Consumer Expectations of

Services

Donna J. Hill, Ph.D.

Mtg.. 410

Fall 2000

Consumer Expectations

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

Types of Expectations

Desired service -- the level of service the customer hopes to receive

Adequate service -- the level of service the customer will accept

Figure 3-1Figure 3-1

Dual Customer Dual Customer Expectation LevelsExpectation Levels

Adequate Service

Desired Service

Zone ofTolerance

The Zone of ToleranceThe Zone of Tolerance---The extent to which customers

recognize and are willing to accept variation in service performance

Adequate Service

Desired Service

Zone ofTolerance

Figure 3-3Figure 3-3

Zones of Tolerance forZones of Tolerance forDifferent Service DimensionsDifferent Service Dimensions

Most Important Factors Least Important Factors

Level of

Expectation

Source: Berry, Parasuraman, and Zeithaml (1993)

Adequate Service

Desired Service

Zone ofTolerance

DesiredService

AdequateService

Zone of

Tolerance

Desired Service

Adequate Service

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

Figure 3-4Figure 3-4

Zones of Tolerance forZones of Tolerance forFirst-Time and Recovery ServiceFirst-Time and Recovery Service

First-Time Service

Outcome

Process

Outcome

Process

Recovery Service

ExpectationsLOW HIGH

Source: Parasuraman, Berry and Zeithaml (1991)

Zones of Tolerance forZones of Tolerance forFirst-Time and Recovery ServiceFirst-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.

Figure 3-5Figure 3-5

Factors that InfluenceFactors that InfluenceDesired ServiceDesired Service

DesiredService

AdequateService

Zone of

Tolerance

Enduring ServiceIntensifiers

Personal Needs

Factors that InfluenceFactors that InfluenceDesired ServiceDesired Service

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

Factors that InfluenceFactors that InfluenceDesired ServiceDesired Service

Enduring Service intensifiers --- individual stable factors that lead the customer to a heightened sensitivity– derived service

expectations

– personal service philosophy

Figure 3-6Figure 3-6

Factors that InfluenceFactors that InfluenceAdequate ServiceAdequate Service

DesiredService

AdequateService

Zone of

ToleranceSelf-PerceivedService Role

Situational Factors

Perceived ServiceAlternatives

Transitory ServiceIntensifiers

Factors That Influence Adequate Service Expectations

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

Factors That Influence Adequate Service Expectations

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

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

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

Situational Factors

Reason for purchase Consumer mood Weather Time constraints Emergency

Factors That Influence Adequate Service Expectations

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

Figure 3-7Figure 3-7

Factors that InfluenceFactors that InfluenceDesired and Predicted ServiceDesired and Predicted Service

DesiredService

AdequateService

Zone of

Tolerance

Predicted Service

Explicit ServicePromises

Implicit ServicePromises

Word-of-Mouth

Past Experience

Factors that InfluenceFactors that InfluenceDesired and Predicted ServiceDesired 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

Objectives for Chapter 3:Customer 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

Factors that InfluenceFactors that InfluenceDesired and Predicted ServiceDesired 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

Service Related CuesOther Tangibles --

Service personnel Tangible cues Other customers Firm image - if high

than zone widens Pre-service waiting

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.

Model of Consumer Expectations

Ideal Service

Desired Service

Adequate Service

PredictedService

Zoneof

Tolerance

Source: Adapted from Valarie A. Zeithaml, Leonard L. Berry, andA. Parasuraman, “The Nature and Determinants of CustomerExpectations of Services” Journal of Academy of Marketing Science,Vol.. 21 (Winter 1993), pp.. 1-12

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.

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

External Antecedents of Consumer Expectations

Competitive options-”We try harder”

Social context-often increase Word-of-mouth communication

--- strongest source of information

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

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

Managing Customer Expectations

Customer expectations must be managed.

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

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.

Managing Consumer Expectations During Postpurchase Phase

Communicate - expectations were met? Develop a follow-up program. Develop a procedure for dealing with

dissatisfied customers.

Objectives for Chapter 3:Customer 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