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Consumer Behavior in Services

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Presentation on theme: "Consumer Behavior in Services"— Presentation transcript:

1 Consumer Behavior in Services

2 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

3 Continuum evaluation for different types of products

4 Stages in consumer decision making process
Information Search Need Recognition Information Search Evaluation of Alternatives Purchase Post experience evaluation Consumer Experience

5 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

6 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

7 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

8 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

9 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

10 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


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