 The services sector has been growing at a rate
of 8% per annum in recent years
 More than half of our GDP is accounted ...
It is the part of the product or the full product for which the
customer is willing to see value and pay for it.
 It is intangible.
 It does not result in ownership.
 It may or may not be attached with a
physical product
Physical goods Services
tangible intangible
homogeneous heterogeneous
Production and distribution are
separated from consu...
 Personal needs – haircuts, tution, massage
parlours
 Business needs – courier services, office
cleaning services, deliv...
 Intangibility
 Inseparability
 Perishability
 Heterogeneity
 Intangible
 Actions or events
 Can’t be seen, held, or touched
 Heterogeneous
 No two service experiences alike
 Se...
 Production and consumption inseparable
 Services can’t be saved, returned, or resold
 Once services are delivered, the...
Asim Sarwar
 Overview the generic differences in consumer behavior
between services and goods
 Introduce the aspects of consumer beh...
 Primary Need : Need by occasion urgency
and priority
 Secondary need : Follow up needs to primary
demands which could i...
 The need recognition is the first and most
important step in the buying process. If there
is no need, there is no purcha...
Esteem Needs
Social Needs
Safety Needs
Physiological Needs
Self-Actualization
 Information search
▪ Personal and non-personal sources
▪ Perceived risk
 Previous personal experience
 Word of Mouth recommendation(WOM)
 Reference groups
 Media communications
 Internet so...
 Evaluation of service alternatives
During the evaluation of alternatives stage, the
consumer evaluates all the products ...
 Post purchase Behavior
Post-purchase behavior is when the customer
assesses whether he is satisfied or dissatisfied with...
Information
Search
Evaluation of
Alternatives
Purchase and
Consumption
Post-Purchase
Evaluation
 Use of personal sources
...
Ali Kamran
 Culture
1. Sub culture
2. Social class
 Social factors
1. Reference Group
2. Family
3. Role and status
 Personal Facto...
 Search Qualities
 attributes a consumer can determine prior to
purchase of a product
 Experience Qualities
 attribute...
 Customer Gap:
▪ difference between expectations and
perceptions
 Provider Gap 1:
▪ not knowing what customers expect
 ...
The Customer Gap
Expected
Service
Perceived
Service
GAP
 Make realistic accurate promises that reflect the service
actually delivered rather than idealized version of
service.
...
 Getting
 Enhancing
 Retaining
 Satisfying
 The first step in managing a loyalty based
business system is finding and acquiring the right
customers.
 After acquisi...
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  1. 1.  The services sector has been growing at a rate of 8% per annum in recent years  More than half of our GDP is accounted for from the services sector  This sector dominates with the best jobs, best talent and best incomes
  2. 2. It is the part of the product or the full product for which the customer is willing to see value and pay for it.
  3. 3.  It is intangible.  It does not result in ownership.  It may or may not be attached with a physical product
  4. 4. Physical goods Services tangible intangible homogeneous heterogeneous Production and distribution are separated from consumption Production, distribution and consumption are simultaneous processes A thing An activity or process Core value processed in factory Core value produced in the buyer-seller interaction Customers do not participate in the production process Customers participate in production Can be kept in stock Cannot be kept in stock Transfer of ownership No transfer of ownership
  5. 5.  Personal needs – haircuts, tution, massage parlours  Business needs – courier services, office cleaning services, delivering fresh flowers
  6. 6.  Intangibility  Inseparability  Perishability  Heterogeneity
  7. 7.  Intangible  Actions or events  Can’t be seen, held, or touched  Heterogeneous  No two service experiences alike  Service quality depends on uncontrollable factors  Actual service often not what was planned
  8. 8.  Production and consumption inseparable  Services can’t be saved, returned, or resold  Once services are delivered, they are lost  Difficult to synchronize supply and demand
  9. 9. Asim Sarwar
  10. 10.  Overview the generic differences in consumer behavior between services and goods  Introduce the aspects of consumer behavior that a marketer must understand in six categories of consumer behavior: • Need Recognition • Information search • Evaluation of service alternatives • Service purchase and consumption • Post purchase evaluation • Role of culture
  11. 11.  Primary Need : Need by occasion urgency and priority  Secondary need : Follow up needs to primary demands which could include both goods as well as services.
  12. 12.  The need recognition is the first and most important step in the buying process. If there is no need, there is no purchase. This recognition happens when there is a lag between the consumer’s actual situation and the ideal and desired one.
  13. 13. Esteem Needs Social Needs Safety Needs Physiological Needs Self-Actualization
  14. 14.  Information search ▪ Personal and non-personal sources ▪ Perceived risk
  15. 15.  Previous personal experience  Word of Mouth recommendation(WOM)  Reference groups  Media communications  Internet sources
  16. 16.  Evaluation of service alternatives During the evaluation of alternatives stage, the consumer evaluates all the products available on a scale of particular attributes.
  17. 17.  Post purchase Behavior Post-purchase behavior is when the customer assesses whether he is satisfied or dissatisfied with a purchase.  If the product has brought satisfaction to the consumer, he will then minimize stages of information search and alternative evaluation for his next purchases in order to buy the same brand. Which will produce customer loyalty.
  18. 18. Information Search Evaluation of Alternatives Purchase and Consumption Post-Purchase Evaluation  Use of personal sources  Perceived risk  Evoked set  Emotion and mood Service provision as drama  Service roles and scripts  Compatibility of customers  Attribution of dissatisfaction  Innovation diffusion  Brand loyalty Culture  Values and attitudes  Manners and customs  Material culture  Aesthetics  Educational and social institutions
  19. 19. Ali Kamran
  20. 20.  Culture 1. Sub culture 2. Social class  Social factors 1. Reference Group 2. Family 3. Role and status  Personal Factors 1. Age 2. Occupation 3. Lifestyle  Psychological Factors 1. Motivation 2. Perception
  21. 21.  Search Qualities  attributes a consumer can determine prior to purchase of a product  Experience Qualities  attributes a consumer can determine after purchase (or during consumption) of a product  Credence Qualities  characteristics that may be impossible to evaluate even after purchase and consumption
  22. 22.  Customer Gap: ▪ difference between expectations and perceptions  Provider Gap 1: ▪ not knowing what customers expect  Provider Gap 2: ▪ not having the right service designs and standards  Provider Gap 3: ▪ not delivering to service standards  Provider Gap 4: ▪ not matching performance to promises
  23. 23. The Customer Gap Expected Service Perceived Service GAP
  24. 24.  Make realistic accurate promises that reflect the service actually delivered rather than idealized version of service.  Ask contact people for feedback on the accuracy of promise made in advertising and selling • Ensure service tangibles accurately reflect the type and level of service provided.  Use market research to determine sources of derived customer expectation and their requirement.  Educate customers to understand their role and perform better.  Identify influencers and opinion leaders for the service and concentrate marketing efforts on them.
  25. 25.  Getting  Enhancing  Retaining  Satisfying
  26. 26.  The first step in managing a loyalty based business system is finding and acquiring the right customers.  After acquisition of the desirable customers the next step is to build relationships and turn them into loyal customers who will generate a growing revenue stream for the company.  A loyal customer is a consistent source of revenue for the organization. This loyalty has to be sustained by continuously providing superior quality and value.
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