ZONE OF TOLERANCE

Jitendra Kumar Dixit

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Zone of Tolerance
(Understanding customer expectations & Zone of Tolerance)
The Gap between the desired & adequate services is
called the Zone of Tolerance, which varies inversely
across decision criteria, depending on the criticality
of the criticality of the criteria, competition, price &
unique features of the service product.
Desired service expectations, which is an ideal
product is influenced by service providers
communication ,social channels & other parameters
like price and tangible benefits associated with the
product.
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The influenced service expectations & the
minimum level of service expected or the
threshold level service is termed as adequate
service.
The gap between the desired and adequate
service has been called the Zone of Tolerance.

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 Past Experience of
Personal customer & his Service providers
Needs reference groups communication

Communication
about service
Ideal Service Desired Services providers
Images (Ideal State)
Word of mouth
publicity

Decision criteria Zone Of

Tolerance
Competition
Perceived
Uniqueness of Adequate service
service situation alternatives
Service
(Threshold level of
services)
Situational
Factors Predicted
Services
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Any performance that falls below the adequate or
threshold level of service is going to create customer
dis-satisfaction.

But if the actual service delivered exceeds this level,

the customer is satisfied. The Customer feels
delighted when there is no gap between the delivered
service and desired service.
Understanding the zone of Tolerance and decision
criteria can help the marketer design the service
product.

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Assignment Problem
1- It would seem that managers would want their
customer to have wide tolerance zone for
services. But if customers do have these wide
zones of tolerance for service, it is more difficult
for firm with superior superior service to earn
customer loyalty ? Would superior service firm
be better off to attempt to narrow customer’s
tolerance zone to reduce the competitive appeal
of mediocre providers ?

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2- List five incidents in which a service
company has exceeds your expectations.
How did you react to the services ? Did
these incidents change the way you
viewed subsequent interactions with the
companies ? In what way ?

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