Expectancy-Disconfirmation Theory
Although the Service-Profit Chain model includes a consideration of customer satisfaction
in terms of "value" (results received in relation to "total costs"), it is useful for the purposes
of this study to consider the model alongside Oliver's23 Expectation-Disconfirmation Theory.
The use of expectations as the basis for understanding consumer satisfaction has been widely debated and has led to such initiatives such as SERVQUAL24, the group model of
service quality25 and cognitive scripts26. Consideration of Expectancy-Disconfirmation
Theory enables a number of aspects of the marketing-service delivery relationship to be
investigated and developed further.
Expectancy-Disconfirmation Theory maintains that customer satisfaction is a function of the
relationship between customer expectations of service outcomes and the extent to which
these are either confirmed or disconfirmed by experience of the service. When the
summative evaluation of experienced outcomes equals or exceeds expectations, positive
disconfirmation occurs and various degrees of satisfaction result. When expectations exceed
the summative evaluation of experienced outcomes, negative disconfirmation occurs and
dissatisfaction results.
This paradigm of consumer satisfaction highlights a major conundrum in the management of
service operations relating to the marketing promotion-service delivery relationship. On the
one hand organisations, in competition with other service providers, focus on attracting
specific groups of customers (segments) and convincing them that their product meets their
needs better than alternative offers. They do this through the marketing function and
specifically through marketing promotions. By definition this process inevitably raises
consumer expectations about the product and specifically those expectations associated with
the dimensions of the product the organisation chooses to promote and uses as the basis of
product differentiation – often the service dimension. On the other hand, service delivery is
set the challenge of at least meeting or even exceeding these raised consumer expectations.
Interestingly, therefore, effective marketing promotion can make the achievement of
consumer satisfaction more difficult and elusive. This is the conundrum that this paper
seeks to address.
Expectancy-Disconfirmation Theory
Although the Service-Profit Chain model includes a consideration of customer satisfaction
in terms of "value" (results received in relation to "total costs"), it is useful for the purposes
of this study to consider the model alongside Oliver's23 Expectation-Disconfirmation Theory.
The use of expectations as the basis for understanding consumer satisfaction has been widely debated and has led to such initiatives such as SERVQUAL24, the group model of
service quality25 and cognitive scripts26. Consideration of Expectancy-Disconfirmation
Theory enables a number of aspects of the marketing-service delivery relationship to be
investigated and developed further.
Expectancy-Disconfirmation Theory maintains that customer satisfaction is a function of the
relationship between customer expectations of service outcomes and the extent to which
these are either confirmed or disconfirmed by experience of the service. When the
summative evaluation of experienced outcomes equals or exceeds expectations, positive
disconfirmation occurs and various degrees of satisfaction result. When expectations exceed
the summative evaluation of experienced outcomes, negative disconfirmation occurs and
dissatisfaction results.
This paradigm of consumer satisfaction highlights a major conundrum in the management of
service operations relating to the marketing promotion-service delivery relationship. On the
one hand organisations, in competition with other service providers, focus on attracting
specific groups of customers (segments) and convincing them that their product meets their
needs better than alternative offers. They do this through the marketing function and
specifically through marketing promotions. By definition this process inevitably raises
consumer expectations about the product and specifically those expectations associated with
the dimensions of the product the organisation chooses to promote and uses as the basis of
product differentiation – often the service dimension. On the other hand, service delivery is
set the challenge of at least meeting or even exceeding these raised consumer expectations.
Interestingly, therefore, effective marketing promotion can make the achievement of
consumer satisfaction more difficult and elusive. This is the conundrum that this paper
seeks to address.
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