Chapter objectives
This chapter is about how to gain insight into customers’ expectations and
perceptions to create satisfi ed customers.
● What is customer satisfaction?
● What infl uences expectations and perceptions?
● How can expectations and perceptions be ‘managed’?
● How can service quality be operationalised?
● How can managers capture customers’ expectations?
● How can a service be specifi ed?
Chapter 5
Managing customer
expectations and
perceptions
Just as service can be seen from two perspectives, service provided and service received
(see Chapter 1 ), the quality of the service (service quality) can also be defi ned from these
two perspectives, as operational service quality and customer perceived quality. Operational
service quality is the operation’s assessment of how well the service was delivered to its
specifi cation. Customer perceived quality is the customer’s judgement of (satisfaction with)
the quality of the service: their experience, the quality of the ‘products’ and the perceived
benefi ts, compared to their needs and expectations.
In terms of customer perceived quality, operations managers need to understand, and infl uence,
their customers’ expectations to ensure they provide a service that meets or possibly
exceeds those expectations. If, as a result, customers are satisfi ed, or indeed delighted, they
are more likely to become valuable customers who not only use the service again but are
positively disposed towards it and may even recommend it to others (we sometimes refer
to this as their post-purchase intentions). Indeed, customers are the ultimate arbiters of the
quality of the service.
Although the need to satisfy customers is something that almost ‘goes without saying’,
this is precisely the problem with many organisations. Assumptions are made about what
5.1 Introduction
Service Operations Management: Improving Service Delivery, Fourth Edition, by Robert Johnston, Graham Clark, and Michael Shulver. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
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customers really want and, even if customers have been consulted, it may have been such
a long time ago that the information is at best irrelevant, and often positively dangerous.
Professional services, in particular, frequently suffer from an attitude of thinking that they
know best, because they are the experts. This might be true, but this attitude can create blind
spots when dealing with customers.
Understanding what satisfi es and delights customers is something that must be continually
addressed, using a variety of means to ensure that the answers do not fall into wellestablished
patterns because the way the questions are asked does not vary suffi ciently.
Customer satisfaction is something that can be managed to some extent by infl uencing
customers’ perceptions and expectations of service delivery. This demands in-depth understanding
of this subject.
It is no accident that many of those companies that have a reputation for excellent service
spend time and money listening to customers. Disney, for example, invented a new term
for the activity of collecting information from customers. It is called ‘guestology’ – refl ecting
Disney’s approach to treating its visitors as guests rather than mere ‘customers’.
We also need to consider operational service quality. Operations managers need to create
a specifi cation for their service which refl ects customer needs and expectations. In service
organisations this is not straightforward. But let’s start with perceived service quality –
the customer’s perspective.
5.2 What is customer satisfaction?
In simple terms, satisfaction is the result of customers’ overall assessment of their perceptions
of the service (the service process, their experiences and outcomes such as the quality of the
‘products’, the benefi ts obtained and perceived value for money), compared to their prior
expectations (see Figure 5.1 ). 1
If customers’ perceptions of the service match their expectations (P=E) then they
should be satisfi ed (or at least satisfi ced). If their perception of the service exceeds their expectations
(P>E) then they will be more than satisfi ed, even delighted. If their perceptions
of the service do not meet their expectations (P<E) then they may be dissatisfi ed, even
disgusted or outraged. 2 Importantly satisfaction is a continuum, from extreme delight to
extreme dissatisfaction. Here we will use a _5 to _5 scale to represent this continuum
(see Figure 5.2 ).
As well as satisfaction being the customer’s overall assessment of the service, the customer
may also feel delighted, satisfi ed, or dissatisfi ed with the individual steps (transactions or
touch points) in the service process. This is sometimes referred to as transaction satisfaction.
We will develop this point in Section 5.4.2 and Chapter 7 .
Figure 5.1 Customer satisfaction
Expectations Service Perceptions Satisfaction
Assessment
102 Part 3 Connect
Service Operations Management: Improving Service Delivery, Fourth Edition, by Robert Johnston, Graham Clark, and Michael Shulver. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN 1-323-17409-5
customers really want and, even if customers have been consulted, it may have been such
a long time ago that the information is at best irrelevant, and often positively dangerous.
Professional services, in particular, frequently suffer from an attitude of thinking that they
know best, because they are the experts. This might be true, but this attitude can create blind
spots when dealing with customers.
Understanding what satisfi es and delights customers is something that must be continually
addressed, using a variety of means to ensure that the answers do not fall into wellestablished
patterns because the way the questions are asked does not vary suffi ciently.
Customer satisfaction is something that can be managed to some extent by infl uencing
customers’ perceptions and expectations of service delivery. This demands in-depth understanding
of this subject.
It is no accident that many of those companies that have a reputation for excellent service
spend time and money listening to customers. Disney, for example, invented a new term
for the activity of collecting information from customers. It is called ‘guestology’ – refl ecting
Disney’s approach to treating its visitors as guests rather than mere ‘customers’.
We also need to consider operational service quality. Operations managers need to create
a specifi cation for their service which refl ects customer needs and expectations. In service
organisations this is not straightforward. But let’s start with perceived service quality –
the customer’s perspective.
5.2 What is customer satisfaction?
In simple terms, satisfaction is the result of customers’ overall assessment of their perceptions
of the service (the service process, their experiences and outcomes such as the quality of the
‘products’, the benefi ts obtained and perceived value for money), compared to their prior
expectations (see Figure 5.1 ). 1
If customers’ perceptions of the service match their expectations (P=E) then they
should be satisfi ed (or at least satisfi ced). If their perception of the service exceeds their expectations
(P>E) then they will be more than satisfi ed, even delighted. If their perceptions
of the service do not meet their expectations (P<E) then they may be dissatisfi ed, even
disgusted or outraged. 2 Importantly satisfaction is a continuum, from extreme delight to
extreme dissatisfaction. Here we will use a _5 to _5 scale to represent this continuum
(see Figure 5.2 ).
As well as satisfaction being the customer’s overall assessment of the service, the customer
may also feel delighted, satisfi ed, or dissatisfi ed with the individual steps (transactions or
touch points) in the service process. This is sometimes referred to as transaction satisfaction.
We will develop this point in Section 5.4.2 and Chapter 7 .
Figure 5.1 Customer satisfaction
Expectations Service Perceptions Satisfaction
Assessment
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5.2.1 Perceptions–expectations gap
If there is a mismatch between perceptions and expectations, this, in simple terms, is usually
caused by either a mismatch between expectations and the service (Gap 1 in Figure 5.3 ) and/or a
mismatch between the service and customers’ perceptions of it (Gap 2 in Figure 5.3) . 3
There are several reasons why Gap 1 might exist. The service may have been inappropriately
specifi ed, designed or enacted, or there may be insuffi cient resources to meet expectations. It
is also possible that the customer may have inappropriate expectations. An inappropriate
specifi cation or design of the service may be the result of a poor understanding of customer
expectations by managers. Managers may have not put enough time and effort into either
specifying the service or getting feedback from customers about what they feel to be an appropriate
type or level of service. Insuffi cient resources may be the result of a poor understanding
of market requirements or demand profi les.
These ‘internal’ reasons often stem from a lack of determination to deliver consistent
standards. Managers frequently report that their organisation does not take time and trouble
to understand what its customers require and therefore the service design process is fl awed
from the outset. This fl ows into poor or inappropriate service design and results in poor resource
utilisation.
Inappropriate expectations may be the result of inappropriate marketing, promises made
by the organisation that cannot be delivered, or inappropriate word-of-mouth referrals or
organisational image, which may be a result of poor service experiences in the past. Also, there
Figure 5.2 The satisfaction continuum
Satisfied
Dissatisfied
Delighted
0
+5
–5
P=E
P>E
P<E
Figure 5.3 Simplifi ed gap model
Expectations Service Perceptions Satisfaction
Mismatch
Gap 1 Gap 2
Chapter 5 Managing customer expectations and perceptions 103
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are some customers who have quite unrealistic expectations of some service organisations
and can cause a great deal of aggravation and nuisance as a result. These individuals either
need their expectations reshaping before or during service delivery, or removing from the
operation, if this is feasible (see Chapter 10 ).
Gap 2 may be the result of either incorrect provision of a service or customers inappropriately
perceiving the service. Incorrect provision is not unusual in many service organisations.
Service operations are often complex, human-based activities and things do go wrong. A mismatch
as a result of poor service provision can be removed or at least reduced through service
recovery (see Chapter 13 ). Table 5.1 summarises the reasons for the existence of the gaps and
therefore dissatisfi ed customers.
Additionally, customers’ perceptions of the quality of the service provided (operational service
quality) may not be the same as the quality of the service received (customer perceived quality),
because customer perceived quality is a matter of personal perception (see Section 5.3 ).
5.2.2 Downsides of the expectation–perception approach
to customer perceived service quality
While the expectation–perception approach to understanding perceived service quality is extremely
useful in focusing on the outcome of customer satisfaction and helps identify mismatches
between operational and customer views of quality, it does have some downsides: 4
●
Service could be perceived to be ‘good’ when it is ‘bad’
. If customer expectations are particularly
low (and indeed may have been deliberately created that way), poor operational
service quality may be perceived as highly satisfying because expectations have been exceeded.
This may look like a reasonable state, but it is clearly one that makes for-profi t
organisations vulnerable to competitive threat from higher-quality providers, or may lead
to government ‘interference’ in public sector organisations.
●
Service could be perceived to be ‘bad’ when it is ‘good’
. Likewise, it is also possible that if
expectations are high, due to over-promising, for example, then a good operational service
may be seen as inadequate.
●
Service that was ‘good’ last time may only be ‘OK’ this time
. If a service was perceived to have
been ‘good’ then the customers’ expectations may be raised for next time; thus they may
well be less satisfi ed on subsequent occasions, despite the fact that the operational quality
of the service has remained unchanged. This is a problem encountered by Disney. Visitors’
fi rst encounter with the Magic Kingdom is often so good, much better than expected, that
subsequent visits are sometimes reported to be poorer in quality, i.e. less satisfactory.
●
Satisfi ed customers may switch
. Even though a particular service may meet customers’ expectations
and customers are satisfi ed, customers may still switch suppliers, if there is a choice.
Alternative service providers may offer a superior level of service or additional service features,
or customers may be naturally disloyal or inquisitive. When it comes to measuring satisfaction,
we need to remember to also measure the customers’ post-purchase intentions; in
Gap 1 Gap 2
Internal causes Lack of understanding of customer expectations Incorrect or inappropriate service provision
Inappropriate specifi cation and/or provision
Poor service design
Insuffi cient resources
External causes Inappropriate expectations of the service
experience and/or outcomes
Inappropriate perceptions of the service
experience and/or outcomes
Table 5.1 Reasons for gaps
104 Part 3 Connect
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particular, will they return? (See Chapter 4 on the Net Promoter Score and Chapter 9 ). Conversely,
it is also important to remember that some dissatisfi ed customers will not (or cannot)
switch; they remain as customers often creating particular problems for service employees!
Nortel, the telecommunications company, surveyed its customers and discovered that
those who scored up to 4 on a scale from 1 to 5 (1 = very dissatisfi ed, 5 = very satisfi ed)
were vulnerable to switching. Only those scoring above 4.5 could be thought of as reasonably
loyal. Avis Rent A Car tracks likelihood to repurchase alongside customer satisfaction.
The company has developed a ‘customer satisfaction balance sheet’, estimating the cost to
the company in lost sales as a result of poor service.
These issues reinforce the need to link closely the creation of expectations in the minds of
customers with the capabilities of the service process i.e. to communicate messages to set appropriate
expectations and design and deliver service to meet them and manage them during
the service process.
5.2.3 Confi dence
Before we spend time developing the notion of customer satisfaction through a better understanding
of customer expectations and the formation of perceptions, we would like to
introduce the related but distinct notion of customer confi dence.
Whereas satisfaction is an assessment by the customer following a service experience, confi
dence, or the lack of it, does not require previous experience or contact with the organisation.
5 This is an important notion for all organisations, and especially those with which
people may have no or little contact, for example, social services, police, fi re services, coroners’
courts, hospitals, local schools and legal services.
Confi dence is about having belief, trust or faith in an organisation, its staff and services.
Our feeling of confi dence in organisations such as the police will not only affect our feeling of
well-being and our quality of life but importantly it may well infl uence how we interact with
that organisation, i.e. our predisposition towards it. If we feel confi dent in the local police
service, for example, we may, when caught for a minor offence, be more willing to co-operate
with the police. Furthermore, if we feel confi dent in the police we may be more willing to
provide assistance as a witness at an incident, or provide information about suspicious events,
or even support offi cers attending incidents (or at least not make their jobs more diffi cult).
All of this helps to improve the performance of the police service itself. Confi dence may also
affect our willingness to fund the police through local taxation.
For some organisations, understanding and measuring customer confi dence may be more
appropriate than customer satisfaction. Indeed some people might argue that customer satisfaction
is a wholly inappropriate measure to be applied to some of the police service’s customers
(i.e. criminals).
Research has shown that our confi dence pre-service, i.e. before we receive any service, is
infl uenced primarily by three things over which the organisation may have very limited control
or infl uence: 6
●
personal beliefs
(beliefs held by the individual about that organisation)
●
media
(for example television (news or even drama) coverage of the organisation)
●
word-of-mouth
(the communicated experiences of others)
and three things that organisations have control and infl uence over:
●
visibility
of the organisation, its services and its employees
●
familiarity
with the organisation’s employees, services or abilities
●
communication ( knowledge of the service and its abilities).
By managing these factors, organisations can have an important impact on their potential
customers and the effi ciency and effectiveness of the service they deliver.
Chapter 5 Managing customer expectations and perceptions 105
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Copyright © 2012 by Pearson Education, Inc.
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5.3 What influences expectations and perceptions?
Since the degree of satisfaction, or dissatisfaction, is the result of customers’ perceptions compared
to their expectations, it is appropriate to spend a little time defi ning expectations and
perceptions and explaining how they come about.
5.3.1 Perceptions
Our perceptions are our own personal impression and interpretation of the service provided
and so customers will perceive each service in their own personal, emotional and sometimes
irrational way. We use our senses, vision, smell, touch, taste and hearing, to experience the
world around us and the services we receive. How we perceive a service (and all other events)
depends upon the experiences each of us have had in our past, our culture, language, beliefs,
values, interests and assumptions. 7 The artist David Hockney said about art, ‘We see with
memory, which is why none of us sees the same thing, even if we’re looking at the same thing.’
‘Reality’ is not always real. For example, much has been written about the placebo effect,
where reassurances, or incantations, from a doctor (or other ‘professional’), with or without a
pill with no medicinal properties (or a professional’s report), has a signifi cant effect on most
people’s psychological and also physical well-being. 8
A service received is what we each, individually, perceive it to be. For example, if a customer
has had a privileged background and is used to being looked after, their experience of a highclass
restaurant may well be quite different to someone from a more humble background (or
a different country). While the privileged person may experience and perceive attentive staff
and appreciate well-laid tables, the other person may fi nd the staff obsequious and overbearing,
and the number of knives and forks confusing, even anxiety-making.
In service (and indeed in business and life situations) we may fi lter our experiences even more:
●
Selective fi ltering
. We tend to only notice what is relevant to current needs and ‘ignore’
other parts of the experience. The ‘privileged’ person may notice a mark on the tablecloth
and complain, the other person may not even notice it.
●
Selective distortion
. We tend to modify and seek information that supports personal beliefs
and prejudices. The European visiting an American restaurant may well notice the size of
the portions being served, confi rming their personal prejudices about Americans.
●
Selective retention
. We tend to remember only those things that are relevant to our needs
and beliefs. After a restaurant meal, some diners may remember and talk about the quality
of the food, others the state of the toilets and others the attentive, or good looking, staff.
5.3.2 Expectations
Our expectations of a service will lie somewhere on a range, or continuum, between ideal and
intolerable (see Figure 5.4 ). An intolerable train journey may be one that arrives very late,
or even not at all, where the carriages are fi lthy and the staff abusive. An ideal train journey
might be clean, on time, very fast, and include chauffeur-driven transport at either end.
Some points on this continuum could be defi ned as follows: 9
●
Ideal
. The best possible.
●
Ideal feasible
. The level of service that a customer believes should be provided given the
price or the industry standard.
●
Desirable
. The standard that the customer wants to receive.
●
Deserved
. The level of performance that the customer ought to receive, given the perceived
costs.
106 Part 3 Connect
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●
Minimum tolerable
. The minimum tolerable standards – those that must be achieved.
●
Intolerable
. The standards the customers should not receive.
An important point here is that we should be careful when asking customers about their
‘ expectations’. The following questions, for example, would each provoke a different response
as they refer to different points on the scale:
● What would you like?
● What should be provided?
● What would be acceptable?
Our expectations, defi ned as what we believe to be likely, i.e. what we believe will happen,
rather than should happen, may not be a single point on this scale but a range (see Figure 5.4 ).
This range, or zone, of expectations, as shown in Figure 5.4 , is sometimes referred to as the
zone of tolerance. This zone of what could be considered to be an ‘acceptable’ level of service by
a customer is shown in Figure 5.5 . The importance of this zone of tolerance is that customers
may accept variation within a range of performance and any increase or decrease in performance
within this area will only have a marginal effect on perceptions. 10 Only when performance
moves outside of this range will it have any real effect on perceived service quality.
Figure 5.4 Range of expectations
Ideal
Intolerable
Expectations =
what we believe
to be likely
Figure 5.5 Range of expectations and the zone of tolerance or acceptable outcomes
Ideal
Intolerable
More than
acceptable
Acceptable
Unacceptable
Expectations
Chapter 5 Managing customer expectations and perceptions 107
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Copyright © 2012 by Pearson Education, Inc.
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It has been suggested that the width of this zone of tolerance is inversely proportional to the
customer’s level of involvement and commitment. 11 This involvement refers to a customer’s
level of interest in a service, the importance they attach to it, and their emotional commitment
to the service. 12 For example, students who are highly engaged, committed to, and paying for, a
particular programme of study may well be sensitive towards the level of tuition provided, the
quality of the materials delivered, the support provided for additional work and the quality of
marking for example, and raise issues and concerns when things are not felt to be right. Less
committed and involved students may be willing to accept almost whatever happens.
Fuzzy expectations
In some instances customers’ expectations may be somewhat unclear and they may not be
certain what they expect from a service provider, although they may have quite clear views
about what is unacceptable. Such vague ideas about what is required have been called ‘fuzzy’
expectations. 13 Expectations, as a whole, are seldom fuzzy but they usually include elements
which are more or less fuzzy. In some cases these expectations may be implicit and are not
actively or consciously thought about by customers, but they may become explicit when expectations
are either not met or exceeded.
Whether customers’ expectations are fuzzy or crystal clear, operations managers have to be
certain about the expectations they are trying to meet. They need to understand them, defi ne
them and then specify them to ensure that what they deliver meets that specifi cation (operational
service quality – see Section 5.7 ). In many cases this will require providing guidance to
customer-facing staff to encourage them to ask questions to clarify the real needs of the customer,
rather than to assume that what they are being asked for is actually what is required. Customers
are often afraid of looking silly in front of other people (both customers and staff), and
may ask for something quite inappropriate, leading to eventual dissatisfaction and defection.
In effect, service operations managers need to revisit the service concept ( Chapter 3 ) to
identify possible gaps between what is in the mind of the customer and what is in the mind
of the service provider.
Infl uencing expectations
The positioning of our expectations on the continuum between intolerable and ideal will be
infl uenced by many things (see Figure 5.6 ). Our expectations about a train journey might be
infl uenced by our previous experiences and the price we are paying, for example.
●
Price
often has a large infl uence on expectations. The higher the price, the higher up the
continuum towards ideal are customers’ expectations. Expectations of a customer fl ying
Figure 5.6 Expectations – key infl uences
Price
Alternatives available
Marketing
Word of mouth
Previous experience
Customer’s mood/attitude
Confidence
Ideal
Intolerable
More than
acceptable
Acceptable
Unacceptable
Expectations
108 Part 3 Connect
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Copyright © 2012 by Pearson Education, Inc.
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Two key roles for operations managers that we will cover in this section are, fi rstly, how
they can manage and infl uence customer expectations and, secondly, how they can manage
( manipulate) customers’ perceptions during the service process.
tourist class from Paris to Chicago will be at a different level to customers fl ying business
or fi rst class. All three customers will have similar expectations about safety and timeliness,
but expectations about legroom, quality of food, attentiveness of the service and ease of
check-in may vary considerably. Price is perhaps one of the most important infl uences as
customers are concerned not just about the service and their experiences and outcomes
but also its value (see Chapter 3 ).
●
Alternative services available
will also help defi ne and set expectations. If you know that
one airline provides a limo service when fl ying business class, you may expect other carriers
to do the same.
●
Marketing
can have a considerable infl uence on expectations. Marketing, image, branding
and advertising campaigns help set expectations, often at great cost to the organisation.
●
Word-of-mouth
marketing, which is less controllable, can have a profound effect on a
customer’s expectations. Indeed, in some situations, word-of-mouth may have a stronger
infl uence than organisational marketing.
●
Previous experience
will help shape expectations, as prior knowledge not only makes them
clearer and sharper but allows customers more accurately to position them on the scale. Previous
experience also acts as a moderator on marketing information either from the organisation
or from word-of-mouth. It is important to note that previous experience may not be of the
service provider in question but may be of other service providers. Our expectations for how we
will be treated when we ring up our electricity supplier with a query will be infl uenced by our
experiences with other contact centres, such as other utilities, retailers or fi nancial services. This
aspect is often forgotten by service organisations that continue to think that because they are as
good as any other organisation in their sector, this is good enough. This is clearly not true.
●
Customers’ mood and attitude
can affect their expectations. Someone in a bad mood or with
a poor attitude to an organisation may have heightened expectations; someone less concerned
and more tolerant may have a wider zone of tolerance and thus a wider range of expectations.
●
Confi dence
about an organisation, even before we have used an organisation, will also
infl uence our expectations. If we have confi dence in our child’s new school because of its
reputation, for example, we may have a higher set of expectations as to how we and our
child will be treated.
Expectations are dynamic. They are not fi xed on a continuum between intolerable and
ideal. They will change over time and indeed during the service itself. Customers are continually
experiencing many service situations and consuming services. Their expectations are
under continual review and change. So what a customer may have felt to have been acceptable
last time may well be different next time, as infl uenced by some of the factors above.
Expectations of a service never used
Because our expectations can be based on what we believe to be likely, we therefore do not need
to have experienced a service to have expectations about it. People who have not experienced a
funeral may have some clear expectations about the nature, mood and style of the event, and
more fuzzy expectations about the actual series of events. These may be quite clear and explicit
if they have, for example, witnessed such events second-hand, perhaps on television or in novels.
5.4 How can expectations and perceptions be ‘managed’?
Chapter 5 Managing customer expectations and perceptions 109
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Copyright © 2012 by Pearson Education, Inc.
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5.4.1 Managing expectations
While one might argue that managing expectations is predominantly the role of marketers,
operations do have two important roles to play here. Firstly it is the duty of operations
managers to ensure that the marketing and strategy functions within an organisation
know the capabilities of the operation, the nature and quality of service that it can actually
deliver and indeed what it can’t. This enables the marketing function to try to infl uence
customers’ expectations so that there is a good chance those expectations will be met.
Secondly, the operation has an opportunity to infl uence and shape customer expectations
during the early stages of a service process. Careful attention to the design of the fi rst few
steps of the service and the clues and messages (see Chapter 7 ) is required to help set the
right expectations. For example, the customer entering a restaurant sees the way that it
is set out and will draw conclusions about the level of service provided. If the tables and
chairs are functional and there are no tablecloths or decorations, customers will be more
prepared to expect simpler service than if they go into one with comfortable seats, tablecloths
and ornate decorations.
5.4.2 Managing perceptions
Managing customer perceived quality during the service process is a dynamic activity. 14 Figure
5.7 combines Figures 5.2 , 5.4 and 5.5 earlier (the levels of expectations and zone of tolerance,
and one of the outcomes of a service – the level of satisfaction and dissatisfaction), and
shows how expectations give way to a perception of satisfaction during the service process
and the customer’s experience of it. 15 The fi gure shows the zone of tolerance extending from
expectations through the process/experience to the level of satisfaction.
Peak, beginning and end experiences
It is important to note that overall satisfaction may not be the average of the customer’s
perception of satisfaction with the various stages of the service process. Research has shown
that satisfaction is heavily infl uenced by how the experiences felt when they were at their peak
(best or worst) and how they felt when they ended, sometimes referred to as the peak-end
rule. 16 While a very good or very bad transactional experience will override other experiences,
customers are also likely to be heavily infl uenced by the fi nal stage (transaction) of their
+5
0
–5
Delighted
Satisfied
Dissatisfied
Acceptable Zone of tolerance
More than
acceptable
Unacceptable
EXPECTATIONS PROCESS/EXPERIENCE SATISFACTION
Figure 5.7 Managing perceptions during the process
Source: Adapted from Johnston, Robert (1995), ‘The Zone of Tolerance: Exploring the Relationship between Service Transactions
and Satisfaction with the Overall Service’, International Journal of Service Industry Management 6 (2) 46–61. Reprinted by permission
of Emerald Group Publishing Limited, www.emeraldinsight.com/ijsim.htm
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experience. By designing a good end to an experience we can manipulate customers’ overall
feeling of satisfaction (providing there have been no particularly bad experiences). We would
also argue that the early stages in the process can also be important. These can set customers’
expectations and create a good initial impression. Arriving at a hotel’s reception where the
customer is dealt with quickly and pleasantly, the forms are prefi lled, only needing a signature,
and a glass of champagne is offered, can lower the zone of tolerance so that following
satisfactory stages may be perceived as excellent. We can use the zone of tolerance to illustrate
some of these impacts.
Figure 5.7 depicts something similar to a control chart (see also Chapter 9 ), which managers
can use fi rst to identify customer expectations – what is acceptable, less than acceptable
and more than acceptable (see Sections 5.5 and 5.6 ) – and then to assess the impact of each
stage (touch point) or transaction during the service process/experience. This helps managers
understand how they can design their service to include the appropriate interventions at appropriate
times to achieve the desired level of satisfaction.
A number of suggestions have been made about the use of this model. 17 Take, for example,
a patient with an appointment to see a doctor for a routine medical examination. We might
consider there to be seven stages (touch points) in the customer’s journey:
1 Arrival at the clinic
2 Reception
3 Waiting for the doctor
4 Introduction to the examination by the doctor
5 Examination
6 Discussion of fi ndings
7 Departure.
Expectations may have been managed (infl uenced) by the medical practice through its code
of conduct, for example, which informs patients that they should have to wait no longer than
ten minutes to see the doctor, that they will be treated with care and consideration, and that
all medical facts will be explained to them in a meaningful way (see Figure 5.8 ).
A number of outcomes are possible:
● Performance within the zone of tolerance results in satisfaction. Providing the customer’s
perceptions of the transactions are not greater or less than acceptable, the
Figure 5.8 Managing perceptions at a clinic
Source: Adapted from Johnston, Robert (1995), ‘The Zone of Tolerance: Exploring the Relationship between Service Transactions
and Satisfaction with the Overall Service’, International Journal of Service Industry Management 6 (2) 46–61. Reprinted by permission
of Emerald Group Publishing Limited, www.emeraldinsight.com/ijsim.htm
+5
0
–5
Delighted
Satisfied
Dissatisfied
Zone of tolerance
~10 mins wait
Consideration
Meaningful explanations
0 mins wait
Recognition
Friendliness
Empathy
15 mins wait
Incorrect diagnosis
Cold room
EXPECTATIONS PROCESS/EXPERIENCE SATISFACTION
Chapter 5 Managing customer expectations and perceptions 111
Service Operations Management: Improving Service Delivery, Fourth Edition, by Robert Johnston, Graham Clark, and Michael Shulver. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN 1-323-17409-5
Figure 5.9 Adequate performance satisfi es the customer
Source: Adapted from Johnston, Robert (1995), ‘The Zone of Tolerance: Exploring the Relationship between Service Transactions
and Satisfaction with the Overall Service’, International Journal of Service Industry Management 6 (2) 46–61. Reprinted by permission
of Emerald Group Publishing Limited, www.emeraldinsight.com/ijsim.htm
+5
0
–5
Delighted
Satisfied
Dissatisfied
0 mins wait
Recognition
Friendliness
Empathy
~10 mins wait
Consideration
Meaningful explanations
EXPECTATIONS PROCESS/EXPERIENCE SATISFACTION
15 mins wait
Incorrect diagnosis
Cold room
1
13
14
15
17
16
2
0 mins wait
Recognition
Friendliness
Empathy
~10 mins wait
Consideration
Meaningful explanations
15 mins wait
Incorrect diagnosis
Cold room
EXPECTATIONS PROCESS/EXPERIENCE SATISFACTION
Delighted
Satisfied
Dissatisfied
−5
+5
1 0
2
3
4
5
6
7
Figure 5.10 Using enhancers to delight the customer
Source: Adapted from Johnston, Robert (1995), ‘The Zone of Tolerance: Exploring the Relationship between Service Transactions
and Satisfaction with the Overall Service’, International Journal of Service Industry Management 6 (2) 46–61. Reprinted by permission
of Emerald Group Publishing Limited, www.emeraldinsight.com/ijsim.htm
outcome will be a ‘satisfied’ customer with a ‘score’ somewhere within their zone
of tolerance (see Figure 5.9 ). It has been suggested that the quality of a performance
within the customer’s zone of tolerance may not be consciously noticed, so for an organisation
wishing to make an impact it will need to build in positive (or maybe even
negative) interventions.
● Suffi cient incursions above the zone of tolerance threshold, particularly at the start or end
of the process, will result in a highly satisfying outcome (delight). By doing something that
delights the customer (enhancing factors, see Section 5.5.2 ), the doctor’s surgery may be
able to delight the patient. For example, the receptionist greeting the patient by name and
inviting them to take a seat and bringing them a coffee might be quite unexpected (at least
on the fi rst occasion) and delight the customer (see Figure 5.10 ). The satisfaction ‘score’
may not be the mean score, but delighting (and indeed dissatisfying) incidents may have
the effect of skewing the resulting level of satisfaction.
112 Part 3 Connect
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Copyright © 2012 by Pearson Education, Inc.
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● Suffi cient incursions below the zone of tolerance threshold will result in a dissatisfying
outcome. A delay of 12 minutes (a hygiene factor – see Section 5.5.2 ) may be forgiven, but
this coupled with a brusque treatment and a cursory examination may well lead to dissatisfaction
(see Figure 5.11 ).
● Some dissatisfying and satisfying transactions may be compensatory. Lack of spaces in the
car park, resulting in a walk of 500 metres in the rain to the surgery, will count as a dissatisfying
transaction, but a profuse apology from the receptionist coupled with particularly
caring treatment by the doctor may compensate for the initial problems (see Figure 5.12 ).
● Several satisfying transactions will be needed to compensate for a single dissatisfying transaction.
It could be that one dissatisfying transaction will require compensation by more
than one delighting transaction (as above).
● A failure in one transaction may raise the dissatisfaction threshold. A dissatisfying experience
may also have the effect of shifting the zone of tolerance upwards, and/or maybe
Manipulating the width of the zone of tolerance
It would seem sensible for organisations wishing simply to satisfy their customers to ensure
that there are no problems during the service process (i.e. failures on hygiene factors – see Section
5.5.2 ). Delighting transactions are unnecessary; the organisation is more likely to satisfy
customers if their zone of tolerance can be made as wide as possible by appropriate marketing
of the service.
For organisations seeking to delight their customers, a narrower zone of tolerance will increase
the likelihood of delighting (and also risk dissatisfying) the customer. Some delighting transactions
are needed – ideally early in the process – to affect the level and possibly the width of the
zone of tolerance. A delighting transaction at the end may also serve to put the icing on the cake.
Although a delighting early transaction can have considerable impact, it has been shown that a
build-up to a strong end-of-process experience results in higher perceived service quality. 19
Making the intangible tangible
A fi nal method of manipulating service perceptions is by making the intangible tangible.
In section 5.4.1 on expectations we explained how an organisation needs to ensure that
early clues in the service process can help set the right expectations for the customer. Such
clues can also be used to manipulate perceptions (see also Chapter 7 ). For example, the managers
at the RAC (see Chapter 9 ) recognise the importance of their patrols looking clean and
tidy and having clean vans. Customers may associate these clues with professionalism and
capability and thus perceive a more competent repair having been made to their car.
Such intangible factors are vital to many service experiences, and customer perceptions
of them can be strengthened simply by trying to make them tangible at appropriate places
in the service process/experience. The toilet paper folded into a point in the hotel bathroom
is a tangible representation of less tangible cleanliness and care. A management consultant’s
cuffl inks/jewellery or well-cut suit/dress and expensive car are tangible representations of
reliability and professionalism.
5.5 How can service quality be operationalised?
Both operational service quality (see Section 5.7 ) and perceived service quality can be defi ned
in terms of the quality factors or dimensions of service quality. These factors enable operations
managers to capture and operationalise expectations to help understand the nature of
expectations and perceptions, create instruments to measure customer satisfaction (see Section
5.6 ) and create service specifi cations (see Section 5.7 ).
5.5.1 Service quality factors
The service quality factors are those attributes of service about which customers may have
expectations and which need to be delivered at some specifi ed level.
Figure 5.15 provides eighteen quality factors which attempt to capture the totality of service
quality.2 0 These eighteen may be consolidated into broader dimensions 21 and indeed may not
capture every aspect of service quality for every organisation. However, they are at least a
starting point to help us defi ne, deliver and measure service quality. These factors have been
defi ned as follows:
●
Access
. The physical approachability of the service location, including the ease of fi nding
one’s way around the service process or route through the process.
●
Aesthetics
. The extent to which the components of the service and their experience of it are
agreeable or pleasing to the customer, including both the appearance and the ambience of
Chapter 5 Managing customer expectations and perceptions 115
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Copyright © 2012 by Pearson Education, Inc.
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the service environment, the appearance and presentation of service facilities, ‘products’
and staff.
●
Attentiveness/helpfulness
. The extent to which the service, particularly contact staff, either
provide help to the customer or give the impression of being interested in the customer
and show a willingness to serve.
●
Availability
. The availability of service process, facilities, staff and ‘products’ to the customer.
In the case of contact staff this means both the staff/customer ratio and the amount
of time each staff member has available to spend with each customer. It also includes both
the quantity and range of services (and ‘products’) available to the customer.
●
Care
. The concern, consideration, sympathy and patience shown to the customer. This
includes the extent to which the customer is put at ease by the service and made to feel
emotionally (rather than physically) comfortable.
●
Cleanliness/tidiness
. The cleanliness, neat and tidy appearance of the inputs to the service
process, including the service environment, facilities, equipment, the contact staff and even
other customers.
●
Comfort
. The physical comfort of the service environment and facilities.
●
Commitment
. The staff ’s apparent commitment to their work, including the pride and
satisfaction they apparently take in their job, their diligence and thoroughness.
●
Communication
. The ability of service staff to communicate with customers in a way they
will understand. This includes the clarity, completeness and accuracy of both verbal and
written information communicated to the customer and the ability to listen to and understand
the customer.
●
Competence
. The skill, expertise and professionalism with which the service is executed.
This includes the carrying out of correct procedures, correct execution of customer instructions,
the degree of ‘product’ or service knowledge exhibited by contact staff, the provision
of good, sound advice and the general ability to do a good job.
●
Courtesy
. The politeness, respect and propriety shown by the service, usually contact staff,
in dealing with customers and their property. This includes the ability of staff to be unobtrusive
and uninterfering when appropriate.
●
Flexibility
. A willingness on the part of the service worker to amend or alter the nature of
the service to meet the needs of the customer.
●
Friendliness
. The warmth and personal approachability (rather than physical approachability)
of the service, particularly of contact staff, including a cheerful attitude and the
ability to make the customer feel welcome.
Figure 5.15 Eighteen service quality factors
Availability Attentiveness
Aesthetics
Cleanliness
Commitment
Care
Courtesy
Security
Friendliness
Flexibility
Communication
Reliability
Responsiveness
Functionality
Integrity
Competence
Comfort
Access
116 Part 3 Connect
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Copyright © 2012 by Pearson Education, Inc.
ISBN 1-323-17409-5
●
Functionality
. The serviceability and fi tness for purpose of service.
●
Integrity
. The honesty, justice, fairness and trustworthiness with which customers are
treated by the service organisation.
●
Reliability
. The reliability and consistency of performance of the service and its staff. This
includes punctual service delivery and the ability to keep to agreements made with the
customer.
●
Responsiveness
. The speed and timeliness of service delivery. This includes the speed of
throughput and the ability of the service to respond promptly to customer service requests,
with minimal waiting and queuing time.
●
Security
. The personal safety of customers and their possessions while participating in or
benefi ting from the service process. This includes the maintenance of confi dentiality.
These factors cover many aspects of a service, which we defi ned in Chapter 1 , including:
●
Inputs:
for example, staff availability, appearance, and competence; the appearance, aesthetics,
accessibility and comfort of the facilities.
●
The service process:
for example, process reliability, staff responsiveness and communication
skills, the functionality and reliability of the technology.
●
The service experience:
for example; staff friendliness and courtesy, and a feeling of security.
●
Outcomes:
for example, the functionality and reliability of the service received.
5.5.2 Hygiene and enhancing factors
Although they will vary from organisation to organisation and also from customer to customer,
the service quality factors can be divided into four groups. These groupings are defi ned
in terms of a factor’s ability to dissatisfy and/or delight: see Figure 5.16 . 22
●
Hygiene factors
are those that need to be in place: if they are they will satisfy, if not they
will be a source of dissatisfaction. They are not likely to be a source of delight. For a bank,
security, integrity and functionality, for example, are expected to be acceptable; if they are
not acceptable they will dissatisfy. On the other hand, if these factors are over-specifi ed
they will not delight. A very large number of security checks will not delight customers;
indeed they could dissatisfy them. Having all cash machines in perfect working order all of
the time will not delight them either.
●
Enhancing factors
have the potential to delight if they are present, but if they are not there
they are not likely to dissatisfy the customer. Customers of a bank may be delighted with a
warm, caring approach by a member of staff or their fl exibility in dealing with a problem;
Figure 5.16 Delighting and dissatisfying factors
Source: Adapted from Lockwood, Andrew (1994), ‘Using Service Incidents to Identify Quality Improvement Points’, International
Journal of Contemporary Hospitality Management 6 (1/2) 75–80. Reprinted by permission of Emerald Group Publishing Limited,
www.emeraldinsight.com/ijchm.htm
Hygiene
factors
Critical
factors
Neutral
factors
Enhancing
factors
Potential to delight
Potential
to
dissatisfy
Low
Low
High
High
Chapter 5 Managing customer expectations and perceptions 117
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Copyright © 2012 by Pearson Education, Inc.
ISBN 1-323-17409-5
however, these things are not necessarily expected so, if they are not provided, their absence
may not lead to dissatisfaction.
●
Critical factors
have the potential to both delight and dissatisfy. Responsiveness, communication
and competence of bank staff and systems must be at least acceptable so as not to
dissatisfy the customer, but if more than acceptable they have the potential to delight.
●
Neutral factors
have little effect on satisfaction. The comfort or aesthetics of a banking hall
may play no part in customers’ satisfaction or dissatisfaction (see Figure 5.17 ).
We believe that managers should not only be aware of the expectations of their customers
but should also realise the importance and potential effect of the various factors (see Case
Example 5.1 ). We need to know which factors will delight and which will dissatisfy in order to
manage the perception of satisfaction during the service process (see earlier). How we can fi nd
these factors and identify the enhancers, hygienes and criticals is explained in the next Section 5.6 .
Figure 5.17 Four types of factors for a bank
Low
Low High
High
Potential to delight
Potential
to
dissatisfy
Hygienes Criticals
Availability
Reliability
Integrity
Functionality
Security
Responsiveness
Communication
Competence
Neutrals Enhancers
Comfort
Aesthetics
Attentiveness
Care
Friendliness
Courtesy
Flexibility
TNT Express, a division of the Dutch company TNT NV, is an international
market leader in global express services ensuring its
business customers’ parcels and freight are delivered safely and
on time. TNT delivers over 4.4 million items a week to over 200
countries using its network of over 2,300 company-owned depots,
hubs and sortation centres. It employs around 160,000 staff
worldwide, and operates 30,000 road vehicles and 48 freighter
aircraft. It has one of the biggest door-to-door air and road express
delivery infrastructures in the world.
The company’s mission is to exceed customers’ expectations
in the transfer of their products and documents around the world.
It aims to satisfy customers every time, by providing reliable and
effi cient solutions in distribution and logistics. The company
prides itself in being honest, being passionate about its people,
and striving to continually improve what it does.
Mark Pell was the Managing Director of the Gulf Offi ce situated
in Dubai. He was responsible for operations in the Gulf
Corporation Council countries: Bahrain, Kuwait, Qatar, Oman,
Saudi Arabia, and the United Arab Emirates. He explained his role:
Case Example 5.1 TNT Express Dubai
Source: TNT Dubai
118 Part 3 Connect
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Copyright © 2012 by Pearson Education, Inc.
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The factors do not always neatly fall into one category or another. Figure 5.18 shows the
relative frequency of mentions made of the factors in a study of UK banks. What is striking is
that the factors with the tendency to dissatisfy (hygienes and criticals) are systemic and concern
the organisation’s ability to deliver its core services: functionality, reliability, competence
etc., whereas the factors with a tendency to delight tend to be the more interpersonal factors,
such as attentiveness, friendliness, courtesy etc.
As MD I spend most of my time working with my management team trying to provide the direction and
ensuring that everyone understands our strategy. We have been very successful in this region over the
last few years. This is of course due in no small measure to the booming economic environment but also
due to our success in ensuring that people at all levels in the organisation understand what we need to
achieve and what their role is in trying to achieve our goals. It’s still a tough competitive environment in the
sectors where we work; automotive, high tech, telecoms, banking and oil, for example. Customers want to
get something from A to B, usually quickly and generally as cheaply as possible. But things have changed
recently, customers now simply assume that we will deliver on time and to the right place and that the
service will be good. These are just prerequisites. They now expect much more. Though price is obviously
important, it’s now very much about how our employees treat our customers. Our business customers
expect us to treat them like an important customer, to value their business, and to make them feel special.
They also expect everyone in the business who has contact with them, whether it’s a customer service
advisor, the person who picks up their parcel or their contact in our payments offi ce, to be affable, pleasant
and personable, even charming!
Figure 5.18 Delight versus dissatisfaction
Source: Adapted from Johnston, Robert (1995), ‘The Determinants of Service Quality: Satisfi ers and Dissatisfi ers’, International
Journal of Service Industry Management 6 (5) 53–71. Reprinted by permission of Emerald Group Publishing Limited,
www.emeraldinsight.com/ijsim.htm
Attentiveness
Responsiveness
Care
Availability
Reliability
Integrity
Friendliness
Courtesy
Communication
Competence
Commitment
Functionality
Access
Flexibility
Security
Aesthetics
Cleanliness
Comfort
30 20 10 0 10 20 30
Frequency of mention
Delight Dissatisfaction
Chapter 5 Managing customer expectations and perceptions 119
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Copyright © 2012 by Pearson Education, Inc.
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Care should be exercised in trying to identify neutral factors: in the research cited above the
fact that few people mentioned security does not mean it is a neutral factor. It simply indicates
that there were no instances of security having been the source of dissatisfaction or delight.
5.6 How can managers capture customers’ expectations?
The eighteen quality factors provide a base to help us understand and defi ne customer expectations
(whether for internal or external customers) and defi ne appropriate levels, i.e. create
the internal operational quality specifi cation. They also help us to measure customer satisfaction,
which we will cover in Chapter 9 .
5.6.1 Methods to capture customer expectations
There are many different methods available to gather information about customers’ expectations
of a service. 23 Some quantitative methods, such as questionnaires and surveys using a
quantitative approach, can be structured around all or some of the eighteen quality factors
and analysed by each factor. Other, more qualitative, approaches tend to collect descriptive
data and provide the interpretation of events by customers in their own words. This creates
more diffi culties in analysis and interpretation in order to extract meaningful summaries.
Such approaches do, however, have the benefi t of providing ideas and examples that managers
and employees can use and discuss to better understand and improve their services.
●
Questionnaires and surveys
, written or verbal, can be a good means of soliciting opinions
about an organisation’s services and to identify what customers fi nd important.
Figure 5.19 shows the results of a questionnaire asking customers of a hotel (mid-week
guests only) to rate the importance of various aspects of the service. The staff were also
asked to do the same. There are several interesting mismatches between the views of staff
and guests.
Figure 5.19 Importance of various aspects of a hotel as rated by staff and guests
Importance
0
2
4
6
8
10
Speed of greeting
Speed of check-in
Personal contact (arrival)
Room facilities explained
Account accuracy
Personal contact (departure)
Accompanied to transport
Guests
Staff
120 Part 3 Connect
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Copyright © 2012 by Pearson Education, Inc.
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●
Focus groups
usually comprise groups of about fi fteen customers with a trained facilitator,
brought together to discuss one or a few aspects of a particular existing or planned
service.
●
Customer advisory panels
are similar to focus groups but are likely to meet regularly with
a more structured agenda.
●
New/lost customer surveys
are very useful ways of fi nding out what attracts customers to
the organisation and indeed why they left. While many organisations are now conducting
exit interviews, the most successful rely heavily upon the direct involvement of senior
managers to ensure appropriate access, information and action.
●
Complaint/compliment analysis
can be undertaken upon customers’ voluntary contributions,
although they tend to be more negative than positive. They do provide information
about the extremes of delight and dissatisfaction. Case Example 5.2 explains how
Singapore Airlines makes use of its complaints and compliments.
●
Critical incident technique
(CIT) attempts to identify the things that delight and dissatisfy
customers. Critical incidents are events that contribute to, or detract from, perceived service
or product performance in a signifi cant way. The CIT instrument usually comprises
two questions. The fi rst question asks customers to think of a time when they felt very
pleased and satisfi ed with the service/product received and to describe, in a few sentences,
the situation and why they felt so happy. The second question requires customers to think
of a time when they were unhappy and dissatisfi ed with the service/product they received
and to describe, in a few sentences, why they felt this way.
●
Sequential incident analysis
combines CIT, walk-through audits and process mapping (see
Chapters 7 and 8). 24 Customers are ‘walked through’ a pre-prepared process map of the
service they have recently encountered and asked for their experiences of each stage or
transaction in the process. This technique identifi es not only critical situations but also
potentially critical ones.
SIA employs varied and systematic methods
to obtain information from its passengers,
including quarterly passenger
surveys and focused group work with its
frequent fl yers. The company also uses
its magazine for frequent fl yers, to ask for
passengers’ reactions to proposed new
ideas. It also checks out the service for itself
by conducting on-site audits with test
calls to reservations, for example, to see
how service is being delivered. Also when
any members of staff fl y in its aircraft they
are asked to submit reports of their travel
experiences. Senior staff members must
submit a comment sheet on each fl ight
with their expense account. SIA staff also
monitor their competitors and often go
and check out their services.
SIA takes both compliments and complaints seriously; indeed there is a vice-president with responsibility
for complaints and compliments. Every letter has to be acknowledged, investigated and followed
Case Example 5.2 Singapore Airlines (SIA)
Source: Singapore Airlines
Chapter 5 Managing customer expectations and perceptions 121
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Copyright © 2012 by Pearson Education, Inc.
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up, even letters of compliment. In 2004, Lam Seet Mui, the senior manager for human resource development,
explained:
We investigate all complaints. Then not only do we try to recover the customer or the situation, we will also
use it as a learning lesson. If we don’t learn something from a complaint then we’ve failed. We also take
compliments seriously. Not only do we disseminate them so that people can share in the success, but we
try to learn things from them too. They can help us understand what we need to do to excel.
Sim Kay Wee, the senior vice-president responsible for cabin crew, added:
We do try to deal with problems at the time they arise. If a problem occurs on board the crew will try to
recover immediately. Any follow-up or written complaint is overseen by the customer affairs department.
However we do the investigation, we fi nd out precisely what happened and report to them. We try to do
it personally and quickly.
SIA also produces newsletters for particular groups of staff. Highpoint, for example, is aimed at keeping
its 8,000 in-fl ight personnel informed about the airline’s latest offerings and its commitments to passengers.
The newsletter has a regular feature page with about eight or nine extracts from letters – half compliments
and half complaints. An example of each follows.
An example compliment:
I noticed the service, although in economy class, was professional and better than any fl ights I have ever
been on. Miss Iris lee was the most hardworking amongst all the crew. She came round distributing newspapers,
drinks, postcards, playing cards, amenities etc. As a director of travel and tours, I fl y often and I
have never come across such an outstanding cabin hostess . . . She loves to fl y and it shows.
An example complaint:
We were sitting close by the galleys and were able to observe the cabin crew at work throughout the
fl ight, and the impression we gained was that they were unable to cope with a full load of passengers.
There seemed also to be a lack of leadership and organisation – the cabin crew were rushing back and
forth getting in each other’s way – not the smooth activity which we have come to expect from Singapore
Airlines.
Higher Ground is a bi-monthly newsletter aimed at the ground services staff, including ticketing, reservations
and check-in, as well as baggage handling, logistics and transportation. Higher Ground also contains
extracts from letters, usually two complaints and one compliment.
An example compliment:
I would like to pen a note of appreciation for the extra help your staff gave my aged parents when they
took your SQ860 from Singapore to Hong Kong. They were told at the check-in counter to come back to
see your staff. My brother accordingly brought them to the counter near the check-in time. Then one of
your staff very kindly brought them into the restricted area, through immigration and right to the departure
room. This was of great help to them as they do not understand the signs in English and may have had to
look around or ask around for the direction to the departure room. Walking extra would also be troublesome
for my mother who is recovering from a stroke. Thank you once again to your staff for going out of
their way to assist my parents. I am indeed proud of our national airline.
An example complaint:
On 26 July we fl ew Singapore Airlines. Prior to the arrangement being made and also a few days before
the actual fl ight, I reiterated the comment that my mother would require a wheelchair for both embarkation
and disembarkation . . . She had travelled last year by Singapore Airlines and had no trouble whatsoever.
At [embarkation] a wheelchair was provided and we boarded the plane with no problems . . . On
arrival . . . we were not docked at a bridge, but parked in the middle of the airfi eld. I was then asked if
my mother could manage to get down two external steep fl ights of stairs and to walk to a bus that would
122 Part 3 Connect
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then take her to the terminal. As she had come on by wheelchair I would have thought it was patently
obvious that this was totally impossible for her. We were told that it was our fault that [the airport] had
not been informed. I explained that I had done as much as I could in informing [the station at departure],
and they certainly knew she required a wheelchair to get on the plane and therefore, obviously, to get off
the plane. It took an hour to get some means of transport to take her off the plane and into the airport
terminal.
Source: This illustration is based on a case study written by Robert Johnston, Warwick Business School, and Jochen Wirtz, National University of
Singapore, 2004. The case was commissioned by the Institute of Customer Service as part of a study into service excellence. The authors gratefully
acknowledge the sponsorship provided by Britannic Assurance, FirstGroup, Lloyds TSB, RAC Motoring Services and Vodafone. The authors
would like to thank the interviewees for their participation in this project and also Jasmine Ow, National University of Singapore, for her valuable
assistance.
5.7 How can a service be specified?
Operational service quality is the operation’s assessment of how well the service was delivered
to its specifi cation, i.e. its conformance to specifi cation (see Figure 5.20 ). There are a few key
questions we want to cover here, including where the specifi cation comes from, what it looks
like and how we ensure conformance to it. 25
5.7.1 Where does a specifi cation come from?
A service specifi cation is an extension of the service concept. The service concept provides a
broad description about the service provided, the customer experience and its outcomes (see
Chapter 3 ). This in turn should either be based on the needs, requirements and expectations of
customers, or alternatively have been devised by the organisation because it believes that there
will be a need or desire for it. The specifi cation then takes the elements of the concept and identifi
es the quality factors associated with each, details the standards to be achieved in each and
the organisation’s procedures to ensure conformance to the standard (operational control).
5.7.2 What does a specifi cation look like?
There will be several quality factors associated with each element of a service (see Table 5.2 ).
An airline, for example, will have several quality factors associated with each fl ight, such as
Figure 5.20 Operational service quality – conformance to specifi cation
Expectations Service
Specification
Perceptions Satisfaction
Conformance to
Service specification
concept
Chapter 5 Managing customer expectations and perceptions 123
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Copyright © 2012 by Pearson Education, Inc.
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Service elements Quality factors Standard Procedures for conformance
Flights On time _15 mins Pre-fl ight clearance with ATC and
weather checks
Safe fl ight Zero critical mechanical failures Pre- and post-fl ight checks plus
routine maintenance
Cabin service Attentive staff Friendly and frequent interactions Customer surveys and supervisor
checks
Safety aware Correct briefi ng and security checks Supervisor checks
Catering Quality meal Correct temperature Adherence to cooking instructions
Choice of meal 2 choices in economy, 3 in business Feedback to caterers
Table 5.2 A simplifi ed service specifi cation
being on time, safe, professional delay handling, disabled access to fl ight etc. There will be
other quality factors associated with the cabin staff and service, such as attentive staff, safety
aware staff, competent staff etc. The catering will also have its quality factors, such as quality
of the meal, passengers having a choice of meal, staff competence in serving the meal etc.
There will be standards associated with each factor, some of them explicit and others tacit. For
example, the airline’s standard for ‘on time’ might be plus or minus fi ve minutes. Its standard
for attentive staff might be their level of friendliness and having two or three interactions with
each passenger. Some of these standards may be set down in operating manuals or in regulations.
Others may be more tacit and shared through oral instructions, pictures, or shared
understandings through role-play during training.
5.7.3 How do we ensure conformance to the specifi cation?
Service organisations will have a variety of means of ensuring conformance for each of these
factors (see Table 5.2 and also Chapters 9 and 11 ). Ensuring on-time departure will require
co-ordination with ground staff to ensure all passengers’ bags are loaded promptly, discussions
with air traffi c control to establish clearance on time and checks for weather problems
to allow for changes in route and increasing average speed to ensure an on-time arrival. The
airline’s desire for attentive staff will be checked by supervisors on board providing coaching
to members of staff where necessary. Appropriate recruitment and training procedures will
also have a role to play in ensuring that staff look after their passengers well.
5.8 Summary
What is customer satisfaction?
● Satisfaction is the result of customers’ overall assessment of their perceptions of the service
(the service process, their experiences and outcomes such as the benefi ts obtained), compared
to their prior expectations.
● If there is a mismatch between perceptions and expectations it is usually caused by either
a mismatch between expectations and the service and/or a mismatch between the service
and customer perceptions.
● A related notion is customer confi dence. Confi dence is about having belief, trust or faith in
an organisation, its staff and services. Unlike satisfaction which is one outcome of a service,
confi dence does not require previous experience or contact with the organisation.
124 Part 3 Connect
Service Operations Management: Improving Service Delivery, Fourth Edition, by Robert Johnston, Graham Clark, and Michael Shulver. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN 1-323-17409-5
What infl uences expectations and perceptions?
● Perceptions are our own personal impression and interpretation of a service.
● How we perceive a service depends upon our past experiences, our past, our culture,
language, beliefs, values, interests and assumptions.
● Expectations are what a customer believes to be likely, lying on a continuum, between ideal
and intolerable.
● Expectations are dynamic and are infl uenced by price, the alternative services available,
marketing, word-of-mouth, previous experience, customers’ mood and attitude and their
confi dence.
How can expectations and perceptions be ‘managed’?
● Operations need to ensure the marketing and strategy functions understand the nature
and quality of service that it can actually deliver and indeed what it can’t.
● The design of the operation can infl uence and shape customer expectations during the
early stages of a service process.
● Customer perceived quality is a dynamic process and can be infl uenced through the
appropriate interventions during the service process/customer experience.
How can service quality be operationalised?
● The service quality factors are those attributes of service about which customers may have
expectations and which need to be delivered at some specifi ed level.
● Neutral factors have little effect on satisfaction; hygiene factors will dissatisfy but not delight;
enhancing factors will delight but not dissatisfy; and critical factors both dissatisfy
and delight.
How can managers capture customer expectations?
● The eighteen quality factors provide a base to help understand and define customer
expectations.
● The methods available include questionnaires and surveys, focus groups, customer advisory
panels, new/lost customer surveys, complaint/compliment analysis, critical incident
technique and sequential incident analysis.
How can a service be specifi ed?
● A service specifi cation takes the elements of the service concept and identifi es the quality
factors associated with each, then details the standards to be achieved in each and the organisation’s
procedures to ensure conformance to the standard.
5.9 Discussion questions
1 What methods are most effective in identifying the infl uencers of customer satisfaction,
given that some aspects of service may be unconsciously experienced by customers?
2 For a high-volume/low-variety service (business-to-consumer) and for a low-volume/
high-variety service (business-to-business or professional service) identify potential gaps
between customer expectation and customer perception of service delivery. What strategies
would you suggest these organisations utilise to close these gaps?
3 Collect a few customer survey forms, from a range of service providers, and evaluate them.
Chapter 5 Managing customer expectations and perceptions 125
Service Operations Management: Improving Service Delivery, Fourth Edition, by Robert Johnston, Graham Clark, and Michael Shulver. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN 1-323-17409-5
5.10 Questions for managers
1 When was the last time your organisation carried out a detailed study of customer satisfaction?
Assess the methods used and, more importantly, the impact of the exercise.
2 Who compiled your customer satisfaction survey questionnaire? Have you checked with
customers as to how relevant it is? What are the drivers of satisfaction for your customers
(internal or external)?
3 What are the reasons for gaps between customer perceptions of service and their expectations?
How can they be closed?
4 Do you understand the zone of tolerance for your service delivery? Are customer expectations
sometimes fuzzy? What guidance and/or resource is required to clarify these
expectations?
5 What is the most effective method of assessing customer satisfaction? How widely have
you communicated the fi ndings of customer research?
Breast cancer is the most common cause of death from cancer in women. England and Wales have the highest
mortality rates for breast cancer in the world, making it a major public health problem which is a national
target area in the government’s Strategy for the Health of the Nation. The National Health Service (NHS)
Breast Screening Programme aims to reduce mortality from breast cancer through early identifi cation of the
symptoms, by screening women aged between 47 and 70 every three years.
The Northern Breast Screening Unit (NBSU) serves some half a million residents, with an uptake on invitations
for screening of 77 per cent (compared to the national target of 70 per cent and an ‘achievable quality
standard’ of 75 per cent). The NBSU is part of a major hospital whose mission statement is as follows:
We aim to provide high quality acute and specialist services which:
● are responsive to customer needs
● use leading edge and effective medical technologies
● are at a cost that compares favourably with the rest of the NHS
● have motivated and properly trained staff.
To this end the hospital supports a number of quality audit and improvement initiatives including ISO 9000
and Investors in People. The NBSU employs 32 members of staff including part-timers. There are four radiologists,
seven full-time radiographers, two breast care nurses, and a number of receptionists and offi ce
staff. The unit is also supported by several part-time radiographers and visiting surgeons.
Last year a small patient satisfaction survey was conducted to obtain information about patient expectations
and perceptions of the service and to identify areas for improvement. Staff from the different functional
areas were also interviewed in order to identify any gaps between patient expectations and perceptions and
staff perceptions of the quality of service provided.
Thirty-two patients were interviewed. These included sixteen patients who had come to the NBSU for
screening and sixteen patients who had been screened and had been called back to the NBSU because they
were diagnosed with breast cancer. Each patient was asked to assign the relative importance, on a 5-point
scale, of a series of quality factors (importance was used as a surrogate for expectations). They were then
Case Exercise The Northern Breast Screening Unit
Rhian Silvestro, Warwick Business School, and Marilyn Merriam
126 Part 3 Connect
Service Operations Management: Improving Service Delivery, Fourth Edition, by Robert Johnston, Graham Clark, and Michael Shulver. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN 1-323-17409-5
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