Purchasing and Supply Chain Management ISBN:9781285869681 Show
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson Publisher:Cengage Learning
Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 2 out of 2 pages. Photo by Richard Balog on Unsplash When designing services, it is good to understand customer expectations. The purpose of service design is to create a customer experience that exceeds customer expectations. Understanding customer expectations facilitates the design of services to be better and more customer-oriented. This summary of Services marketing: integrating customer focus across the firm, 3rd European edition covers the key takeaways found in the original Part 1: Chapter 3. Please note: this concise summary is unofficial and not authorized, approved, licensed, or endorsed by the original book’s publisher or author. Knowing what the customer expects is the first and possibly most critical step in delivering good-quality service. Customers have beliefs about what to expect when they are evaluating service quality what they believe as standards or reference points. Companies cannot trust that they know what their customers want. That can lead to spending money and other things that do not matter to the customer. In the worst-case scenario, the company will lose its customers. Understanding the expectations the successful service marketing needs to focus on: 1. Types of expectation standards 2. Factors that are influencing the most 3. What role do these factors play 4. How can a company meet or exceed customer expectations Meaning and types of service expectationsDepending on the reface point that customer holds the level of expectation can vary widely. For example, you are going to the restaurant, and your level of service expectations can vary from low to high. Your expectations are related to what kind of restaurant you are planning to have dinner at. That means that there are different levels of expectations. Expected services: levels of expectationsFor purposes of our discussion, we are focusing on two types: desired service and adequate service. Desired service is the highest and what customer hopes to receive. It is also a mix of believes “can be” and “should be” that customer holds. Adequate service is the level that customer is still accepting. For example, you are planning to travel to Venice, Italy, at Easter. You are planning your trip among your what you hope and wish. However, Easter may not be ideal for finding the right flights and hotel with a central location to the key sights. You probably need to accept flights outside your optimal times, as well as the hotel that is further away than you originally planned. Adequate service represents the minimum tolerable expectation. It is also good to note that customers typically hold similar desired expectations across categories of service. For example, restaurants are not all the same but can vary from fast-food restaurants to expensive restaurants. This quotation is a great example: Infographic of possible levels of customer expectations. The zone of toleranceThe one of tolerance falls between the desired service and adequate service. That can be considered this as the customer is not particularly noticing service performance. If service performance exceeds desired service, customers are very pleased and surprised too. On the other hand, if service performance drops below adequate service, the customer is frustrated and not happy. When service performance falls outside the range, service gets the customer’s attention positively or negatively. The level of tolerance can be different between customers. It can expand or diminish with each customer in various situations. The zone of toleranceFactors that influence customer expectations of serviceFor marketers, it is essential to understand the factors that are shaping the expectations. However, it might be challenging due to forces that influence customer expectations are uncontrollable. Sources of desired service expectations
Sources of adequate service expectations
Sources of both desired and predicted service expectationsCustomers are looking for information from several different sources before they decide on purchasing services. It can be external or internal information. For example, a friend can recommend a service, watching tv, or their memories about the service.
Issues involving the management of customer service expectationsIn this section, we discuss five of the most current topics about customer expectations. What does a service marketer do if customer expectations are “unrealistic”?Customers want services to be simple and basic as they want services to be delivered as promised. The company may no be able to address expressed expectations. Then it is good to let the customer know the reasons that desired service cannot provide. And how they have planned efforts to improve them. Should a company try to delight the customer?It may seem like a good idea to delight customers with unexpected, random, and extraordinary service. Delighting customers will be more difficult for the company in the future since customer expectations have risen. Delights are additional add to service musts and satisfiers features. Delights are things that customers would not expect. The delight strategy will give a competitive advance when other companies in the same industry cannot copy it. How does a company exceed customer service expectations?Companies should pay attention to their promises and provide the service they promised to provide. Developing a customer relationship is one approach for exceeding service expectations. Another is to under-promise the service to increase exceeding expectations. However, this method is risky due to patterns that customers will recognize, and under-promising reduces the competitive appeal. One way to exceed expectations is to position exceptional service as unique rather than standard. Do customer service expectations continually escalate?Companies need to regularly monitor adequate service expectations. Service delivery or promise will rise service expectations because those expectations are dynamic. On the other hand, desired service expectations are far more stable due to personal needs, for instance. How does a service company stay ahead of the competition in meeting customer expectations?Companies must perform above the adequate service level to use service quality for competitive advantage. They must reach the desired service level and not only exceed the adequate service level. It is good to remember that the adequate service level reflects the minimum performance level expected by customers. SummaryAs we can see, the customers have different types of service expectations: desired service, adequate service, and predicted service. These different levels of service are reflected within the zone of tolerance. Also, customer expectations and zone of tolerance are influenced by a variety of factors. Source:
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