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Services Marketingby

P Sivarajadhanavel

Part 2 Focus on the Customer

Chapter3Consumer Behavior in Services

Chapter -4Customer Expectations of Service

Chapter5Customer Perceptions of Service

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The Customer GAP

The customer gap is

the difference

between customerexpectations and

perceptions

Expectedservice

Perceivedservice

Customer Gap

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Chapter3Consumer Behavior in Services

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Objectives

Enhance understanding of how consumers choose and evaluate

services, through focusing on factors that are particularly relevant for

services.

Describe how consumers judge goods versus services in terms of

search, experience, and credence criteria.

Develop the elements of consumer behavior that a services marketer

must understandchoice behavior, Consumer experiences, and post

experience evaluation.

Explore how differences among consumers (cultural differences,

group decision making) affect consumer behavior and influence

services marketing Strategies.

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Consumer Problem

Todays consumers

main problem

Time Deficiency

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Consumer behavior

Consumer behavior is the study of how people buy, whatthey buy, when they buy and why they buy.

It attempts to understand the buyer decisionprocesses/buyer decision making process, both

individually and in groups. It studies characteristics of individual consumers such as

demographics, psychographics, and behaviouralvariables in an attempt to understand people's wants.

It also tries to assess influences on the consumer fromgroups such as family, friends, reference groups, andsociety in general.

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Definition

Belch and Belch define consumer behavior as

'the process and activities people engage inwhen searching for, selecting, purchasing,using, evaluating, and disposing of products andservices so as to satisfy their needs anddesires'.

Consumer Behavior

A consumer marketis any market in which theend consumers are the purchasers and users ofthe goods and services.

An industrial market, on the other hand, is anymarket in which other businesses, rather thanend consumers, are the purchasers of the goodsand services

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The Consumer Purchase Decision

Consumer behaviorrefers to the

decision-making process that consumers

use when purchasing goods and services.These purchase decisions involve many

factors and steps:

Search Qualities Experience Quality

Credence Qualities

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Consumer Evaluation Processes forServices

Search Qualities

attributes a consumer can determine prior to

purchase of a productExperience Qualities

attributes a consumer can determine onlyafter purchase or during consumption of a

productCredence Qualities

characteristics that may be impossible toevaluate even after purchase and consumption

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Continuum of Evaluation for

Different Types of Products

Difficult to evaluateEasy to evaluate

High in search

qualities

High in experience

qualities

High in credence

qualities

Most

Goods

Most

Services

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Stages in consumer Decision making

and Evaluation of Services

Consumer

Choice

NeedRecognition

Information

Search

Evaluationof

Alternatives

Purchase

ConsumerExperience

PostexperienceEvaluation

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Need Recognition Psychological needsare

biological needs such as food,

water, and sleep

Safety and security needsinclude shelter, protection andsecurity

Social needsare for affection,friendship, and acceptance

Ego needs- are for prestige,success, accomplishment, andself-esteem

Self-actualizationinvolves selffulfillment and enrichingexperiences

Self-actualisation

EsteemLove

Safety

Physiological

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Information Search

Personal and Nonpersonal sources

Word of Mouth recommendation (WOM) Reference groups

Media communications

Internet sources

Perceived Risks in information searchFactors affecting perceived risk:

The level of tangible evidence

Buyer involvement

New purchase Personal risk tolerance

Situational factors

Legal safeguards

Technology Spotlight

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Evaluation of Alternatives

Evoked set of alternatives that group of products that a

consumer considers acceptable options in a given product categoryA process of choice reduction.

Rulesbased approaches used.

Critical attributes, average score of all attributes,

or weighted attributes. Example:

Professional Bank, dry cleaner, or hair salon

Nonprofessional services performing the services for themselves orhiring some to perform them

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Service Purchase

In the purchase of services consumershave less idea on the offering as

purchased and produced and consumed

simultaneously. Consumers make purchase decision

before experience of services

But incase of product purchase consumerhave tangible products in making

purchase decision

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Consumer Experience

Service as process

Service Provision as Drama

Service Roles and Scripts

The compatibility of service customers

Customer Co-production Emotion and Mood

http://images.google.co.in/imgres?imgurl=http://customersrock.files.wordpress.com/2007/08/happy-customers.jpg&imgrefurl=http://customersrock.wordpress.com/2007/08/&h=531&w=904&sz=235&hl=en&start=1&um=1&tbnid=UvstNTrx8uG23M:&tbnh=86&tbnw=147&prev=/images%3Fq%3Dcustomers%26um%3D1%26hl%3Den%26sa%3DN

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Post Experience Evaluation

Word-of-Mouth

Attribution of Dissatisfaction

Positive or Negative Biases Brand Loyalty

http://images.google.co.in/imgres?imgurl=http://www.nds.com/images/pic_customers_lg.jpg&imgrefurl=http://www.nds.com/customers/customers.html&h=558&w=960&sz=70&hl=en&start=27&um=1&tbnid=4-T8uME_PDrjWM:&tbnh=86&tbnw=148&prev=/images%3Fq%3Dcustomers%26start%3D20%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DN

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Understanding differences

among consumers

Global Differences The role of culture

Values and attitudes differ across culture

Manners and customs

Material CultureAesthetics

Educational and Social Institutions

Group Decision Making Households

Organizations

http://images.google.co.in/imgres?imgurl=http://www.nds.com/images/pic_customers_lg.jpg&imgrefurl=http://www.nds.com/customers/customers.html&h=558&w=960&sz=70&hl=en&start=27&um=1&tbnid=4-T8uME_PDrjWM:&tbnh=86&tbnw=148&prev=/images%3Fq%3Dcustomers%26start%3D20%26ndsp%3D20%26um%3D1%26hl%3Den%26sa%3DN

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END