1. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. C hapter 4 C onsumer D ecision P rocess I ssues in S ervices M arketing

2. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. THE CONSUMER DECISION PROCESS  STIMULUS =>  cues that incite an action  commercial  social  physical

3. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. THE CONSUMER DECISION PROCESS  Need recognition =>  shortages (needs)  unfulfilled desires (wants)  psychological vs. functional  stimulation  self-reward  social experience  status and power  learning new trends

4. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. THE CONSUMER DECISION PROCESS  Information search =>  sources  internal  external  types of risk  economic, social  psychological, physical  performance

5. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. THE CONSUMER DECISION PROCESS  Evaluation of alternatives =>  consideration sets  multi-attribute models  criteria  ranking  importance weights  Managerial importance  changing performance beliefs  changing Importance weights  getting in the consideration set

6. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. THE CONSUMER DECISION PROCESS  Purchase =>  store vs. nonstore choice  Post purchase evaluation  cognitive dissonance

7. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. PREPURCHASE STAGE: SPECIAL CONSIDERATIONS  Higher levels of perceived risk  actions are associated with higher levels of consequences and uncertainty  consequences => the degree of importance/danger of the outcomes derived from the decision  uncertainty => subjective possibility of occurrence of these outcomes

8. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. PREPURCHASE STAGE: SPECIAL CONSIDERATIONS  Reasons for perceptions of increased risk  risk and standardization (Heterogeneity)  co-producer risk (Inseparability)  information and risk  search attributes  experience attributes  credence attributes

9. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. PREPURCHASE STAGE: SPECIAL CONSIDERATIONS  Service consumers are more brand loyal  lowers perceived risk  fewer choices are available  switching costs are higher  search, learning,  loyal consumer discounts, customer habit  emotional costs, cognitive costs

10. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. PREPURCHASE STAGE: SPECIAL CONSIDERATIONS  Importance of personal sources of information  mass media is less effective  word-of-Mouth rules  target opinion leaders  nonpersonal sources may not be available  professional restrictions  small firms may lack resources/expertise

11. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. PREPURCHASE STAGE: SPECIAL CONSIDERATIONS  Fewer alternatives to consider  each service provider only offers one brand  the number of alternatives is smaller  Distribution implications  Evoked set is smaller  lack of prepurchase information  Self-service is a viable alternative

12. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. CONSUMPTION STAGE: SPECIAL CONSIDERATIONS  Consumption sequence differs  goods  Produce-acquire-use-dispose  services  Production-acquisition-use (entangled)-disposal is irrelevant  evaluation occurs during and after consumption

13. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. POSTCHOICE STAGE: SPECIAL CONSIDERATIONS  The Expectancy Disconfirmation Perspective  perceptions vs. expectations  Positive vs. negative disconfirmations  customer perceptions define reality  the management of expectations and perceptions

14. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. POSTCHOICE STAGE: SPECIAL CONSIDERATIONS  The Perceived-control Perspective  the need for control is a major driving force in human behavior  consumers exchange cash and control for benefits

15. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. POSTCHOICE STAGE: SPECIAL CONSIDERATIONS  The Perceived-control Perspective  behavioral control vs. perceived control (predictability)  it’s the perception of control, not the reality, that is important  value of information (delayed airlines)  informing customers of changes

16. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. POSTCHOICE STAGE: SPECIAL CONSIDERATIONS  The Script Perspective  “all the world’s a stage and the people players”  Role theory vs. Script theory  role theory  role => a set of behavior patterns learned through experience and communication to attain goal accomplishment

17. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. POSTCHOICE STAGE: SPECIAL CONSIDERATIONS  Role theory  Role  a set of behavior patterns learned through experience and communication to attain goal accomplishment  Role congruence  Behaviors that are consistent with role expectations

18. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. POSTCHOICE STAGE: SPECIAL CONSIDERATIONS  Role is assumed to be extra-individual  everyone is expected to display the same set of predetermined behaviors  the content of the role is defined by the individuals social position or title

19. COPYRIGHT ©2002 Thomson Learning, Inc. Thomson Learning  is a trademark used herein under license. ALL RIGHTS RESERVED. POSTCHOICE STAGE: SPECIAL CONSIDERATIONS  Script Theory is more realistic  rules are determined by social and cultural variables that exist to facilitate interactions  concerned with the whole experience rather than only the interpersonal encounter  scripts are intra-individual  function of an individuals experience and personality