Module 2
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This document discusses different aspects of consumer behavior related to services. It describes three types of quality attributes - search, experience, and credence qualities - that determine how easily a product or service attribute can be evaluated. It also discusses factors that influence customer expectations, including desired service levels, adequate service levels, and the zone of tolerance between the two. Customer perceptions of service quality are shaped by factors like outcome quality, process quality, and physical environment quality. Properly handling service encounters and recovery situations is important to meet or exceed customer expectations.
Module 2
- 1. Consumer behavior in service Module-2
- 2. Search , experience and credence properties • Search quality:- attributes that a customer can determine before purchasing of the product. • Experience quality:- attribute that can be discovered only after purchase or during consumption. • Credence quality:- includes characteristics that the consumer may find impossible to evaluate even after purchase.
- 3. Continuum of Evaluation for Different Types of Products . Difficult to evaluate Easy to evaluate High in search qualities High in experience qualities High in credence qualities Most Goods Most Services
- 4. Customer expectation of services • The level of expectations can vary widely depending on the reference point the customer holds.
- 5. Possible Levels of Customer Expectations
- 6. Dual Customer Expectation Levels Desired level:- the level of service the customer hopes to receive. Adequate services:- the level of service customer will accept. Adequate Service Desired Service
- 7. Zone of tolerance • The extent to which customer willing to accept this variation Is called the zone of tolerance. • The zone of tolerance a the range or window in which customer do not particularly notice the performance
- 8. Factors that influence customer expectation of services • Marketer would also like to have control over these factors that shape them. But many of the forces the influences customer expectations are uncontrollable.
- 9. Factors That Influence Desired Service
- 10. Factors That Influence Adequate Service
- 11. Factors That Influence Desired and Predicted Service . Predicted Service Explicit Service Promises Implicit Service Promises Word-of-Mouth Past Experience Zone of Tolerance Desired Service Adequate Service
- 12. Customer perception of services • How customer perceived services?? • Customer perceived services in terms quality of the service and how satisfied they are overall with their expectations.
- 13. Customer perception of service quality
- 14. Factors Influencing Customer Satisfaction • Product/service quality • Product/service attributes or features • Consumer Emotions • Attributions for product/service success or failure • Equity or fairness evaluations
- 15. Outcomes of Customer Satisfaction • Increased customer retention • Positive word-of-mouth communications • Increased revenues
- 16. Service Quality • The customer’s judgment of overall excellence of the service provided in relation to the quality that was expected. • Service quality assessments are formed on judgments of: – Outcome quality – Process quality – Physical environment quality
- 17. The Five Dimensions of Service Quality
- 19. The Service Encounter • is the “moment of truth” • occurs any time the customer interacts with the firm • can potentially be critical in determining customer satisfaction and loyalty • types of encounters: – remote encounters, phone encounters, face-to-face encounters • is an opportunity to: – build trust – reinforce quality – build brand identity – increase loyalty
- 20. A Service Encounter Cascade for a Hotel Visit
- 21. A Service Encounter Cascade for an Industrial Purchase
- 22. Common Themes in Critical Service Encounters Research
- 23. Recovery • Acknowledge problem • Explain causes • Apologize • Compensate/upgrade • Lay out options • Take responsibility • Ignore customer • Blame customer • Leave customer to fend for him/herself • Downgrade • Act as if nothing is wrong DO DON’T
- 24. Adaptability • DO • Recognize the seriousness of the need • Acknowledge • Anticipate • Attempt to accommodate • Explain rules/policies • Take responsibility • Exert effort to accommodate • DON’T • Promise, then fail to follow through • Ignore • Show unwillingness to try • Embarrass the customer • Laugh at the customer • Avoid responsibility
- 25. Spontaneity • DO • Listen • Try to accommodate • Explain • Let go of the customer • DON’T • Take customer’s dissatisfaction personally • Let customer’s dissatisfaction affect others
- 26. Evidence of Service from the Customer’s Point of View People Process Physical Evidence Contact employees Customer him/herself Other customers Operational flow of activities Steps in process Flexibility vs. standard Technology vs. human Tangible communication Servicescape Guarantees Technology Website