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Consumer Expectations of Services

Chapter 4 Zeithaml. Consumer Expectations of Services. Think of a…… . public toilet in the malls of Dhaka versus a public toilet in the malls of Bangkok Any Difference??????. Think of a meal. @ Dhanshiri Versus @ Izumi.

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Consumer Expectations of Services

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  1. Chapter 4 Zeithaml Consumer Expectations of Services

  2. Think of a…… public toilet in the malls of Dhaka versus a public toilet in the malls of Bangkok Any Difference??????

  3. Think of a meal @ Dhanshiri Versus @ Izumi

  4. Possible Levels of Expectations: Effecting your assessment • Ideal: Everyone says its great • Normative “Should be good”: Its quite expensive, so should be good • Experience Based: Usually they are good, except if they are too busy • Acceptable: Service should be adequate (should do) • Minimum Tolerable: I know service is poor, but food is good and cheap

  5. 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

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

  7. The Zone of Tolerance The extent to which customers recognize and are willing to accept variation in service performance Desired Service Zone of Tolerance AdequateService

  8. Zone of Tolerance and Importance of Service Dimensions Think of factors/situations that might influence YOUR Zone of Tolerance

  9. Desired Service Adequate Service Zones of Tolerance for Different Service Dimensions Desired Service Level of Expectation Zone of Tolerance Desired Service Adequate Service Zone of Tolerance Adequate Service Most Important Factors Least Important Factors Source: Berry, Parasuraman, and Zeithaml (1993)

  10. Factors that Influence Desired Service Expectations Personal Needs Desired Service • Lasting Service • Intensifiers • Derived • Personal Philosophy Zone of Tolerance Adequate Service

  11. 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

  12. Factors that Influence Adequate Service Expectations Temporary Service Intensifiers Desired Service Perceived Service Alternatives Zone of Tolerance Self-Perceived Service Role Adequate Service Situational Factors

  13. 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

  14. 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.

  15. 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

  16. Factors that InfluenceDesired and Predicted Service • Explicit Service Promises • Implicit Service Promises • Word of Mouth • Past Experience

  17. Factors that InfluenceDesired 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

  18. Factors that InfluenceDesired 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

  19. Factors that InfluenceDesired and Predicted Service

  20. Managing Consumer Expectations During Prepurchase Phase • Learn what customers expect. • Ask employees and customers. • Tell customers what to expect. • Consistently provide what service customers expect.

  21. 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.

  22. Managing Consumer Expectations During Postpurchase Phase • Communicate - expectations were met? • Develop a follow-up program. • Develop a procedure for dealing with dissatisfied customers.

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