F18f708 Expectations


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F18f708 Expectations

  1. 1. Amity Business School MBA Class of 2010, Semester III Customer Expectations of Service Prof. P K Bansal
  2. 2. <ul><li>Customer Expectations: </li></ul><ul><li>Beliefs about service delivery that function as standards or reference points against which performance is judged. </li></ul>
  3. 3. Customer Expectations <ul><li>Desired service: the level of service the customer hopes to receive. </li></ul><ul><li>Adequate Service: the level of service customer will accept. </li></ul>Desired Service Zone of Tolerance Adequate Service
  4. 4. Zone of Tolerance <ul><li>Services are heterogeneous. In that, performance may vary across providers, across employees from the same provider and even with the same service employee. The extent to which customers recognize and are willing to accept this variation, is called the Zone of Tolerance . </li></ul>
  5. 5. Zone of Tolerance for Different Service Dimensions 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 As a service dimension increases in importance, zone of tolerance narrows and adequate service levels increase
  6. 6. Antecedents of Desired Service Lasting Service Intensifiers Personal Needs Zone of Tolerance Desired Service Adequate Service
  7. 7. <ul><li>Personal Needs : physical, social, psychological, and functional </li></ul><ul><li>Lasting Service Intensifiers : individual, stable factors that lead to heightened sensitivity to service. </li></ul><ul><li>Derived service expectations : expectations driven by another person or group of people. </li></ul><ul><li>Personal service philosophy : customer’s underlying generic attitude about the meaning of service and the proper conduct of service providers </li></ul>Factors that Influence Desired Service
  8. 8. Antecedents of Adequate Service Self-Perceived Service Role Situational Factors Perceived Service Alternatives Temporary Service Intensifiers Zone of Tolerance Desired Service Adequate Service Predicted Service
  9. 9. <ul><li>Factors that influence Adequate Service </li></ul><ul><li>expectations are temporary in nature and </li></ul><ul><li>fluctuate with time , than factors that </li></ul><ul><li>influence desired service expectations. </li></ul>
  10. 10. Antecedents of Adequate Service <ul><li>Transitory service intensifiers : temporary, short-term, individual factors that make a customer more aware of the need for service. </li></ul><ul><li>Ex: Personal emergency situations raise the level of adequate service expectations </li></ul><ul><li>Perceived service alternatives : other providers from whom the customer can obtain the same service. </li></ul><ul><li>Ex: more perceived alternatives available, higher the levels of adequate service </li></ul>
  11. 11. <ul><li>Customer’s self-perceived service role : degree to which customers exert an influence on the level of service they receive. </li></ul><ul><li>Ex: If we believe we are doing our part in the delivery, our expectations of adequate service is heightened </li></ul><ul><li>Situational Factors : service performance conditions that are viewed as beyond control of service provider. </li></ul><ul><li>Ex: Expectations of adequate service is lowered because of situational factors </li></ul><ul><li>Predicted service : level of service we believe we are likely to get. </li></ul><ul><li>Ex: If we predict good service, our expectations of adequate service is likely to be increased. </li></ul>
  12. 12. Antecedents of Desired and Predicted Service Predicted Service Explicit Service Promises Implicit Service Promises Word-of-Mouth Past Experience Zone of Tolerance Desired Service Adequate Service
  13. 13. <ul><li>Explicit service promises : personal and non-personal statements about the service made by the organization to customers. </li></ul><ul><li>“ Everything we sell is our own design and our own make and we guarantee it without reservation” (J Crew) </li></ul><ul><li>Implicit service promises : service related promises that lead to inferences about what the service should and will be like. </li></ul>
  14. 14. <ul><li>Word of mouth communication : perceived as unbiased. </li></ul><ul><li>Past experience : customer’s previous exposure to service that is relevant to the focal service </li></ul>
  15. 15. Issues Involving Customer Service Expectations <ul><li>Let customers know the reasons desired service is not being provided at the present time and describe efforts planned to address them. </li></ul><ul><li>Delighting customers may raise expectations and make it more difficult to satisfy customers in the future. </li></ul><ul><li>Developing a customer relationship is one approach for exceeding customer expectations. </li></ul><ul><li>Adequate service expectations rise as quickly as service delivery or promises rise. </li></ul>