CONSUMER EXPECTATIONS OF SERVICES
Consumer Expectations:.
Consumer
Expectations are pretrial beliefs a consumer has about the performance of a
service that are used as the standard or reference against which service
performance is judged.
Consumer
Expectations consist of five levels: ideal service level, desired service
level, adequate service level, predicted service level, and zone of tolerance.
a. Ideal Service Level: It
is defined -asfor”thelevelconsumersofservic“wis
b. Desired Service Level: Level of performance customers want or hope to
receive from a service.
c. Adequate Service Level:
Minimum level of service a consumer will tolerate and accept without being
dissatisfied.
d. Zone of Tolerance:
Area between the adequate level of service and the desired level of service.
e. Predicted Service Level: Level of service consumers actually expect
from the service firm.
ROLE OF CONSUMERS EXPECTATIONS:
Consumer expectations are important during all three stages of the purchase process: the pre-purchase phase, the service encounter, and the post-purchase phase.
•During Pre-Purchase phase - Consumer expectations influence the decisions of individuals during the pre-purchase phase.
•During Post-purchase phase - Even after service has been performed, consumer expectations can be altered. Consumer expectations are the basis for evaluating service quality.
MANAGING CONSUMER EXPECTATIONS:
The higher the expectations, the greater the probability of purchase. The lower the expectations, the lower the probability of purchase. That the higher the expectations, the greater the chances that the service firm will not be able to met consumer expectations and that the customer will be dissatisfied.
ANTECEDENTS OF CONSUMER EXPECTATIONS:
I INTERNAL FACTORS:
Internal Factors impacting a consumer‟s expectations of a service include the consumer‟s personal needs, level of involvement, past experience, and service philosophy.
a. Individual needs:
The personal needs of consumers are based on Maslow‟s hierarch Maslow, lower order needs must be fully, or at least partially, satisfied in a sequential order before higher-order needs will affect human behaviour.
Physiological Needs: Human need for food, shelter and clothing
Safety Needs: Human need for security, protection from physical Harm, and avoidance of the unexpected.
Social-belongingness needs: Desire to be accepted by members of family, groups and other individuals.
Self-esteem Needs: Desire for status, esteem, and to be respected by others.
Self-actualization: Attainment by an individual of all he or she can be.
b. LEVEL OF INVOLVEMENT:
The second personal factor affecting consumer expectations is th with the service. Involvement has two effects on expectations. First as the level of involvement increases, the gap between the ideal level of service and the desired level of service narrows. Second, as the level of involvement increases, the zone of tolerance decreases. Consumers are less tolerant when service is less than ideal.
c. PAST EXPERIENCE:
The most important factor affecting consumepast experience. Past experience includes experience with a particular service vendor, experience with other vendors within the same industry, and experience with related services.
d. SERVICE PHILOSOPHY:
Consumer‟s Expectationshisorherpersonalarephilosophyalsoconcerningaffected the delivery by of services. Some consumers, by nature, have high standards concerning the quality of service delivery and very little tolerance for deviation. Other consumers have lower standards and tend to be more tolerant of service deviations.
Individuals develop their personal service philosophy through a combination of two inputs: hereditary and past experience. A major part of how individuals look at services is inherited or what they expect from services is based on their personality and temperament. However, past experience molds and tempers the personality. In early childhood, individuals learn from observing others. Later in life, they learn from their own experiences.
II EXTERNAL FACTORS:
The three external factors that affect consumer expectations are competitive options, social context, and word-of-mouth communications.
a. Competitive Options:
impacted by the alternatives available to the consumer. In many cases, expectations of services will not only be affected by other vendors in the same industry but by what is available in other service industries.
b. Social Context:
A consumer‟s socialaveansituationimpactoncanhis or her e desired level of expectations will often increase when they are with others who are important to them, while their zone of tolerance is normally reduced.
c. Word-of-mouth Communications:
The third external factor is word of mouth communications. It is the strongest source of information used by consumers in forming expectations Consumers will often seek the opinion of others before purchasing a service. Word of mouth communication can come from three sources: personal sources, expert sources, and derived sources and is used to solidify or establish the predicted level of service. For services with which consumers have little knowledge or experience, word of mouth communications can be used to establish the desired and ideal levels of service.
Personal sources include friends, relatives and work associates. Expert sources are sometimes sought out, especially for high-involvement purchases. Experts will often provide information that consumers can use in forming expectations about the technical nature of the service, while personal sources usually discuss only the way they were treated by the when consumers lack knowledge of the service and do not know the ideal or desired level of service they should expect. Derived sources are third party sources.
III SITUATIONAL FACTORS:
Consumer expectations of a service are affected by such situational factors as the reason for the purchase, the consumer‟s mood, the weather, time Situational factors are temporary changes in the normal state of things. These temporary changes impact what consumers expect from a service.
a. Reason for purchase: The reason the service is purchased can alter consumer expectations
b. Consumer Mood:
Consumer mood states will impact expectations. Individuals in good mood tend to be more tolerant of service personnel. Their zone of tolerance is greater and their expectation level of adequate service is lower. Individuals in a bad mood demonstrate the reverse characteristics. The tolerance zone is reduced and the expectation level of adequate service is higher.
c. Weather:
Weather also plays a role in consumer expectations. In normal weather, passengers expect airlines to arrive on time, but in bad weather, passengers realize there may be a delay. The desired level of service remains the same but the passenger‟sduetotheinclementpredictedweather conditions.
d. Time Constraints:
It also impact customer expectations. Firms who use Manpower for temporary workers modify their expectations when faced with time constraints. If a firm needs help immediately, they will expect manpower to be able to meet the need, but they will normally lower their predicted expectations of the person‟s work ability. Their zone of tolerance time to locate the best individual.
e. Emergencies: Emergencies and catastrophes have an impact on consumer expectations.
IV FIRM PRODUCED FACTORS:
Consumer expectations are affected by the 3 primary factors discussed in Promotions, pricing and distribution.
•Promotions - promises made in advertisements and sales promotions will be used by consumers in forming their predicted level of service for a particular firm. Advertising can also modify a consumer‟s desired level of service, adequate
•Pricing - Consumer expectations are affected by the price of the service. The general rule is that the higher the price, the higher the zone of tolerance. Determination of a high or low price, however, is relative to the competition and to other service alternatives.
•Distribution - Distribution has an impact on service expectations. The availability and accessibility of a service to customers has an impact on their expectations. Many banks, such as Bank Boston, are now offering on-line computer banking services that include paying bills, monitoring daily account activities, and transferring funds.
a. Service Personnel: Conversations with service personnel also have an impact on expectations.
b. Tangible Cues:
It consists of such things as the appearance of the interior and exterior of the facility, the furniture, and the equipment used in the service, interior décor, cleanliness, point-of-purchase displays, and the appearance of theormostfirm‟sservices,the appearancepersonneloftheservice.personnelF is very important. Patients have certain expectations concerning the appearance of doctors, nurses, and receptionists.
c. Other Customers: Expectations of a service can be affected by other customers.
d. Firm Image:
The image consumers have of a firm will have an impact on their expectations of the service. If they have a high image of the firm, they will have high expectations. If the image is low, expectations will be low. The image a consumer has can also affect the zone of tolerance. Individuals will be more tolerant of service deviations if they have a high image of the firm than if they have a low image.
MANAGING CONSUMER EXPECTATIONS:
The higher the expectations, the greater the probability of purchase. The lower the expectations, the lower the probability of purchase. That the higher the expectations, the greater the chances that the service firm will not be able to met consumer expectations and that the customer will be dissatisfied.
1. During Pre-Purchase Phase:Managing customer expectations during the pre-purchase phase consist of 3 steps. First, learn what customers expect. Second, tell customers what they can expect. Third, consistently provide the service that customer expect.
2. During the service encounter three strategies can be used during the service encounter to manage customer expectations. First service personnel must communicate with the customer during the service encounter. Second, if possible service providers should modify the service to meet the
customer‟s expectations. Third, if the servic why the customer expectation cannot be met. The goal during this phase is to ensure the services are provided matches tionthe consumer‟s expecta
3. During the post-purchase phase: Service firms have 3 strategies. They can use after the service has been completed. First, Companies should communicate with customers immediately after the service is completed to see if the expectations were met. Second, firms can use a follower programme such as an evaluation survey sent to the customer through the mail or a phone call. Third, companies should have a procedure for dealing with dissatisfied customers that will assist in managing future expectations.
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