Customer Expectations and Perceptions PDF

Preview

Summary

Summary of chapter 5 of the core textbook. Describes Service Quality, the perception-expectations gaps, and how to influence perceptions and expectations. ...

Description

Service quality: Meeting and expecting customer expectations. Some might even include delighting them. Service can be seen from two perspective: service provided and service received. Service quality can also be defined from these two perspectives as operational service quality and customer perceived quality. [how well the service was delivered to its specification]. Operations managers need to understand and influence their customer's expectations to ensure they provide a service that meets or possibly exceeds those expectations. Customers are more likely to become loyal to the brand. Customer satisfaction can be managed to some extent by influencing customer's expectations and perceptions of service delivery. “Customers perceive service in their own unique, idiosyncratic, emotional, irrational, end-of-the-day, and totally human terms…”. (Peters, 1982). {Look this up for assignment] Operations managers need to create a specification for their service which reflects customer needs and expectations. Customer satisfaction - satisfaction is the result of customer's overall assessment of their perceptions of the service (the service process, their experiences and outcomes such as the quality of the 'products', the benefits obtained and perceived value for money.)

Perceptions-expectations gap If there is a mismatch between perceptions and expectations, this is usually caused by either mismatch between expectations and the service (gap 1) and/or a mismatch between the service and the customer's perception of it (gap 2).

Reasons for gap 1: Internal:  Service may have been inappropriately specified, designed and/or enacted.  There may be insufficient resources to meet expectations  Customer may have inappropriate expectations



Inappropriate specification or design of the service may be the result of a poor understanding of customer expectations by managers. Insufficient resources may be the result of a poor understanding of market requirements or demand profiles. May stem from lack of determination to deliver consistent standards. External:  Inappropriate expectations may be the result of inappropriate marketing, promises made by the organization 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 Reasons for gap 2: Internal:  Incorrect service provision of a service or customers inappropriately perceiving the service. External:  Customer's perception of the quality of the service provided my not be the same as the quality of the service received because customer perception is a matter of personal perception. Downsides of the expectation-perception approach to customer perceived service quality  Services could be perceived to be 'good' when it is 'bad', if customer expectations are particularly low.  Services could perceived to be 'bad' when it is 'good' if expectations are high due to overpromising.  Service that was good last time may be 'ok' this time. Good service raises the customer's expectations thus they may well be less satisfied on subsequent occasions, despite the fact that the operational quality of the service has remained unchanged.  Satisfied customers may switch even though a particular service may meet customers' expectations and customers are satisfied, 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. Confidence is a bout belief, trust or faith in an organization, its staff or services. Customer confidence can make it easier for the organization to perform its tasks. For some organizations understanding and measuring customer may be more appropriate than customer satisfaction. Our confidence pre-service is influenced primarily by 3 things over which the organization may have very limited control over:  Personal beliefs  Media  Word-of-mouth And 3 things that organizations have control and influence over:  Visibility of the organization, its services and its employees  Familiarity with the organizations' employees, services and abilities  Communication (knowledge of the service and its abilities) What influences perceptions and expectations? 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 irrational way. Essentially, a service received is what each individual perceives it to be. In service customers may filter experiences even more:

  

Selective filtering: tend to only notice what is relevant to current needs and 'ignore' other parts of the experience. Selective distortion: We tend to modify and seek information that supports personal beliefs and prejudices. Selective retention: We tend to remember only those things that are relevant to our needs and beliefs.

Expectation: Our expectations of a service will lie somewhere on a range between ideal and intolerable.  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.  Minimum tolerable: The minimum tolerable standards- those that must be achieved.  Intolerable: The standards the customers should not receive. Influencing expectations:  Price often has a large influence on expectations. The higher the price, the higher up the continuum towards ideal are customers' expectations. Price is perhaps one of the most important influences as customers are concerned not just about the service and their experiences and outcomes but also its value.  Alternative services available will also help define and set expectations.  Marketing can have considerable influence on expectations, often at great cost to the organization.  Word-of-mouth marketing, which is less controllable , can have a profound effect on a customer's expectations. May have a stronger influence than organizational 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 a scale. Also acts as a moderator on marketing information.  Customers' mood and attitude can affect expectations. Poor attitude may have heightened expectations.  Confidence about an organization, even before using the organization will influence expectations. 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 influence and shape customer expectations during the early stages of a service process.  Customer perceived quality is a dynamic process and can be influenced through the appropriate interventions during the service process/customer experience....