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Consumer Behaviour In

ServicesChapter 2nd

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Consumer Behaviour Service Differences

Intangibility problem

Consumer involvement

Perceived Risk

Sources of Information

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Consumer Evaluation Processes for Services

Search Qualities

attributes a consumer can determine prior to

purchase of a productExperience Qualities

attributes a consumer can determine afterpurchase (or during consumption) of a product

Credence Qualities

characteristics that may be impossible toevaluate even after purchase and consumption

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Continuum of Evaluation for

Different Types of Products

Difficult to evaluateEasy to evaluate

High in search

qualities

High in experience

qualities

High in credence

qualities

MostGoods

MostServices

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Services - Decision Making ProcessNeed awareness Information search

Evaluation of

service suppliers

Request service

Service delivery

Evaluation

Future Intentions

Memory

Memory

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Categories in Consumer Decision-Making andEvaluation of Services

InformationSearch

Evaluation ofAlternatives

Purchase andConsumption

Post-PurchaseEvaluation

Use of personal sourcesPerceived risk

Evoked setEmotion and mood

Service provision as dramaService roles and scriptsCompatibility of customers

Attribution of dissatisfactionInnovation diffusionBrand loyalty

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Consumer Categories in Decision-Making and Evaluation of Services

Information Search Evaluation ofAlternatives

Purchase andConsumption

Post - PurchaseEvaluation

Use of personal sourcesPerceived risk

Evoked setEmotion and mood

Service provision as dramaService roles and scriptsCompatibility of customers

Attribution of dissatisfactionInnovation diffusionBrand loyalty

Culture Values and attitudesManners and customs Material culture Aesthetics

Educational and socialinstitutions

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Key Issues for Decision Making

Who is involved in the decision making process?

How long does the process take?

What is the set of competing services from

which consumers make their choice?What is the relative importance attached by

decision makers to different elements of theservice offer?

What sources of information are used inevaluating competing service offers?

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Maslows Hierarchy of Needs

Self-

actualisation

Esteem

Love

Safety

Physiological

E.g -Meals

Experiment with

ethnic cuisine

A meal at the best

restaurant in town

Social meal with

friends and family

Safe food from a

reputable source

Food from any

uncontaminated

source

Internal Satisfaction

The respect of others

Action for and

from others

Survival

Satisfaction of

basic hunger

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Information SourcesPrevious personal experience

Word of Mouthrecommendation (WOM)

Reference groups

Media communications

Internet sources

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Evaluation of AlternativesA process of choice reduction.

Rules based approaches used.

Critical attributes, average scoreof all attributes, or weightedattributes.

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Perceived RiskFactors affecting perceived risk:The level of tangible evidence

Buyer involvementNew purchase

Personal risk tolerance

Situational factors

Legal safeguards

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Discussion ExerciseDifferences Between the Service Experience

in China and Other Countries

Authenticity Caring

Control Courtesy

Formality

Friendliness

Personalization

Promptness

Discuss cultural

differences with

the following..