marketing services - chap004

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    Customer Expectations of Service

    Meaning and Types of Service Expectations

    Factors that Influence Customer Expectations of

    Service

    Issues Involving Customers Service Expectations

    Chapter 4

    McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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    Objectives for Chapter 4:Consumer Expectations of Service

    Recognize that customers hold different types of expectations for service performance.

    Discuss the sources of customer expectations of service,including those that are controllable and uncontrollable bymarketers.

    Acknowledge that the types and sources of expectationsare similar for end consumers and business customers, for pure service and product-related service, for experiencedcustomers and inexperienced customers.

    Delineate the most important current issues surroundingcustomer expectations.

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    Possible Levels of Customer Expectations

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    Dual Customer Expectation Levels

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    Dual Customer Expectation Levels

    Desired Service is the service customer hopes to receive the wished for level of performance.

    E.g. Customer sign up on a dating site

    Adequate Service is the level of service thecustomer will accept

    Minimum tolerable expectation, the bottom levelof performance acceptable by customer

    After WTC collapse, level of job requirement.

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    Dual Customer Expectation Levels

    Levels of expectation from two organizationin the same business may vary

    McDonalds with few service providers and anexpensive restaurant with many service agentsFast food is quick and expensive restaurant iselegant

    Expectation from McDonalds (high) would bedifferent from KFC (low)

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    The Zone of Tolerance

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    The Zone of Tolerance

    The extent to which customers recognize and arewilling to accept this variation

    Checkout line in a grocery shopDesired time is 2 to 3 minutes

    Adequate time is 8 to 10 minutes15 to 20 minutes are out of zone of tolerance

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    The Zone of Tolerance

    Different types of customers posses differentzones of tolerance

    Very busy customer would be more timeconsciousWhen prices increase, zone of tolerancedecreases

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    The Zone of Tolerance

    Adequate Service

    Desired Service

    Zone ofTolerance

    Delights

    Desirables

    Musts

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    Zones of Tolerance

    The range of expectations between desiredand adequate

    can be wide or narrow

    can change over time

    can vary among individuals

    may vary with the type of product/service

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    Zones of Tolerance for DifferentService Dimensions

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    Factors That Influence Desired Service

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    Factors That Influence Desired Service

    Personal needs can by physical, social,psychological or functional

    Lasting service identifiers- individual, stablefactors that lead the customer to increasesensitivity to service

    Derived Service Expectations when they are driven byanother person or group of persons e.g. B2B servicesPersonal Service Philosophy is customers underlyinggeneric attitude about the meaning of the service

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    Factors That Influence Adequate Service

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    Factors That Influence Desired andPredicted Service

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    Explicit Promises from Paytrust

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    Frequently Asked Questions AboutCustomer Expectations

    What does a service marketer do if customer expectations are unrealistic?

    Should a company try to delight the customer?

    How does a company exceed customer serviceexpectations?

    Do customer service expectations continuallyescalate?

    How does a service company stay ahead of competition in meeting customer expectations?