Customer Expectations and Perceptions of Services

Customers’ Expectation
and
Perceptions
of
Services
Pratik Aryal
Course Facilitator
Ace Institute of Management
Spring Semester 2020
Understanding Customers’ Expectations of Services
Service Expectations:
 Beliefs about the service delivery that serve as standards or reference points
against which performance is judged.
 Expectation are reference points against which service delivery is compared
 Level of expectation can vary widely depending on the reference points

customer holds
 Service marketer need a far more thorough and clear definition of

expectations in order to comprehend, measure and manage them
 “Knowing what customer expects is the first and possibly most step in
delivering quality service.”
Possible Levels of Customer Expectations
Ideal Everyone says this restaurant is as good as

one in France and I want to go somewhere
Expectations or Desired High very special for my anniversary
Normative As expensive as this restaurant is , it ought

“should” Expectations to have excellent food and service
Most times this restaurant is very good, bu

Experience when it gets busy the service is slow
Based Norms
Acceptable I expect this restaurant to serve me in an

adequate manner
Expectations
The
Low peopl
Minimum I expect terrible service from this restaurant
Tolerable Expectations because the priceeis low
Expected Services: Levels of Expectations
 Desired service: – highest level of

service – wish for level of performance – Desired Services
can be, should be Te
 Different factors maycustomer
put hindrances for
this ideal level of expectations
 Customer themselves realize that desired
level of service expectations may not be
always possible to be delivered / fulfilled
 Adequate Service:- the level of services
customer will accept (MBA –accepting
entry level job)
 Critical Question for marketer is whether
customer hold the same or different
expectation levels for service firms in the Adequate
TheService
same industry? peopl
Dual Customer
e
Expectation Levels
Expected Services: Levels of Expectations
 Zone of Tolerance: TheTeextent to which Desired Services

customers recognize and are willing to accept
customer
the variation
 If service delivery is below the adequate

service, customer will be frustrated and Zone of
dissatisfied with the company Tolerance
 If service delivery is above zone of tolerance,

customer will be pleased, and also may be
surprised.
The
Adequate Service
peopl
e
Dual Customer
Expectation Levels
Sources of Desired Service Expectation
 Personal Needs: - needs related to physical and psychological well being of

the customer ( physical, social, psychological including functional)
 Lasting Service Intensifiers - Individual stable factors that lead the

customer to a heightened sensitivity to service i.e. Derived Service Expectations
and Personal Service Philosophy
 Derived Service Expectation - Occurs when customer expectations are

driven by another person or group i.e. a parent choosing a vacation for the
family, a granddaughter choosing restaurant for grandfathers birthday
 Personal Service Philosophy - customer’s underlying generic attitude

about the meaning of services and proper conduct of service provider
Sources of Adequate Service Expectation
Temporary service intensifiers

 Consists of temporary, usually short-term, individual factors making a
customer more aware of the need for service i.e. personal emergency
situations(machine break-d0wn-instant repair, accident – insurance need)
 Problems with initial service can also heighten expectations
Perceived service alternatives

 Other service providers from whom the consumer can obtain services in
the case customer has multiple service providers (An airline customer in
big cities and in small towns. Higher Alternatives, higher adequate
expectation)
 Understanding complete set of service options and developing strategies
Sources of Adequate Service Expectation
Customer’s self-perceived service role

 Customer’s belief on their role in service production and delivery
 Assuming responsibility for complaining when service poor
Situational factors
 Service performance conditions that customer view as beyond the control
of the service provider
Predicted Service
 The level of service customers believe they are likely to get
 If predicts higher than adequate, service will be termed as poor
Source of Both Desired and Predicted Service Expectations
Explicit service promises
Implicit service promises
Word of Mouth Communications
Past Experience
A Video on Customer Expectations
https://www.youtube.com/watch?v=69m8rcNMFPk
Customer Perception
 Customer Perception is relative to customer expectation
 Entire quality and satisfaction is based on customer’s

perceptions of the service
 Quality and Satisfaction are the key terms on focus
 Customers perceive services in terms of quality of services and

how satisfied they are with experience
The Difference Between Customer Satisfaction and Service Quality
 Service Quality
 Long-run overall evaluation of the firm’s performance:
reliability, assurance, responsiveness, empathy and tangibles
 Looks at how firms should perform
 Measures a higher standard of service delivery
 Expectations drive service quality perceptions
 Customer Satisfaction
 Short-run, transaction specific measure

 Broader concept
 Influenced by perceptions of service quality, product quality and price as
well as situational and personal factors
Elements of Service Quality
 Reliability: Delivering on Promises
 Responsiveness: Being willing to help
 Empathy: Treating Customers as Individuals
 Tangibles: Representing the Service Physically
 Assurance: Building and inspiring Trust and Confidence

Customer Perceptions of Quality and Customer
Satisfaction
Reliability
Responsiveness Interaction
Assurance
Empathy quality
Tangibles
Reliability Service Situational

Responsiveness Physical
Assurance
quality factors
Environment
Empathy
Tangibles quality
Reliability Product Customer

Responsiveness satisfaction
Assurance Outcome quality
Empathy
Tangibles quality
Personal
Price
factors
Customer Satisfaction
 Satisfaction is the consumer’s fulfillment response. It is judgment that a

product or service feature or the product or service itself, provides a pleasurable
level of consumption-related fulfillment
 Conceptual Distribution of Satisfaction Measurements
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied

Determinants of Customer Satisfaction
 Product and service features
 Perceptions of equity or fairness
 Other consumers, family members and co-workers
 Consumer emotions
 Attributions for service success or failure

Outcome of Customer Satisfaction
 Micro-economic implications:
 Customer loyalty
 Positive word-of-mouth
 More frequent purchase
 Less likely to be lost to competitors
 Insulated from price competition
 Provides a formal means of customer feedback
 Help evaluate employee – merit and compensation reviews, employee training
program
 Comparison against competition
 Provide information for advertising
 Macro-economic implications:
 Indicator of quality of life

 Better economic health
Customer Satisfaction Measurement
 Swedish Customer Satisfaction Barometer
 Deutsche Kundenbarometer
 Swiss Index of Customer Satisfaction
 American Customer Satisfaction Index
Examples of Customer Satisfaction Index
Customer Satisfaction Measurement (ASCI) with example of Airline

Industry.
https://www.youtube.com/watch?v=WLMfsMLrJ9U
Airline
Customer Satisfaction Measurement (ASCI) with example of

Apple/Samsung Phones.
https://www.youtube.com/watch?v=jbcxYk5wJAA

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Customers’ Expectation

 Expectation are reference points against which service delivery is compared

 Level of expectation can vary widely depending on the reference points

 Service marketer need a far more thorough and clear definition of

Ideal Everyone says this restaurant is as good as

Normative As expensive as this restaurant is , it ought

Most times this restaurant is very good, bu

Acceptable I expect this restaurant to serve me in an

 Desired service: – highest level of

 Zone of Tolerance: TheTeextent to which Desired Services

 If service delivery is below the adequate

 If service delivery is above zone of tolerance,

 Personal Needs: - needs related to physical and psychological well being of

 Lasting Service Intensifiers - Individual stable factors that lead the

 Derived Service Expectation - Occurs when customer expectations are

 Personal Service Philosophy - customer’s underlying generic attitude

Temporary service intensifiers

Perceived service alternatives

Customer’s self-perceived service role

Explicit service promises

Implicit service promises

Word of Mouth Communications

 Customer Perception is relative to customer expectation

 Entire quality and satisfaction is based on customer’s

 Quality and Satisfaction are the key terms on focus

 Customers perceive services in terms of quality of services and

 Short-run, transaction specific measure

 Reliability: Delivering on Promises

 Responsiveness: Being willing to help

 Empathy: Treating Customers as Individuals

 Tangibles: Representing the Service Physically

 Assurance: Building and inspiring Trust and Confidence

Reliability Service Situational

Reliability Product Customer

 Satisfaction is the consumer’s fulfillment response. It is judgment that a

 Conceptual Distribution of Satisfaction Measurements

Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied

 Product and service features

 Perceptions of equity or fairness

 Other consumers, family members and co-workers

 Attributions for service success or failure

 Indicator of quality of life

Customer Satisfaction Measurement (ASCI) with example of Airline

Customer Satisfaction Measurement (ASCI) with example of

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