2. WHY CUSTOMER GO TO AN ORGANISED RETAILER? A MILLION DOLLAR QUESTION? ? TO BUY A PRODUCT? OR TO TAKE HIS SERVICES?

3. Customer Expectations In Retailing

4. Meaning and Types of Customer Expectations Customer expectations are beliefs about service deliver that function as standards or reference points against which performance is judged. Customer expectations are hopes or wishes and beliefs Meaning :

5. Two level of Expectation Desired Service : The service customer hope to receive The “wished for” level of performance Customer believe “can be” and “should be” Though Desired expectations cannot be always hoped. Even a lower level of acceptable service is recognized in certain cases It is the threshold level of acceptable service which is Adequate service

6. Two level of Expectation Desired Service Adequate Service Level of Expectation Minimum Tolerable Expectation Zone of Tolerance Maximum Expectation Infinite Customer assess service performance on the basis of 2 standards: What they desire and What they deem acceptable

7. Zone of Tolerance Two level of Expectation Desired Service Adequate Service Level of Expectation Minimum Tolerable Expectation Maximum Expectation Waiting in Checkout line in a Retail store - 5 to 10 mins Pizza Delivery – 30 to 50 mins Unsatisfied Customer Over Pleased Customer

8. Zone of Tolerance Zone of tolerance Desired Service Adequate Service Service being Heterogeneous performance vary Across provider Across employees of same provider Even within same service employee The extent to which customers recognize and willing to accept this variation is called the Zone of Tolerance

9. Zone of Tolerance Zone of Tolerance Desired Service Adequate Service Zone of Tolerance Different customer possess different Zone of Tolerance Desired Service Adequate Service Desired Service Adequate Service A BUSY CUSTOMER Do not work Works from Home Works outside the home Zone of Tolerance

10. Zone of Tolerance Zone of Tolerance Desired Service Adequate Service Zone of Tolerance vary for service dimensions MOST OR LEAST IMPORTANCE Level of Expectation IMPORTANCE Desired Service Adequate Service Most Important Factors Least Important Factors Zone of Tolerance

11. Factors that influence Customer Expectations of Service

12. Desired Service Adequate Service Zone of Tolerance Enduring Service Intensifiers Personal Needs Derived service expectations: Personal or from others members e.g. Group, Family, members of society Conditions essential to the physical or psychological well being of the customer. Including social or functional needs Factors that influence Desired Service Expectations

13. Factors that influence Adequate Service Expectations Desired Service Adequate Service Zone of Tolerance Transitory Service Intensifiers Perceived service Alternatives Self perceived Service role Situational Factors

14. Factors that influence Adequate Service Expectations Transitory Service Intensifiers Perceived service Alternatives Self perceived Service role Situational Factors Personal Emergencies were service is urgently needed eg. Home delivery from Pharmacy Possible other options which are available, other alternatives eg only retail, no other options The self role in the service performance Peak demand day Random Over demand Catastrophe

15. Predicted Service Expectations Desired Service Adequate Service Zone of Tolerance Predicted Services Desired service –what customer wants Adequate Service - what customers are willing to accept Predicted Service – what customer believes they are likely to get

16. Other Factors that influence Predicted Service Expectations Desired Service Adequate Service Zone of Tolerance Explicit service promises Implicit service Promises Word of Mouth Past Experience Predicted Services

17. Other Factors that influence Predicted Service Expectations Explicit service promises Implicit service Promises Word of Mouth Past Experience Advertising / personal selling / Contracts/ Other communication Tangibles / Price Personal / Experts (reports/ publicity / Consultants) Your last experience

18. Desired Service Adequate Service Zone of Tolerance Enduring Service Intensifiers Personal Needs Transitory Service Intensifiers Perceived service Alternatives Self perceived Service role Situational Factors Explicit service promises Implicit service Promises Word of Mouth Past Experience Predicted Services

19. Desired Service Adequate Service Zone of Tolerance Enduring Service Intensifiers Personal Needs Transitory Service Intensifiers Perceived service Alternatives Self perceived Service role Situational Factors Explicit service promises Implicit service Promises Word of Mouth Past Experience Predicted Services Expected Service Perceived Service CUSTOMER GAP Customer Gap is difference between What I thought and What I got

20. Service Quality Reliability Responsiveness Assurance Empathy Tangibles Product Quality Price Customer Satisfaction Situational Factor Personal Factor Perceived Service Perceived service is the assessment of the customer of the quality of the service.

21. Customer Satisfaction Apart from Product Quality, Service Quality and Price Situational and Personnel factors includes Consumer Emotion Positive frame of mind and Negative frame of mind Happiness, pleasure, elation and sense of warm heartedness enhances t he Customer Satisfaction While sadness, sorrow, regret and anger led negative Customer Satisfaction Perception of Fairness Customer ask the questions to themselves Have I been treated fairly compared to others? Did other customers get better treatment, better price, better service? Did I pay a fair price for the service? Every Service quality is assessed from certain Dimensions

22. Reliability – Delivering on Promises Responsiveness – Being willing to help Assurance - Inspiring Trust and confidence Empathy – Treating customer as individuals Tangibles – Representing service physically Dimensions of Service Quality Ability to perform the promised service, dependably and accurately Willingness to help customers and provide prompt service Employee’s knowledge and courtesy & ability to inspire trust and confidence Caring, individualized attention given to customers Appearance of physical facilities. equipment, personnel and written material

23. Service Encounters or Moments of Truth (MOT) The occasion when customer interact with the Retail firm First encounter – First impression Each individual encounter is important in creating a composite image of the firm “ One bad apple ”ruins rest of encounters Each encounters adds to or detracts from the potential for a continuing relationship

24. Types of Service Encounters Face to face encounter Most complex, importance on verbal and non- verbal behaviors

25. Phone encounters Judgment of quality – Tone of voice, audio disturbance, employee knowledge, effectiveness in handling customer Types of Service Encounters

26. Remote encounter Non- personal encounter, without human contact – New avenue has opened due to Technological innovations Types of Service Encounters

27. Service Marketers Strategy Reducing face to face encounters by increasing telephonic conversion and maximizing the remote encounters

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30. Sources of Pleasure and Displeasure in Service Encounter Recording the stories from the customers – Closed MOTs, Open MOTs Recording the stories from the employee – In the shoe of customer, Open MOTs The stories are analyzed to determine common themes of Satisfaction / Dissatisfaction and are classified as follows Recovery – Employees response to service delivery system failure Includes, failure of service delivery, here the employee has to satisfy the disappointed customer Adaptability – Employee response to customer needs and requests Includes the special need, demand or request by the customer. Here flexibility in employees approach and systems is at toss. Slight modification in SOP as a special need. Spontaneity – Unprompted and unsolicited employee actions No service failure. Employee give good / bad service. e.g. special attention, loyal treatment Receiving something nice without request etc. Against rudeness, dishonest, ignorance etc.

31. Recovery A gentleman left his shoes outside his room door to be polished. When he went to retrieve them, they were gone and was unable to find them The hotel staff took responsibility and within an hour the dealer of Branded shoes came with the 6 pairs of shoes to select from. We had made advance reservations at the hotel. When we arrived we found we had no room. - no explanation, no apologies, no assistance in finding another hotel. Satisfaction Dissatisfaction Service Encounter Theme

32. Adaptability I didn’t have an appointment to see a Specialist (doctor). However my family Doctor spoke to his assistance and worked me that schedule. I received treatment after 10 mins. I was very satisfied My young son, flying alone, was to be assisted by the air – hostess from start to finish. At a changeover air port, she left him alone in the airport with no one to escort him to The connected flight Satisfaction Dissatisfaction Service Encounter Theme

33. Spontaneity We always travel with our Teddy bears. When we got back to our room at the hotel we saw that the housekeeping staff had arranged Our Teddies were comfortably in a chair, holding hands. We went to the 5 star hotel from our day long mountain trek and after a Bungee jump. Looking at our attire the waiter started ignoring us. After several calls came to us and were reluctant to serve us Wine bottle. One of the waitresses said that “we don’t have left hand menu” Satisfaction Dissatisfaction Service Encounter Theme

34. Recovery Acknowledge problem Explain causes Apologize Compensate/upgrade Take responsibility Adaptability Recognize the seriousness of the need Anticipate Attempt to accommodate Adjust the system Explain rules/policies Spontaneity Take time Anticipate needs Listen Provide information Show empathy Ignore customer Blame customer / Downgrade Leave customer to “fend for him/herself Act as if nothing is wrong “pass the buck” Promise, that fells to follow through Embarrass the customer Laugh at the customer Avoid responsibility “pass the buck” Exhibit impatience Yell/laugh/swear Steal from customers Discriminate General Service Behaviors – Do and Don’tDoDon’t