2. consumer behavior in service encounters
TRANSCRIPT
8/13/2019 2. Consumer Behavior in Service Encounters
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CHAPTER 2
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WHERE DOES THE CUSTOMER FIT IN A
SERVICE ORGANIZATION? (FIG. 2.1)
Consumers rarely involved in manufacture of goods but often participate inservice creation and delivery
Challenge for service marketers is to understand how customers interact
with service operations
Flowcharting clarifies how customer involvement in service encounters
varies with type of process - see Fig. 2-1: People pro cess ing (e.g., motel stay): customer is physically involved
throughout entire process
Possession pro cessin g (e.g. , DVD repair): involvement may be limited to drop
off of physical item/description of problem and subsequent pick up
Mental st imulus proc essing (e.g. , weather forecast): involvement is mental,not physical; here customer simply receives output and acts on it
Info rmat ion p rocessing (e.g. , health insurance): involvement is mental -
specify information upfront and later receive documentation of coverage
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HIGH-CONTACT AND LOW-CONTACT SERVICES
High Con tact Services
Customers visit service facility and remain throughout service
delivery
Active contact between customers and service personnel
Includes most people-processing services
Low Contact Services
Little or no physical contact with service personnel
Contact usually at arm’s length through electronic or physical
distribution channels
New technologies (e.g. Web) help reduce contact levels
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LEVELS OF CUSTOMER CONTACT WITH SERVICE
ORGANIZATIONS
Emphasizes encounters
with service personnel
Emphasizes encounters
with equipment
High
Low
M a n a g e m e n t C o n s u l t i n g
C a r R e p a i r
I n s u r a n c e M o t e l
F a s t F o o d
N u r s i n g H o m e
A i r l i n e T r a v e l ( E c o n . )
C a b l e T V
T e l e p h o n e B a n k i n g
H a i r C u t
G o o d R e s t a u r a n t
4 - S t a r H o t e l
D r y C l e a n i n g
R e t a i l B a n k i n g
Mail Based Repairs
Internet-based
Services
Movie Theater
• Internet Banking
Subway
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MANAGING SERVICE ENCOUNTERS--1
Service encoun ter: A period of time during whichcustomers interact directly with a service
Moments o f t ruth: Defining points in service
delivery where customers interact withemployees or equipment
Crit ical inc idents : specific encounters that result
in especially satisfying/dissatisfying outcomesfor either customers or service employees
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MANAGING SERVICE ENCOUNTERS--2
Service success often rests onperformance of junior contact
personnel
Must train, coach, role model desiredbehavior
Thoughtless or badly behaved
customers can cause problems forservice personnel (and other
customers)
Must educate customers, clarify what
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THE PURCHASE PROCESS FOR SERVICES
Prepu rchase Stage Awareness of need
Information search
Evaluation of alternative service suppliers
Service Encounter Stage
Request service from chosen supplier
Service delivery
Postpurchase StageEvaluation of service performance
Future intentions
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PERCEIVED RISKS IN
PURCHASING AND USING SERVICES
Funct ional – unsatisfactory performanceoutcomes
Financial – monetary loss, unexpected
extra costs
Temporal – wasted time, delays lead toproblems
Physical – personal injury, damage to
possessions
Psycholog ica l – fears and negative
emotions
Social – how others may think and react
Sensory – unwanted impacts to any of
five senses
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FACTORS THAT INFLUENCE
CUSTOMER EXPECTATIONS OF SERVICES
Predicted Service
Explicit & ImplicitService Promises
Word-of-Mouth
Past ExperienceDesired Service
ZONEOF
TOLERANCE
Adequate Service
Personal Needs
Beliefs aboutWhat Is Possible
Perceived ServiceAlterations
Situational Factors
Sourc e: Adapted from Zeithaml, Parasuraman & Berry
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COMPONENTS OF CUSTOMER EXPECTATIONS
Desired Serv ice Level: wished-for level of service quality
that customer believes can and should be delivered
Adequate Service Level: minimum acceptable level of
servicePredic ted Service Level: service level that customer
believes firm will actually deliver
Zone of Tolerance: range within which customers are
willing to accept variations in service delivery
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INTANGIBLE ATTRIBUTES, VARIABILITY, AND QUALITY
CONTROL PROBLEMS MAKE SERVICES HARD TO
EVALUATE
Search attr ibu tes – Tangible characteristics that allowcustomers to evaluate a product before purchase
Experience attr ibu tes – Characteristics that can beexperienced when actually using the service
Credence attr ibu tes – Characteristics that are difficult toevaluate confidently even after consumption
Goods tend to be higher in search attributes, servicestend to be higher in experience and credence attributes
Credence attributes force customers to trust that desired
benefits have been delivered
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HOW PRODUCT ATTRIBUTES AFFECT
EASE OF EVALUATION)
Source: Adapted from Zeithaml
Most Goods
High in searchattributes
High in experienceattributes
High in credence attributes
Difficult to evaluate
Easyto evaluate
Mos t Services
C l o t h i n g
C h a i r
M o t o r v e h i c l e
F o o d s
R e s t a u
r a n t m e a l s
L a w
n f e r t i l i z e r
H a i r c u t
E n t e
r t a i n m e n t
C o m p
u t e r r e p a i r
L e g a l s e r v i c e s
C o m p l e x s u r g e r y
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CUSTOMER SATISFACTION IS CENTRAL TO THE
MARKETING CONCEPT
Satisfaction defined as attitude-like judgment following a servicepurchase or series of service interactions
Customers have expectations prior to consumption, observe service
performance, compare it to expectations
Satisfaction judgments are based on this comparison
Positive disconfirmation if better than expected Confirmation if same as expected
Negative disconfirmation if worse than expected
Satisfaction reflects perceived service quality, price/quality tradeoffs,
personal and situational factorsResearch shows links between customer satisfaction and a firm’s
financial performance
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CUSTOMER DELIGHT:
GOING BEYOND SATISFACTION
Research shows that del ight is a function of 3
components
Unexpectedly high levels of performance
Arousal (e.g., surprise, excitement)
Positive affect (e.g., pleasure, joy, or happiness)
Is i t possib le for cu stom ers to be del igh ted by very
mundane services?
Progressive Insu rance has found ways to posi t ively
surpr ise
custom ers wi th custom er-f r iendly innovat ions and
extraord inary cus tomer service
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A SERVICE BUSINESS IS A SYSTEM COMPRISING
THREE OVERLAPPING SUBSYSTEMS
Service Operat ions (front stage and backs tage)
Where inputs are processed and service elements created.
Includes facilities, equipment, and personnel
Service Delivery (front s tage)
Where ―final assembly‖ of service elements takes place
and service is delivered to customers
Includes customer interactions with operations and other
customers
Service Marketing (fron t stage)
Includes service delivery (as above) and all other contacts
between service firm and customers
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SERVICE MARKETING SYSTEM:
(1) HIGH CONTACT SERVICE--E.G., HOTEL
The Customer
Technical Core
Interior & Exterior Facilities Equipment
Service People
Other Customers
Other Customers
Advertising Sales Calls Market Research Surveys Billing / Statements Miscellaneous Mail,
Phone Calls, Faxes, etc. Random Exposure to Facilities / Vehicles Chance Encounters
with Service Personnel Word of Mouth
Service Operations System
Backstage (invisible) Front Stage
(visible)
Service Delivery System Other Contact Points Service Marketing System
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SERVICE MARKETING SYSTEM:
(2) LOW CONTACT SERVICE--E.G., CREDIT CARD
Technical Core
Mail Self Service Equipment Phone, Fax, Web site etc.
The Customer
Service Operations System Service Delivery System Other Contact Points
Backstage (invisible)
Front Stage (visible)
Advertising Market Research Surveys Random Exposures Facilities, Personnel Word of Mouth
Service Marketing System
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SERVICE AS THEATER
“ All the world’s a stageand al l the men andwomen merely p layers.
They have their exits andtheir entrances and eachman in h is t ime playsmany parts”
William ShakespeareAs You Like
It
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THE DRAMATURGY OF SERVICE DELIVERY
Service dramas unfold on a ―stage‖--settings may changeas performance unfolds
Many service dramas are tightly scripted, others
improvised
Front-stage personnel are like members of a cast
Like actors, employees have roles, may wear special
costumes, speak required lines, behave in specific ways
Support comes from a backstage production team
Customers are the audience—depending on type of
performance, may be passive or active
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ROLE AND SCRIPT THEORIES
Role: A set of behavior patterns learned throughexperience and communication
Role congruence: In service encounters, employees and
customers must act out defined roles for good
outcomes
Scr ipt : A sequence of behavior to be followed by
employees and customers during service delivery
Some scripts (e.g. teeth cleaning) are routinized, others
flexible
Technology change may require a revised script
Managers should reexamine existing scripts to find ways to
improve delivery, increase productivity, enhance experiences