Description
customer's expectation from service.Products and service have different qualities and expectations.
Customer Expectations of Service
Meaning and Types of Customer Expectations
Meaning : Customer expectations are hopes or wishes and beliefs Customer expectations are beliefs about service deliver that function as standards or reference points against which performance is judged.
Continuum of Customer Service Expectations
High Ideal Expectations or Desires Normal “should” expectations Experience based norms Acceptable expectations Minimum tolerable expectations Low Everyone says this restaurant is as good as one in Mumbai & I want to go somewhere very special for my Anniversary As expensive as this restaurant is it ought to have excellent food and service
Most times this restaurant is very good , but when it gets busy the service is slow I expect this restaurant to serve me in an adequate manner I expect terrible service from this restaurant, because the price is low
An Exploratory Research on Customer Expectations
•16 focus groups •6 different sectors viz, Commercial property insurance, Automobile insurance, Business equipment repair, Automobile repair, Hotels, Truck rental leasing •Representing both Pure service and product related service •Experienced and inexperienced customer were interviewed •Open-ended questions •All focus groups - were audio taped, - with written transcripts
The OUTCOME of this research … … … …
Two level of Expectation
Desired Service : The service customer hope to receive The “wished for” level of performance Customer believe “can be” and “should be” Though Desired expectations cannot be always hoped. Even a lower level of acceptable service is recognized in certain cases
It is the threshold level of acceptable service which is Adequate service
Two level of Expectation
Infinite
Maximum Expectation Desired Service Level of Expectation
Zone of Tolerance
Adequate Service
Minimum Tolerable Expectation
Customer assess service performance on the basis of 2 standards: What they desire and What they deem acceptable
Two level of Expectation
Over Pleased Customer
Desired Service Maximum Expectation
Level of Expectation
Zone of Tolerance Minimum Tolerable Expectation
Adequate Service
Unsatisfied Customer
Departure time in Airplane – 10 to 20 mins Pizza Delivery – 30 to 50 mins Waiting in Checkout line in a Retail store - 5 to 10 mins Online Refill update – 5 to 20 mins Order for food in 5 Star Hotel – 20 to 30 mins
Zone of tolerance
The extent to which customers recognize and willing to accept this variation is called the Zone of Tolerance
Desired Service
Zone of Tolerance
Adequate Service
Service being Heterogeneous performance vary
Across provider Across employees of same provider Even within same service employee
Zone of Tolerance
Desired Service Level of Expectation
Zone of Tolerance
Adequate Service
Zone of Tolerance
Desired Service Desired Service Desired Service Zone of Tolerance Adequate Service Adequate Service
Zone of Tolerance
Zone of Tolerance
Adequate Service
Tolerance zone represents the difference between Desired service and Adequate service and can expand and contract within customer
Zone of Tolerance
Different customer possess different Zone of Tolerance
A BUSY CUSTOMER Desired Service Desired Service Desired Service Zone of Tolerance Adequate Service Adequate Service Works from Home Adequate Service Do not work Works outside the home
Zone of Tolerance
Zone of Tolerance
Zone of Tolerance
Zone of Tolerance vary for service dimensions
MOST OR LEAST IMPORTANCE
Desired Service Zone of Tolerance Level of Expectation Adequate Service Zone of Tolerance
Desired Service
Adequate Service
Most Important Factors IMPORTANCE
Least Important Factors
Zone of Tolerance
Zone of Tolerance vary for
First Time & Recovery Service
Desired Service Zone of Tolerance Level of Expectation Adequate Service Zone of Tolerance
Desired Service
Adequate Service
Recovery Service
First Time Service
Factors that influence Customer Expectations of Service
Factors that influence Desired Service Expectations
Derived service expectations: Personal or from others members e.g. Group, Family, members of society
Enduring Service Intensifiers Desired Service Personal Needs
Zone of Tolerance
Conditions essential to the physical or psychological well being of the customer. Including social or functional needs
Adequate Service
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
Factors that influence Adequate Service Expectations
Transitory Service Intensifiers Personal Emergencies were service is urgently needed eg. Phone lines of Tele-shopping, Power cut during peak business hrs. Different for 1st Time and recovery services Possible other options which are available, other alternatives eg Small airport, no other options
Perceived service Alternatives
Self perceived Service role
The self role in the service performance
Situational Factors
Bad weather Catastrophe Random Over demand
Predicted Service Expectations
Desired service –what customer wants Adequate Service - what customers are willing to accept Predicted Service – what customer believes they are likely to get
Desired Service
Zone of Tolerance
Adequate Service
Predicted Services
Other Factors that influence Predicted Service Expectations
Explicit service promises
Implicit service Promises
Desired Service
Word of Mouth
Zone of Tolerance
Past Experience
Adequate Service
Predicted Services
Other Factors that influence Predicted Service Expectations
Explicit service promises Advertising / personal selling / Contracts/ Other communication
Implicit service Promises
Tangibles / Price
Word of Mouth
Personal / Experts (reports/ publicity / Consultants)
Past Experience
Your last experience
Enduring Service Intensifiers Personal Needs
Explicit service promises
Implicit service Promises
Transitory Service Intensifiers
Word of Mouth Desired Service Past Experience
Perceived service Alternatives
Zone of Tolerance
Self perceived Service role
Adequate Service
Predicted Services
Situational Factors
Issues involving Customer Services Expectation
What does the service marketer do if customer expectations are “unrealistic”?
How does a company exceed customer service expectation? Do customer service expectation continually escalate? How do the Company stay ahead of competition in meeting expectation?
Ways Services Marketers can Influence Factors
Controllable Factors Explicit service promises Possible influence Strategies •Make realistic and accurate promises that reflects the service •Formalize service promise into service guarantee •Ask contact person for feedback on accuracy
Implicit service promises
•Service tangibles accurately reflects the type & level of service •Ensure that the price premiums can be justified by higher levels of performance
Ways Services Marketers can Influence Factors
Less Controllable Factors Enduring Service Intensifiers Personal needs Transitory service intensifiers Possible influence Strategies •Use market research for making appropriate marketing strategy •Educate Customers •Increase service deliveries during peak hours
Perceived service alternatives •Be filly aware of competitive offerings & match them Word of mouth Situational factors •Identify influencers & opinion leaders •Use service guarantees to assure customer about service recovery
Basic or principal Expectation of Service
Type of Service Type of Customer Principal Expectation
Role of Culture in Services
Manners and customs
USA
Authenticity Caring Promptness Courtesy Friendliness Formality Personalization
Act independently – wide They care for the customer, but don’t treat as god They expect to have a small chat. The salesman not very prompt Not so important They feel that customer must be treated as equal Every thing is informal Names are used more Frequently. Service is more personalized
JAPAN
Every sales man gives same smile – As per Manual Important dimension in Japan “Customer is god” Very prompt, salesman don’t talk much, Customer prefer unfriendly salesman Very important Friendliness is disrespectful Very formal Waiters and salesman are almost Faceless. No different treatment for different customer
Japan vs Russia
doc_312080785.ppt
customer's expectation from service.Products and service have different qualities and expectations.
Customer Expectations of Service
Meaning and Types of Customer Expectations
Meaning : Customer expectations are hopes or wishes and beliefs Customer expectations are beliefs about service deliver that function as standards or reference points against which performance is judged.
Continuum of Customer Service Expectations
High Ideal Expectations or Desires Normal “should” expectations Experience based norms Acceptable expectations Minimum tolerable expectations Low Everyone says this restaurant is as good as one in Mumbai & I want to go somewhere very special for my Anniversary As expensive as this restaurant is it ought to have excellent food and service
Most times this restaurant is very good , but when it gets busy the service is slow I expect this restaurant to serve me in an adequate manner I expect terrible service from this restaurant, because the price is low
An Exploratory Research on Customer Expectations
•16 focus groups •6 different sectors viz, Commercial property insurance, Automobile insurance, Business equipment repair, Automobile repair, Hotels, Truck rental leasing •Representing both Pure service and product related service •Experienced and inexperienced customer were interviewed •Open-ended questions •All focus groups - were audio taped, - with written transcripts
The OUTCOME of this research … … … …
Two level of Expectation
Desired Service : The service customer hope to receive The “wished for” level of performance Customer believe “can be” and “should be” Though Desired expectations cannot be always hoped. Even a lower level of acceptable service is recognized in certain cases
It is the threshold level of acceptable service which is Adequate service
Two level of Expectation
Infinite
Maximum Expectation Desired Service Level of Expectation
Zone of Tolerance
Adequate Service
Minimum Tolerable Expectation
Customer assess service performance on the basis of 2 standards: What they desire and What they deem acceptable
Two level of Expectation
Over Pleased Customer
Desired Service Maximum Expectation
Level of Expectation
Zone of Tolerance Minimum Tolerable Expectation
Adequate Service
Unsatisfied Customer
Departure time in Airplane – 10 to 20 mins Pizza Delivery – 30 to 50 mins Waiting in Checkout line in a Retail store - 5 to 10 mins Online Refill update – 5 to 20 mins Order for food in 5 Star Hotel – 20 to 30 mins
Zone of tolerance
The extent to which customers recognize and willing to accept this variation is called the Zone of Tolerance
Desired Service
Zone of Tolerance
Adequate Service
Service being Heterogeneous performance vary
Across provider Across employees of same provider Even within same service employee
Zone of Tolerance
Desired Service Level of Expectation
Zone of Tolerance
Adequate Service
Zone of Tolerance
Desired Service Desired Service Desired Service Zone of Tolerance Adequate Service Adequate Service
Zone of Tolerance
Zone of Tolerance
Adequate Service
Tolerance zone represents the difference between Desired service and Adequate service and can expand and contract within customer
Zone of Tolerance
Different customer possess different Zone of Tolerance
A BUSY CUSTOMER Desired Service Desired Service Desired Service Zone of Tolerance Adequate Service Adequate Service Works from Home Adequate Service Do not work Works outside the home
Zone of Tolerance
Zone of Tolerance
Zone of Tolerance
Zone of Tolerance vary for service dimensions
MOST OR LEAST IMPORTANCE
Desired Service Zone of Tolerance Level of Expectation Adequate Service Zone of Tolerance
Desired Service
Adequate Service
Most Important Factors IMPORTANCE
Least Important Factors
Zone of Tolerance
Zone of Tolerance vary for
First Time & Recovery Service
Desired Service Zone of Tolerance Level of Expectation Adequate Service Zone of Tolerance
Desired Service
Adequate Service
Recovery Service
First Time Service
Factors that influence Customer Expectations of Service
Factors that influence Desired Service Expectations
Derived service expectations: Personal or from others members e.g. Group, Family, members of society
Enduring Service Intensifiers Desired Service Personal Needs
Zone of Tolerance
Conditions essential to the physical or psychological well being of the customer. Including social or functional needs
Adequate Service
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
Factors that influence Adequate Service Expectations
Transitory Service Intensifiers Personal Emergencies were service is urgently needed eg. Phone lines of Tele-shopping, Power cut during peak business hrs. Different for 1st Time and recovery services Possible other options which are available, other alternatives eg Small airport, no other options
Perceived service Alternatives
Self perceived Service role
The self role in the service performance
Situational Factors
Bad weather Catastrophe Random Over demand
Predicted Service Expectations
Desired service –what customer wants Adequate Service - what customers are willing to accept Predicted Service – what customer believes they are likely to get
Desired Service
Zone of Tolerance
Adequate Service
Predicted Services
Other Factors that influence Predicted Service Expectations
Explicit service promises
Implicit service Promises
Desired Service
Word of Mouth
Zone of Tolerance
Past Experience
Adequate Service
Predicted Services
Other Factors that influence Predicted Service Expectations
Explicit service promises Advertising / personal selling / Contracts/ Other communication
Implicit service Promises
Tangibles / Price
Word of Mouth
Personal / Experts (reports/ publicity / Consultants)
Past Experience
Your last experience
Enduring Service Intensifiers Personal Needs
Explicit service promises
Implicit service Promises
Transitory Service Intensifiers
Word of Mouth Desired Service Past Experience
Perceived service Alternatives
Zone of Tolerance
Self perceived Service role
Adequate Service
Predicted Services
Situational Factors
Issues involving Customer Services Expectation
What does the service marketer do if customer expectations are “unrealistic”?
How does a company exceed customer service expectation? Do customer service expectation continually escalate? How do the Company stay ahead of competition in meeting expectation?
Ways Services Marketers can Influence Factors
Controllable Factors Explicit service promises Possible influence Strategies •Make realistic and accurate promises that reflects the service •Formalize service promise into service guarantee •Ask contact person for feedback on accuracy
Implicit service promises
•Service tangibles accurately reflects the type & level of service •Ensure that the price premiums can be justified by higher levels of performance
Ways Services Marketers can Influence Factors
Less Controllable Factors Enduring Service Intensifiers Personal needs Transitory service intensifiers Possible influence Strategies •Use market research for making appropriate marketing strategy •Educate Customers •Increase service deliveries during peak hours
Perceived service alternatives •Be filly aware of competitive offerings & match them Word of mouth Situational factors •Identify influencers & opinion leaders •Use service guarantees to assure customer about service recovery
Basic or principal Expectation of Service
Type of Service Type of Customer Principal Expectation
Role of Culture in Services
Manners and customs
USA
Authenticity Caring Promptness Courtesy Friendliness Formality Personalization
Act independently – wide They care for the customer, but don’t treat as god They expect to have a small chat. The salesman not very prompt Not so important They feel that customer must be treated as equal Every thing is informal Names are used more Frequently. Service is more personalized
JAPAN
Every sales man gives same smile – As per Manual Important dimension in Japan “Customer is god” Very prompt, salesman don’t talk much, Customer prefer unfriendly salesman Very important Friendliness is disrespectful Very formal Waiters and salesman are almost Faceless. No different treatment for different customer
Japan vs Russia
doc_312080785.ppt