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Consumer Behavior in Services
M. Kashif Saeed Assistant Professor of MarketingFall 2015GIFT University Gujranwala
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Presentation Agenda
Search, Experience, and Credence Properties
Consumer Choice
Consumer Experience
Post-experience Evaluation
Understanding Differences Among Consumers
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Service as Theater
“ 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
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Expectedservice
Perceivedservice
Customer Gap
The Customer Gap
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Where Does the Customer Fit in a Service Organization?
• Consumers rarely involved in manufacture of goods but often participate in service creation and delivery
• Challenge for service marketers is to understand how customers interact with service operations• People processing (e.g., motel stay): customer is physically
involved throughout entire process• Possession processing (e.g., DVD repair): involvement may be
limited to drop off of physical item/description of problem and subsequent pick up
• Mental stimulus processing (e.g., weather forecast): involvement is mental, not physical; here customer simply receives output and acts on it
• Information processing (e.g., health insurance): involvement is mental - specify information upfront and later receive documentation of coverage
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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 servicesLow 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
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Managing Service Encounters
• 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 either customers or service employees
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Continuum of Evaluation for Different Types of Products
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Hou
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Rest
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Ch
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Tele
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Leg
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Root
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Med
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Difficult to evaluateEasy to evaluate
High in searchqualities
High in experiencequalities
High in credencequalities
MostGoods
MostServices
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Stages in Consumer Decision Making and Evaluation of Services
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Need Recognition in services
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Information search in Services
• “Personal risk is high in services as compared to Goods”
• Financial risk• Time risk• Performance risk• Social risk• Psychological risk
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Evaluation of service alternates
• Small evoked set in services
“Competing products are not in close proximity as in Goods”
“Difficulty of obtaining adequate information before purchase”
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Service purchase
• Consumer experience
• Service as processes
• Service as Drama
• Emotion and Mood
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Post experience evaluation
• Word of mouth communication (Get memorable and unique service experience)
• Attribution of dissatisfaction
• Positive or negative biases
• Brand loyalty
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Understanding differences among consumers
- Cultural dimensions
- Time orientation