Consumer Behavior in Services
Search, Experience and Credence Properties Search qualities Attributes that a consumer can determine before purchasing a product Color, style, price, fit, hardness, smell Experience qualities Attributes that can be discerned only after purchase or during consumption Vacations, meals Credence qualities Characteristics that the consumer may find impossible to evaluate even after purchase and consumption Legal services, TV repair, Auto repair, Medical diagnosis
Continuum evaluation for different types of products
Stages in consumer decision making process Information Search Need Recognition Information Search Evaluation of Alternatives Purchase Post experience evaluation Consumer Experience
Information Search Non - Personal sources Personal sources Use of Personal sources higher Capabilities of Mass and selective media can convey experience quality Limited non personal sources Many service provider are local and independent Influence of word of mouth
Perceived risk Higher Non standardized nature Warranties and guarantees Lack of knowledge possessed by customers (technical/ specialized) Over come strategies Guarantees, more tangible (UPS, FedEx), Offering free or reduced cost trail
Evaluation of Alternatives Limited alternatives (Saloon, Banks) as Single brand in offer Proximity of service provider Difficulty of obtaining pre purchase information Internet’s role: airlines, hotels Performing themselves or out sourcing
Service Purchase Goods fully produced before purchase Purchased and produced simultaneously E.g: restaurant Pay partly/ fully before produced E.g: vacation, construction, long term contracts Inherent risk minimize strategies Free/ deeply discounted service Service level agreements
Consumer Experience Services as processes - sequence of steps, actions e.g medical care Service performances: Walt Disney, circus, drama Service roles (air hostess, waiter) and scripts (logical sequence of events expected by a customer) Compatibility of service customer: over crowding, behavior, beliefs Customer co production: education, outsourcing, consulting
Post Experience Evaluation Word of mouth communication Attribution of dissatisfaction Positive or negative biases Remembrance, influence, weightage +ve bias for service Brand loyalty Depends on cost of changing brand (switching cost) Availability of substitutes Social ties to the company The perceived risk associated with the purchase Satisfaction obtained in the past