Consumer Behavior in SERVICES CHAPTER 3

Consumer problem Time Deficiency  For many customers, all types of shopping have become “drudgery or worse” Faced with dilemma, consumers have choices. They can continue to do all these tasks for themselves, or the can decide to employ the services of professionals or friends and relatives to help them out. The antidote to this time deficiency is found in many new services and service features that recover time for customers.

Innovative new services pet sitting, plant watering, mail packaging, wedding advising, baby proofing, even health form preparation-are emerging to deal with tasks that used to be performed by the household but now can be purchased by the time buying consumer. Conventional services such as retailing, banking and restaurants are also adding peripheral services to make shopping easier, increasing their hours to suit customer schedules, reducing transaction time, improving delivery, and providing merchandise or services at home or work.

Increased used of internet is also saving the time for customers. With the web and home delivery, many shopping tasks can be carried out by customers without even leaving the house and at any time of the day or night.

SEARCH, EXPERIENCE, AND CREDENCE PROPERTIES

CONSUMER CHOICES Following are the steps involved in consumer buying decision process: 1) Need recognition 2) Information search 3) Evaluation of alternatives 4) Purchase decision 5) Post purchase evaluation

 Although some degree of perceived risk probably accompany all purchase transactions, more risk would appear to be involve in the purchase of services than in purchase of goods because services typically are more intangible and, non standardized and usually sold without guarantee and warranty.

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4) Service purchase  The fourth set of consumer buying decision process is decision and use. There can be two types of decisions, weather to buy or Not buy. If your decision is not to purchase then your buying decision will finished at this stage but if your decision is to purchase then their certain other decisions related to this purchase i.e. warranty and guarantee, mode of payment,delivery related information. After that you will use the product.

5) Post purchase Evaluation: Attribution of dissatisfaction: when consumers are disappointed with purchase because the products did not fulfill the intended needs, did not perform satisfactorily or were not worth their price. They may attribute their dissatisfaction to a number of different sources, among them the producers, the retailers, or themselves. Because consumer participate to a greater to extent in the definition and production of services, they may feel more responsible for their dissatisfaction when they purchase services than when they purchase goods.

continued Brand loyalty: The degree to which consumers are committed to particular brands of goods or services depends on a number of factors. The cost of changing brands (switching cost), the availability of substitutes, and the perceived risk associated with the purchase, and the degree to which they have obtained satisfaction in the past. Because it may be more costly to change brands of services, because awareness of substitutes is limited, and because higher risk may accompany services, consumers are more likely to remain customers of a particular companies with services than goods.

The role of culture in services Culture : Culture is a set of symbols and traits created by society and handed down from generation to generation. The symbols may be intangible ( attitude, belief, values, language) or tangible ( tools, housing, products, works of arts ). Culture is learned, shared, and transmitted from generation to generation. Culture is important in service marketing because of its effects on the ways customers evaluate and use services. It also influences how companies and their services employees interact with customers. Culture is important when we consider international service marketing, taking the services from one country and offering them in other.

Elements of culture 1) Values and attitudes Differ across Cultures: Values and attitudes help to determine what members of a culture think is right, important and or desirable.Because behaviors including consumer behaviors, flows from values and attitudes, service marketers who want their services adopted across cultures must understand these differences. 2) Manners and customs: Manners and customs represents a culture’s views of appropriate ways of behaving. It is important to monitor differences in manners and customs because they can have a direct effect on the service encounter.

Continue 3) Material culture: Material culture consists of the tangible products of culture. What people own and how they use material possessions vary across world. Cars, houses, cloths, and furniture are examples of material culture. In Japan there are small houses because of the largest population. Japanese use small cages in the zoo for the animals and the people is USA uses large cages in zoo. If a US person visits the zoo in Japan so they will feel that this is a mistreatment while Japanese think that this small cage is enough for the animals. 4) Aesthetics : R efers to cultural ideas about beauty and good taste. These are reflected in music, art, drama, and dance, as well as appreciation of color and taste.

Continue 5) Educational and social institutions: Both kinds of institution are affected by, and are transmission agents of, culture. The structure and functioning of each are heavily influenced by culture.Class room participation varies substantial across cultures. Japanese students are used to listen to lectures, taking notes and asking questions at the end of lectures. Spaniards are used to huge undergraduate classes ( Hundreds rather than dozens) they tend to talk to their friends even if the instructor is talking. Likewise the health care and patient /doctor interaction also varies across cultures.

Difference in the service experience in united states and Japan Authenticity: In Japan “every clerk has the same type of smile…the smile is not natural,”and ‘everything is done according to manual.” In united states, clerks “ act independently,” and “ there is more variation in treatment.” Caring : Caring or concern is the most important dimension in Japan. The “customer is God.” In United states, sales clerks are always answering, “ I don’t know,” and “ they don’t seem to care. Control: control is very important to Americans.In Japan, on the other hand,they give the controlling interest to the clerk. "control is not important in Japan. Courtesy: is very important in Japan. If we find something bad about a service like, for example, they didn't apologize for spilling water, we never go back there again.” courtesy is very important in Japan.

continued Formality : Formality is the requirement for all service. Treatment in the United states is much more informal. Promptness: In the US the sales clerk and the customer expect to have a nice little chat. In Japan, many people would prefer a sales clerk who is quick but unfriendly.