Final answer:
Expected service is the perceived level of service customers believe they will receive in a transaction. This perception is shaped by the available information about the product or service. Sellers may provide guarantees, warranties, or even unstated policies like refunds or exchanges to reassure customers.
Step-by-step explanation:
The level of service that customers believe they are likely to receive during an impending transaction or exchange is known as expected service. Every purchase a customer makes is inherently based on the belief about the satisfaction that the product or service will provide. This belief is shaped by the information available about the product or service, which may often be imperfect or unclear, leading to potential regret over past purchases or hesitation towards future ones.
To mitigate such concerns, sellers may provide explicit reassurances like guarantees, warranties, and service contracts. Additionally, some businesses offer unstated guarantees such as a movie theater refunding a ticket or a restaurant allowing customers to exchange dishes or adjusting the bill to ensure customer satisfaction.