Consumer behaviour for services ppt @ bec doms bagalkot mba marketing

1. Consumer Behaviour for
Services

2. Consumer Behaviour Service Differences
P Intangibility problem
P Consumer involvement
P Perceived Risk
P Sources of Information

3. Consumer Evaluation Processes for Services
²Search Qualities
± attributes a consumer can determine prior to
purchase of a product
²Experience Qualities
± attributes a consumer can determine after purchase
(or during consumption) of a product
²Credence Qualities
± characteristics that may be impossible to evaluate
even after purchase and consumption

4. Continuum of Evaluation for
Different Types of Products
Most Most
Goods Services
Easy to evaluate Difficult to evaluate
Clothing
Jewelry
Furniture
Houses
Automobiles
Restaurant meals
Vacations
Haircuts
Child care
Television repair
Legal services
Root canals
Auto repair
Medical diagnosis
{
{
{
High in search High in experience High in credence
qualities qualities qualities

5. Services - Decision Making Process
Need awareness Information search
Memory
Memory
Evaluation of
service suppliers
Future Intentions
Request service
Evaluation
Service delivery

6. Categories in Consumer Decision-Making and
Evaluation of Services
Information Evaluation of
Search Alternatives
 Use of personal sources  Evoked set
 Perceived risk  Emotion and mood
Purchase and Post-Purchase
Consumption Evaluation
 Service provision as drama  Attribution of dissatisfaction
 Service roles and scripts  Innovation diffusion
 Compatibility of customers  Brand loyalty

7. Consumer Categories in Decision-Making and Evaluation of
Services
Information Search Evaluation of
Alternatives
 Use of personal sources  Evoked set
 Perceived risk  Emotion and mood
Culture
 Values and attitudes
 Manners and customs
 Material culture
 Aesthetics
 Educational and social
institutions
Purchase and Post - Purchase
Consumption Evaluation
 Service provision as drama Attribution of dissatisfaction
 Service roles and scripts Innovation diffusion
 Compatibility of customers Brand loyalty

8. Key Issues for Decision Making
E Who is involved in the decision making process?
E How long does the process take?
E What is the set of competing services from which
consumers make their choice?
E What is the relative importance attached by decision
makers to different elements of the service offer?
E What sources of information are used in evaluating
competing service offers?

9. Maslow’s Hierarchy of Needs
E.g -Meals
Internal Satisfaction Experiment with
ethnic cuisine
Self-
actualisation
A meal at the best
The respect of others
Esteem restaurant in town
Action for and Social meal with
from others Love friends and family
Safe food from a
Survival Safety reputable source
Satisfaction of Food from any
basic hunger Physiological uncontaminated
source

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

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

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