1. McGraw-Hill © 2000 The McGraw-Hill Companies 1 S M S M Part 1 FOCUS ON THE CUSTOMER McGraw-Hill © 2000 The McGraw-Hill Companies

2. McGraw-Hill © 2000 The McGraw-Hill Companies 2 S M 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

3. McGraw-Hill © 2000 The McGraw-Hill Companies 3 S M 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

4. McGraw-Hill © 2000 The McGraw-Hill Companies 4 S M The Customer Gap Expected Service Perceived Service GAP Part 1 Opener

5. McGraw-Hill © 2000 The McGraw-Hill Companies 5 S M S M Chapter 2 CONSUMER BEHAVIOR IN SERVICES McGraw-Hill © 2000 The McGraw-Hill Companies

6. McGraw-Hill © 2000 The McGraw-Hill Companies 6 S M Objectives for Chapter 2: Consumer Behavior in Services Overview the generic differences in consumer behavior between services and goods Introduce the aspects of consumer behavior that a marketer must understand in five categories of consumer behavior: Information search Evaluation of service alternatives Service purchase and consumption Postpurchase evaluation Role of culture

7. McGraw-Hill © 2000 The McGraw-Hill Companies 7 S M 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

8. McGraw-Hill © 2000 The McGraw-Hill Companies 8 S M 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

9. McGraw-Hill © 2000 The McGraw-Hill Companies 9 S M Figure 2-2 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

10. McGraw-Hill © 2000 The McGraw-Hill Companies 10 S M 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

11. McGraw-Hill © 2000 The McGraw-Hill Companies 11 S M Global Feature: Differences in the Service Experience in the U.S. and Japan Authenticity Caring Control Courtesy Formality Friendliness Personalization Promptness