service mkt - ch - 2

8/3/2019 Service Mkt - Ch - 2

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Chapter 2


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We are -

Md. Shoeb-Ul-Islam ID # ZR1002017

Mahbubul Haque ID # ZR1002019

Shakhowath Chowdhury ID # ZR10020

Shaikat Borua ID # ZR10020


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Chapter Preview

Understanding Customer Behavior lies at the heart ofmarketing

In this chapter, we focus on examining the nature ofencounters with customer during service delivery andconsumption

o Not all services are alike and have different implicationsfor customer behavior:

o 4 broad categories of serviceo

3 stage model of service consumptiono Customer's risk in serviceo Expectation of customero Role Theory, Script theory


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4 Categories of Services

People Processing Possession Processing Mental Stimulus Processing

Information Processing


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People Processing

Services directed at People's bodies Customers physically enter into the service system Customers Co operate with the service provider Example: Beauty saloon, fitness center


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Possession Processing

Tangible treatment for physical possession

Less Physical involvement with customer Example: Repair, Laundry


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Mental Stimulus Processing

Service Directed at people's minds Has the power to shape attitudes and influence behavior Full benefit requires investment of time and effort Physical presence of customer is not mandatory

Example: Education, Religion,


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Information Processing

Revolutionized by using computers Information is the most intangible form of service output Example: Accounting, Programming, Research


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Customer Decision Making3-Stage Model of Service Consumption

1. Prepurchase Stage

2. Service Encounter Stage

3. Post-encounter Stage


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The Prepurchase Stage

Begins with Need Arousal

Customer Awareness fromUnconscious Mind or Marketing

Activitieseg. Hunger / Life Security

Seeks Solution to Aroused Needs

Low Risk Quick / Repeat Purchase High Risk / First Time Use

Complex


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The Prepurchase Stage cont.

Evaluating a Service (few tangible clues,more difficult to choose)

eg. Fitness Centers, Music Concerts.

1. Search Attributes

2. Experience Attributes

3. Credence Attributes

eg. Restaurant.


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Handling Perceived Risks byConsumers:

Seeking info from FnFs / peers

Relying on brands

Seeking guarantees / warranties

Discussing with opinion leaders

Accessing internet to get reviews /ratings


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Risk Reduction Strategies byService Suppliers:

Offering warranties

Money-back guarantees

Making available sufficient info /FAQs through web / brochure

Training up staffs to be empathetic tocustomers


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Understanding CustomersService Expectations

Customers evaluate service quality bycomparing what they expect against whatthey perceive

Situational and personal factors also considered

Expectations of good service vary from onebusiness to another, and among differently

positioned service providers in the sameindustry

Expectations change over time


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Components of CustomerExpectations Desired Service Level:

The type of service customers hope to receive and alsobelieve that can and should be delivered

Adequate Service Level:

Minimum level of service customers will acceptwithout being dissatisfied.

Predicted Service Level: Service level that customer believes firm will actually

deliver Zone of Tolerance:

Range within which customers are willing to acceptvariations in service delivery


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Factors Influencing CustomerExpectations of Service

Predicted Service

Explicit & Implicit

Promises by the provider,

Word-of-Mouth,

Customers Past ExperienceDesired Service

ZONE

OF

TOLERANCE

Adequate Service

Personal Needs

Beliefs about

What Is Possible

Perceived Service

Alterations

Situational Factors

Source: Adapted from Valarie A. Zeithaml, Leonard A. Berry, and A. Parasuraman, The Nature and Determinants of Customer Expectations of

Service,Journal of the Academy of Marketing Science 21, no. 1 (1993): pp 112.


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Service Encounter Stage:Overview

Prepurchase Stage

Service Encounter Stage

Post-Encounter Stage

Service encounters range from high- tolow-contact

Understanding the servuction system

Service marketing systems: high-

contact and low-contact

Role and script theories

Theater as a metaphor for servicedelivery: An integrative perspective

Implications for customerparticipation in service creation anddelivery


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Service Encounters Range fromHigh-Contact to Low-Contact High-Contact Services

Customers visit service facility and remain throughoutservice delivery

Active contact between customers and servicepersonnel

Includes most people-processing services Low-Contact Services

Little or no physical contact with service personnel Contact usually at arms length through electronic or

physical distribution channels New technologies (e.g. the Web) help reduce contact

levels

Medium-Contact Services Lie in between TheseTwo


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Service Encounters Range fromHigh-Contact to Low-Contact (Contd..)


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The Servuction System:Service Production and Delivery Service Operations (front stage and

backstage) Where inputs are processed and service elements created Includes facilities, equipment, and personnel

Service Delivery (front stage) Where final assembly of service elements takes placeand service is delivered to customers

Includes customer interactions with operations and othercustomers

Service Marketing (front stage) Includes service delivery (as above) and all other contacts

between service firm and customers


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Service Marketing System for aHigh-Contact Service (Fig 2.10)

The

CustomerTechnical

Core

Interior & Exterior

Facilities

Equipment

Service People

Other

Customers

Advertising

Sales Calls

Market Research Surveys

Billing/Statements

Misc. Mail, Phone Calls,E-mails, Faxes, etc.

Website

Random Exposure toFacilities/Vehicles

Chance Encounters withService Personnel

Word of Mouth

Service Delivery System Other Contact Points

Service Operations System

Backstage

(invisible)

Front Stage

(visible)Other

Customers

SERVICE MARKETING SYSTEM


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Service Marketing System for aLow-Contact Service (Fig 2.11)

The

Customer

Backstage(invisible)

Front Stage(visible)

Advertising

Market ResearchSurveys

Billing/Statements

Random Exposure to

Facilities/Vehicles

Word of Mouth

Phone, Fax,Web- site,etc.

SelfServiceEquipment

Mail

TechnicalCore

Other Contact PointsService Delivery System

Service OperationsSystem

SERVICE MARKETING SYSTEM


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Theatrical Metaphor:An Integrative Perspective Service dramas unfold on a stagesettings maychange as performance unfolds

Many service dramas are tightly scripted, othersimprovised

Front-stage personnel are like members of a cast Like actors, employees have roles, may wear special

costumes, speak required lines, behave in specificways

Support comes from a backstage production team Customers are the audiencedepending on type of

performance, may be passive or active participants


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Implications of CustomerParticipation in Service Delivery

Greater need forinformation/training tohelp customers toperform well, get desired

results Customers should be

given a realistic servicepreview in advance ofservice delivery, so theyhave a clear picture oftheir expected role

Figure 2.13: Tourists Appreciate Easy-to-Understand Instructions When Traveling


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Prepurchase Stage

Service Encounter Stage

Post-Encounter Stage

Post-Encounter Stage: Overview

Evaluation of serviceperformance

Future intentions


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Customer Satisfaction Is Central tothe Marketing Concept

Satisfaction defined as attitude-like judgment following aservice purchase or series of service interactions

Customers have expectations prior to consumption, observeservice 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 factors Research shows links between customer satisfaction and a

firms financial performance


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Customer Delight:Going Beyond Satisfaction

Research shows that delight is afunction of three components: Unexpectedly high levels of

performance Arousal (e.g., surprise, excitement) Positive affect (e.g., pleasure, joy,

or happiness)


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Thank youfor beingwith us.

service mkt - ch - 2

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