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Many definitions of service are argued with a common theme of intangibility and simultaneous consumption. James Fitzsimmons defines service as a time-perishable, intangible experience performed for a customer acting in the role of coproducer. This argument suggests the importance of customers' participation in the service process. Furthermore, the term expectation, by its semantic meaning, is defined as the “belief that something will happen or be the case” in the Concise Oxford Dictionary. Thus, service expectations can be understood as customers' beliefs regarding the level of service or their desire for service.

In services, unlike in manufacturing, a distinction can be made between inputs and resources. While inputs are the customers themselves, resources are the facilitating goods, employee labor, and capital at the command of the service manager. To make service function well, there must be interaction with the customers as participants in the service process. Customers normally arrive at their own discretion and with unique demands on the service system. For customers, service is an experience occurring in the front office of the service facility, and the quality of service is enhanced if the service facility is designed from the customers' perspective. Therefore, matching service capacity with demand is a challenge.

Service expectation is also related to service quality and customer satisfaction. A. Parasuraman and his colleagues have determined that customer expectations regarding the level of service offered are associated to their level of satisfaction with the shopping experience. Comparing the perceptions of service received with expectations of service desired, customer satisfaction can be identified. When expectations are exceeded, service is perceived to be of exceptional quality, even to be a pleasant surprise. When expectations are not met, however, service quality is deemed unacceptable. When expectations are confirmed by perceived service, quality is satisfactory.

For instance, people have different service expectations of different restaurants while dining out. When customers go to a fast-food restaurant, their expectations of the level of service are rapid ordering and accurate service delivery as well as a consistency in food quality compared with their past experience. The customers would not expect wait staff to come to dining tables to ask if any further assistance is requested. However, in a fine restaurant, guests expect to be well taken care of. Put simply, the higher the expectation, the higher the service level must be for customers to feel satisfied with the service. When expectations are low, customers tend to be satisfied with low levels of service.

Five principal dimensions that customers use to judge service quality are reliability, responsiveness, assurance, empathy, and tangibles. Reliability is the ability to perform the promised service dependably and accurately. Responsiveness is defined as the willingness to help customers and to provide prompt service. Assurance is known as the knowledge and courtesy of employees as well as their ability to convey trust and confidence. Empathy refers to the provision of caring, individualized attention to customers, which includes approachability, sensitivity, and efforts to understand the customer's needs. Tangibles are the appearance of physical facilities, equipment, personnel, and communication materials. The condition of the physical surroundings is tangible evidence of the care and attention to detail that are exhibited by the service provider. For example, a dust-free dining room gives the impression and implication of a high level of hygiene in the kitchen.

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