2. Customer Service Concepts 2.1. Customer Needs, Expectations, Perceptions and Satisfaction 2.1.1. Definitions of Terms 1) Customer Needs A need can be explained as a basic essential which keeps one alive. Typical examples of basic needs include oxygen, water and food which are those key elements for human’s survival. Deeper understanding can be referred to Maslow’s Hierarchy of Needs which further divides human needs into different levels (See Table 2.1 below). People will try and satisfy their basic needs and then go on to meet their more individual needs or desires. The table below shows how the people’s needs can be met with examples from the hospitality industry. 2.1 : Human needs applied to hospitality Category Human Needs Hospitality example Group 1 Physiological (Lowest category) The needs of food, water, sleep, oxygen and activity. Choice of place to satisfy immediate need, e.g. eating just to satisfy hunger. Group 2 Safety The need for a stable environment free from threats to safety. Choice of place to provide safe shelter, e.g. staying in a hotel when away from home. Belonging and love needs The needs for affection and acceptance by peers. Choice of place that offers acceptance/belonging, e.g. bar, club, disco, sports club etc. Group 4 Esteem The needs for self-respect, self-esteem and the esteem of others. Choice of type of place to match self-image, e.g. trendy, up market, fashionable etc. Group Self-actualisation (Highest category) The need for self-fulfilment and achieving full potential. Choice of place to satisfy achievement needs, e.g. holiday, event, dinner etc. In service marketing, needs and wants are similar and sometimes interchangeable. The main differences of needs, wants and demands are explained as below: - Customer
ACTIVITY 2.2 Complete the following table by: choosing any products and/or services you feel would be appropriate to meet their needs and write it in the want column; and briefly list what you the expectations of each consumer type would be in the expectation column. The one is done for you as an example. Consumer Need Want Expectation A teenage American Hunger McDonald’s Fast Cheap Convenient Thirst A male German tourist Hunger Thirst A Chinese female tourist going out for shopping Hunger Thirst Note that you should try to find out as much as you can your “typical customer” and know how to satisfy them. ACTIVITY 2.3
Look at the examples below and for each example you have to: identify the “average or typical customer” assess their needs (N), wants (W), and expectations (E) and give one (1) example of a service that would satisfy their needs, wants and expectations. The first one is done for you as an example. Market example Average customer Needs (N), Wants (W) and Expectations (E) Example of service Deluxe business hotel Affluent business traveller N Higher order esteem needs Airport limousine pickup W High degree of luxury E Individual, personal and detailed service Market example Average customer Needs (N), Wants (W) and Expectations (E) Example of service Fast food restaurant (e.g. McDonald’s) N W E Family Dining Restaurant N W E Coffee shop (e.g. Starbucks) N W E Snack counter in a cinema N W E School Canteen N W E