Search, Experience and Credence Properties
SearchExperienceCredence Attributes that a consumer can determine
before purchase Attributes that can be discerned only after
purchase Characteristics that the consumer may find impossible to
evaluate even after purchase and consumption E.g., Clothing,
furniture, jewelry E.g., Restaurant meals, vacations E.g., Medical
diagnosis, Auto repair
Slide 4
Continuum of Evaluation for Different Types of Products
Clothing Jewelry Furniture Houses Automobiles Restaurant meals
Vacations Haircuts Child care Television repair Legal services Root
canals Auto repair Medical diagnosis Difficult to evaluate High in
search qualities High in experience qualities High in credence
qualities Most Goods Most Services
Slide 5
Products that are high in Search qualities: easiest to evaluate
Experience qualities: more difficult to evaluate Credence
qualities: most difficult to evaluate
Slide 6
Slide 7
Consumer Decision Making and Evaluation of Services Consumer
Choice Consumer Experience Post-experience Evaluation
Slide 8
Consumer Choice Need Recognition Information Search
Pre-purchase Evaluation of Alternatives stage Purchase
Slide 9
Activity (Individual) Assume that you have a need for a service
keeping in mind the consumer choice stages discussed in the
previous slide Make an exhaustive list of information sources using
which you would obtain information about the service that satisfies
your need How would you evaluate the various alternatives before
finally reaching a decision?
Slide 10
Special Considerations - Services Prepurchase stage Perceived
Risk Importance of personal sources of information Fewer
alternatives to consider Self-service as a viable alternative
Slide 11
Perceived Risk This element is especially relevant for services
that are high in experience or credence attributes Risk-reducing
strategies: Seeking information from respected personal sources
Relying on a firm that has a good reputation
Slide 12
Consumer Experience In services, the experience itself
dominates the evaluation process Creating and managing effective
processes and experiences are essential for service organizations
Companies try to create memorable experiences for their
consumers
Slide 13
Post-experience Evaluation Word-of-mouth communication
Attribution of Dissatisfaction Positive or negative biases
