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Chapter_3.pptx

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Chapter 3-‹#›

Part 2

FOCUS ON THE CUSTOMER

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Chapter 3-‹#›

Customer Expectations of Service

Service Expectations

Factors that Influence Customer Expectations of Service

Issues Involving Customers’ Service Expectations

McGraw-Hill/Irwin

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

Chapter

3

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Objectives for Chapter 3: Consumer Expectations of Service

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

Discuss several sources of customer expectations of service.

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

Delineate some important issues surrounding customer expectations.

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Possible Levels of Customer Expectations

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Dual Customer Expectation Levels

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The Zone of Tolerance

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The Zone of Tolerance

Adequate Service

Desired Service

Zone of

Tolerance

← Delights

← Desirables

← Musts

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Zones of Tolerance

The range of expectations between desired and 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 Different Service Dimensions

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Factors That Influence Desired Service

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Factors That Influence Adequate Service

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Factors That Influence Desired and Predicted Service

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Explicit Service Promises from Paytrust

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Implicit Service Promises

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Frequently Asked Questions About Customer 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 customers’ service expectations?

Do customers’ service expectations continually escalate?

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

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Service Customers Want the Basics (Exhibit 3.1)

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Should a Company Try to Delight the Customer?

Delight: a profoundly positive emotional state that results from having one’s expectations exceeded to a surprising degree.

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Bottom line: exceeding expectations on the basics is nearly impossible

Honor promises

Do what you are supposed to do

Develop customer relationships

Provide personalized attention

Underpromise?

Be unique

How Does a Company Exceed Customer Service Expectations?

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Do Service Expectations Continually Escalate?

Adequate service expectations are more subject to escalation than desired service expectations; they rise as quickly as service delivery or promises rise.

Adequate service expectations need to be monitored continually – the more turbulent the industry, the more frequent the monitoring needed.

Desired service expectations are more stable; they tend to start high and stay high

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Staying Ahead of the Competition in Meeting Customer Expectations

Adequate expectations will rise when competitors promise and deliver a higher level of service.

Challenge is to consistently exceed the adequate service level and also reach the desired service level.

Must build customer loyalty

Consider how promises are presented to customers relative to the competition.

Be honest when refuting competitors’ “inflated” offerings; provide facts.

Follow up the sale with a “reality check” about the level of service received relative to industry average

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