consumer behavior in service settings
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Consumer Behavior in Service Settings
Focus on The Consumer Consumer Behavior in Service Settings Who are
our customers and Where do they fit? Who Are Our Customers and How
Should We Relate to Them?
Where should customers fit in our service operation? Do they prefer
high or low levels of contact with contact with service personnel
and facilities? How do customers (prospects) select, purchase, and
useour services? What are the key characteristics of our target
market segments? Which customer relationships are worth developing
and preserving? What do we do when customers expectations are not
met? 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 arms length through electronic or
physical distribution channels New technologies (e.g. Web) help
reduce contact levels Levels of Customer Contact with Service
Organizations
Emphasizes encounters with service personnel High Emphasizes
encounters with equipment Low Options for Delivery of Banking
Services:
High to Low Contact: Visit bank, transact with teller Use ATM
Contact bank by mail Telephone speak with bank representative use
keys in response to voice commands (or phone screen display) Home
banking by computer: use special software conduct transactions by
Web Encounters with Self-Service Technologies Satisfying Incidents
for Customers
Self-service solved urgent need Self-service better than
alternative easy to use avoid service personnel saved time when I
want where I want saved money Self-service did its job Encounters
with Self-Service Technologies Dissatisfying Incidents for
Customers
Technology failure Process failure Poor design technology design
problem service design problem Customer caused failure Levels of
Customer Participation across Different Services
Low: Customer presence required during service delivery products
standardized service regardless of individual purchase payment only
required customer input Moderate: Customer inputs required for
service creation client inputs customize a standard service service
requires customer purchase customer inputs needed but firm provides
service High : Customer co-produces the service product active
participation guides customized service creation involves customer
purchase, active participation customer inputs mandatory,
co-produce outcome Where does your service fit? Service encounter:A
period of time during which customers interact directly with a
service
Moments of truth: Defining points in service delivery where
customers interact with employees or equipment Critical incidents:
specific encounters that result in especially
satisfying/dissatisfying outcomes for eithercustomers or service
employees Managing Service Encounters--
Employees Role: Service success often rests on performance of
junior contact personnel Must train, coach, role model desired
behavior Customers Role Thoughtless or badly behaved customers can
cause problems for service personnel (and other customers) Must
educate customers, clarify what is expected, manage behavior
Managing Customers as Partial Employees to IncreaseProductivity and
Quality
1. Analyze customers present roles in the business and compare to
managements ideal 2. Determine if customers know how to perform and
have necessary skills 3. Motivate customers by ensuring that they
will be rewarded for performing well 4. Regularly appraise
customers performance; if unsatisfactory, consider changing roles
or termination Stages in Consumer Decision Making and Evaluation of
Services 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 performance Future intentions Categories in
Consumer Decision-Making and Evaluation of Services
Information Search Evaluation of Alternatives Use of personal
sources Perceived risk Evoked set Emotion and mood Purchase and
Consumption Post-Purchase Evaluation Service provision as drama
Service roles and scripts Compatibility of customers Attribution of
dissatisfaction Innovation diffusion Brand loyalty Decision Making
Process
Describe the decision making process for a good that you recently
purchased (e.g. shoes, stereo, or clothes) and compare it with a
recent service purchase (e.g. cable TV, plumber, or insurance). How
was the decision making process for the service similar and
different than for the good? Issues to Consider in Examining the
Consumers Service Experience
Services as processes Service provision as drama Service roles and
scripts The compatibility of service customers Customer
coproduction Emotion and mood The Drama of Service Delivery
In high-contact environments, service delivery consists of a
performance--may be quite theatrical Service dramas unfold on a
stage settings may change as performance unfolds Many service
dramas are tightly scripted Front stage personnel are like members
of a cast Like actors, employees may wear special costumes, speak
required lines, behave in specific ways Support comes from a
backstage production team Three Overlapping Subsystems within the
Service System
Service Operations (front stage and backstage) 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 3.Service Marketing (front stage) Includes service
delivery and all other contacts between service firm and customers
The Service Business as a System
Physical support Tech-nical Other Customer core Customers Contact
personnel Backstage Front Stage (Invisible) (Visible to customer)
Service as Theater All the worlds 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
Role and Script Theories
Role:A set of behavior patterns learned through experience and
communication Role congruence: In service encounters, employees and
customers must act out defined roles for good outcomes Service
Scripts Service scripts consist of a set of ordered actions,
actors, and objects that, through repeated involvement define what
thecustomer expects. -A sequence of behavior to be followed by
employees and customers during service delivery Some scripts (e.g
teeth cleaning) are highlyroutinized, othersare flexible.
Technology change may require a revised script Should reexamine
existing scripts to find ways to improve delivery, increase
productivity, enhanceexperiences Service Script for a
Haircut.
1. Recognize a need for ahaircut 2. Make an appointment 3. Arrive
at the salon 4. Enter the salon 5. Greeting by receptionist 6.
Possible wait time (read amagazine) 7. Greeting by hair stylist 8.
Questions about desiredstyle 9. Go to the hair wash station 10.
Hair is cut and styled 11. Casual conversation occurs 12. Hair is
dried 13. Styling is completed 14. Mirror is provided for you to
evaluate results 15. Stylist escorts you to the cashier 16. Pay for
the services 17. Tip hair stylist 18. Exit store 19. Get comments
from friends Discussion Question What three parts of this script
are most likely to go smoothly and conform to the expectations of
the customer? Why? What three parts of this script are most likely
to deviate from the expectations of the customer? Why? What actions
could be taken by management to ensure that the service performance
does not deviate from the service script envisioned by the
customer? Be specific. Types of Product Attributes
Search attributes - features that customers can readily evaluate
prior to purchase Experience attributes - attributes a consumer can
determine after purchase (or during consumption) of a product
Credence attributes - features that customers may not be able to
evaluate even after use How Product Attributes Affect Ease of
Evaluation
Most Goods Most Services Easy Difficult to evaluate Clothing
Haircut to evaluate Motor vehicle Chair Restaurant meals Lawn
fertilizer Entertainment Computer repair Legal services Complex
surgery Foods Education High in search High in experience High in
credence Source: Adapted from Zeithaml fig 3.2 attributes
attributes attributes Tangible Elements and Communications in the
Service Marketing System
Service personnel Service facilities and equipment Non-personal
communications Other people Perceived Risks in Purchasing and Using
Services
Functional risk Financial risk Temporal risk Physical risk
Psychological risk Social risk Sensory risk Customer Expectations
of Service
Focus on The Consumer Customer Expectations of Service Possible
Levels of Customer Expectations Components of Customer
Expectations
Desired Service Level: wished-for level of service quality that
customer believes can and should be delivered Adequate Service
Level: minimum acceptable level of service Predicted Service Level:
service level that customer believes firm will actually deliver
Expectations Desired service expectations are ideal and do not
change frequently because what one hopes for does not change
frequently. Adequate service expectations are constantly in flux,
most likely rising incrementally as service is improved in a
particular company or industry Customer Expectations
What is the difference between desired service and adequate
service? Why would a services marketer need to understand both
types of service expectations? 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)
Discussion Question: Is it possible for customers to be delighted
by very mundane services? The Zone of Tolerance Desired Service
Zone of Tolerance Adequate Service Range within which customers are
willing to accept variations in service delivery Important Factors
Consider a recent service purchase that you have made.What factors
were most important in your decision? Different Service
Dimensions
Zones of Tolerance for Different Service Dimensions Desired Service
Level of Expectation Zone of Tolerance Desired Service Adequate
Zone of Tolerance Desired Service Adequate Service Adequate Service
Most Important Factors Least Important Factors Source:Berry,
Parasuraman, and Zeithaml (1993) First-Time and Recovery
Service
Zones of Tolerance for First-Time and Recovery Service First-Time
Service Outcome Process Recovery Service Outcome Process LOW HIGH
Expectations Source:Parasuraman, Berry and Zeithaml (1991) Factors
that Influence Desired Service
Enduring Service Intensifiers Derived service expectations Personal
service philosophy Desired Service Personal Needs Zone of Tolerance
Adequate Service Factors that Influence
Adequate Service Transitory Service Intensifiers Emergencies
Service problems Desired Service Perceived Service Alternatives
Zone of Tolerance Self-Perceived Service Role Adequate Service
Situational Factors Bad weather Catastrophe Random overdemand
Factors that Influence Desired and Predicted Service
Explicit Service Promises Implicit Service Promises Word-of-Mouth
Desired Service Zone of Tolerance Past Experience Predicted Service
Adequate Service Factors that Influence Customer Expectations of
Services
Explicit & Implicit Personal Needs Service Promises
Word-of-Mouth Desired Service Past Experience Beliefs about What Is
Possible ZONE OF TOLERANCE Perceived Service Alterations Adequate
Service Predicted Service Situational Factors Source: Adapted from
Zeithaml, Parasuraman & Berry Total Perceived Quality
Expected Quality Experienced Quality Total Perceived Quality Image
Image Market Communication Word of Mouth Customer Needs Technical
Quality: What Functional Quality: How Frequently Asked Questions
About Customer Expectations
What does a service marketer do if customer expectations are
unrealistic? Should a company try to delight the customer? 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 Customer
Perceptions of Service
Focus on The Consumer Customer Perceptions of Service Customer
Perceptions of Quality and Customer Satisfaction Factors
Influencing Customer Satisfaction
Product/service quality Specific product or service features
Consumer emotions Attributions for service success or failure
Perceptions of equity or fairness Other consumers, family members,
and coworkers Price Personal factors the customers mood or
emotional state situational factors 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 customers 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
Reliability 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. Assurance Tangibles Empathy Responsiveness
Exercise to Identify Service Attributes
In groups of five, choose a services industry and spend 10 minutes
brainstorming specific requirements of customers in each of the
five service quality dimensions.Be certain the requirements reflect
the customers point of view. Reliability: Assurance: Tangibles:
Empathy: Responsiveness: SERVQUAL Attributes RELIABILITY EMPATHY
RESPONSIVENESS TANGIBLES
Providing service as promised Dependability in handling customers
service problems Performing services right the first time Providing
services at the promised time Maintaining error-free records Giving
customers individual attention Employees who deal with customers in
a caring fashion Having the customers best interest at heart
Employees who understand the needs of their customers Convenient
business hours RESPONSIVENESS TANGIBLES Keeping customers informed
as to when services will be performed Prompt service to customers
Willingness to help customers Readiness to respond to customers
requests Modern equipment Visually appealing facilities Employees
who have a neat, professional appearance Visually appealing
materials associated with the service ASSURANCE Employees who
instill confidence in customers Making customers feel safe in their
transactions Employees who are consistently courteous Employees who
have the knowledge to answer customer questions 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 A Service Encounter
Cascade for a Hotel Visit
Check-In Bellboy Takes to Room Restaurant Meal Request Wake-Up Call
Checkout A Service Encounter Cascade for an Industrial
Purchase
Sales Call Delivery and Installation Servicing Ordering Supplies
Billing Critical Service Encounters Research
GOAL: understanding actual events and behaviors that cause customer
dis/satisfaction in service encounters METHOD: Critical Incident
Technique DATA: stories from customers and employees OUTPUT:
identification of themes underlying satisfaction and
dissatisfaction with service encounters Sample Questions for
Critical Incidents Technique Study
Think of a time when, as a customer, you had a particularly
satisfying (dissatisfying) interaction with an employee of
______________. When did the incident happen? What specific
circumstances led up to this situation? Exactly what was said and
done? What resulted that made you feel the interaction was
satisfying (dissatisfying)? Common Themes in Critical Service
Encounters Research
Recovery: Adaptability: employee response to service delivery
system failure employee response to customer needs and requests
Coping: Spontaneity: unprompted and unsolicited employee actions
and attitudes employee response to problem customers Recovery DO
DONT Acknowledge problem Explain causes Apologize
Compensate/upgrade Lay out options Take responsibility Ignore
customer Blame customer Leave customer to fend for him/herself
Downgrade Act as if nothing is wrong Pass the buck Adaptability DO
DONT Recognize the seriousness of the need
Acknowledge Anticipate Attempt to accommodate Adjust the system
Explain rules/policies Take responsibility Ignore Promise, but fail
to follow through Show unwillingness to try Embarrass the customer
Laugh at the customer Avoid responsibility Pass the buck
Spontaneity DO DONT Take time Be attentive Anticipate needs
Listen
Provide information Show empathy Exhibit impatience Ignore
Yell/laugh/swear Steal from customers Discriminate Coping DO DONT
Listen Try to accommodate Explain
Let go of the customer Take customers dissatisfaction personally
Let customers dissatisfaction affect others Evidence of Service
from the Customers Point of View
Contact employees Customer him/herself Other customers Operational
flow of activities Steps in process Flexibility vs. standard
Technology vs. human People Physical Evidence Tangible
communication Servicescape Guarantees Technology Website Process
Source: From Managing the Evidence of Service by M. J. Bitner from
The Service Quality Handbook, eds. E. E. Scheuing and W. F.
Christopher (1993), pp Who Are Our Customers and How Should We
Relate to Them?
Where should customers fit in our service operation? Do they prefer
high or low levels of contact with contact with service personnel
and facilities? How do customers (prospects) select, purchase, and
useour services? What are the key characteristics of our target
market segments? Which customer relationships are worth developing
and preserving? What do we do when customers expectations are not
met?
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