Consumer Behaviour for Services

Consumer Behaviour Service Differences

Intangibility problem

Consumer involvement

Perceived Risk

Sources of Information

Consumer Evaluation Processes for Services

Search Qualitiesattributes a consumer can determine prior to

purchase of a productExperience Qualities

attributes a consumer can determine after purchase (or during consumption) of a product

Credence Qualitiescharacteristics that may be impossible to evaluate

even after purchase and consumption

Continuum of Evaluation forDifferent Types of Products

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Difficult to evaluate Easy to evaluate

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High in experiencequalities

High in credencequalities

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Services

Services - Decision Making Process

Need awareness Information search

Evaluation of service suppliers

Request service

Service delivery

Evaluation

Future Intentions

MemoryMemory

Categories in Consumer Decision-Making and Evaluation of Services

Information Search

Evaluation of Alternatives

Purchase and Consumption

Post-Purchase Evaluation

Use of personal sources Perceived risk

Evoked set Emotion and mood

Service provision as drama Service roles and scripts Compatibility of customers

Attribution of dissatisfaction Innovation diffusion Brand loyalty

Consumer Categories in Decision-Making and Evaluation of Services

Information Search Evaluation of Alternatives

Purchase and Consumption

Post - Purchase Evaluation

Use of personal sources Perceived risk

Evoked set Emotion and mood

Service provision as drama Service roles and scripts Compatibility of customers

Attribution of dissatisfactionInnovation diffusionBrand loyalty

Culture Values and attitudes Manners and customs Material culture Aesthetics Educational and social institutions

Key Issues for Decision Making

Who is involved in the decision making process? How long does the process take? What is the set of competing services from which

consumers make their choice? What is the relative importance attached by decision

makers to different elements of the service offer? What sources of information are used in evaluating

competing service offers?

Maslow’s Hierarchy of Needs

Self-actualisation

Esteem

Love

Safety

Physiological

E.g -Meals

Experiment with ethnic cuisine

A meal at the best restaurant in town

Social meal with friends and family

Safe food from a reputable source

Food from any uncontaminated source

Internal Satisfaction

The respect of others

Action for and from others

Survival

Satisfaction of basic hunger

Information Sources

Previous personal experienceWord of Mouth recommendation

(WOM)Reference groupsMedia communicationsInternet sources

Evaluation of Alternatives

A process of choice reduction.

‘Rules’ based approaches used.

Critical attributes, average score of all attributes, or weighted attributes.

Perceived Risk

Factors affecting perceived risk: The level of tangible evidence Buyer involvement New purchase Personal risk tolerance Situational factors Legal safeguards