consumer behaviour in services. consumer problem time deficiency reasons: dual career couples,...
TRANSCRIPT
Consumer Behaviour in Services
CONSUMER PROBLEM
TIME DEFICIENCY REASONS: dual career couples, single
parent families IT LEADS TO: demand for different
services
SEARCH, EXPERIENCE & CREDENCE PROPERTIES
SEARCH QUALITIES: attributes that a consumer can determine before the purchase
EXPERIENCE QUALITIES : attributes that a consumer can determine only after the purchase
CREDENCE QUALITIES : attributes that consumer may find impossible to evaluate even after purchase & consumption
Continuum of Evaluation forDifferent Types of Products/services
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{High in search
qualitiesHigh in experience
qualitiesHigh in credence
qualities
{{MostMost
GoodsGoodsMostMost
ServicesServices
SERVICES - DECISION MAKING PROCESS
Need awareness
Evaluation of service suppliers
Request service
Service delivery
Future Intentions
MemoryMemory
UNDERSTANDING DIFFERENCES AMONG
CONSUMERS GLOBAL DIFFERENCES ROLE OF CULTURE DIFFERENT VALUES, ATTITUTEDS DIFFERENT CUSTOMS
CUSTOMER EXPECTATION OF SERVICE
Customer expectations are the beliefs about service delivery that serve as standards or reference points against which performance is judged.
LEVELS OF EXPECTATION
DUAL CUSTOMER EXPECTATIONS
Adequate Service
Desired Service
THE ZONE OF TOLERANCE
Adequate Service
Desired Service
Zone ofTolerance
ZONES OF TOLERANCE FOR DIFFERENTSERVICE DIMENSIONS
Reliability
Adequate ServiceAdequate Service
Desired ServiceDesired Service
Desired Service
Adequate Service
Zone of
Tolerance
Zoneof
Tolerance
Tangibles
FACTORS THAT INFLUENCE DESIRED SERVICE
Lasting ServiceIntensifiers
Lasting ServiceIntensifiers
Personal NeedsPersonal Needs Zone of
Tolerance
Desired Service
Adequate Service
Lasting Service Intensifiers are individual, stable factors that lead the customer to a heightened sensitivity to service.
FACTORS THAT INFLUENCE ADEQUATE SERVICE
Self-PerceivedService Role
Self-PerceivedService Role
Situational Factors
Situational Factors
Perceived ServiceAlternatives
Perceived ServiceAlternatives
Temporary ServiceIntensifiers
Temporary ServiceIntensifiers
Zone of
Tolerance
Desired Service
Adequate Service PredictedService
PredictedService
FACTORS THAT INFLUENCE DESIRED AND PREDICTED SERVICE
Predicted Service
Explicit ServicePromises
Explicit ServicePromises
Implicit ServicePromises
Implicit ServicePromises
Word-of-MouthWord-of-Mouth
Past ExperiencePast ExperienceZone of
Tolerance
Desired Service
Adequate Service
CUSTOMER PERCEPTION OF SERVICE
Customers perceive services in terms of quality of service & how satisfied they are overall with their experiences.
CUSTOMER PERCEPTIONS OF QUALITY AND CUSTOMER SATISFACTION
BUILDERS OF CUSTOMER PERCEPTION
SINGLE TRANSACTION SPECIFIC ENCOUNTER: how the customer has been treated in a particular encounter with a particular employee.
CUMULATIVE PERCEPTION: customer’s overall experience with the company.
CUSTOMER SATISFACTION
It is a judgment that a product or service feature or the product or service itself provides a pleasurable level of consumption related fulfillment.
It is the customer’s evaluation of a product or service in terms of whether it has met the customer’s needs & expectations. Its failure leads to dissatisfaction.
DETERMINANTS OF CUSTOMER SATISFACTION
PRODUCT & SERVICE FEATURES CUSTOMER EMOTIONS- your mood ATTRIBUTION FOR SERVICE SUCCESS OR
FAILURE: how much the customer blames or credits the failure or success of a service on the service provider
PERCEPTION OF EQUITY OR FAIRNESS: have I been treated fairly compared to other customers?
PERCEPTION OF FAMILY MEMBERS, FRIENDS, PEERS ETC
OUTCOMES OF CUSTOMER SATISFACTION
Increased customer retention
Positive word-of-mouth communications
Increased revenues
RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND LOYALTY IN
COMPETITIVE INDUSTRIES
Source: James L. Heskett, W. Earl Sasser, Jr., and Leonard A. Schlesinger, The Service Profit Chain, (New York, NY: The Free Press, 1997), p. 83.
SERVICE QUALITY
The customer’s judgment of overall excellence of the service provided in relation to the quality that was expected.
Service quality assessments are formed on judgments of: outcome quality interaction quality physical environment quality
THE FIVE DIMENSIONS OF SERVICE QUALITY
Ability to perform the promised service dependably and accurately.
Knowledge and courtesy of employees and their ability to inspire trust and confidence.
Physical facilities, equipment, and appearance of personnel.
Caring, individualized attention the firm provides its customers.
Willingness to help customers and provide prompt service.
Tangibles
Reliability
Responsiveness
Assurance
Empathy
THE SERVICE ENCOUNTER
is the “moment of truth” occurs any time the customer interacts with the firm can potentially be critical in determining customer
satisfaction and loyalty types of encounters:
remote encounters, phone encounters, face-to-face encounters
is an opportunity to: build trust reinforce quality build brand identity increase loyalty
Common Themes in CriticalService Encounters Research
Recovery: Adaptability:
Spontaneity:Coping:
employee responseto service delivery
system failure
employee responseto customer needs
and requests
employee responseto problem customers
unprompted andunsolicited employeeactions and attitudes
UNDERSTANDING CUSTOMER EXPECTATION AND
PERCEPTION THROUGH MARKETING RESEARCH
Company Perceptions of
Consumer Expectations
Expected Service
CUSTOMER
COMPANY
GAP 1
(Customer Gap)
Customer
Company
Perceived Service
WHY DO SERVICE RESEARCH?
To identify dissatisfied customers To discover customer requirements or expectations To monitor and track service performance To assess overall company performance compared to
competition To assess gaps between customer expectations and
perceptions To gauge effectiveness of changes in service To appraise performance of individuals/teams for
rewards To determine expectations for a new service To monitor changing expectations in an industry To forecast future expectations
CRITERIA FOR AN EFFECTIVESERVICE RESEARCH
PROGRAM Includes both qualitative and quantitative
research Includes both expectations and perceptions of
customers Balances the cost of the research and the value
of the information Includes statistical validity when necessary Measures priorities or importance of attributes Occurs with appropriate frequency Includes measures of loyalty, behavioral
intentions, or actual behavior
STAGES IN THE RESEARCH PROCESS
Stage 1 : Define Problem
Stage 2 : Develop Measurement Strategy
Stage 3 : Implement Research Program
Stage 4 : Collect and Tabulate Data
Stage 5 : Interpret and Analyze Findings
Stage 6 : Report Findings
PORTFOLIO OF SERVICES RESEARCH
Customer Complaint Solicitation
“Relationship” Surveys
Post-Transaction Surveys
Customer Focus Groups
“Mystery Shopping” of Service Providers
Employee Surveys
Identify dissatisfied customers to attempt recovery; identify most common categories of service failure for remedial action
Obtain customer feedback while service experience is fresh; act on feedback quickly if negative patterns develop
Use as input for quantitative surveys; provide a forum for customers to suggest service-improvement ideas
Assess company’s service performance compared to competitors; identify service-improvement priorities; track service improvement over time
Measure individual employee service behaviors for use in coaching, training, performance evaluation, recognition and rewards; identify systemic strengths and weaknesses in service
Measure internal service quality; identify employee-perceived obstacles to improve service; track employee morale and attitudes
Determine the reasons why customers defect
Research Objective Type of Research
Lost Customer Research
Future Expectations ResearchForecast future expectations of customers; develop and test new service ideas