Customer Expectations and Perceptions

Satisfaction is the level of a customer felt state resulting from comparing a product or services perceived performance standard against customers expectations

Understanding Customer Requirements

Satisfaction levels of customer change when a) Change in customers expectations b) Performance of service provider

Customer Expectations
Based on Customers 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) Assurance b) Empathy c) Reliability d) Responsiveness e) Tangibles

Types of Service Expectations

Customer Expectations are of two types a) Desired Service-Service that customer desires and hope to receive b) 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 customers 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 Maslows Hierarchy of Needs a) Physiological Needs b) Safety Needs c) Social Needs d) Esteem Needs e) 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 officers expectation on travel would be based on every person going in outing b) Customers philosophy has to do with customers attitude and service providers conduct

Factors that influence Customers 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 Customers Expectations of Adequate Service

Situational factors-Customer compromises on service expectations if he know service are not under service providers 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 Customers 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
a) b) c) Customer Perception is based upon Service Delivery Service Quality Customer Satisfaction

Factors that influence Customer Perceptions

Service Encounter-Quality of service through interaction with service provider Service Evidence a) Personnel b) Process c) 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