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

2. 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

3. Dual Customer Expectation Levels
Desired Service
Zone of
Tolerance
Adequate Service

4. 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

5. 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

6. 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)

7. 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

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

9. 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

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

11. 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

12. 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

13. 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.

14. 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

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

16. 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

17. 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

18. Factors that Influence Desired and Predicted Service

19. 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.

20. 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