CustomersGÇÖ Expectation

Views:
 
Category: Entertainment
     
 

Presentation Description

apt description

Comments

Presentation Transcript

Customers’ Expectation & Perception of Service:

Customers’ Expectation & Perception of Service 1

A. Customer Expectations of Service :

A. Customer Expectations of Service Customers possess varying concept about ‘Service’ and ‘Service Delivery’, be it simple service of haircut or complex cardiac surgery at sophisticated hospitals. This concept is built around customers’ expectation from the service. In fact, customers’ expectation also functions as standard or reference point f or evaluation of service-quality. Therefore service firms require to know what customers expect of service so that they may deliver service satisfactorily to customers. 2 Customers do not derive satisfaction if service provided is not up to their expectation.

Possible Levels of Customer Expectations:

Possible Levels of Customer Expectations

PowerPoint Presentation:

4 Therefore it is essential that service providers identify expectation of customers before rendering service so that their effort succeeds in providing satisfaction to customer. Customer Service Expectations Generally customers carry various expectations from the same service e.g., a bank customer may expect from his bank i) cash withdrawal ii) in ten minutes iii) with a smile from staff iv) in comfortable environments v) in crisp new bank-notes These expectations indicate Desired Levels of Service i.e., the “Wished for” levels of service that customers desire to receive from service-providers.

PowerPoint Presentation:

5 But prudent customers know methods of service-provider and may accept service performance of lower levels say, a) cheque encashment in twenty minutes instead of ten, b) without suitable waiting arrangement c) without congenial behaviour from staff d) not in new bank-notes etc. This lowest level of service which is acceptable to customer is termed as Adequate Level of Service . So Adequate Level of Service may be thought to be lowest level of service that the customer accepts i.e., “minimum level of tolerable service”. But service performance lower than “Adequate Level” is not acceptable to customer.

PowerPoint Presentation:

6 -- The ‘Desired’ and ‘Adequate’ service levels may vary from customer to customer e.g. some customers’ adequate level may be thirty minutes for another only twenty minutes. -- Even for same customer, these levels may vary from time to time or service-provider to service-provider, e.g. ‘Desired’ and ‘Adequate’ service expectations from a 5-Star restaurant and roadside Dhaba may be different. Zone of Tolerance The service expectation of customers are bound by two levels viz. ‘Adequate Service Level’ at bottom and ‘Desired Service Level’ at top. As long as service perceived by customer remains within this range, service quality is acceptable to customer. It is called the Zone of Tolerance.

PowerPoint Presentation:

7 DESIRED SERVICE LEVEL ZONE OF TOLERANCE * ADEQUATE SERVICE LEVEL * When service level is beyond ‘Zone of Tolerance’, customer notices the service as good (when above DSE) or bad (when below ASE). * Zone of Tolerance may vary between customers. * Zone of Tolerance becomes narrow when expectation from service is high.

PowerPoint Presentation:

Factors that Influence Desired Service Desired Service Adequate Service Zone of Tolerance Enduring Service Intensifiers Personal Needs

PowerPoint Presentation:

Factors that Influence Adequate Service Desired Service Adequate Service Zone of Tolerance Self-Perceived Service Role Situational Factors Perceived Service Alternatives Transitory Service Intensifiers

PowerPoint Presentation:

10 B. Factors that Influence Customers’ Expectation -- Overall customers’ expectation of service depends upon levels of ‘ Desired ’ and ‘ Adequate ’ service expectations. -- These are influenced by : 1. Elements of Desired Service Expectation A. Personal Needs – Sometimes expectation of customers is driven by physical and physiological conditions, e.g. salary in first job. rushing to catch a train etc. B. Personal Service Philosophy -- Customers’ general attitude towards service is “You expect to be treated the way you treat other people.” C. Derived Service Expectation -- When expectation is driven by another person or group of persons’ expectation e.g. media whips up emotion on issues, buying decision prompted by friends etc.

PowerPoint Presentation:

11 D. Enduring Service Intensifiers -- Some customers are more demanding than others, so their expectation levels are higher. It makes them more sensitive to Desired Service Expectation. 2. Elements of Adequate Service Expectation Minimum level of service that a customer approves is temporary in nature depending on situation as under : A. Transitory Service Intensifiers In personal emergencies (like car-accident on highways) a rich person may not hesitate to take treatment in a roadside, shabby hospital because his ‘Adequate Service Level’ has been reduced. Generally these ‘service intensifiers’ are short-term and episodic when ASE levels are minimized.

PowerPoint Presentation:

12 B. Perceived Service Alternatives When there are alternate service providers or customer can render the service himself, ASE level gets raised and zone of tolerance is narrowed. C. Self-Perceived Service Role Customers become more tolerant when they feel they are not fulfilling their roles, i.e. their zone of tolerance increases e.g. when a customer buys at discount, he is ready to accept a lower quality service. D. Situational Factors Customers generally lower their ASE in adverse situation like delay in cheque encashment on Monday mornings at bank or delay in case of derailment of trains etc. E. Predicted Service When customers predict higher level of service, their ASE level goes up and vice versa.

PowerPoint Presentation:

Factors that Influence Desired and Predicted Service Desired Service Adequate Service Zone of Tolerance Predicted Service Explicit Service Promises Implicit Service Promises Word-of-Mouth Past Experience

PowerPoint Presentation:

14 C. Formation of Customers’ Service Expectation The ‘Desired’ and ‘Predicted’ levels of expectation arise in customers from external and internal factors : i) Service Promises -- Explicit Frank personal promises made by salespersons and non- personal communication from company through * Contracts * Advertising & * Other communications go to form higher expectation in customers’ mind about services. It earmarks ‘Predicted level of service’. ii) Service Promises – Implicit In addition customer draws inference about level of service from related cues like price, associated tangibles like letter- heads, employees’ dress, equipments in operation theatre etc.

PowerPoint Presentation:

15 When customers are not competent technically to evaluate service, they build up expectations based on implicit service promises. iii) Word of Mouth Communication Generally, communication by friends, family- members and other consumers are considered to be unbiased, so carry considerable weight in formation of expectation. It holds particularly true for services difficult to evaluate before consumption. iv) Customers’ Experience Any experience of the customer of same service or by same service-provider helps in forming service expectation and ‘Predicted’ level.

PowerPoint Presentation:

16 D. Customer Perception of Service Customers’ perception of quality of service is the cause and effect of customer satisfaction. Customers’ Perception ( i.e. obtaining knowledge) about service leads to evaluating quality and deciding if they are satisfied or not. Customers’ Perception of service (and its leading to satisfaction or not) is always relative to his expectation of service. It may be said customers evaluate their perception about service in the yardstick of expectation to decide if they are satisfied or not.

PowerPoint Presentation:

17 Customers’ perception turns into satisfaction through Quality of Service comprising of following Five Factors : * Service Quality * Product Quality * Price * Situational Factors * Personal factors Customers achieve satisfaction (or not) based on their Value perception through ‘Service quality’ and ‘Product quality’ [where product accompanies service] beside ‘Price’ and ‘Situational factor’ of Environment and ‘Personal factor’ of Emotion represented by V = < ( Q + F) / P > Where V is Perceived Value, Q service quality, F is Product features and P is Price. < > represent the frame of Situational and Personal Factors.

PowerPoint Presentation:

18 E. Dimensions of Service Quality Customers perception of ‘Service Quality’ includes evaluation along following dimensions -- * Reliability -- Ability to perform promised service dependably and accurately. It is rated as most important of dimensions. * Responsiveness -- Prompt service and willingness to help customers * Assurance – Employees’ knowledge, courtesy and ability to inspire trust and confidence * Empathy -- Providing individual and caring attention to customers * Tangibles – Impressive appearance of equipments like letterheads, employees’ uniform etc

Dimensions of service quality:

Dimensions of service quality

Dimensions of service quality:

Providing service as promised Dependability in handling customers’ service problems Performing services right the first time Providing services at the promised time Maintaining error-free records Keeping customers informed as to when services will be performed Prompt service to customers Willingness to help customers Readiness to respond to customers’ requests RELIABILITY RESPONSIVENESS Employees who instill confidence in customers Making customers feel safe in their transactions Employees who are consistently courteous Employees who have the knowledge to answer customer questions ASSURANCE Giving customers individual attention Employees who deal with customers in a caring fashion Having the customer’s best interest at heart Employees who understand the needs of their customers Convenient business hours EMPATHY Modern equipment Visually appealing facilities Employees who have a neat, professional appearance Visually appealing materials associated with the service TANGIBLES Dimensions of service quality

PowerPoint Presentation:

21 F. Customer Satisfaction Customer satisfaction is his judgment that the product or service has provided pleasurable level of consumption-related experience. -- Richard Oliver Customer satisfaction may be defined as customers’ evaluation of product or service in terms of whether it has met his need and expectation. Customers’ Satisfaction arise out of : * Customers’ perception of Service Quality * Customers’ emotional response * Attribution of service success or failure * Perception of equity or fairness

PowerPoint Presentation:

22 Customers’ Perception of Service Quality Evaluation of dimensions of service quality viz. Reliability, Responsiveness, Assurance, Empathy and Tangibles build customer perception of service quality. Customers’ Emotional Response State of customers’ mood influences perception of service and satisfaction. Positive emotion like happiness, pleasure, etc. can enhance level of customer satisfaction and vice versa. Attribution of Service Success or Failure Even causes of service-success or failure can influence customer perception e.g. if the cause of service failure is beyond the service-provider , perception may be less dissatisfying i.e. if ordered dishes reach customer beyond ASE but for reasons beyond waiters’ control (say power- failure) , it may not dissatisfy customer.

PowerPoint Presentation:

23 Perception of Equity or Fairness Notion of fairness is central to customer satisfaction . Customer always asks himself, “ Was I treated fairly in comparison to others ?” If answer is “yes”, even impaired service may not dissatisfy customer to same extent. G. Strategies that enhance customer perception 1. Through Improvement in Service Quality The 3 Ps of Service Marketing that customer interfaces during service encounter are * People * Physical Evidence & * Process Service-provider continually monitor service quality and try to raise it through training and development.

PowerPoint Presentation:

24 2. Strategy of ‘Achieving 100% customer satisfaction in first service and in each subsequent encounter’ -- Every service encounter is critical for customer retention, so company tries to deliver service with “Zero Defect”. -- Strategy starts with identifying each customers’ expectation till delivery of satisfaction following the principles of TOTAL QUALITY MANAGEMENT.

authorStream Live Help