Consumer Behavior in Services

Presented by Aslam vy no:5

Consumer behaviour
is the study of individuals, groups, or organisations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Factor affecting consumer behaviour

Culture Social Personel psychological

Cultural factors
Sub culture Religion Status gender

Social factors
Reference Groups Immediate Family Members Relatives Role in the Society Status in the society

Psychological Factors
Motivation Perception Learning Beliefs and Attitude

Maslows Hierarchy of Needs

E.g -Meals

Internal Satisfaction Selfactualisation The respect of others Action for and from others Survival Satisfaction of basic hunger Esteem Love Safety Physiological

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

Personal Factors
Occupation Age Economic condition Lifestyle personality

Four Categories Of Services

Who or What Is the Direct Recipient of the Service? Nature of the Service Act Tangible Actions People People processing (services directed at peoples bodies): Barbers Health care Intangible Actions Mental stimulus processing (services directed at peoples minds): Education Advertising/PR Possessions Possession processing (services directed at physical possessions): Refueling Disposal/recycling Information processing (services directed at intangible assets): Accounting Banking

Evaluating a Service May Be Difficult

Search attributes help customers evaluate a product before purchase
Style, color, texture, taste, sound

Experience attributes cannot be evaluated before purchasemust experience product to know it

Vacations, sporting events, medical procedures

Credence attributes are product characteristics that customers find impossible to evaluate confidently even after purchase and consumption
Quality of repair and maintenance work

How Product Attributes Affect Ease of Evaluation

Most Goods Most Services

Easy to evaluate
Clothing Chair Motor vehicle Foods Restaurant meals Lawn fertilizer Haircut Entertainment Computer repair Education Legal services Complex surgery

Difficult to evaluate*

High in search attributes

High in attributes experience

High in credence attributs

Source: Adapted from Zeithaml

Services - Decision Making Process

Need awareness Information search

Memory

Memory

Evaluation of service suppliers

Future Intentions

Evaluation Service delivery

Request service

Categories in Consumer Decision-Making and Evaluation of Services

Information Search

Use of personal sources Perceived risk

Evaluation of Alternatives
Evoked set Emotion and mood

Purchase and Consumption

Service provision as drama Service roles and scripts Compatibility of customers

Post-Purchase Evaluation
Attribution of dissatisfaction Innovation diffusion Brand loyalty

Consumer Categories in Decision-Making and Evaluation of Services

Information Search
Use of personal sources Perceived risk

Evaluation of Alternatives
Evoked set Emotion and mood

Values and attitudes

Manners and customs Material culture Aesthetics Educational and social institutions

Culture

Purchase and Consumption

Service provision as drama Service roles and scripts Compatibility of customers

Post - Purchase Evaluation

Attribution of dissatisfaction Innovation diffusion Brand loyalty

Information Sources
Previous personal experience Word of Mouth recommendation (WOM) Reference groups Media communications Internet sources

Evaluation of Alternatives
A process of choice reduction.
Rules based approaches used. Critical attributes, average score of all attributes, or weighted attributes.

Perceived Risk
Factors affecting perceived risk: The level of tangible evidence Buyer involvement New purchase Personal risk tolerance Situational factors Legal safeguards