CUSTOMERS:

Managing
Customers Expectation &
Perception
Unit - 3

What is customer
satisfaction?
In simple terms, satisfaction is the result of

customers overall assessment of their

perceptions of the service compared to their
prior expectations. Such as;
The service process,
Their experiences and
Outcomes such as the quality of the products,
The benefits obtained and
Perceived value for money

What is customer
satisfaction?
If customers perceptions of the service match

their expectations (P=E) then they should be

satisfied (or at least satisfied).
If their perception of the service exceeds their
expectations (P>E) then they will be more
than satisfied, even delighted.
If their perceptions of the service do not meet
their expectations (P<E) then they may be
dissatisfied.

What is customer
satisfaction?

Perceptions
expectations gap

Perceptions
expectations gap

Downsides of the
Expectation perception approach
to customer perceived service quality
Service could be perceived to be

good when it is bad .

Service could be perceived to be
bad when it is good .
Service that was good last time
may only be OK this time .
Satisfied customers may switch .

Confidence
Satisfaction is an assessment by the customer

following a service experience.

Whereas confidence, or the lack of it, does
not require previous experience or contact
with the organization.
Confidence is about having belief, trust or
faith in an organization, its staff and services.
For some organizations, understanding and
measuring customer confidence may be more
appropriate than customer satisfaction.

Confidence
Research has shown that our confidence pre-

service, i.e. before we receive any service, is

influenced primarily by three things over
which the organization may have very limited
control or influence:
Personal beliefs (beliefs held by the individual
about that organization)
Media (for example television (news or even drama)
coverage of the organization)
Word-of-mouth (the communicated experiences of
others)

Confidence
And three things that organizations have control and

influence over:
Visibility of the Organization, its services and its

employees.
Familiarity with the organization's employees,
services or abilities
Communication ( knowledge of the service and its
abilities).

By managing these factors, organizations can have

an important impact on their potential customers

and the efficiency and effectiveness of the service
they deliver.

What influences expectations

and perceptions?

Perceptions
Expectations
Fuzzy expectations
Influencing

expectations

Perceptions
Our perceptions are our own personal impression

and interpretation of the service provided.

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 depends upon the
experiences each of us have had in our past, our
culture, language, beliefs, values, interests and
assumptions.

Perceptions
In service (and indeed in business and life

situations) we may filter our experiences even

more:
Selective filtering . We 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.

Expectations
Our expectations of a service will lie somewhere on a

range, or continuum, between ideal and intolerable.

Some points on this continuum could be defined as follows:
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.

Expectations

Expectations

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.

Influencing
Expectations

How can expectations and

perceptions be managed?
Managing

expectations
Managing
perceptions

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

organization know the capabilities of the operation,
the nature and quality of service that it can actually
deliver and indeed what it cant.
This enables the marketing function to try to influence
customers expectations so that there is a good
chance those expectations will be met.

Managing
expectations
Secondly, the operation has an opportunity to

influence and shape customer expectations.

During the early stages of a service process.
Careful attention to the design of the first few
steps of the service and the clues and messages
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.

Managing Perceptions
Managing customer perceived quality during

the service process is a dynamic activity.

The levels of expectations and zone of
tolerance, and one of the outcomes of a
service the level of satisfaction and
dissatisfaction.
shows how expectations give way to a
perception of satisfaction during the service
process and the customers experience of it.

Managing Perceptions

Managing Perceptions

Managing Perceptions

Managing Perceptions

How can service quality be

Operationalised?
Service quality factors
Hygiene and enhancing

factors

Service quality factors

Access .
Aesthetics
Attentiveness/helpfulness
Availability .
Care
Cleanliness/tidiness
Comfort .
Commitment.
Communication .
Competence
Courtesy .
Flexibility.
Friendliness .

Service quality factors

Functionality
Integrity
Reliability
Responsiveness
Security

Hygiene and
enhancing factors

Hygiene and
enhancing factors