Customer Expectations and Perceptions

Satisfaction is the level of a customer felt state resulting from comparing a product or service’s perceived performance standard against customer’s expectations

Understanding Customer Requirements

Satisfaction levels of customer change when

a) Change in customer’s expectationsb) Performance of service provider

Customer Expectations

Based on Customer’s experience with product or service

Feedback received from friends, colleagues and relatives

Based on present needs

Customer Expectations

There are five dimensions regarding service outcomes

a) Assuranceb) Empathyc) Reliabilityd) Responsivenesse) Tangibles

Types of Service Expectations Customer Expectations are of two typesa) Desired Service-Service that customer desires

and hope to receiveb) Adequate Service-Minimal level of service that

customer is willing to accept from service provider

c) Predicted Service-Service level between desired and adequate service and lies in zone of tolerance

d) Zone of tolerance-Gap between customer’s desired service and adequate service expectations

Zone of tolerance is based upon reliability of service

Zone of tolerance is narrow when customer has different alternatives available

Factors influence Customer Expectations of Desired Service Customer needs and Enduring Service

Intensifiers largely influence customer expectations of desired service

Customer needs-Abraham Maslow’s Hierarchy of Needs

a) Physiological Needsb) Safety Needsc) Social Needsd) Esteem Needse) Self Actualization Needs

Factors that Influence Customer Expectations of Desired Service

Enduring service intensifiers are of two types

a) Derived service expectations influenced by expectations of those who are dependent on customer to provide with good service experience e.g Admin officer’s expectation on travel would be based on every person going in outing

b) Customer’s philosophy has to do with customer’s attitude and service provider’s conduct

Factors that influence Customer’s Expectations of Adequate Service Transitory service intensifiers :-which

intensify or heighten level of adequate service expectations of customers

a) Factors include personal emergencies, failure of service provider to provide proper service first time, factors which push customer to take service

Perceived alternatives:- include customers perceptions of available alternatives that offer similar service

a) Customers have adequate knowledge about alternatives required to fulfill demand

Factors that influence Customer’s Expectations of Adequate Service

Situational factors-Customer compromises on service expectations if he know service are not under service provider’s control

Predicted service-level of service a customer believes he will receive from service provider

Factors that influence both Desired and Predicted Service Expectations

Explicit service promises-Statements made in which he explicitly promises certain level of service

Implicit service promises-Tangible clues to customer which gives clue how service will be

Word of mouth publicity Past experience

Criteria to Evaluate Service based on Customer’s Service Expectations

Speed Certainty Ease Personal recognition

Managing Customer Service Expectations

Managing promises Reliability-Getting it right first time Effective communication

Exceeding Customer Service Expectations

Reliability of service delivery Competence of service Courtesy of service Commitment of service

Customer Perceptions

Customer Perception is based upona) Service Deliveryb) Service Qualityc) Customer Satisfaction

Factors that influence Customer Perceptions

Service Encounter-Quality of service through interaction with service provider

Service Evidencea) Personnelb) Processc) Physical Environment Image Price

Types of Service Encounters

Remote Encounters e.g: ATM machines ,telephone answering machines, voice mail

Phone Encounters Face to Face Encounters

Factors that lead to satisfaction or dissatisfaction in service encounters

Recovery-Service failure has occurred and how service provider responded

Adaptability-Deal with special requests of customers

Spontaneity-Voluntary action of employees in delivering service

Coping-Problem customers and situations effectively

Strategies for influencing Customer Perceptions

Enhance customer satisfaction through service encounters

Reflect evidence of service Communicate and create realistic

image Enhance Customer perceptions of

Quality and Value through pricing