Chapter 2Consumer Behavior in Service EncountersWhere Does the Customer Fit in aService Organization? (Fig. 2.1)

Consumers rarely involved in manufacture of goods but often participate in service creation and deliveryChallenge for service marketers is to understand how customers interact with service operationsFlowcharting clarifies how customer involvement in service encounters varies with type of process - see Fig. 2-1:People processing (e.g., motel stay): customer is physically involved throughout entire processPossession processing (e.g., DVD repair): involvement may be limited to drop off of physical item/description of problem and subsequent pick upMental stimulus processing (e.g., weather forecast): involvement is mental, not physical; here customer simply receives output and acts on itInformation processing (e.g., health insurance): involvement is mental - specify information upfront and later receive documentation of coverageHigh-Contact and Low-Contact Services

High Contact ServicesCustomers visit service facility and remain throughout service deliveryActive contact between customers and service personnelIncludes most people-processing servicesLow Contact ServicesLittle or no physical contact with service personnelContact usually at arms length through electronic or physical distribution channelsNew technologies (e.g. Web) help reduce contact levelsLevels of Customer Contact with Service Organizations (Fig. 2.2)Managing Service Encounters--1

Service encounter: A period of time during which customers interact directly with a serviceMoments of truth: Defining points in service delivery where customers interact with employees or equipment Critical incidents: specific encounters that result in especially satisfying/dissatisfying outcomes for either customers or service employeesManaging Service Encounters--2

Service success often rests on performance of junior contact personnelMust train, coach, role model desired behaviorThoughtless or badly behaved customers can cause problems for service personnel (and other customers)Must educate customers, clarify what is expected, manage behavior

The Purchase Process for Services(Adapted from Fig. 2-3)

Prepurchase StageAwareness of needInformation searchEvaluation of alternative service suppliersService Encounter StageRequest service from chosen supplierService deliveryPostpurchase StageEvaluation of service performanceFuture intentionsPerceived Risks in Purchasing and Using Services (Table 2.1)

Functional unsatisfactory performance outcomesFinancial monetary loss, unexpected extra costsTemporal wasted time, delays lead to problemsPhysical personal injury, damage to possessionsPsychological fears and negative emotionsSocial how others may think and reactSensory unwanted impacts to any of five senses

Factors that Influence Customer Expectations of Services (Fig. 2.4)Components of Customer Expectations

Desired Service Level: wished-for level of service quality that customer believes can and should be deliveredAdequate Service Level: minimum acceptable level of service Predicted Service Level: service level that customer believes firm will actually deliverZone of Tolerance: range within which customers are willing to accept variations in service delivery

Intangible Attributes, Variability, and Quality Control Problems Make Services Hard to Evaluate

Search attributes Tangible characteristics that allow customers to evaluate a product before purchaseExperience attributes Characteristics that can be experienced when actually using the serviceCredence attributes Characteristics that are difficult to evaluate confidently even after consumptionGoods tend to be higher in search attributes, services tend to be higher in experience and credence attributesCredence attributes force customers to trust that desired benefits have been delivered

How Product Attributes Affect Ease of Evaluation) (Fig. 2.5)Customer Satisfaction is Central to the Marketing ConceptSatisfaction defined as attitude-like judgment following a service purchase or series of service interactionsCustomers have expectations prior to

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