Customer Expectations and Perceptions of Services

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Understanding Customer Expectations and Perceptions

1. Customer Expectations

  • Definition: Customer expectations are the preconceived notions and beliefs customers have about a service before they experience it. These expectations are shaped by various factors including past experiences, marketing messages, word-of-mouth, and personal needs or preferences.
  • Sources of Expectations:
    • Previous Experiences: Customers who have had positive or negative experiences with a service in the past will base their expectations on those experiences. For example, if someone had a good experience at a hotel, they expect a similar quality in their future stays at that hotel or its chain.
    • Word-of-Mouth: Recommendations or warnings from friends, family, or online reviews can significantly influence what customers expect. For instance, if many people speak highly of a new restaurant, potential customers will likely have high expectations.
    • Marketing Communications: Advertising and promotional materials set expectations by highlighting specific features or benefits of a service. For example, if a company advertises a product as "fast and reliable," customers expect it to deliver on these promises.
  • Examples:
    • Reputation: A student enrolling in a reputed university expects high-quality education based on the institution’s established reputation.
    • Product Claims: A customer buying a salon service based on friends' recommendations expects similar high-quality service.

2. Perception of Service

  • Definition: Perception refers to the process through which customers interpret and make sense of the service they receive. It involves organizing and evaluating the sensory information and experiences they have with the service.
  • Importance: Perceptions are crucial because they determine how customers evaluate their experiences and make decisions about future purchases. Even if the actual service quality is high, poor customer perceptions can lead to dissatisfaction.
  • Examples:
    • Pizza Delivery: Domino’s positions itself with a 30-minute delivery guarantee. Customers’ perception of timely delivery influences their satisfaction.
    • Salon Service: If a salon is known for excellent service through positive reviews, new customers will have high expectations and perceptions based on this reputation.

3. Perceived Quality of Services

  • Definition: Perceived quality is the customer’s evaluation of the overall quality of a service based on their expectations and experiences. This perception might not always match the actual quality of the service provided.
  • Cues Influencing Perceived Quality:
    • Extrinsic Cues: These are external indicators that affect perceptions, such as the physical environment or brand image. For example, a well-maintained restaurant environment can positively influence perceptions of its food quality.
    • Intrinsic Cues: These relate to the core service being delivered, such as the actual performance and effectiveness of the service. For example, the professionalism of a healthcare provider affects perceptions of the quality of care.
  • Examples:
    • Restaurant Experience: Cleanliness and decor of a restaurant can impact customers’ perception of the food quality, even if the food itself is excellent.

Gaps Model of Service Quality

1. Gap 1: Customer Expectations vs. Management’s Perceptions

  • Definition: This gap occurs when there is a discrepancy between what customers expect and what management believes customers expect. It reflects a misunderstanding or misalignment of customer needs.
  • Impact: If management does not accurately understand customer expectations, the services designed may not meet actual customer needs, leading to dissatisfaction.
  • Example: A hotel management might assume customers prioritize luxury amenities, while in reality, they may value affordable rates more.

2. Gap 2: Management’s Perceptions vs. Service Quality Specifications

  • Definition: This gap arises when there is a difference between management’s understanding of customer expectations and the actual service quality specifications or standards set for the service.
  • Impact: Service quality specifications that do not align with what management believes customers want can lead to service delivery that does not meet expectations.
  • Example: A restaurant might have quality standards for food preparation that do not align with customer expectations for freshness.

3. Gap 3: Service Quality Specifications vs. Service Delivered

  • Definition: This gap occurs when the actual service delivered does not meet the service quality specifications or standards that were set.
  • Impact: If the service delivered falls short of the set standards, it can result in customer dissatisfaction, even if the initial expectations were properly understood.
  • Example: A fast-food chain might set high standards for quick service but fail to deliver orders on time, leading to customer dissatisfaction.

4. Gap 4: Service Delivered vs. Service Communication

  • Definition: This gap exists when there is a discrepancy between what is communicated about the service and what is actually delivered. It reflects a misalignment between marketing promises and service reality.
  • Impact: If marketing communications promise more than what is delivered, customers will be disappointed, leading to negative perceptions and potential loss of trust.
  • Example: An airline may advertise luxurious in-flight amenities but deliver a basic experience, resulting in customer dissatisfaction.

SERVQUAL Scale

1. Overview: The SERVQUAL scale is a tool used to measure service quality by assessing gaps between customer expectations and perceptions. It focuses on five key dimensions of service quality.

  • Reliability: The ability to deliver promised services accurately and dependably. For example, whether a flight reaches the destination on time as promised.
  • Assurance: The knowledge and courtesy of employees and their ability to inspire trust and confidence. For example, the professionalism of a financial advisor.
  • Tangibles: The appearance of physical facilities, equipment, and personnel. For example, the cleanliness and modernity of a restaurant’s environment.
  • Empathy: The caring, individualized attention provided to customers. For example, how well a customer service representative addresses a customer’s specific needs.
  • Responsiveness: The willingness to help customers and provide prompt service. For instance, the speed with which a support team resolves issues.

2. Measurement:

  • Outcomes: Reflect how effectively the service meets its intended results, such as whether a customer reaches their desired destination safely.
  • Processes: Focus on the quality of service delivery, including aspects like assurance and empathy, such as the behavior of flight attendants.

Examples:

  • Amazon: Known for excellent delivery processes and customer service, contributing to high perceived quality and customer loyalty.

Key Takeaways

  • Customer Satisfaction: Achieving satisfaction involves aligning service delivery with customer expectations. Discrepancies between expectations and actual service delivery can lead to dissatisfaction.
  • Importance of Perception: Since customer decisions are based on perceptions, businesses need to ensure their service delivery matches these perceptions to maintain a positive brand image.
  • Gap Analysis: Identifying and addressing gaps between customer expectations and service delivery helps improve service quality and enhance customer satisfaction.

Understanding these concepts allows businesses to develop strategies that align service delivery with customer expectations and perceptions, thereby improving customer satisfaction and loyalty.