Services Marketing

by
P Sivarajadhanavel

Part 2 Focus on the Customer Chapter 3 Consumer Behavior in Services Chapter -4 Customer Expectations of Service

Chapter 5 Customer Perceptions of Service

The Customer GAP

The customer gap is the difference between customer expectations and perceptions
Expected service
Customer Gap

Perceived service

Chapter 3 Consumer Behavior in Services

Objectives
Enhance understanding of how consumers choose and evaluate

services, through focusing on factors that are particularly relevant for

services. Describe how consumers judge goods versus services in terms of search, experience, and credence criteria.

Develop the elements of consumer behavior that a services marketer

must understand choice behavior, Consumer experiences, and post experience evaluation. Explore how differences among consumers (cultural differences, group decision making) affect consumer behavior and influence services marketing Strategies.

Consumer Problem
Todays consumers main problem

Time Deficiency

Consumer behavior
Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Definition
Belch and Belch define consumer behavior as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'. Consumer Behavior A consumer market is any market in which the end consumers are the purchasers and users of the goods and services. An industrial market, on the other hand, is any market in which other businesses, rather than end consumers, are the purchasers of the goods and services

The Consumer Purchase Decision

Consumer behavior refers to the decision-making process that consumers use when purchasing goods and services. These purchase decisions involve many factors and steps: Search Qualities Experience Quality Credence Qualities

Consumer Evaluation Processes for Services

Search Qualities attributes a consumer can determine prior to purchase of a product Experience Qualities attributes a consumer can determine only after purchase or during consumption of a product Credence Qualities characteristics that may be impossible to evaluate even after purchase and consumption

Continuum of Evaluation for Different Types of Products

Most Goods
Easy to evaluate

Most Services
Difficult to evaluate

High in search High in experience High in credence qualities qualities qualities

Stages in consumer Decision making and Evaluation of Services

Consumer Choice
Need Recognition Information Search Evaluation of Alternatives Purchase Consumer Experience Post experience Evaluation

Need Recognition
Psychological needs are biological needs such as food, water, and sleep

Safety and security needs include shelter, protection and security

Social needs are for affection, friendship, and acceptance Ego needs- are for prestige, success, accomplishment, and self-esteem Self-actualization involves self fulfillment and enriching experiences

Self-actualisation

Esteem Love Safety Physiological

 Information Search Personal and Nonpersonal sources

Word of Mouth recommendation (WOM) Reference groups Media communications Internet sources

Perceived Risks in information search

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

Technology Spotlight

Evaluation of Alternatives
Evoked set of alternatives that group of products that a
consumer considers acceptable options in a given product category

A process of choice reduction. Rules based approaches used. Critical attributes, average score of all attributes, or weighted attributes.
Example:
Professional Bank, dry cleaner, or hair salon Nonprofessional services performing the services for themselves or hiring some to perform them

Service Purchase
In the purchase of services consumers have less idea on the offering as purchased and produced and consumed simultaneously. Consumers make purchase decision before experience of services But incase of product purchase consumer have tangible products in making purchase decision

Consumer Experience
Service as process Service Provision as Drama Service Roles and Scripts The compatibility of service customers Customer Co-production Emotion and Mood

Post Experience Evaluation

Word-of-Mouth Attribution of Dissatisfaction Positive or Negative Biases Brand Loyalty

Understanding differences among consumers

Global Differences The role of culture
Values and attitudes differ across culture Manners and customs Material Culture Aesthetics Educational and Social Institutions

Group Decision Making

Households Organizations

END