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Abstract

Customer-focused service design and innovation is critical in enabling service firms to deliver what customers want. Although numerous studies have emphasized the importance of customer expectations in numerous disciplines, previous empirical research has only captured non real-time data. Furthermore, previous research contains no mathematical mechanism for correctly catching customer expectations. Service firms therefore must make additional efforts to analyze and predict customer needs according to previous empirical research, yet their predictions and customer expectations continue to exhibit a significant gap. Accordingly, this study proposes a systematical and quantitative customer expectation measurement model based on Fechner’s Law and the concepts of operation risk that service firms can use to measure real time customer expectations during service experience delivery.

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