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    Consumer Behavior in A: Services Context

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    Asad Mahmood
    1) The three-stage model of service consumption helps understand customer behavior in the pre-purchase, service encounter, and post-purchase stages. 2) During service encounters, customers interact with the servuction system including the service environment, employees, and other customers. 3) After purchasing, customers evaluate service performance and compare it to their expectations, which can lead to satisfaction, confirmation, or dissatisfaction.

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    Consumer Behavior in A: Services Context

    Uploaded by

    Asad Mahmood
    24 views20 pages
    1) The three-stage model of service consumption helps understand customer behavior in the pre-purchase, service encounter, and post-purchase stages. 2) During service encounters, customers interact with the servuction system including the service environment, employees, and other customers. 3) After purchasing, customers evaluate service performance and compare it to their expectations, which can lead to satisfaction, confirmation, or dissatisfaction.

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    Week 4

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    1) The three-stage model of service consumption helps understand customer behavior in the pre-purchase, service encounter, and post-purchase stages. 2) During service encounters, customers interact with the servuction system including the service environment, employees, and other customers. 3) After purchasing, customers evaluate service performance and compare it to their expectations, which can lead to satisfaction, confirmation, or dissatisfaction.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    24 views20 pages

    Consumer Behavior in A: Services Context

    Uploaded by

    Asad Mahmood
    1) The three-stage model of service consumption helps understand customer behavior in the pre-purchase, service encounter, and post-purchase stages. 2) During service encounters, customers interact with the servuction system including the service environment, employees, and other customers. 3) After purchasing, customers evaluate service performance and compare it to their expectations, which can lead to satisfaction, confirmation, or dissatisfaction.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 20

    CHAPTER 2

    Consumer Behavior in a
    Services Context
    Service Encounter Stage
    Service Encounters Are “Moments of
    Truth”
     Richard Normann borrowed the “moment of truth” metaphor from
    bullfighting to show the importance of contact points with customers (Figure
    2.8):
     [W]e could say that the perceived quality is realized at the moment of truth,
    when the service provider and the service customer confront one another in
    the arena. At that moment they are very much on their own. . . . It is the
    skill, the motivation, and the tools employed by the firm’s representative and
    the expectations and behavior of the client which together will create the
    service delivery process.
    Service Encounters Are “Moments of
    Truth”
     Jan Carlzon, the former chief executive of Scandinavian Airlines System (SAS), used
    the “moment of truth” metaphor as a reference point for transforming SAS from an
    operations-driven business into a customer-driven airline. Carlzon made the following
    comments about his airline:

     Last year, each of our 10 million customers came into contact with approximately
    five SAS employees, and this contact lasted an average of 15 seconds each time.
    Thus, SAS is “created” 50 million times a year, 15 seconds at a time. These 50 million
    “moments of truth” are the moments that ultimately determine whether SAS will
    succeed or fail as a company. They are the moments when we must prove to our
    customers that SAS is their best alternative.
     Each service business faces similar challenges in defining and managing the moments
    of truth its customers will encounter.
    Service Encounter Stage - Overview
    Pre-purchase Stage

    ● Service encounters range from high-


    to low-contact
    ● Understanding the servuction
    Service Encounter Stage system
    ● Theater as a metaphor for service
    delivery: An integrative perspective
     Service facilities

     Personnel
    Post-purchase Stage
     Role and script theories
    Service Encounters Range from
    High-contact to Low-contact (Fig 2.20)
    Distinctions between High-contact and Low-contact Services

     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 arm’s length through electronic or physical distribution channels

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

     Medium-contact Services Lie in between These Two


    The Servuction System (Fig 2.22)
    The Servuction System
     Customers interact with the service environment, service employees, and
    even other customers present during the service encounter.

     Each type of interaction can create value (e.g., a pleasant environment,


    friendly and competent employees, and other customers who are interesting
    to observe) or destroy value (e.g., another customer blocking your view in a
    movie theatre).

     Firms have to “engineer” all interactions to make sure their customers get
    the service experience they came for.
    Servuction System:
    Service Production and Delivery

     Servuction System – visible front stage and invisible backstage

     Service Operations (front stage and backstage)


     Technical core where inputs are processed and service elements created

     Includes facilities, equipment, and personnel

     Service Delivery (front stage)


     Where “final assembly” of service elements takes place and service is delivered to
    customers

     Includes customer interactions with operations and other customers

     Other contact points


     Includes customer contacts with other customers
    Theater as a Metaphor for Service
    Delivery

    “All the world’s a stage and all the men


    and women merely players. They have
    their exits and their entrances and
    each man in his time plays many
    parts”

    William Shakespeare
    As You Like It
    Theatrical Metaphor: An Integrative
    Perspective
     Good metaphor as service delivery is a series of events that customers
    experience as a performance
     Service facilities
     Stage on which drama unfolds
     This may change from one act to another
     Personnel
     Front stage personnel are like members of a cast
     Backstage personnel are support production team
     Roles
     Like actors, employees have roles to play and behave in specific ways
     Scripts
     Specifies the sequences of behavior for customers and employees
    Post-purchase Stage
    Post-encounter Stage - Overview

    Pre-purchase Stage

     Evaluation of service
    performance
    Service Encounter Stage
     Future intentions

    Post-purchase Stage
    Customer Satisfaction Is Central to the Marketing
    Concept

     Satisfaction defined as attitude-like judgment following a service purchase

    or series of service interactions

     Customers have expectations prior to consumption, observe service

    performance, compare it to expectations

     Satisfaction judgments are based on this comparison

     Positive disconfirmation if better than expected

     Confirmation if same as expected

     Negative disconfirmation if worse than expected


    Customer Delight: Going Beyond
    Satisfaction
     Research shows that delight is a function of 3
    components
     Unexpectedly high levels of performance

     Arousal (e.g., surprise, excitement)

     Positive affect (e.g., pleasure, joy, or happiness)

     Once customers are delighted, their expectations are


    raised

     If service levels return to previous levels, this may lead


    to dissatisfaction and it will be more difficult to
    “delight” customers in future

     Progressive Insurance seeks to delight customers


    through exceptional customer service (Service Insights
    Summary of Chapter 2:
    Customer Behavior in a Services Context (1)
     Three-stage Model of service consumption helps us to understand and better
    manage customer behavior
     Pre-purchase stage
     Customers seek solutions to aroused needs
     Evaluation alternatives is more difficult when a service involves experience and
    credence attributes
     Customers face perceived a variety of perceived risks in selecting, purchasing and
    using services
     Customers can use a variety of ways to reduce perceived risk and firms can also
    manage risk perceptions
     Customer expectations of service range from “desired” to “adequate” with a zone of
    tolerance in between; if actual service is perceived as less than adequate, customers
    will be dissatisfied
     A purchase decision has to be made
    Summary of Chapter 2:
    Customer Behavior in a Services Context (2)

     Service encounter stage


     Service encounters range from high contact to low contact
     Servuction system consists of two parts:
    Service operations system
    Service delivery system
     Role and script theories help us understand, manage customer behavior during
    encounters
     Theatrical view of service delivery offers insights for design, stage-managing
    performances, and relationships with customer “audience”
     Post-purchase stage
     In evaluating service performance, customers can have expectations positively
    disconfirmed, confirmed, or negatively disconfirmed
     Unexpectedly high levels of performance, arousal and positive affect are
    likely to lead to delight

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