Its about service marketing scope and types

1. 1
Consumer Behaviour in services
&
Customer Perceptions of services
Module-2

2. 2
• Consumer behaviour is defined as the actions or
beliefs that guide a person to purchase and consume a
product or service.
• Consumer behaviour deals with:
-Factors that influence him/her
-Process he has to go through to evaluate product or
service prior to & even after its purchase & use.
• Main challenge for the service provider is to tangibles
the intangible services.

3. 3
Differences Between Characteristics of Goods
and Services
Search Qualities:color, style, price, fit…
(Qualities estimated before the purchase)
Experiences Qualities: taste & wearability
(Qualities that can be assessed after the use of products)
Credence qualities:
(Difficult to assess even after purchase and
consumption)

4. 4
Consumer Decision Making Process
Need Perception
Search for
Information
Evaluation of
alternatives
Purchase decision
Post-purchase
evaluation
Environmental
Factors
•Culture
•Subculture
•Social class
•Reference groups
•Family
Marketer
Activities
External sources
•Personal sources
•Commercial sources
•Public sources
•Experiential sources
Internal sources
Consumer Experience

5. 5
Understanding Customer Requirements
 Service provider needs to change according to the
change of customer’s needs and preferences.
 Service provider needs to perceive the view of the
customer about the services.
 Customer dissatisfaction occurs when there is a
difference between what the customer desired & what
the service provider delivers

6. 6
Customer Expectations
 Customer wants the fulfillment of words which were told by
the service provider.
 Customers do not expect that all their needs will be fulfilled
but atleast those promised by the company.
 Assurance : Knowledge & courteous-instill trust & confidence
 Empathy : Concern & individual attention
 Reliability : Accurate performance of duties
 Responsiveness : Willingness to provide assistance & prompt
service
 Tangible :

7. 7
Service Level Expectations
Adequate Desired
Low High
Zone of tolerance
Expectations

8. 8
Factors that Influence Customer Expectations of Service
Factors that influence customer expectations
of desired service
 Personal needs
 Derived service expectations
 Personal service philosophy

9. 9
Factors that Influence customers 'Adequate Service
 Transitory service intensifier: Car Service
 Perceived service alternative: Bank loans, small
airport in a city
 Customer self perceived role: Interior design
 Situational factors: Recent hurricanes Chennai
and floods in delhi
 Predicted service expectations: services during
vacations

10. 10
Factors that influence Desired & Predicted Expectations
 Explicit service promises : VLCC
 Implicit service promises
 Word-of-mouth publicity
 Past experience: Each stays at hotel.

11. 11
Factors that Influence Desired & Predicted Expectations
• Criteria to evaluate a service based on customer’s
service expectations
 Speed
 Certainty
 Ease
 Personal recognition

12. 12
Managing Customer Service Expectations
 Managing promises
 Reliability- ”Getting it right the first Time”
 Effective communication

13. 13
Exceeding Customer Service Expectations
To exceed customer expectations, companies
need to know the customer expectations.
The Process dimension of service gives service
providers an opportunity to exceed their
customer’s expectations and surprise them with
their competence, courtesy, and commitment.

14. Customer Perceptions
Perception is the process of making meaningful
picture by selectively organizing a set of stimuli.
Perception can be defined as a customer’s judgment
about the service experience and pertains to the
aspects of value of service delivery, service quality
and customer satisfaction.

15. 15
Factors that Influence Customer Perceptions
Service Evidence
• Service personnel Ex. Mc Donalds
• Physical environment
• Shaping the first impression of the customer. Ex. Tourist
Package
• Managing the trust of the customer. Kitchen in 5 Star hotels
• Facilitating quality service. Ex. Spectacles for Harry Potter.
• Providing a sensory stimulation to customers. Ex. Amusement
Park
• Changing the image of service organizations. Mc Donald’s
Image in India

16. 16
Factors that Influence Customer Perceptions
Contd..
• Image: The Image of service provider definitely
gives a clue of service quality to the customers.
• Price: Price also give the picture of quality of service
provided by service provider

17. Service Encounters
Remote encounter : ATM, Internet, Mails…
Phone encounter(Customer service, general enquiry
or order taking functions.
Face to face to encounter : Both verbal & non verbal
behaviors are important.
17

18. Sources of pleasure & displeasure in
service Encounters
• Recovery: Employee response to service delivery
system failures
• Adaptability : Employee response to customer needs
& requests
• Spontaneity : Unprompted & unsolicited employee
Actions
• Coping : Employee response to problem customers
18

19. Customer Satisfaction
• Satisfaction is the consumer’s fulfillment
response.
• It’s a judgment that a product or service
feature, or the product or service itself,
provides a pleasurable level of consumption-
related fulfillment.
19

20. Determinants of Customer Satisfaction
• Product & service features(Focus Groups)
• Consumer Emotions.
• Attributions for service success or failure.
-Perceived causes of events
-Customer take atleast partial responsibility.
• Perceptions of Equity or Fairness
• Other Consumers, Family members, & Co-workers
20

21. Service Quality
• Outcome, Interaction, & Physical Environment
quality.
• Service Quality Dimensions
 Assurance : Knowledge & courteous-instill trust & confidence
 Empathy : Concern & individual attention
 Reliability : Accurate performance of duties(Delivery of promises)
 Responsiveness : Willingness to provide assistance & prompt service
 Tangibles: Representing the service physically
 ::
21

22. 22
Strategies for Influencing Customer Perceptions
Enhance customer satisfaction through services
Reflect evidence of service
Communicate and create a realistic image
Enhance customer perceptions of quality and value
through pricing

23. Ad Agencies & their clients
• Ogilvy & mathar Ltd: Pantaloons, TVS, HUL, Hero Honda etc
• MCS Communication Ltd: BAJAJ bikes, HDFC bank..
• Mc Cann Erickson India Ltd: CoCo cola, Nestle & Khaitan.
• Mudra Communications: MTNL, LIC, Dabur….
• Chaithra leo burnette ltd: ICICI, Toyota…
• Hindustan Thompson Associates: Apollo hospital, Pepsi foods,
ESPN, Madura Garments..
• Saatchi & Saatchi Pvt Ltd: Maruthi udyog, BPC, VISA, P&G..
• Triton Communication: Samsung, LG…
• Lintas India Ltd: ITC, J&J, United india assurance, BHEL,
ELF gas..
• Marketing Consultants & Agencies Ltd: KSDL, KSIC,
KSHDC…
23