Chapter 3 Overheads

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

• Search, Experience, and Credence Properties
• Consumer Choice
• Consumer Experience
• Postexperience Evaluation

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Objectives for Chapter 3Consumer Behavior in
Services

• Enhance understanding of how consumers choose and
  evaluate services, through focusing on factors
  that are particularly relevant for services.
• Explore how differences among consumers (cultural
  differences, group decision making) affect
  consumer behavior and influence services
  marketing strategies.

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Consumer Behavior in Services

• Review Unique Characteristics
• Deeds, Processes, Performances
• Intangible, Heterogeneous, Simultaneous,
  Perishable
• 2. Traditional Consumer Decision Process

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Figure 3.3Stages in Consumer Decision Making and
Evaluation of Services
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Differences in Stages

• A. Evaluation- Pre and Post
• 1. When and If How Difficult/ Confident
• 2. Evaluation Qualities

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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 after
  purchase (or during consumption) of a product
• Credence Qualities
• characteristics that may be impossible to
  evaluate even after purchase and consumption

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Figure 3.2Continuum 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
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Evaluation (Cont)

• 3. Situational Influences
• a. Social
• b. Task
• c. Antecedent States
• d. Temporal effects
• 4. Smaller Evoked Set

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Search

• B. Information Search
• 1. Personal Sources/ Word of Mouth
• 2. Perceived Risk- function of
• a. the amount of uncertainty
• b. the potential negative consequences

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Search (cont)

• Types of Risk
• Financial/ Economic
• Performance/ Functional
• Physical
• Psycho Social
• Time/ Hassle

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Search (Cont)

• Perceived Risk Is Greater for Services
• Why?
• Intangibility
• Heterogeneity
• Perishability

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Perceived Risk

• How consumer deal with risk
• More Info (Search)
• Loyalty
• Sub-contracting
• Challenges
• Difficulty of Search
• What can be learned with experience
• Variability

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Perceived Risk

• What are the Managerial Implications?
• Generally, reduce PR
• Information
• Reassurance
• Tangibalize Benefits
• Guarantees
• Trial Period
• Category Risk versus Specific Risk

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Purchase

• C. Purchase-
• Simultaneous production and consumption
• Experience/ Process
• 1. Service Roles and Scripts
• 2. Service as Drama
• Actors, Audience, Setting, Front Stage,
  Back Stage, Props
• 3. Customer Compatibility

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Post Purchase

• D. Post Purchase
• Word-of-Mouth (WOM)
• Attribution
• Positive / Negative Bias

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Culture

• 3. Role of Culture (Experience)
• a. Interpersonal/ Personalized
• b. Language, values, manners, customs, etc.