Lesson-2-4 Consumer Behavior in Services

7/30/2019 Lesson-2-4 Consumer Behavior in Services

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LESSON-2

CONSUMER BEHAVIORIN

SERVICES


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Evaluation Continuum

Most goods Most services

High in Search

Quality

High in

Experience

Quality

High in Credence

Quality

EASYDIFFICUL


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Information SearchUse of personal sources

Perceived risk

Purchase & Consumption

Service provision as drama

Service roles and scripts

Compatibility of customers

Post Purchase EvaluationAttribution of dissatisfaction

Innovation diffusion

Brand loyalty

Evaluation of AlternativesEvoked set

Emotion & mood

CONSUMER DECISION MAKING


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Differences in Decision Making

Information Search

Use of personal Source

Perceived Risk

Evaluation of Alternatives

Evoked set

Emotion & Mood

Purchase and Consumption

Post Purchase Evaluation


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Information Search

Use of Personal Sources:- seek & rely more

Media more info about search qualities , little aboutexperiences

Media may not be available, Joint promo and bannedprofessional ads

Few attributes before purchase; feel more risk

Perceived Risk

Intangible nature of services

Services are non-std, few give warranties

Tech services for which consumer has no knowledge

Strategies: Guarantees of satisfaction and empl skills


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Evaluation of Service Alternatives

Evoked Set Smaller in services than in goods

Retailing vs banks, dry cleaning

Few business suppliers in services ascompared to goods

Adequate pre-purchase info lacking

Nonprofessional servicesFaced with this task of collecting and evaluatingexperiences consumers may simply select the firstavailable alternative rather than searching for

many


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Purchase & Consumption Emotion and Mood:- Both are feeling states but moods

are distinguished from emotions in that moods refer totransient state whereas emotions are more intense,stable and pervasive

Services are experiences, therefore both are critical factors thatshape the perceived effectiveness of the service encounters.

Related to behavior of a customer; provider and others Positive moods can make customers more obliging and vice versa

The direction of the bias in evaluation is consistent with polarity

Moods and emotions are linked with memories.

Service marketers should attempt to influence thesemoods and emotions in positive ways. They need tocultivate positive moods such as joy , delight andcontentment and shall discourage distress, frustration,

anger and disgust.


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Purchase & Consumption Service provision as drama

Both create and maintain a desirable impression Carefully managing the actors and physical setting of their

behavior Skill of the actors because more contact Physical setting of the service which includes atmosphere,

smell, use of space, the style, design and cleanliness

Services roles and script Customers and service providers roles and performance

according to desired level

Coherent sequence of events The compatibility of customers

Incompatible in many aspects such as beliefs, values,experiences, age, ability to pay, health etc

Customers influence on others experiences


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Post Purchase Dissatisfaction Attribution Of Dissatisfaction

Both share the responsibility

Dr diagnosis based on patient briefing

Innovation Diffusion

Info of services diffuse slowly due to these five characteristics:- Perception of relative advantage, compatibility, communicability,

divisibility and complexity

Adoption of services is more slow than goods

Marketers shall concentrate on incentives to trial

Brand Loyalty:- switching cost, risk, substitute and levelof satisfaction in the past. Loyal customers in services stay longer

Switching cost e.g. changing hospital; health club membershipfee

Competitors loyal customers switching will require attacking oncompetitors weak areas.


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Information Search Use of personal sourcesPerceived risk

Purchase & ConsumptionService provision as dramaService roles and scripts

Compatibility of customers

Post purchase EvaluationAttribution of dissatisfactionInnovation diffusion

Brand loyalty

Evaluation of AlternativesEvoked set

Emotion & mood

CONSUMER DECISION MAKING

CULTUREValues & Attitude

Religion and LanguageManners & customsMaterial cultureAestheticsEducational & Social institution

Cultural Universals


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CULTURE A configuration of learned behavior and results

are shared by members of a society. Itsimportance in services is much more than ingoods. Evaluation and interaction .

The sum total of learned beliefs, values and

customs that serve to direct consumerbehavior in a particular market:

Beliefs : A large number of mental &verbal processesreflect our knowledge and assessment of product andservices.

Values: The indicators consumers use to serve asguides for what is appropriate behavior.Relativelyenduring and stable

Customs: Overt modes of behavior that culturallyapproved or acceptable ways of behaving in specific

situations, Births, Marriages e.t.c.


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CULTURE INFLUENCES ON BUYER

BEHAVIOUR CULTURAL FORCES CULTURAL MESSAGE

RELIGION SYMBOLS

HISTORY MORALS

FAMILY KNOWLEDGE

LANGUAGE RULES OF BEHAVIORS

EDUCATION

ARTS

CONSUMER DECISION

PROCESS

SELECTING

PRIORITISING WANTS

DECISION MAKING


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Chapter -3

Customers Expectationsof Service


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Service Expectations

Two levels of expectations The zone of tolerance

Different customers possess different zone of tolerance

Zone of tolerance vary for service dimensions Zone of tolerance vary for first-time and recovery service

Factors that influence customers expectations of service Sources of desired service expectations

Sources of adequate service expectations

Service encounter expectations verses overall serviceexpectations

Sources of both desired and predicted service expectations


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Dual Customer Expectation Level

Desired Service

Adequate Service

Level of service hope toreceive or Wished forlevel of performance

Level of service thecustomer will accept or

minimum tolerableexpectations


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The Zone Of Tolerance (Z of T)

Desired Service

Zone of

Tolerance

Adequate Service

Acceptance of variationsin the service level

Unaccepted level- dissatisfaction

Delighted


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Levelof

Expectation

Desired service

Zone of

Tolerance

Adequate Service

Desired

service

Zone

Of

Tolerance

Adequate

Service

Zones Of Tolerance For Different Service Dimensions

Most Important Factors Least Important Factors


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Z of T for First Time & Recovery Service

Outcome

Process

First Time Service

Outcome

Process

Recovery Service

LowHigh

Expectations


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Factors That Influence Desired Service

Enduring service

intensifiers

Personal needs

Desired

Service

Zone

Of

Tolerance

Adequate

Service

EXPECTED SERVICE

Many expectations are formed by uncontrollable factors

due to customers experience with other coys & edu, values

Derived service expectation

Personal service philosophy


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Factors That Influence Adequate Service

Transitory service

intensifiers

Perceived servicealternatives

Self-perceived

Service role

Situational

factors

Desired

Service

Zone

Of

Tolerance

Adequate

service

Predicted

Service


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Factors that influence desired and predicted service

EXPECTED

SERVICE

Desired

Service

Zone

Of

Tolerance

Adequate

Service

Explicit service

promises

Implicit service

promises

Word of mouth

Past experience

Predicted

Service

Nature And Determinants Of


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Nature And Determinants OfCustomer Expectations Of ServiceENDURING SERVICE

INTENSIFIERS

Derived expectationsPersonal service

Philosophies

PERSONAL NEEDS

TRANSITORY SERVICE

INTENSIFIERS

Emergencies

Service problems

PERCEIVED SERVICE

ALTERNATIVES

SELF-PERCEIVED

SERVICE ROLE

SITUATIONAL FACTORS

Bad weather

Catastrophe

Random over demand

EXPECTEDSERVICE

Desired

Service

Zone

Of

Tolerance

Adequate

Service

PERCEIVEDSERVICE

Gap 5

EXPLICT SERVICE

PROMISES

Advertising

Personal sellingContracts

Other communications

IMPLICIT SERVICE

PROMISES

Tangibles

Price

WORD OF MOUTH

Personal

Expert (Consumer

Reports, publicity,

Consultants,surrogates

PAST EXPERIENCE

PREDICTED SERVICE


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Current Issues

What does a service marketer do ifcustomers are unrealistic?

How does a company exceed customerservice expectations?

Do customer service expectationscontinually escalate?

How does a service company stay aheadof competition in meeting customerexpectations?


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Chapter -4

CUSTOMER PERCETIONS OFSERVICE


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PERCEPTIONS OF SRVICE

Customer Perception Customer perceived services in terms of the quality of the service and how

satisfied they are overall with their experience

Satisfaction versus Service quality Two concepts are different Perceived service quality is part of customer satisfaction Health club service facility vs broader concept of service perception

Internal and external Customer Perception Customer Satisfaction

Satisfaction is the customers fulfillment response. It is a judgment that a productor service feature or the product or service itself provides a pleasurable level ofconsumption-related fulfillment.

Or we can say that whether the customers evaluation of a product or service

has met their needs and expectations. Product and service feature trade off. Customer Emotions positive and negative affect perception of satisfaction. Attribute for service success or failure Perceptions of Equity or Fairness

ACSI results are:- non-durables- satisfied, durable-less satisfied and services- leastsatisfied


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Customer Perceptions Of Quality &Customer Satisfaction

Service

quality

Product

quality

Price

Reliability

Responsiveness

Assurance

Empathy

Tangibles

Situational

Factors

Satisfaction

Customer

Personal

factors


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Customer Satisfaction & Loyalty

12

32 4 5

100

0

Very unsatisfied

Satisfaction Measure

satisfiedDissatisfied Neither or norVery satisfied

LoyaltyRetention

%

Profitability


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Service Quality Dimensions

Reliability

Responsiveness

Assurance

Empathy

Tangibles


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Customer perceptions of quality & customersatisfaction

Service

quality

Product

quality

Price

Reliability

Responsive

Assurance

Empathy

Tangibles

Situational

Factors

Customer

Satisfaction

Personalfactors


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Service Encounters or Moments of Truth

When the customer interacts with service firm e.g. hotelcustomer

Some services have few encounters while others have many. Some of the encounters are very critical in developing

customer loyalty and generally are the first few. When a customer had a multiple interactions with a firm,

each encounter will create a composite imagein customersmind.

Not all encounters are equally important in services in

building relationship. Momentous encounters ruin the rest and drive customer away

like a proverbial one bad apples simply ruins the rest. Real time marketing where promises are kept or broken Three general type; remote; phone and face to face

encounters.


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A service encounter cascade for an industrial purchase

Sales Call

Delivery and Installation

Servicing

Ordering of Supplies

Billing


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A service encounter cascade for a hotel visit

Check-In

Bell person Takes to Room

Restnaurat Meal

Wake Up Call

Check Out


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Sources Of Pleasure And Displeasure

Recovery :- Employee response to servicedelivery system failures

Adaptability:- Employee response tocustomer needs and request

Spontaneity :- unprompted and unsolicitedemployee actions

Coping :- Employee response to Problemcustomers


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Evidence of Service( customer)

Contact EmployeeCustomer him/herselfOther customers

Tangible Communication

ServicescapeGuaranteesTechnology

Operation flow of activities

Steps in processFlexibility versus standardTechnology versus human


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Strategies For Influencing CustomerPerception

Measure and manage CS & SQ

Aim for CQ & CS in very service encounter Plan for effective recovery

Facilitate adaptability and flexibility

Encourage Spontaneity

Help Employees cope with problem customers

Manage the dimensions of quality at theEncounter level

Manage the evidence of service toreinforce perceptions

Documents

Lesson-2-4 Consumer Behavior in Services