Chapter 3 Consumer Behavior in Services

Expectedservice

Perceivedservice

Customer Gap

The Customer GapThe Customer Gap

Consumer Behavior in ServicesConsumer Behavior in Services

Search, Experience, and Credence Properties

Consumer Choice Consumer Experience Postexperience Evaluation Understanding Differences Among

Consumers

Evaluating servicesEvaluating services

Services may be difficult to evaluate before purchase

As a result, customers may worry about: The risk of making a purchase that may be dissatisfactory

Why?

Perceived riskPerceived risk

-Functional – Will this credit card be accepted everywhere? -Financial – Will I lose money if I follow what my financial

advisor says? Temporal- Will I have to wait in line 2 hrs before the doctors

sees me? Physical- Will the contents of this package get damaged in

the mail? Psychological- How can I be sure that this aircraft won’t

crash?; Will the consultant make me feel inadequate? Social: What will my friends think of me if they learned I

stayed at this cheap hotel?

Consumer Evaluation Processes for ServicesConsumer 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

Figure 3.2

Continuum of Evaluation for Different Types of Products

Figure 3.2

Continuum of Evaluation for Different Types of Products

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Difficult to evaluateEasy to evaluate

High in searchqualities

High in experiencequalities

High in credencequalities

MostGoods

MostServices

Figure 3.3

Stages in Consumer Decision Making and Evaluation of Services

Figure 3.3

Stages in Consumer Decision Making and Evaluation of Services

Stage 1- ChoiceStage 1- Choice

ChoiceAutomobile (goods) Vacation (services)

Need recognition (physiological, safety, social, self esteem, self actualization)

Same Same, maybe services are more suited for higher level needs

Information search Personal, non personal sourcesLess risk

More on personal sources (credence, experience qualities are diff to explain in media)-not available- because of intangibility perceived risk is higher

Evaluation of alternatives More alternatives Less alternativesPurchase Good is fully produced Service is still not produced.

Stage 2: Consumer Service ExperienceStage 2: Consumer Service Experience

Services as processes

Service provision as drama

Service roles and scripts

The compatibility of service customers

Customer coproduction

Emotion and mood

Service rolesService roles

Dentist Patient

Perform the requested operation Be present

Inform of the risks involved Provide information truthfully

Present alternatives Follow doctor’s orders

Inform on other actions to be taken

Script for teeth cleaningScript for teeth cleaning

1. Phone for appointment

2. Confirm needs, set date

3. Arrive at dental office

4. Greet patient; verify purpose; direct to waiting room; notify hygienist of arrival

5. Reviews notes on patient

6. Sits in waiting room 7. Greet patient and lead way to treat.room

Script for teeth cleaningScript for teeth cleaning

8. Enter room; sit in dental chair

9. Verify medical history

10. Respond to hygienist questions

11. Place protective covers over clothes; lowers dental chair; puts on protective equipment

12. Inspect teeth, place suction device in mouth

13. Use high speed and hand tools to clean teeth in sequence; remove suction; raise chair; ask to rinse

14. Rinse mouth; leave room 15. Greet patient; present bill

16. Removes equipment; fill in notes

17. Pay bill; leave 18. Give receipt; Good bye

Stage 3: Post-purchase evaluationStage 3: Post-purchase evaluation

Post purchase evaluationGoods Services

WOM management Less More (personal source)

Attribution of dissatisfactionOn the producer, retailer, themselves

On the producer, retailer, themselves (more)

Biases More Less

LoyaltyLess More