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