Services Marketing by P Sivarajadhanavel Part 2 Focus on the Customer Chapter – 3 – Consumer Behavior in Services Chapter -4 – Customer Expectations of Service Chapter – 5 – Customer Perceptions of Service

The Customer GAP The customer gap is the difference between customer expectations and perceptions Expected service Perceived service Customer Gap

Chapter – 3 Consumer Behavior in Services

Objectives Enhance understanding of how consumers choose and evaluate services, through focusing on factors that are particularly relevant for services. Describe how consumers judge goods versus services in terms of search, experience, and credence criteria. Develop the elements of consumer behavior that a services marketer must understand – choice behavior, Consumer experiences, and post experience evaluation. Explore how differences among consumers (cultural differences, group decision making) affect consumer behavior and influence services marketing Strategies.

Consumer Problem Today’s consumers main problem Time Deficiency

Consumer behavior Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Definition Belch and Belch define consumer behavior as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'. Consumer Behavior A consumer market is any market in which the end consumers are the purchasers and users of the goods and services. An industrial market, on the other hand, is any market in which other businesses, rather than end consumers, are the purchasers of the goods and services

The Consumer Purchase Decision Consumer behavior refers to the decision-making process that consumers use when purchasing goods and services. These purchase decisions involve many factors and steps: Search Qualities Experience Quality Credence Qualities

Consumer Evaluation Processes for Services èSearch Qualities çattributes a consumer can determine prior to purchase of a product èExperience Qualities çattributes a consumer can determine only after purchase or during consumption of a product èCredence Qualities çcharacteristics that may be impossible to evaluate even after purchase and consumption

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 { { MostGoods MostServices

Stages in consumer Decision making and Evaluation of Services Consumer Choice –Need Recognition –Information Search –Evaluation of Alternatives –Purchase Consumer Experience Post experience Evaluation

Need Recognition Psychological needs – are biological needs such as food, water, and sleep Safety and security needs – include shelter, protection and security Social needs – are for affection, friendship, and acceptance Ego needs- are for prestige, success, accomplishment, and self-esteem Self-actualization – involves self fulfillment and enriching experiences Self-actualisation Esteem Love Safety Physiological

 Information Search  Personal and Nonpersonal sources  Word of Mouth recommendation (WOM)  Reference groups  Media communications  Internet sources  Perceived Risks in information search Factors affecting perceived risk: WThe level of tangible evidence WBuyer involvement WNew purchase WPersonal risk tolerance WSituational factors WLegal safeguards  Technology Spotlight

Evaluation of Alternatives  Evoked set of alternatives that group of products that a consumer considers acceptable options in a given product category  A process of choice reduction.  ‘ Rules ’ based approaches used.  Critical attributes, average score of all attributes, or weighted attributes. Example: –Professional – Bank, dry cleaner, or hair salon –Nonprofessional services – performing the services for themselves or hiring some to perform them

Service Purchase In the purchase of services consumers have less idea on the offering as purchased and produced and consumed simultaneously. Consumers make purchase decision before experience of services But incase of product purchase consumer have tangible products in making purchase decision

Consumer Experience Service as process Service Provision as Drama Service Roles and Scripts The compatibility of service customers Customer Co-production Emotion and Mood

Post Experience Evaluation Word-of-Mouth Attribution of Dissatisfaction Positive or Negative Biases Brand Loyalty

Understanding differences among consumers Global Differences – The role of culture –Values and attitudes differ across culture –Manners and customs –Material Culture –Aesthetics –Educational and Social Institutions Group Decision Making –Households –Organizations

END