Amity Business School

Consumer Behavior in Service Encounters

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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 services

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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

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High
N u r si n g H o m e

Emphasizes encounters with service personnel

M a n a g e m e n t Co n su l t i n g

H a i r Cu t
4 - St a r H o t e l
G o o d Re st a u r a n t A i r l i n e Tr a v e l (Eco n .)

Tel ep h o n e Ba n k i n g

Re t a i l Ba n k i n g M o t el

Ca r Rep a i r I n su r a n ce

Dr y Cl ea n i n g
Fa st Fo o d Movie Theater
Ca b l e TV

Subway Internet Banking Mail Based Repairs

Emphasizes encounters with equipment

Internet-based Services

Low

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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

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

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Post-purchase Stage
Evaluation of service performance Future intentions

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Perceived Risks in Purchasing and Using Services

Functional unsatisfactory performance outcomes Financial monetary loss, unexpected extra costs Temporal wasted time, delays lead to problems Physical personal injury, damage to possessions Psychological fears and negative emotions Social how others may think and react Sensory unwanted impacts to any of five senses

Factors that InfluenceAmity Business School Customer Expectations of Services

Personal Needs Desired Service Beliefs about What Is Possible Explicit & Implicit Service Promises Word-of-Mouth Past Experience

ZONE OF TOLERANCE

Perceived Service Alterations Adequate Service Situational Factors Predicted Service

Source: Adapted from Zeithaml, Parasuraman & Berry

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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 Zone of Tolerance: range within which customers are willing to accept variations in service delivery