customers?
What are their requirements? (implicit, explicit and latent)
What are their expectations?
How well you and your competitors are performing from your customers’ point of view?

38. Assignment (Used in 2016 for special support to Shanghai Public Tourism Project)
Design two service research plans, each student.
Each student chooses two public services to make an analysis as an assignment.
Format: objectives, research method, time, Responsible person.