The Purchase Process For Services Dr. Donna J. Hill Mtg. 410 Fall 2000

Perceived Service Expected Service CUSTOMER COMPANY Customer Gap GAP 1 GAP 2 Gaps Model of Service Quality GAP 3 External Communications to Customers GAP 4 Service Delivery Customer-Driven Service Designs and Standards Company Perceptions of Consumer Expectations Part 1 Opener

Gaps Model of Service Quality Customer Gap: difference between expectations and perceptions Provider Gap 1: not knowing what customers expect Provider Gap 2: not having the right service designs and standards Provider Gap 3: not delivering to service standards Provider Gap 4: not matching performance to promises Part 1 Opener

The Customer Gap Expected Service Perceived Service GAP Part 1 Opener

Objectives for Chapter 2: Consumer Behavior in Services Information search Evaluation of service alternatives Service purchase and consumption Postpurchase evaluation Role of culture

Purchase Model for Services Prepurchase Phase Service Encounter Postpurchase Phase

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

Figure 2-1 Continuum of Evaluation for Different Types of Products Clothing Jewelry Furniture Houses Automobiles Restaurant meals Vacations Haircuts Child care Television repair Legal services Root canals Auto repair Medical diagnosis Difficult to evaluate Easy to evaluate { High in search qualities High in experience qualities High in credence qualities { { Most Goods Most Services

Prepurchase Phase Information Search Use of personal sources Perceived risk Competitive options. Social context

Prepurchase Phase Firm-Produced Factors Promotions Pricing Distribution

Prepurchase Phase Risk Performance Financial Time loss Opportunity Psychological Social Physical

Strategies to Reduce Performance Risk Uncertainty: Certification, branding, communications Consequences: Quality control standards & procedures, Warranties Strategies to Reduce Time Loss Risk Uncertainty: Trial purchases, sampling, promotional incentive Consequences: Guarantees Strategies to Reduce Financial Risk Uncertainty: Branding Consequence: Compensation offers

Strategies to Reduce Opportunity Risk Uncertainty: Branding Consequence: Quality control standards & procedures Strategies to Reduce Psychological & Social Risk Uncertainty: Branding, communications Consequences: Quality control standards & procedures Strategies to Reduce Physical Risk Uncertainty: Instruction, communications Consequence: Safety standards

Pre-Purchase Phase Evaluation of Alternatives Evoked set Emotion and mood

Service Purchase and Consumption The Service Encounter No marketing exchange occurs in a vacuum. The social and physical settings influence the impression made on customers. Service personnel, physical setting, and other customers all provide customers with tangible indicators of the service.

The Service Encounter Service provision as drama Service roles and scripts Compatibility of customers

Postpurchase Phase Service Quality Evaluation Repeat purchases Firm loyalty Positive word-of-mouth communications Firm switching Negative word-of-mouth communications Satisfaction Dissatisfaction

Postpurchase Phase Attribution of dissatisfaction Innovation diffusion Brand loyalty

Attribution Theory Where does the customer assign blame. Controllable or Uncontrollable. Situational factors play a significant role..

Figure 2-3 Categories in Consumer Decision-Making and Evaluation of Services Information Search Evaluation of Alternatives Purchase and Consumption Post-Purchase Evaluation Use of personal sources Perceived risk Evoked set Emotion and mood Service provision as drama Service roles and scripts Compatibility of customers Attribution of dissatisfaction Innovation diffusion Brand loyalty Culture Values and attitudes Manners and customs Material culture Aesthetics Educational and social institutions

Global Feature: Differences in the Service Experience in the U.S. and Japan Authenticity Caring Control Courtesy Formality Friendliness Personalization Promptness