PRACTICE 1

Erin went to HUB to grab a quick lunch today. She just hit the peak
time, so it seemed that she had to wait much more than
expected. Which provider gap is most salient in this example?

A. Provider Gap 1: Listening gap

B. Provider Gap 4: Communication gap

C. Provider Gap 3: Performance gap

D. Provider Gap 2: Service design and standard gap

PRACTICE 2

Ellen went to a new restaurant in town for dinner with his friends.
A picture of their new avocado salad looked delicious in menu, so
he decided to give it a try. However, when the salad came, he was
so disappointed by its terrible presentation. What’s worse, the
taste was below his expectation. Which provider gap is most
salient in this example?

A. Provider Gap 1: Listening gap

B. Provider Gap 4: Communication gap

C. Provider Gap 3: Performance gap

D. Provider Gap 2: Service design and standard gap

 Why the Gaps model?

Expected Service
The Customer Gap
CUSTOMER
Perceived Service
Gap 1
Listening Gap
Service Delivery Gap 4 External
Communications
Communication Gap
Performance Gap Gap 3 to Customers
Customer-Driven
Service Designs and
COMPANY Standards

Gap 2 Service Design & Standard Gap

Company Perceptions
of Consumer
Expectations
School of Hospitality Management

Chapter 3
Customer Expectations of Service

Fall 2022
Fall 2016
Hospitality Marketing
Hospitality Marketing
 HM 442: Hospitality Marketing

Opening Discussion

● Consider a recent service purchase that you have made.

Which of the factors influencing expectations were the
most important in your decision? Why?
 HM 442: Hospitality Marketing

Today’s Topics

● Why and What about Customer Expectations

● Zone of Tolerance
● Issues Involving Customers’ Service Expectations
● Discussion: Should you delight your customer?
 Why and What about Customer Expectations

● Customer Expectations are beliefs about service delivery

that serve as standards or reference points against which
performance is judged.
● Knowing what the customer expects is the first and possibly
most critical step in delivering quality service.
[EXAMPLE]
[EXAMPLE]
[EXAMPLE]
 Why and What about Customer Expectations

Possible Levels of Customer Expectations

 Zone of Tolerance

Dual Customer Expectation Levels

● Desired Service: The level of service the customer hopes

to receive (Stable)
● Adequate Service: The level of service the customer will
accept (Less stable due to situational and other factors)
 Zone of Tolerance

The Zone of Tolerance

• … is the extent to which customers recognize and are willing
to accept the variation of provided service.
• Within the range, customers may not particularly notice service
performance.
• When fall out of the range, the service gets customer’s attention
in either a positive or a negative way.

 Wishes

 Desirables

 Musts
 Zone of Tolerance

Zone of Tolerance Vary for:

• Different Individuals

VS !
Cu l t ure
Fa c tors:
al
Extern
• Different Service Dimensions

VS
[EXAMPLE]

Space needed in Sweden…

[EXAMPLE]

Space needed in Japan…

[EXAMPLE]

Desired Service

Desired Service

Zone of
Zone of
Tolerance
Tolerance

Adequate Service

Adequate Service
 Zone of Tolerance

What are the factors that shape zone of tolerance?

???

???

???

???

???

???

???

???

???

???
 Zone of Tolerance

Common Sources to Both

• The Customer: past experience

• The company:
• Explicit Promises: personal and non-personal statements about the
service made by the organization to customers.
• Absence of pain after a tooth repair
• Implicit Promises: service-related cues other than explicit promises
that lead to inferences about the service.
• Luxurious lobby, price, etc.

• Others: word-of-mouth e.g., TripAdvisor, Yelp

 Zone of Tolerance

What are the factors that shape zone of tolerance?

???

???

???

Past Experience

Explicit Promises
Implicit Promises

Word-of-mouth

???

???

???
 Zone of Tolerance

Sources of Adequate Service Expectations

1. Perceived Service Alternatives: other providers from whom
the customer can obtain service.
 Zone of Tolerance

Sources of Adequate Service Expectations

2. Situational Factors: contemporary factors
• Uncontrollable
• Personal
 Zone of Tolerance

Sources of Adequate Service Expectations

3. Predicted Service: the level of service that customers
anticipate they are likely to get during an impending
transaction or exchange.

During During
semester –> summer –>
slow service fast service
expected expected
[EXAMPLE]

Eatsa In San Francisco

 Zone of Tolerance

What are the factors that shape zone of tolerance?

???

???

???

Past Experience

Explicit Promises
Implicit Promises

Word-of-mouth

Perceived Service Alternatives

Situational Factors

Predicted Service
 Zone of Tolerance

Sources of Desired Service Expectations

1. Personal Needs: States or conditions essential to shape the customer’s
desires. Can be physical, social, psychological, and functional

Stay at Westin during Business Trip

Self-actualization

Esteem

Social
c
Safety

Physiological

Maslow’s hierarchy of needs

 Zone of Tolerance

Sources of Desired Service Expectations

2. Personal Service Philosophy: the customer’s underlying generic
attitude about the meaning of service and the proper conduct of
service providers.
 Zone of Tolerance

Sources of Desired Service Expectations

3. Derived Service Expectations: the customer’s expectations are
driven by another person or group of people.
 Zone of Tolerance

Factors that Shape Zone of Tolerance

Personal Needs

Personal Service Philosophy

Derived Service Expectations

Past Experience

Explicit Promises
Implicit Promises

Word-of-mouth

Perceived Service Alternatives

Situational Factors

Predicted Service
 Zone of Tolerance

Dual Customer Expectation Levels

● Desired Service: The level of service the customer hopes

to receive (Stable)
● Adequate Service: The level of service the customer will
accept (Less stable due to situational and other factors)
 HM 442: Hospitality Marketing

Discussion

● Intuitively, it would seem that managers want their

customers to have wide tolerance zones for services. But if
customers do have these wide zones of tolerance for
service, is it more difficult for firms with superior service
to earn customer loyalty? Would superior service firms be
better off to attempt to narrow customers’ tolerance zones
to reduce the competitive appeal of mediocre providers?
 Issues Involving Customers’ Service Expectations

Issues involving customers’ Service Expectations

• What does a service marketer do if customer expectations are
“unrealistic”?

• How does a company exceed customer service expectations?

• Do customer service expectations continually escalate?

• Should a company try to delight the customer?

[DISCUSSION]

Should you delight your customer?

[DISCUSSION]

Should you delight your customer?

• Why provide such a service? Who are the targeted customers?

• What is the common “adequate service” level of expectation? What do you
think about the Porsche service? Why didn’t Delta notice the customers
ahead?
• Do you think this service will remain to be delightful?
• What are the costs brought to Delta? How does this influence other firms?
• If you observe another customer enjoying this service which you are not
offered, how would you feel?
Next Class

● Chapter 4: Customer Perceptions

 Read Chapter 4

● Project Milestone 1 Due by Tuesday at 11:59pm on 9-13-2022