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Mktg 358 - Chapter 2 - Consumer Behavior in a Service Context

by: Caroline Goumy

Mktg 358 - Chapter 2 - Consumer Behavior in a Service Context Mktg 358

Marketplace > University of Mississippi > Marketing > Mktg 358 > Mktg 358 Chapter 2 Consumer Behavior in a Service Context
Caroline Goumy

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About this Document

The Three Stage Model of Service Consumption Pre-Purchase Stage Need awareness Information Search Evaluation of alternative services Purchase Decision Service ...
Service marketing
Kathy Wachter
Class Notes
service, Marketing, Consumer, behavior
25 ?




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This 7 page Class Notes was uploaded by Caroline Goumy on Thursday September 15, 2016. The Class Notes belongs to Mktg 358 at University of Mississippi taught by Kathy Wachter in Fall 2016. Since its upload, it has received 3 views. For similar materials see Service marketing in Marketing at University of Mississippi.

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Date Created: 09/15/16
CHAPTER  2  :  CONSUMER  BEHAVIOR  IN  A  SERVICE  CONTEXT           The  Three  Stage  Model  of  Service  Consumption         Pre-­‐Purchase  Stage     Need  awareness     Information  Search   Evaluation  of  alternative  services   Purchase  Decision     Service  Encounter  Stage     Service  encounters  are  «  Moments  of  truth  »   Service  encounters  range  from  High  Contact  to  low  Contact   The  Servuction  System   Theater  as  a  Metaphor  for  Service  Delivery  :  an  Integrative  Perspective       Post-­‐Purchase  Stage                   3  stages  model  of  service  consumption       Pre-­‐purchase  stage     v   Customers  seek  solutions  to  aroused  needs   v   Evaluating  a  service  may  be  difficult   v   Uncertainty  about  outcomes  Increases  perceived  risk   v   What  risk  reduction  strategies  can  service  suppliers  develop  ?   v   Understanding  customers’  service  expectati ons   v   Components  of  customer  expectations   v   Making  a  service  purchase  decision       Ø   Need  awareness     •   To  be  motivated  to  find  a  solution  for  what  they  want,  consumers  need  :     ⇒   Unconscious  minds  (ex.  personal  identity  and  aspirations)   ⇒   Physical  conditions  (ex.  hunger  )   ⇒   External  sources  (ex.  a  service  firm’s  marketing  activities)     Ø   Information  search  –  need  awareness  eads  to  attemps  to  find  a  solution   •   Evoked  set  :    a  set  of  products  and  brands  that  a  consumer  considers  during  the  decision -­‐making   process  –  that  is  derived  from  past  experiences  or  external  sources     Ø   Evaluation  of  alternatives  –  alternatives  need  to  be  evaluated  before  a  final  decision  is  made     •   Multi  attribute  modeling  based  on  service  attributes  consisting  of  :   ⇒   Search  attributes    :  help  customers  evaluate  a  product  before  purchase   type  of  food,  location,  type  of  restaurant  and  price       ⇒   Experience  attributes  (must  be  present)  :  cannot  be  evaluated  before  purchase   The  consumer  will  not  know  how  much  s/he  will  enjoy  the  food,  the  service,  and  the   atmosphere  until  the  actual  experience     ⇒    Credence  attributes  (belief/trust  ;  hygiene)  :  those  that  customers  find  impossible  to   evaluate  confidently  even  after  purchase  and  consumption   belief/trust  -­‐  hygiene  conditions  of  the  kitchen  and  the  healthiness  of  the   cooking  ingredients         Perceived  risks  of  purshasing  and  using  services  :     ⇒   Functional  –  unsatisfactory  performance  outcomes   ⇒    Financial  –  monetary  loss,  unexpected  extra  costs   ⇒   Temporal  –  wasted  time,  delays  leading  to  problems   ⇒   Physical  –  personal  injury,  damage  to  possessions   ⇒    Psychological  –  fears  and  negative  emotions   ⇒   Social  –  how  others  may  think  and  react   ⇒   Sensory  –  unwanted  impact  on  any  of  five  senses         Risks       How  consumers  prevent  the  perveived  risks  ?     ⇒   Seek  information  from  respected  personal  sour ces   ⇒   Compare  service  offerings  and  search  for  independent  reviews  and  ratings  via  the  Internet   ⇒   Relying  on  a  firm  with  good  reputation   ⇒   Looking  for  guarantees  and  warranties   ⇒   Visiting  service  facilities  or  going  for  trials  before  purchase  and  examining  tangibl e  cues  or  other   physical  evidence   ⇒   Asking  knowledgeable  employees  about  competing  services       What  are  the  strtegic  responses  to  manage  customers  perception  of  risks  ?       ⇒   Free  trial  (for  high  experience  attributes  services)   ⇒   Advertise  (to  help  visualize)   ⇒   Display  credentials   ⇒   Use  evidence  management  (equipment)   ⇒   Offer  guarantees   ⇒   Encourage  visit  to  service  facilities   ⇒   Give  customers  online  access  about  order  status       Expectations  about  the  service         v   Customers  evaluate  service  quality  by  comparing  what  they  exp ect  against  what  they  perceive       v   Expectations  of  good  service  vary  from  one  business  to  another,  and  differently  positioned  service   providers  in  same  industry     v   Expectations  change  over  time     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  :  Acceptable  range  of  variations  in  service  delivery     Ø   Purchase  decision  about  the  «  service  »     v   Purchase  decision  :  Possible  alternatives  are  compared  and  evaluated,  whereby  the  best  option   is  selected   ⇒   Simple  if  perceived  risks  are  low  and  alternatives  are   clear   ⇒   Complex  when  trade-­‐offs  increase     v   Trade-­‐offs  are  often  involved     à  After  making  a  decision,  the  consumer  moves  into  the  service  encounter  stage         Service  encounter  stage  :       v   Service  encounters  range  from  high -­‐  to  low-­‐contact   v   Understanding  the  servuction  system   v   Theater  as  a  metaphor  for  service  deliv ery:  an  integrative  perspective   v   Service  facilities   v   Personnel   v   Role  and  script  theories     Service  encounter  :  a  period  of  time  during  which  a  customer  interacts  directly  with  the  service  provider   à  Might  be  brief  or  e xtend  over  a  period  of  time  (ex.a  phone  call  or  visit  to  the  hospital )     ⇒   “Moments  of  Truth”  –  importance  of  managing  touchpoints   ⇒   High/low  contact  model   –  extent  and  nature  of  contact  points   ⇒   Servuction  model  –  variations  of  interactions   ⇒   Theater  metaphor  –  “staging”  service  performances       “Moments  of  Truth”  –  importance  of  managing  touchpoints     «  A  moment  of  truth  is  usually  defined  as  an  instance  wherein  the  customer  and  the  organization  come   into  contact  with  one  another  in  a  manner  that  gives  the  customer  an  opportunity  to  either  form  or   change  an  impression  about  the  firm.     Such  an  interaction  could  occur  through  the  product  of  the  firm,  its  service  offering  or  both.  Various   instances  could  constitute  a  moment  of  truth  -­‐  such  as  greeting  the  customer,  handling  customer  queries   or  complaints,  promoting  special  offers  or  giving  discounts  and  the  closing  of  the  interaction.  »   “[W]e  could  say  that  the  perceived  quality  is  realized  at  the  moment  of  truth,  when  the  service  provider   and  the  service  customer  confront  one  another  in  the  arena.  At  that  moment  they  are  very  much  on  their   own...  It  is  the  skill,  the  motivation,  and  the  tools  employed  by  the  firm’s  representative  and  the   expectations  and  behavior  of  the  client  which  together  will  create  the  service  delivery  process.”   Richard  Normann   High/low  contact  model   –  extent  and  nature  of  contact  points         HIGH  CONTACT  SERVICES   LOW  CONTACT  SERVICES       Customers  visit  service  facility  and  remain   Little  or  no  physical  contact  with  service   throughout  service  delivery   personnel       Active  contact  between  customers  and  service   Contact  usually  at  arm’s  length  through  electronic   personnel   or  physical  distribution  channels       Includes  most  people-­‐  processing  services   Facilitated  by  new  technologies     à  Medium  contact  services  lie  between  these  two       Servuction  model  –  variations  of  interactions     ⇒   Visible  front  stage  and  invisible  backstage       Ø   Service  operations  (front  stage  and  back  stage)   -­‐   Technical  core  where  inputs  are  processed  and  service  elements  c reated     -­‐   Contact  people   -­‐   Inanimate  environment   -­‐   Includes  facilities,  equipment  and  personnel     Ø   Service  delivery  (front  stage)   -­‐   Where  “final  assembly”  of  service  elements  takes  place  and  service  is  delivered   -­‐   Includes  customer  interactions  with  operations  and  other  customers   -­‐             High  context                    vs     Low  context     Theater  metaphor  –  “staging”  service   performances     “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     Theatrical  metaphor  :  Good  metaphor  as  service  delivery  is  a  series  of  events  that  customers  experience   as  a  performance     PERSONNEL   SERVICES  FACILITIES Front  stage  personnel   Stage  on  which drama   are  like  members  of  a   unfolds cast   This  may  change  from   Backstage  personnel   one  act  to  another   are  support   production  team   ROLES   SCRIPTS   Like  actors,   Specifies  the   employees  have  roles   sequences  of  behavior   to  play  and  behave  in   for  customers  and   specific  ways   employees       Implication  of  customer  participation  in  service  delivery  :     Ø   Greater  need  for  information/training     ⇒   Help  customers  to  perform  well,  get  desired  results     Ø   Customers  should  be  given  a  realistic  service  preview  in  advance  of  service  delivery   ⇒   This  allows  them  to  have  a  clear  idea  of  their  expected  role  and  their  script  in  this  whole   experience   ⇒   Manages  expectations  and  emotions     Post  purchase  stage  :  satisfaction  or  not…     v   Evaluation  of  service  performance   v   Future  intentions     «  Taking  time  to  hire  people  is  important  because  this  is  a  long  term  investment,with  a    long  process,  and   a    big  cost  »     REMINDER  :  Psychic  cost  :  time  +  energy  +  effort       Customer  satisfaction  with  service  experience       Customer  satisfaction:  attitude-­‐like  judgment  following  a  service  purchase  or  series  of  service  interactions   à  Whereby  customers  have  expectations   prior  to  consumption,  observe  service  performance,  compare  it   to  expectations   ⇒   Satisfaction  judgments  are  based  on   this  comparison  :     -­‐   Positive  disconfirmation  (better)   -­‐   Confirmation  (same)   -­‐   Negative  desconfirmation  (worse)     •   Post  purchase  behavior   ⇒   How  satisfied  are  you  ?   ⇒   Would  you  recommend  to  others  ?   ⇒   Would  you  return  in  the  future  ?     •   What  is  worth  it  ?   ⇒   Were  expectations  confirme  or  not  ?   ⇒   If  not,  what  recourse  ?   ⇒   In  the  future…   ⇒   Word  of  mouth  aslo  «  ewom  »   ⇒   Patronage  intentions           Post  purchase  stage  –  expectancy-­‐disconfirmation  model  of  satisfaction       Customer  delight  :  going  beyond  satisfaction       Research  shows  that  delight  is  a  function  of  three  components  :   -­‐   Unexpectedly  high  levels  of  performance   -­‐   Arousal  (ex.  surprise,  excitement)   -­‐   Positive  affect  (ex.  pleasure,  joy,  or  happiness)     à  Strategic  links  exist  between  customer  satisfaction  and  corporate  performance  :  by  creating  more   value  for  customers  (increased  satisfaction),  the  firm  creates  more  value  for  the  owners  


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