CONSUMER

BEHAVIOR IN
SERVICES

INTRODUCTION

The consumption of services has been characterized as

process consumption because the production
process is considered to form an element of service
consumption and is not simply seen as the outcome of
a production process, as is the case in the traditional
marketing of physical goods.
Services are produced in a process wherein consumers
interact with the production resources of the service
firm . . . the crucial part of the service process takes
place in interaction with customers and their
presence. What the customer consumes in a service
context is therefore fundamentally different from
what traditionally has been the focus of consumption
in the context of physical goods.

CATEGORIES OF SERVICES

PEOPLE PROCESSING SERVICES

Involves tangible actions to a person . The

Customer becomes a part of the production
process , which tends to be simultaneous
with consumption . ExampleHealth Care
Food Services
Beauty Saloon

POSSESSION PROCESSING
SERVICES

Involves tangible actions to physical objects

to improve their value to customers . The
object needs to be involved in the
production process, but the customer does
not.
ExamplesCar Repair
Laundry

INFORMATION PROCESSING

Services directed at intangible assets

Involve
collecting
,
manipulating
,
interpreting ,and transmitting data to create
value.
Example-Accounting
Legal Services

MENTAL STIMULUS PROCESSING

Services directed at peoples minds or

anything that touches people mind and
influences behavior.
ExampleEducation
Advertising
News/Information
Religion

THREE STAGE MODEL OF

SERVICE CONSUMPTION
Consumer Behavior Contributes to

Pre-Purchase
Service Delivery
Post Delivery
Purchase decision making Service reception
Post purchase evaluation,
and satisfaction
word-of-mouth publicity,
and customer relationship

Important areas where consumer behavior is crucial to the

service marketing

Recognition of Need
Search for information
Decision Making
Purchase and consumption
Post-Purchase Evaluation

MODEL OF SERVICE
CONSUMPTION
PRE-PURCHASE STAGE

THE PRE-PURCHASE PROCESS

OF CONSUMER IN SERVICES
Need Arousal

PRE PURCHASE OVERVIEW

Customers seek solutions to aroused needs
Evaluating a service may be difficult
Uncertainty
about
outcomes
increases
perceived risk
What risk reduction strategies can service
suppliers develop?
Understanding
customers
service
expectations
Components of customer expectations
Making a service purchase decision

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
Credence attributes are product characteristics that
customers find impossible to evaluate confidently
even after purchase and consumption .This can be
due to lack of technical experience or because a
claim can be verified only a long time after
consumption.
Quality of repair and maintenance work

HOW MIGHT CONSUMERS

HANDLE PERCEIVED RISK?
Seeking information from respected personal
sources
Relying on a firm that has a good reputation
Looking for guarantees and warranties
Visiting service facilities or trying aspects of
service before purchasing
Asking knowledgeable employees about competing
services
Examining tangible cues or other physical evidence
Using the Internet to compare service offerings
and search for independent reviews and ratings

UNDERSTANDING CUSTOMERS SERVICE EXPECTATIONS

Customers evaluate service quality by

comparing what they expect against what
they perceive
Situational and personal factors also
considered
Expectations of good service vary from one
business to another, and among differently
positioned service providers in the same
industry
Expectations change over time

CUSTOMER EXPECTATIONS

Customer expectations are beliefs about

service delivery that serve as a standards or
reference points against which performance
is judged.
Knowing what customers expect is the first
step in assuring service quality.

COMPONENTS OF SERVICE
EXPECTATIONS

Desired Service
Adequate Service
Predicted Service
Zone of Tolerance

DESIRED AND ADEQUATE

SERVICE LEVELS

Desired Service : Type of service which

customers hope to receive.
Adequate Service :Minimum level of service
which customers will accept without being
dissatisfied.

PREDICTED SERVICE LEVEL

The level of service which customers actually

anticipate receiving.
Customer prediction will be situation specific
Example :-Long queues for tickets for
amusement park on holiday

ZONE OF TOLERANCE

Diff for firms to achieve consistent delivery by

all employees in same company and even by
same service employee from one time of day
to another
The extent to which customers are willing to
accept this variation is called zone of
tolerance
The range of service within which customers
dont pay explicit attention to service
performance . When service falls outside this
range
customers
either
react
positively/negatively

COMPONENTS OF CUSTOMER
EXPECTATIONS
Desired Service Level:
Wished-for level of service quality that customer
believes can and should be delivered
Adequate Service Level:
Minimum acceptable level of service
Predicted Service Level:
Service level that customer believes firm will
actually deliver
Zone of Tolerance:
Range within which customers are willing to
accept variations in service delivery

SERVICE ENCOUNTER STAGE: OVERVIEW

Service encounters range from high- to lowcontact

Understanding the Servuction system
Service marketing systems: high-contact and
low-contact
Implications for customer participation in
service creation and delivery

DISTINCTIONS BETWEEN HIGH-CONTACT AND LOW-CONTACT SERVICES

High-Contact Services
Customers visit service facility and remain
throughout service delivery
Active contact between customers and service
personnel
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

THE SERVUCTION MODEL

Model used to illustrate factors that influence
service experience, including those that are
visible and invisible to consumer.

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
place and service is delivered to customers
Includes customer interactions with operations and
other customers
Service Marketing (front stage)
Includes service delivery (as above) and all other
contacts between service firm and customers

IMPLICATIONS OF CUSTOMER
PARTICIPATION IN SERVICE DELIVERY
Greater need for information/training to
help customers to perform well, get desired
results
Customers should be given a realistic service
preview in advance of service delivery, so
they have a clear picture of their expected
role

POST-ENCOUNTER STAGE:
OVERVIEW

Evaluation of service performance

Future intentions

CONSUMER SATISFACTION AND

ITS OUTCOMES IN SERVICES

Delight
Expectation
Service
Expectation
Performance
Expectation

Positive Disconfirmation
Confirmation
Negative Disconfirmation

Repeat Purchase
Repurchase
Intentions
Loyalty
Positive WOM
Recommendations
Compliment Service
Providers
Complaint to firm
Switch provider
Negative WOM

CUSTOMER SATISFACTION IS CENTRAL TO THE

MARKETING CONCEPT
Satisfaction defined as attitude-like judgment following a
service purchase or series of service interactions
Customers have expectations prior to consumption,
observe service 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

CUSTOMER DELIGHT: GOING BEYOND SATISFACTION

Research shows that delight is a function of three
components:
Unexpectedly high levels of performance
Arousal (e.g., surprise, excitement)
Positive affect (e.g., pleasure, joy, or happiness)
Is it possible for customers to be delighted by very
mundane services?
Strategic links exist between customer satisfaction and
corporate performance.
Getting feedback during service delivery help to boost
customer loyalty