Lesson-2-4 Consumer Behavior in Services
Lesson-2-4 Consumer Behavior in Services
Lesson-2-4 Consumer Behavior in Services
Evaluation Continuum
Most goods
Most services
EASY
DIFFICULT
Perceived risk
Information Search
Use of personal Source Perceived Risk Evoked set Emotion & Mood
Evaluation of Alternatives
Information Search
Media more info about search qualities , little about experiences Media may not be available, Joint promo and banned professional ads Few attributes before purchase; feel more 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
Perceived Risk
Evoked Set
Smaller in services than in goods Retailing vs banks, dry cleaning Few business suppliers in services as compared to goods Adequate pre-purchase info lacking Nonprofessional services Faced with this task of collecting and evaluating experiences consumers may simply select the first available alternative rather than searching for many
Emotion and Mood:- Both are feeling states but moods are distinguished from emotions in that moods refer to transient state whereas emotions are more intense, stable and pervasive
Services are experiences, therefore both are critical factors that shape 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 these moods and emotions in positive ways. They need to cultivate positive moods such as joy , delight and contentment and shall discourage distress, frustration, anger and disgust.
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
Customers and service providers roles and performance according to desired level Coherent sequence of events Incompatible in many aspects such as beliefs, values, experiences, age, ability to pay, health etc Customers influence on others experiences
Attribution Of Dissatisfaction
Both share the responsibility Dr diagnosis based on patient briefing Info of services diffuse slowly due to these five characteristics:
Innovation Diffusion
Marketers shall concentrate on incentives to trial Brand Loyalty:- switching cost, risk, substitute and level of satisfaction in the past.
Loyal customers in services stay longer Switching cost e.g. changing hospital; health club membership fee Competitors loyal customers switching will require attacking on competitors weak areas.
Cultural Universals
CULTURE
A configuration of learned behavior and results are shared by members of a society. Its importance in services is much more than in goods. Evaluation and interaction . The sum total of learned beliefs, values and customs that serve to direct consumer behavior in a particular market:
Beliefs : A large number of mental &verbal processes reflect our knowledge and assessment of product and services. Values: The indicators consumers use to serve as guides for what is appropriate behavior.Relatively enduring and stable Customs: Overt modes of behavior that culturally approved or acceptable ways of behaving in specific situations, Births, Marriages e.t.c.
Chapter -3
Service 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 Sources of desired service expectations Sources of adequate service expectations Service encounter expectations verses overall service expectations Sources of both desired and predicted service expectations
Level of service the customer will accept or minimum tolerable expectations Adequate Service
Desired Service
Zone of Tolerance
Acceptance of variations in the service level
Adequate Service
Unaccepted level- dissatisfaction
Level of Expectation
Zone of Tolerance
Desired service
Adequate Service
Zone Of Tolerance
Adequate Service
Recovery Service
Outcome Process Low
Expectations
High
EXPECTED SERVICE
Desired Service
Personal needs
Zone Of Tolerance
Adequate Service
Many expectations are formed by uncontrollable factors due to customers experience with other coys & edu, values
Desired Service
Desired Service
Word of mouth
Zone Of Tolerance
Past experience
Adequate Service
Predicted Service
Tangibles Price EXPECTED SERVICE Desired Service Zone Of Tolerance Adequate Service Gap 5
PERCEIVED SERVICE WORD OF MOUTH
PREDICTED SERVICE
Current Issues
What does a service marketer do if customers are unrealistic? How does a company exceed customer service expectations? Do customer service expectations continually escalate? How does a service company stay ahead of competition in meeting customer expectations?
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 product or service feature or the product or service itself provides a pleasurable level of consumption-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- least satisfied
Service quality
Price
Personal factors
Loyalty Retention %
0 1
Very unsatisfied
2 Dissatisfied
3
Neither or nor
4
satisfied
5
Very satisfied
Satisfaction Measure
Situational Factors
Assurance
Empathy
Customer Satisfaction
Personal factors
Tangibles
Price
When the customer interacts with service firm e.g. hotel customer 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 image in customers mind. 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.
Ordering of Supplies
Billing
Restnaurat Meal
Wake Up Call
Check Out
Recovery :- Employee response to service delivery system failures Adaptability:- Employee response to customer needs and request Spontaneity :- unprompted and unsolicited employee actions Coping :- Employee response to Problem customers
Operation flow of activities Steps in process Flexibility versus standard Technology versus human
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 the Encounter level