Desired & Adequate Service Levels of Satisfaction

Venkatesh Ganapathy

Level of Expectations

The more important the factor, the narrower the zone of tolerance is likely to be.Customers are less tolerant about unreliable service (broken promises or service errors) than other service deficiencies.For the most important factors, customers have a higher expectation & therefore the level of tolerance is low or narrow.

Quiz

When competition increases, the zone of tolerance of a customer

a. Increases

b. Decreases

c. Remains the same

Desired Service Levels

Desired levels move upward incrementally due to accumulated experiences.Desired service as compared to adequate level of service is relatively stable.Adequate service level expectation moves up and down and in response to competition & other factors.

Zone of Tolerance dynamics

It varies across customers

It expands or contracts with same customer ( Moods , Emotions, Competition)

Desired Service Levels classified as

Enduring Service Intensifiers

Personal Needs

Personal Philosophies

Enduring Service Intensifiers

Individual stable factors that lead the customer to a heightened sensitivity to service.Customer’s expectations driven by other persons or groups, these are derived service expectations.Vacation – The family members have a say in the matter.A customer’s individual expectations are intensified as they are answerable to other members of the group.B2B service, customer expectations are driven by the expectations of their own customers.

Personal Service Philosophy

It talks about the conduct of service providers.

Personal service philosophies and derived service expectations elevate the level of desired service.

Personal philosophy is shaped by previous experience of customer.

Corporation Bank Fixed deposit in 15 minutes

Personal needs

Some customer’s expectations are based on personal needs which can be physical/ social/ physiological.

Proper understanding of these expectations is vital.

Factors that influence adequate service

Transitory Service Intensifiers

Perceived Service Alternatives

Self-perceived Service Role

Situational Factors

Predicted Service

Transitory Service Intensifiers

TemporaryMakes the customer more aware of the need for serviceExamples : Bike accident, Motor Insurance. In this phase, adequate level of expectations will rise. Need for a quick response time.During intense periods, any deficiency in service will be tolerated less.AC/ 1st Class not available, flexibility of customer.During an exigency, service delivery has to meet the expectations at that point of time.

First Time Right

Reliability most valued dimension of Service Quality

Fixing a service right during a recovery after failure is even more critical.

Service Recovery Paradox

Perceived Service Alternatives

Other service providers from whom customer can obtain service

Consumers having multiple service providers, then their levels of adequate service are higher than those customers who believe it is not possible to get better service elsewhere.

Increased expectations

One bus offers luxury seats, customer expects that other buses also do that.

Raising of expectations is due to availability of choices.

In face of competition, what was exceptional until yesterday becomes common place today. Examples – mobile services

Perception & ZOT (Zone of Tolerance)

Customer’s perception that service alternatives exist raises the level of adequate service and narrows the zone of tolerance.

Self Perceived Service Role

Customer’s perceptions of his role in successful delivery

Gym / Irregular , impact

Jain sabji in a hotel.

Weight loss clinics/ Diet Restrictions.

Diabetic patient in a flight, not opted for a diabetic meal in advance, he realises the folly.

Group discussion

Sir Colin Marshall, Chairman of British Airways said, “ I ardently believe that customer complaints are precious opportunities to hold onto customers who otherwise might take their business elsewhere and to learn about problems that need to be fixed.”

Situational factors

Service performance conditions that the customers view as beyond the control of the service provider

Internet café … power outage

Catastrophes/ earthquakes/ strike, there will be lower service expectations

Predicted Service

This is the level of service customers believe they are likely to get.

Frequency of bus every 30 minutes, satisfaction ; Delay .. Dissatisfaction

Malls on weekends – crowded. So, the adequate level of expectations will decrease.

Factors that influence desired and predicted service

Explicit Service PromisesPersonal commitments by sales / marketingNon personal – Brochures, Advertisements.

Implicit Service PromisesService Related Cues, Higher the price, more impressive the tangibles, the more a customer will expect from the serviceBecause a service is charged at a premium, customers will expect that service will be good. In case delivery is poor, customer feels cheated.

Word of Mouth More powerful in shaping expectations of servicesUnbiasedImportant in case of services that are difficult to evaluate before purchase.

Past Experience with Service

Adequate service expectations have to be monitored continually – the more intense the competition, the more frequent monitoring needed.Desired Service Expectations are far more stable because they are driven by more enduring factors such as personal needs and lasting service intensifiers.