Chapter 3 Overheads

1
Part 2
FOCUS ON THE CUSTOMER
2
The Customer Gap
Expected service
Customer Gap
Perceived service
3
Consumer Behavior in Services
Chapter
3

• Search Qualities
• Determined before purchasing a product
• Experience Qualities
• Discerned only after purchase or during
  consumption
• Credence Qualities
• Can be impossible to evaluate even after purchase
  and consumption

4
Continuum of Evaluation for Different Types of
Products
Clothing Jewelry Furniture Houses Automobiles Rest
aurant meals Vacations Haircuts Child
care Television repair Legal services Root
canals Auto repair Medical diagnosis
Most Services
Most Goods
Easy to evaluate
Difficult to evaluate
High in search qualities
High in experience qualities
High in credence qualities
5
Stages in Consumer Decision Making and
Evaluation of Services
6
Three Categories of Decision Processes

• Routine buying decisions
• Limited decision making
• Extensive problem solving

7
Five Interpersonal Factors Influencing Customer
Behavior

• Cultures and subcultures
• Reference groups
• Social classes
• Opinion leaders
• Family

8
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR
Cultural Influences

• Culture values, beliefs, preferences, and tastes
  handed down from one generation to the next

9
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• Core Values in the U.S. Culture
• While some cultural values change over time,
  basic core values do not
• Examples of American core values include
• Importance of family and home life
• The work ethic
• Desire to accumulate wealth

Cultural Influences
10
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• International Perspective on Cultural
  Influences
• Cultural differences are particularly important
  for international marketers
• Successful strategies in one country often cannot
  extend to other international markets because of
  cultural variations

Cultural Influences
11
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• Subcultures subgroup of culture with its own,
  distinct modes of behavior
• Subcultures can differ by
• Race
• Nationality
• Age
• Religion
• Geographic distribution

Cultural Influences
12
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• Norms are the values, attitudes, and behaviors
  that a group deems appropriate for its members
• Status is the relative position of any
  individual member in a group
• Roles define behavior that members of a group
  expect of individuals who hold specific positions
  within the group

Cultural Influences
Social Influences
13
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• Reference groups groups whose value structures
  and standards influence a persons behavior

Cultural Influences
Social Influences
14
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• Social classes groups whose rankings are
  determined by occupation, income, education,
  family background, and residence location

Cultural Influences
Social Influences
15
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• Social classes groups whose rankings are
  determined by occupation, income, education,
  family background, and residence location

Cultural Influences
Social Influences
16
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• Opinion leaders individuals likely to purchase
  new products before others and then share the
  resulting experiences and opinions by
  word-of-mouth

Cultural Influences
Social Influences
17
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• Four Categories of Household Decision-making
• Autonomic
• Husband-dominant
• Wife-dominant
• Syncratic

Cultural Influences
Social Influences
Family Influences
18
INTERPERSONAL DETERMINANTS OF CONSUMER BEHAVIOR

• Children and teenagers in family purchases
• Growing numbers are assuming responsibility for
  family shopping
• They also influence what parents buy
• They represent over 50 million consumers in their
  own right

Cultural Influences
Social Influences
Family Influences
19
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