service-consumer-behavior_2 (1)

8/7/2019 Service-consumer-behavior_2 (1)

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Consumer Behavior

& Service


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` Consumers rarely involve in manufacture ofgoods but often participate in service creationand delivery

` Challenge for service marketers is tounderstand how customers interact withservice operations


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People processing (e.g., Hotel stay): customer isphysically involved throughout entire process

Possession processing (e.g., DVD repair):involvement may be limited to drop off ofphysical item/description of problem and

subsequent pick up Mental stimulus processing (e.g., weather

forecast): involvement is mental, not physical;here customer simply receives output and actson it

Information processing (e.g., health insurance):involvement is mental - specify informationupfront and later receive documentation ofcoverage


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High Contact Services

Customers visit service facility and remain throughout service

delivery

Active contact between customers and service personnel

Includes most people-processing services

Low Contact Services

Little or no physical contact with service personnel

Contact usually at armd s length through electronic or physicaldistribution channels

New technologies (e.g. Web) help reduce contact levels

H

igh-Contact an Low-Contact Services


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EXTERNAL STIMULUS

A.COMPANY CONTROLLED

Service

offer

Price

Promotion

Dist..outlets

B. SOCIAL FORCES

Opinionleaders

Reference Groups

Consumersmind

Response

BUY

NOBUY


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` Straight Re- Buy/Routinized response behavior- here the customer

comes for repurchase of the same service product- say for

photocopying, bank draft. The customer is aware of the service

product/brand, the purchase is of daily/frequent necessity. Low

involvement with the purchase process.

` Modified Re-buy/ Limited problem solving- Here the customer isaware of the category/brands but not the new version or form.

Liril soap, liquid liril body soap.

` Extensive problem solving/ Critical problem solving/New task- A

customer would be in this buying situation when the offer is totally

unfamiliar, he is not clear either about his decision criteria orevaluation criteria. Like insurance, travel package, vacations etc. these

are high involvement purchasing processes so consumer would require

time.


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` Initiator/Influencer

` Information gatherer

` Gatekeepers

` Decider

` Buyer/purchaser

` User


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Need Arousal

Recognition of Need

Choice of level of involvement

Search for info. / identifying of

alternatives

Evaluation of alternative

Decision to buy/not buy

Purchase action and other decisions

Post purchase behavior


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SOCIAL/GROUP

FORCESFamily

Culture/Sub-culture

Reference group

Social class

INDIVIDUAL/PSYCHOLOGICAL

FORCESPerception

Motivation

Learning

Attitude

Personality

DECISION-MAKING PROCESS

Need Arousal Need.

Choiceoflevelofinvolvement

Searchforinfo./identifyingof

alternatives

Evaluationofalternative

Purchasedecision

Post-purchasebehavior

INFORMATION

SOURCE

A. Serviceoffer,price,

advertising,outlets

B. SOCIAL-

Reference Group

Opinionleaders

SITUATIONS

When

Where

What

why


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ServiceMarketing- ModuleIIFaculty: J.Rai 10

The

Purchase

Processfor

Services


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The Purchase Process for Services

Pre-purchase Stage

Awareness of need

Information search

Evaluation of alternative service suppliers

Service Encounter Stage

Request service from chosen supplier

Service delivery

Post-purchase Stage

Evaluation of service performanceFuture intentions


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Awareness of need.

Information and search qualities

Evaluation of service alternatives

Problems of comparing service offers.

Customers as competition for service delivery.

Role of mood, emotions and personal influences .

Role of branding.

Service encounter

Post purchase evaluation by customers.


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Perceived Risks inPerceived Risks in

Purchasing and Using ServicesPurchasing and Using Services

Functional unsatisfactory performance

outcomes

Financial

monetary loss, unexpected extra costsTemporal wasted time, delays lead to problems

Physical personal injury, damage to possessions

Psychological fears and negative emotions

Social

how others may think and reactSensory unwanted impacts to any of five

senses


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` Customers perceive services in terms ofquality of

service & how satisfied they are overall with their

experiences.


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` SINGLE TRANSACTION SPECIFIC

ENCOUNTER: how the customer has beentreated in a particular encounter with a particular

employee.

` CUMULATIVE PERCEPTION: customers overallexperience with the company.


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` 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 customers evaluation of a product or

service in terms of whether it has met the

customers needs & expectations. Its failure leads

to dissatisfaction.


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Increasedcustomerretention

Positiveword-of-mouth

communications

Increasedrevenues


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` The customers judgment of overall excellence ofthe service provided in relation to the quality thatwas expected.

` Service quality assessments are formed onjudgments of: outcome quality

interaction quality

physical environment quality


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Abilitytoperformthepromisedservicedependablyandaccurately.

Knowledgeandcourtesyofemployees

andtheirabilitytoinspiretrustandconfidence.

Physicalfacilities,equipment,andappearanceofpersonnel.

Caring,individualizedattentionthefirmprovidesitscustomers.

Willingnesstohelpcustomersand

provideprompt

service.

Tangibles

Reliability

Responsiveness

Assurance

Empathy

service-consumer-behavior_2 (1)

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