Consumer Expectations of Services

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Consumer Expectations of Services

• Donna J. Hill, Ph.D.
• Mtg.. 410
• Fall 2000

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Consumer Expectations

• Pre-trial beliefs about a service that function
  as standards against which performance is judged.

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Types of Expectations

• Desired service -- the level of service the
  customer hopes to receive
• Adequate service -- the level of service the
  customer will accept

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Figure 3-1 Dual Customer Expectation Levels
Desired Service
Zone of Tolerance
Adequate Service
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The Zone of Tolerance--- The extent to which
customers recognize and are willing to accept
variation in service performance
Desired Service
Zone of Tolerance
Adequate Service
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Figure 3-3 Zones of Tolerance for Different
Service Dimensions
Desired Service
Level of Expectation
Zone of Tolerance
Desired Service
Adequate Service
Adequate Service
Most Important Factors
Least Important Factors
Source Berry, Parasuraman, and Zeithaml (1993)
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Zone of Tolerance and Importance of Service
Dimensions

• as a service dimension becomes more important
  zone of tolerance will narrow and desired and
  adequate levels will increase

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Figure 3-4 Zones of Tolerance for First-Time
and Recovery Service
First-Time Service
Outcome
Process
Recovery Service
Outcome
Process
LOW
HIGH
Expectations
Source Parasuraman, Berry and Zeithaml (1991)
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Zones of Tolerance forFirst-Time and Recovery
Service

• Consumers have a narrower zone of tolerance and a
  higher set of expectations for a service recovery
  than for the first time service expereince.

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Figure 3-5 Factors that Influence Desired
Service
Enduring Service Intensifiers
Desired Service
Personal Needs
Zone of Tolerance
Adequate Service
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Factors that InfluenceDesired Service

• Personal Needs --- states or conditions essential
  to the physical or psychological well being ---
  physical, social, psychological, and funtional

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Factors that InfluenceDesired Service

• Enduring Service intensifiers --- individual
  stable factors that lead the customer to a
  heightened sensitivity
• derived service expectations
• personal service philosophy

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Figure 3-6 Factors that Influence Adequate
Service
Transitory Service Intensifiers
Desired Service
Perceived Service Alternatives
Zone of Tolerance
Self-Perceived Service Role
Adequate Service
Situational Factors
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Factors That Influence Adequate Service
Expectations

• Are short-term in nature and fluctuate more than
  the factors that influence desired expectations

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Factors That Influence Adequate Service
Expectations

• Transitory service intensifers --- short-term,
  individual factors that make a consumer more
  aware of the need ofr service

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Factors That Influence Adequate Service
Expectations

• Perceived Service Alternatives----
• As the number of alternatives increases, the
  level of adequate service increases and the zone
  of tolerance narrows

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Factors That Influence Adequate Service
Expectations

• 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

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Situational Factors

• Reason for purchase
• Consumer mood
• Weather
• Time constraints
• Emergency

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Factors That Influence Adequate Service
Expectations

• Self Perceived Service Role --- how well the
  customer perceives they are performing their own
  role in service delivery

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Figure 3-7 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
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Factors that InfluenceDesired and Predicted
Service

• Explicit Service Promises
• Implicit Service Promises
• Word of Mouth
• Past Experience
• particular service
• within the same industry
• related services
• More experience the narrower the Zone of
  Tolerance

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Objectives for Chapter 3Customer Expectations
of Service

• Recognize that customers hold different types of
  expectations for service performance
• Discuss controllable and uncontrollable sources
  of customer expectations
• Distinguish between customers global
  expectations of their relationships and their
  expectations of the service encounter
• Acknowledge that expectations are similar for
  many different types of customers
• Delineate the most important current issues
  surrounding customer expectations

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Factors that InfluenceDesired and Predicted
Service

• Explicit --- personal and nonpersonal statements
  from the organization---Advertising, personal
  selling, contracts, other communications ---
  usually increases desired level and narrows zone
• Implicit--- ---service related cues
• -Tangibles --
• Price -- price directly related to predicted
  service and inversely related to width of zone.
• Distribution - multiple outlets

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Service Related CuesOther Tangibles --

• Service personnel
• Tangible cues
• Other customers
• Firm image - if high than zone widens
• Pre-service waiting

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Consumer Expectations

• Ideal --- wished for level.
• Desired --- wants or hopes to receive.
• Adequate --- minimum level of service consumers
  will tolerate.
• Zone of tolerance --- area between adequate and
  ideal.
• Predicted --- believe will receive takes in all
  the circumstances and modifies expectations.

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Model of Consumer Expectations
Ideal Service
Desired Service
Predicted Service
Zone of Tolerance
Adequate Service
Source Adapted from Valarie A. Zeithaml, Leonard
L. Berry, and A. Parasuraman, The Nature and
Determinants of Customer Expectations of
Services Journal of Academy of Marketing
Science, Vol.. 21 (Winter 1993), pp.. 1-12
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What Are We Really Concerned About?

• How expectations are formed.
• Process through which expectations are raised or
  lowered.
• Impact on the width of the zone of tolerance.
• Conclusion ---- Must manage expectations.

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Internal Antecedents of Consumer Expectations

• Past experience --- has greatest impact.
• particular service
• within the same industry
• related services
• More experience the narrower the Zone of Tolerance

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External Antecedents of Consumer Expectations

• Competitive options-We try harder
• Social context-often increase
• Word-of-mouth communication --- strongest source
  of information

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Firm-Produced Antecedents of Consumer Expectations

• Promotions -- usually increases desired level and
  narrows zone
• Price -- price directly related to predicted
  service and inversely related to width of zone.
• Distribution - multiple outlets

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Role of Consumer Expectations

• During Prepurchase Phase --- higher expectations
  more likely to purchase.
• During Service Encounter --- expectations
  modified (however usually not desired or ideal)
• During Postpurchase Phase --- altered and impact
  over time

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Managing Customer Expectations

• Customer expectations must be managed.

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Managing Consumer Expectations During Prepurchase
Phase

• Learn what customers expect.
• Ask employees and customers.
• Tell customers what to expect.
• All factors above line of visibility
• Consistently provide the service customers
  expect.
• Forms concrete expectations

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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.

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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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Objectives for Chapter 3Customer Expectations
of Service

• Recognize that customers hold different types of
  expectations for service performance
• Discuss controllable and uncontrollable sources
  of customer expectations
• Distinguish between customers global
  expectations of their relationships and their
  expectations of the service encounter
• Acknowledge that expectations are similar for
  many different types of customers
• Delineate the most important current issues
  surrounding customer expectations