The document discusses service quality and consumer behavior in services. It covers:
1) The three stages of consumer decision making in services - the pre-purchase, service encounter, and post-purchase stages. It examines factors like customer expectations, perceived risks, and satisfaction levels.
2) Key aspects of improving service quality like the five dimensions of service quality and reducing service gaps.
3) The importance of understanding consumer behavior to better manage customer touchpoints and deliver quality service.
Service blueprints provide a visual map of a service process from the customer's perspective. They show customer actions and touchpoints, as well as frontstage and backstage employee actions and support processes. The key components are the customer actions line, line of visibility separating visible and invisible employee actions, line of internal interaction separating employee actions from support processes, and evidence of service. Service blueprints can be used for new service development, improving reliability, service recovery strategies, and informing various business functions like human resources, technology, marketing, and operations management.
The document discusses servicescapes, which refers to the physical environment where a service takes place. It defines key elements of servicescapes including packaging, facilitating delivery, socializing customers and employees, and differentiating from competitors. The SOR model is introduced to explain how servicescape stimuli affect customer organism responses. Examples of the Rainforest Cafe and DMV servicescapes are provided to illustrate positive and negative impacts. The document concludes with recommendations for improving servicescapes through appealing atmospheres and consistency across physical cues.
Consumer Behaviour and Retail Operations discusses key concepts in consumer behaviour and how they relate to retail operations. It defines consumer behaviour and explains why studying it is important for retailers. It describes the needs, wants, and demands that drive the consumer purchase process. It also summarizes models of consumer decision making, the factors that influence consumption, and segmentation strategies used by retailers. Overall, the document provides an overview of theoretical frameworks for understanding consumer motivation and decision making in a retail context.
The document discusses market segmentation, targeting, and positioning. It describes identifying distinct customer groups based on needs and selecting target segments. There are several bases for segmenting consumer and business markets such as demographics, behaviors, and firmographics. Effective segmentation results in segments that are measurable, accessible, substantial, and responsive to different marketing strategies. Companies evaluate segment attractiveness based on size, growth, industry forces, and their objectives and resources to determine which target segments to enter.
This document discusses customer behavior in service encounters. It outlines 4 categories of services - people processing, possession processing, mental stimulus processing, and information processing. It also describes the 3 stages of a service encounter: pre-purchase, the service encounter itself, and post-purchase. Finally, it discusses customer service expectations and how customers seek to reduce perceived risks when evaluating service options.
This document discusses various perspectives on defining and measuring service quality. It begins by outlining four common definitions of quality: product-based, user-based, manufacturing-based, and value-based. It then describes two categories of service quality - internal and external quality. Several frameworks for measuring dimensions of service quality are presented, including the eight dimensions identified by David Garvin and the SERVQUAL model developed by Parasuraman, Zeithmal and Berry. The document also discusses tools for collecting customer feedback and analyzing service quality problems.
The document provides an overview of services marketing concepts including:
1) It defines services and identifies key differences between goods and services such as intangibility, perishability, and simultaneous production and consumption.
2) It introduces the services marketing triangle and expanded 7Ps marketing mix framework for services.
3) It discusses models for understanding service quality like the gaps model and challenges in consumer behavior related to services like higher perceived risk and difficulty evaluating service alternatives.
This document discusses how services are delivered through intermediaries like franchising, agents, and brokers. It provides examples of each intermediary type and discusses their benefits and challenges from the perspective of both the service provider and intermediary. Common issues that can arise involving intermediaries are also outlined, such as conflicts over objectives. The document concludes by describing strategies for effective service delivery through intermediaries, including empowerment strategies to give intermediaries authority, control strategies to manage strategic plans, and partnering strategies to guide collaboration.
Service blueprints provide a visual map of a service process from the customer's perspective. They show customer actions and touchpoints, as well as frontstage and backstage employee actions and support processes. The key components are the customer actions line, line of visibility separating visible and invisible employee actions, line of internal interaction separating employee actions from support processes, and evidence of service. Service blueprints can be used for new service development, improving reliability, service recovery strategies, and informing various business functions like human resources, technology, marketing, and operations management.
The document discusses servicescapes, which refers to the physical environment where a service takes place. It defines key elements of servicescapes including packaging, facilitating delivery, socializing customers and employees, and differentiating from competitors. The SOR model is introduced to explain how servicescape stimuli affect customer organism responses. Examples of the Rainforest Cafe and DMV servicescapes are provided to illustrate positive and negative impacts. The document concludes with recommendations for improving servicescapes through appealing atmospheres and consistency across physical cues.
Consumer Behaviour and Retail Operations discusses key concepts in consumer behaviour and how they relate to retail operations. It defines consumer behaviour and explains why studying it is important for retailers. It describes the needs, wants, and demands that drive the consumer purchase process. It also summarizes models of consumer decision making, the factors that influence consumption, and segmentation strategies used by retailers. Overall, the document provides an overview of theoretical frameworks for understanding consumer motivation and decision making in a retail context.
The document discusses market segmentation, targeting, and positioning. It describes identifying distinct customer groups based on needs and selecting target segments. There are several bases for segmenting consumer and business markets such as demographics, behaviors, and firmographics. Effective segmentation results in segments that are measurable, accessible, substantial, and responsive to different marketing strategies. Companies evaluate segment attractiveness based on size, growth, industry forces, and their objectives and resources to determine which target segments to enter.
This document discusses customer behavior in service encounters. It outlines 4 categories of services - people processing, possession processing, mental stimulus processing, and information processing. It also describes the 3 stages of a service encounter: pre-purchase, the service encounter itself, and post-purchase. Finally, it discusses customer service expectations and how customers seek to reduce perceived risks when evaluating service options.
This document discusses various perspectives on defining and measuring service quality. It begins by outlining four common definitions of quality: product-based, user-based, manufacturing-based, and value-based. It then describes two categories of service quality - internal and external quality. Several frameworks for measuring dimensions of service quality are presented, including the eight dimensions identified by David Garvin and the SERVQUAL model developed by Parasuraman, Zeithmal and Berry. The document also discusses tools for collecting customer feedback and analyzing service quality problems.
The document provides an overview of services marketing concepts including:
1) It defines services and identifies key differences between goods and services such as intangibility, perishability, and simultaneous production and consumption.
2) It introduces the services marketing triangle and expanded 7Ps marketing mix framework for services.
3) It discusses models for understanding service quality like the gaps model and challenges in consumer behavior related to services like higher perceived risk and difficulty evaluating service alternatives.
This document discusses how services are delivered through intermediaries like franchising, agents, and brokers. It provides examples of each intermediary type and discusses their benefits and challenges from the perspective of both the service provider and intermediary. Common issues that can arise involving intermediaries are also outlined, such as conflicts over objectives. The document concludes by describing strategies for effective service delivery through intermediaries, including empowerment strategies to give intermediaries authority, control strategies to manage strategic plans, and partnering strategies to guide collaboration.
Strategies Affecting Consumer Behavior:
Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are various factors influencing the purchases of consumer such as social, cultural,economic, personal and psychological.
1. Social Factors
Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status.
a)Reference Groups
Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc .
b) Family
Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles.
c) Roles and Status
Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status.
2. Cultural Factors:
Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class.
Culture
Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries.
Subculture
Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group.
Social Class
Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar.
3. Economic Factors:
Consumer behaviour is influenced largely by economic factors. Economic factors that influence consumer behaviour are as: personal income, family income ,savings ,consumer credit and other economic factors.
a) Personal Income:
The discretionary personal income refers to the balance remaining after meeting basic necessaries of life. This income is available for the purchase of shopping goods, durable goods and luxuries. An increase in the discretionary income leads to an increase in the expenditure on shopping goods, luxuries etc. which improves the standard of living
The document summarizes key aspects of customer behavior in service marketing. It discusses how consumers seek, choose, purchase, experience, and evaluate services. It outlines the three stages of the consumer decision making process - pre-purchase, service encounter, and post-purchase stages. It also categorizes services into four types based on whether the service act is tangible or intangible and whether people or possessions are the direct recipient. Finally, it examines factors that influence customer expectations and satisfaction during the different stages.
This document discusses the role of customers in service delivery. It states that service delivery is customer-driven rather than product-driven. Customers play a vital role in successful delivery as they are often present during service and can influence whether the service meets their specifications. The level of customer participation varies, from low involvement like airline travel to high involvement like marriage counseling where they co-create the service. Strategies for enhancing participation include defining customer jobs, educating and rewarding customers, and managing customer mix to promote compatibility.
RECRUITMENT AND SELECTION OF SALES FORCES rohit12692
This presentation discusses the recruitment and selection process of sales forces. It defines recruitment as discovering potential candidates for jobs and selection as dividing candidates into those who will and will not be offered employment. The importance of recruiting and selecting salespeople is that they represent the corporate image and are critical to business survival and growth. Sources of recruitment discussed include internal sources like current employees and transfers, and external sources like placement agencies, competitors, educational institutions, and sales clubs. The selection process was outlined as including preliminary interviews, applications, formal interviews, references, testing, physical examinations, and employment offers.
The document discusses a three stage model of consumer decision making for services: 1) The pre-purchase stage involves recognizing a need, searching for information, and evaluating alternatives. This stage is difficult for services with intangible attributes. 2) The service encounter stage involves interactions with the service provider, such as placing an order or receiving the service. 3) The post-purchase stage involves evaluating service performance against expectations, which can be positively, negatively, or neutrally disconfirmed, and determining future intentions.
Customer's expectation & perception of customersRajThakuri
Customers have both expectations and perceptions of the level of service they will receive. Their expectations are influenced by personal needs, past experiences, and promises made by the service provider. Perceptions are formed through service encounters and compared to expectations. If perceptions meet or exceed expectations, the customer will be satisfied. Key aspects of service quality that influence perceptions are reliability, responsiveness, assurance, empathy, and tangibles. Higher customer value relative to costs also leads to greater satisfaction. Satisfied customers are more loyal and help the business grow through positive word-of-mouth.
Chapter 8 Consumer Attitude Formation And ChangeAvinash Kumar
The document discusses various models of attitude formation and change, including:
1. The tricomponent model which views attitudes as having cognitive, affective, and conative components.
2. Multiattribute models like the theory of reasoned action that examine how attitudes are formed based on beliefs about an object's attributes.
3. The theory of trying to consume which accounts for cases where action or outcome is uncertain.
4. The attitude-toward-the-ad model which proposes that feelings and judgments formed from exposure to ads affect brand attitudes.
Strategies for changing attitudes discussed include associating products with groups, resolving conflicts, altering belief components, and changing beliefs about competitors.
This document discusses motivating sales forces through different motivational theories and techniques. It outlines several theories that explain what motivates salespeople, such as Maslow's hierarchy of needs and Hertzberg's dual-factor theory, and how salespeople make decisions, including Vroom's expectancy theory and Adam's equity theory. The document also discusses various financial and non-financial motivators that can be used, such as commissions, bonuses, recognition, and job enrichment. The goal of motivation is to generate extra effort from salespeople to help the company achieve its objectives while also increasing job satisfaction.
This document discusses service encounters from a lecture presented by Dr. Niraj Chaudhari. It defines a service encounter as the initial interaction between a customer and service provider. More than half of multinational corporations are involved in providing services, making the study of service encounters increasingly important. The document goes on to discuss the triad of a service encounter, its characteristics, types, elements, and the role of technology. It also examines self-service, customer-dominated encounters, contact personnel-dominated encounters, and service organization-dominated encounters. Finally, it briefly mentions the functions, models, control, and design of service organizations.
The document discusses target marketing and positioning. It defines target marketing as evaluating market segments to focus on those with the most potential. There are various target marketing strategies such as single segment, selective, mass market, product/market specialization. Positioning is designing the company's offering and image to occupy a distinctive place in customers' minds relative to competitors. The document outlines steps to choose and implement a positioning strategy including identifying competitive advantages, selecting the right advantage, and communicating the chosen position.
This document discusses competitive positioning strategies for services. It explains that positioning strategy aims to create distinctive differences that customers notice and value. Firms must understand customer preferences and competitor offerings to develop their positioning. The document also outlines four focus strategies including service focused, unfocused, fully focused, and market focused. It emphasizes identifying determinant attributes that influence customer choices and using positioning maps to visually represent competitive positions.
The document discusses different levels of consumer decision making including extensive problem solving, limited problem solving, and routinized response behavior. It also summarizes different models of consumer decision making including the economic, passive, cognitive, and emotional views. Additionally, it outlines the three main stages of consumer decision making - need recognition, prepurchase search, and evaluation of alternatives.
The document discusses the process of recruiting and selecting a sales force. It involves analyzing job requirements, preparing job descriptions, identifying qualifications, attracting applicants from various sources, screening candidates, and selecting the best recruits through a multi-step process. Once selected, new salespeople go through a socialization process to integrate them into the sales force and organization.
This document discusses customer loyalty programs and how businesses can foster loyal customer relationships. It defines loyal customers as those with a long history of purchases from a preferred provider due to an emotional bond. The document outlines two models - the Resource Investment Model which involves businesses and customers investing special resources in each other, and the Brand Community model where customers are united through a brand. It provides examples of how businesses can give special treatment to valuable customers, seek their input, and build an online community to encourage customer loyalty.
The document discusses three types of consumer choice processes:
1) Affective-based choice, which is based on an immediate emotional response to a product without considering attributes. Marketers should help consumers envision how a product will make them feel.
2) Attribute-based choice, which involves comparing a product's specific attributes to other options. This process is more effortful and takes more time.
3) Attitude-based choice, where decisions are made based on general attitudes, impressions, intuitions or heuristics rather than comparing attributes.
The type of choice process used depends on motivation, available information, and the situation. Combinations of these processes may be used for a single decision.
This document provides an introduction to retail, including definitions of retail, the functions of retailers, and the evolution of retail in India. It defines retail as the sale of goods and services to the ultimate consumer. Retailers serve to provide goods to consumers through creating time, place, and ownership utilities. Major types of retailers discussed include general merchandise retailers like supermarkets and department stores, specialty stores, and shopping malls. The document traces the evolution of retail in India from traditional haats and mandis to the establishment of large public distribution systems and cooperative retail networks post-independence.
The document discusses key aspects of services marketing. It notes that the service sector makes up a large portion of economic activity and employment in most developed economies. Services range from those provided internally by organizations to their external customers. There are also four main categories of services defined by whether they process people, possessions, mental stimuli, or information. The characteristics of services, including intangibility and variability, have important implications for marketing strategy. Firms must consider customer involvement in production and the role of employees, as well as how to effectively design service delivery processes and channels.
The document discusses strategies for managing customer relationships and building loyalty. It covers four stages of brand loyalty, why loyalty is important for profitability, assessing the value of loyal customers, and reasons why customers become loyal. It also discusses strategies for developing loyalty bonds such as rewarding customers, reducing customer defections, handling complaints and recovering from service failures. The importance of service guarantees and how to design effective guarantees is also covered.
This chapter discusses consumer perception and the key elements and aspects that influence how consumers perceive marketing stimuli. It covers sensation and threshold, selection through selective exposure and attention, organization through figure-ground relationships and closure, and interpretation based on stereotypes, first impressions, and halo effects. Marketers must understand these concepts to effectively position products and services, and influence how consumers perceive quality, price, risk, and other attributes.
The document summarizes key aspects of customer behavior in service encounters. It discusses the four categories of services based on the nature of the service act and recipient. It also outlines the three stages of customer decision making: pre-purchase where customers evaluate options and risks; the service encounter where expectations are compared to actual experience; and post-encounter where satisfaction is determined. The summary highlights how customer expectations, risk perceptions, and participation differ depending on the type of service and level of contact.
This document discusses customer and market focus as examined in the Baldrige criteria. It covers determining customer requirements and expectations, building customer relationships, and factors that lead to customer satisfaction and retention. It also discusses measuring customer satisfaction, the role of marketing and sales in gathering customer input, and the importance of customer retention for profitability.
Strategies Affecting Consumer Behavior:
Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are various factors influencing the purchases of consumer such as social, cultural,economic, personal and psychological.
1. Social Factors
Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status.
a)Reference Groups
Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc .
b) Family
Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles.
c) Roles and Status
Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status.
2. Cultural Factors:
Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class.
Culture
Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries.
Subculture
Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group.
Social Class
Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar.
3. Economic Factors:
Consumer behaviour is influenced largely by economic factors. Economic factors that influence consumer behaviour are as: personal income, family income ,savings ,consumer credit and other economic factors.
a) Personal Income:
The discretionary personal income refers to the balance remaining after meeting basic necessaries of life. This income is available for the purchase of shopping goods, durable goods and luxuries. An increase in the discretionary income leads to an increase in the expenditure on shopping goods, luxuries etc. which improves the standard of living
The document summarizes key aspects of customer behavior in service marketing. It discusses how consumers seek, choose, purchase, experience, and evaluate services. It outlines the three stages of the consumer decision making process - pre-purchase, service encounter, and post-purchase stages. It also categorizes services into four types based on whether the service act is tangible or intangible and whether people or possessions are the direct recipient. Finally, it examines factors that influence customer expectations and satisfaction during the different stages.
This document discusses the role of customers in service delivery. It states that service delivery is customer-driven rather than product-driven. Customers play a vital role in successful delivery as they are often present during service and can influence whether the service meets their specifications. The level of customer participation varies, from low involvement like airline travel to high involvement like marriage counseling where they co-create the service. Strategies for enhancing participation include defining customer jobs, educating and rewarding customers, and managing customer mix to promote compatibility.
RECRUITMENT AND SELECTION OF SALES FORCES rohit12692
This presentation discusses the recruitment and selection process of sales forces. It defines recruitment as discovering potential candidates for jobs and selection as dividing candidates into those who will and will not be offered employment. The importance of recruiting and selecting salespeople is that they represent the corporate image and are critical to business survival and growth. Sources of recruitment discussed include internal sources like current employees and transfers, and external sources like placement agencies, competitors, educational institutions, and sales clubs. The selection process was outlined as including preliminary interviews, applications, formal interviews, references, testing, physical examinations, and employment offers.
The document discusses a three stage model of consumer decision making for services: 1) The pre-purchase stage involves recognizing a need, searching for information, and evaluating alternatives. This stage is difficult for services with intangible attributes. 2) The service encounter stage involves interactions with the service provider, such as placing an order or receiving the service. 3) The post-purchase stage involves evaluating service performance against expectations, which can be positively, negatively, or neutrally disconfirmed, and determining future intentions.
Customer's expectation & perception of customersRajThakuri
Customers have both expectations and perceptions of the level of service they will receive. Their expectations are influenced by personal needs, past experiences, and promises made by the service provider. Perceptions are formed through service encounters and compared to expectations. If perceptions meet or exceed expectations, the customer will be satisfied. Key aspects of service quality that influence perceptions are reliability, responsiveness, assurance, empathy, and tangibles. Higher customer value relative to costs also leads to greater satisfaction. Satisfied customers are more loyal and help the business grow through positive word-of-mouth.
Chapter 8 Consumer Attitude Formation And ChangeAvinash Kumar
The document discusses various models of attitude formation and change, including:
1. The tricomponent model which views attitudes as having cognitive, affective, and conative components.
2. Multiattribute models like the theory of reasoned action that examine how attitudes are formed based on beliefs about an object's attributes.
3. The theory of trying to consume which accounts for cases where action or outcome is uncertain.
4. The attitude-toward-the-ad model which proposes that feelings and judgments formed from exposure to ads affect brand attitudes.
Strategies for changing attitudes discussed include associating products with groups, resolving conflicts, altering belief components, and changing beliefs about competitors.
This document discusses motivating sales forces through different motivational theories and techniques. It outlines several theories that explain what motivates salespeople, such as Maslow's hierarchy of needs and Hertzberg's dual-factor theory, and how salespeople make decisions, including Vroom's expectancy theory and Adam's equity theory. The document also discusses various financial and non-financial motivators that can be used, such as commissions, bonuses, recognition, and job enrichment. The goal of motivation is to generate extra effort from salespeople to help the company achieve its objectives while also increasing job satisfaction.
This document discusses service encounters from a lecture presented by Dr. Niraj Chaudhari. It defines a service encounter as the initial interaction between a customer and service provider. More than half of multinational corporations are involved in providing services, making the study of service encounters increasingly important. The document goes on to discuss the triad of a service encounter, its characteristics, types, elements, and the role of technology. It also examines self-service, customer-dominated encounters, contact personnel-dominated encounters, and service organization-dominated encounters. Finally, it briefly mentions the functions, models, control, and design of service organizations.
The document discusses target marketing and positioning. It defines target marketing as evaluating market segments to focus on those with the most potential. There are various target marketing strategies such as single segment, selective, mass market, product/market specialization. Positioning is designing the company's offering and image to occupy a distinctive place in customers' minds relative to competitors. The document outlines steps to choose and implement a positioning strategy including identifying competitive advantages, selecting the right advantage, and communicating the chosen position.
This document discusses competitive positioning strategies for services. It explains that positioning strategy aims to create distinctive differences that customers notice and value. Firms must understand customer preferences and competitor offerings to develop their positioning. The document also outlines four focus strategies including service focused, unfocused, fully focused, and market focused. It emphasizes identifying determinant attributes that influence customer choices and using positioning maps to visually represent competitive positions.
The document discusses different levels of consumer decision making including extensive problem solving, limited problem solving, and routinized response behavior. It also summarizes different models of consumer decision making including the economic, passive, cognitive, and emotional views. Additionally, it outlines the three main stages of consumer decision making - need recognition, prepurchase search, and evaluation of alternatives.
The document discusses the process of recruiting and selecting a sales force. It involves analyzing job requirements, preparing job descriptions, identifying qualifications, attracting applicants from various sources, screening candidates, and selecting the best recruits through a multi-step process. Once selected, new salespeople go through a socialization process to integrate them into the sales force and organization.
This document discusses customer loyalty programs and how businesses can foster loyal customer relationships. It defines loyal customers as those with a long history of purchases from a preferred provider due to an emotional bond. The document outlines two models - the Resource Investment Model which involves businesses and customers investing special resources in each other, and the Brand Community model where customers are united through a brand. It provides examples of how businesses can give special treatment to valuable customers, seek their input, and build an online community to encourage customer loyalty.
The document discusses three types of consumer choice processes:
1) Affective-based choice, which is based on an immediate emotional response to a product without considering attributes. Marketers should help consumers envision how a product will make them feel.
2) Attribute-based choice, which involves comparing a product's specific attributes to other options. This process is more effortful and takes more time.
3) Attitude-based choice, where decisions are made based on general attitudes, impressions, intuitions or heuristics rather than comparing attributes.
The type of choice process used depends on motivation, available information, and the situation. Combinations of these processes may be used for a single decision.
This document provides an introduction to retail, including definitions of retail, the functions of retailers, and the evolution of retail in India. It defines retail as the sale of goods and services to the ultimate consumer. Retailers serve to provide goods to consumers through creating time, place, and ownership utilities. Major types of retailers discussed include general merchandise retailers like supermarkets and department stores, specialty stores, and shopping malls. The document traces the evolution of retail in India from traditional haats and mandis to the establishment of large public distribution systems and cooperative retail networks post-independence.
The document discusses key aspects of services marketing. It notes that the service sector makes up a large portion of economic activity and employment in most developed economies. Services range from those provided internally by organizations to their external customers. There are also four main categories of services defined by whether they process people, possessions, mental stimuli, or information. The characteristics of services, including intangibility and variability, have important implications for marketing strategy. Firms must consider customer involvement in production and the role of employees, as well as how to effectively design service delivery processes and channels.
The document discusses strategies for managing customer relationships and building loyalty. It covers four stages of brand loyalty, why loyalty is important for profitability, assessing the value of loyal customers, and reasons why customers become loyal. It also discusses strategies for developing loyalty bonds such as rewarding customers, reducing customer defections, handling complaints and recovering from service failures. The importance of service guarantees and how to design effective guarantees is also covered.
This chapter discusses consumer perception and the key elements and aspects that influence how consumers perceive marketing stimuli. It covers sensation and threshold, selection through selective exposure and attention, organization through figure-ground relationships and closure, and interpretation based on stereotypes, first impressions, and halo effects. Marketers must understand these concepts to effectively position products and services, and influence how consumers perceive quality, price, risk, and other attributes.
The document summarizes key aspects of customer behavior in service encounters. It discusses the four categories of services based on the nature of the service act and recipient. It also outlines the three stages of customer decision making: pre-purchase where customers evaluate options and risks; the service encounter where expectations are compared to actual experience; and post-encounter where satisfaction is determined. The summary highlights how customer expectations, risk perceptions, and participation differ depending on the type of service and level of contact.
This document discusses customer and market focus as examined in the Baldrige criteria. It covers determining customer requirements and expectations, building customer relationships, and factors that lead to customer satisfaction and retention. It also discusses measuring customer satisfaction, the role of marketing and sales in gathering customer input, and the importance of customer retention for profitability.
The document discusses key concepts in services marketing including current trends, characteristics of services, the product continuum, customer orientation, the services marketing mix, service quality gaps, customer expectations, and approaches for managing expectations. It provides an overview of important frameworks for understanding services and how to meet and exceed customer expectations.
Service Marketing - Perception and expectation of servicesSantosh115642
Consumer behavior and customer perceptions of services are influenced by many factors. Consumer behavior examines how external factors like culture, family and marketing activities influence a consumer's decision making process from need recognition through post-purchase evaluation. A customer's expectations are shaped by both explicit and implicit promises made by service providers as well as past experiences and word of mouth. Meeting and exceeding customer expectations is important for positive perceptions of service quality and satisfaction. Managing customer perceptions requires understanding how service encounters, physical evidence, price and image shape a customer's judgment of the overall service experience.
Significance of Service quality is very important for the success of a service company :
1. To win credibility & get repeat customers : If a company offers quality service consistently, It enjoys repeat business, i.e., customers visit it repeatedly. They may even refer it to their friends & relatives and provide positive word-of-mouth publicity to the quality service offered by the company.
2. To charge premium price : When a company offers superior quality service, compared to its competitors, customers who value quality will always prefer this company to other players in the market. So, the company will be in a position to charge a premium price from customers.
According to Berry & A Parasuraman, service quality is determined by customers using various criteria like credibility, security, access, communications, tangibles, responsiveness, reliability, competence, courtesy, tangibles, understanding, etc. Gronoos also suggested another list of criteria as professionalism & skills, attitude & behaviour, accessibility & flexibility, reliability & trustworthiness, reputation & credibility, and recovery. Since some of these factors are similar or overlapping, the authors have consolidated these into five distinct dimensions,
These dimensions represent how consumers organise information about service quality in their minds. These five dimensions were found relevant for banking, insurance, appliances repair, & maintenance, securities brokerage, long distance tele-service, auto repair service, & others. The dimensions are also applicable to retail & business services. This can be logically extended to internal services as well.
This document provides an introduction to concepts related to the service sector and service management. It discusses key topics such as creating distinctive services, service concepts, the service process cycle, customer service design, and management information systems applications in the service industry. The main points covered are:
- Services differ from manufactured goods in that they are intangible and involve human interaction.
- Creating a distinctive service involves listening to customers, defining superior service strategies, setting standards, selecting and empowering employees, and recognizing accomplishments.
- The service concept is defined by attributes like intangibility, inseparability of production and consumption, inability to be stored, and potential inconsistency.
- The service process cycle includes initiation
ISO 9001 provides standards for quality management systems that can be applied to service organizations. It aims to achieve customer satisfaction by meeting requirements and continually improving processes. Key aspects of a quality management system include management responsibility, resource management, developing and delivering services, and monitoring and improving processes. Implementing such a system helps organizations improve quality, consistency and customer satisfaction.
This chapter discusses consumer behavior in the context of services. It outlines a three-stage model of service consumption: the pre-purchase stage where customers evaluate alternatives and make decisions; the service encounter stage when customers interact with service providers; and the post-encounter stage when customers evaluate performance and develop future intentions. Key aspects of each stage are discussed, including how to understand and manage customer expectations, perceived risks, the servuction system of production and delivery, and the importance of effectively meeting customer needs at all touchpoints.
This document discusses topics related to integrated service marketing communications. It covers delivering consistent messages across all communication channels, both external and internal. Five major approaches are outlined to overcome challenges in service communication due to intangibility, managing promises and expectations, customer education, and internal marketing. Other topics covered include new service development, service experiences, front office vs back office functions, service recovery strategies, and benefits of service guarantees.
The webinar discussed measuring client value from microinsurance using the PACE framework to assess the product, access, cost, and experience of offerings, identifying opportunities to improve value through case studies from India, Kenya, and the Philippines, and analyzing microinsurance products in relation to informal alternatives and social security programs.
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SQ Lecture Two : Consumer Behaviour and Service Quality
1. 1
Service Quality
MKTG 1268
Lecture Two
• Consumer Behavior in a
Service Context
• Improving Service
Quality and Productivity
(brief overview only)
JAN 2013 Semester
GEOFFREY DA SILVA
2. TWO chapters to cover in this lecture
2
Chapter Two is the main topic
But we should start to read some parts of Chapter
Fourteen
Why?
Because our course is called Service Quality
And we need to understand the concept of service gaps
In order to have a framework to start our Group
Project
However we will return to Chapter 14 at a later
lecture
3. Chapter Two: Consumer Behavior in a Service
Context
3
Consumer Decision Making: The Three-Stage Model
Pre-purchase Stage
Service Encounter Stage
Post-purchase Stage
5. Pre-purchase Stage - Overview
5
A
Pre-purchase Stage Customers seek solutions to aroused
needs
Evaluating a service may be
difficult
Uncertainty about outcomes
Increases perceived risk
Service Encounter Stage What risk reduction strategies can
service suppliers develop?
Understanding customers’ service
expectations
Components of customer
expectations
Post-purchase Stage Making a service purchase decision
7. Pre-purchase Stage – Need Awareness
7
A service purchase is triggered by an
underlying need (need arousal)
Needs may be due to:
People’s unconscious minds (e.g., aspirations)
Physical conditions (e.g., chronic back pain)
External sources (e.g., marketing activities)
When a need is recognized, people are likely
take action to resolve it
8. Pre-purchase Stage – Information Search
8
When a need is recognized, people will search
for solutions.
Several alternatives may come to mind and these
form the evoked set
Evoked set – set of possible services or brands that a
customer may consider in the decision process
When there is an evoked set, the different
alternatives need to be evaluated before a final
choice is made
11. Pre-purchase Stage – Evaluation of Alternatives
11
Service Attributes
Search attributes help customers evaluate a product
before purchase
Style, color, texture, taste, sound
Experience attributes cannot be evaluated before
purchase—must ―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
13. Pre-purchase Stage – Evaluation of Alternatives
13
Perceived Risks
Functional – unsatisfactory performance outcomes
Financial – monetary loss, unexpected extra costs
Temporal – wasted time, delays leading to
problems
Physical – personal injury, damage to possessions
Psychological – fears and negative emotions
Social – how others may think and react
Sensory – unwanted impact on any of five senses
15. Pre-purchase Stage – Evaluation of Alternatives
15
Perceived Risks - How Do Consumers Handle
Them?
Seeking information from respected personal
sources
Using Internet to compare service offerings and
search for independent reviews and ratings
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
16. Pre-purchase Stage – Evaluation of Alternatives
16
Perceived Risks – Strategies for Firms to Manage Consume
Perceptions of Risk
Preview service through brochures, websites, videos
Encourage visit to service facilities before purchase
Free trial (for services with high experience
attributes)
Advertise (helps to visualize)
18. Pre-purchase Stage – Evaluation of Alternatives
18
Perceived Risks – Strategies for Firms to Manage Consume
Perceptions of Risk
•Display credentials
•Use evidence management (e.g., furnishing, equipment
etc.)
•Give customers online access to information about order
status
•Offer guarantees
19. Pre-purchase Stage – Evaluation of Alternatives
19
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 differently positioned service providers in
same industry
Expectations change over time
Example: Service Insights 2.1
Parents wish to participate in decisions relating to their
children’s medical treatment for heart problems
Media coverage, education, Internet has made this possible
21. Pre-purchase Stage – Evaluation of Alternatives
Service Expectations – Factors Influencing Consumer
Expectations of Service (Fig. 2.14)
21
22. Pre-purchase Stage – Evaluation of Alternatives
Service Expectations – Components of Custom 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
• Acceptable range of variations in service delivery
22
24. Pre-purchase Stage – Purchase Decision
24
When possible alternatives have been compared
and evaluated, the best option is selected
Can be quite simple if perceived risks are low and
alternatives are clear
Very often, trade-offs are involved. The more
complex the decision, the more trade-offs need to
be made
Price is often a key factor in the purchase decision
25. Service Encounter Stage - Overview
25
Pre-purchase Stage
● Service encounters range from high-
to low-contact
B ● Understanding the servuction system
Service Encounter Stage
● Theater as a metaphor for service
delivery: An integrative perspective
Service facilities
Personnel
Post-purchase Stage
Role and script theories
25
27. Service Encounter Stage
Service encounter – a period of time during which a
customer interacts directly with the service provider
Might be brief or extend over a period of time (e.g., a phone
call or visit to the hospital)
Models and frameworks:
―Moments of Truth” – importance of managing touchpoints
High/low contact model – extent and nature of contact points
Servuction model – variations of interactions
Theater metaphor – “staging” service performances
28. Moments of Truth
“[W]e could say that the perceived quality is realized at the moment
of truth, when the service provider and the service customer
confront one another in the arena. At that moment they are very
much on their own… It is the skill, the motivation, and the tools
employed by the firm’s representative and the expectations and
behavior of the client which together will create the service delivery
process.”
Richard Normann
29. Distinctions between High-contact
and Low-contact Services
29
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 arm’s length through electronic or
physical distribution channels
New technologies (e.g. Web) help reduce contact levels
Medium-contact Services Lie in between These Two
32. Servuction System:
Service Production and Delivery
32
Servuction System – visible front stage and invisible
backstage
Service Operations (front stage and backstage)
Technical core 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
Other contact points
Includes customer contacts with other customers
36. Importance of this Model:
36
You must use this to study the nature of the
companies that you have selected for your group
project and..
Analyze the different elements of the front end and
back end operations
Which are more critical? From the customer point of
view? From the operations and economics (cost
efficiency) perspective?
Which areas can cause potential lapses in service
quality or create bottlenecks?
37. Service Encounter Stage
Theater as a Metaphor for Service Delivery
“All the world’s a stage and all the
men and women merely players.
They have their exits and their
entrances and each man in his time
plays many parts”
William Shakespeare
As
You Like It
37
38. Theatrical Metaphor: An Integrative Perspective
Good metaphor as service delivery is a series of events that customers
experience as a performance
Service facilities Personnel
• Stage on which drama • Front stage personnel are
unfolds like members of a cast
• This may change from • Backstage personnel are
one act to another support production team
Roles Scripts
• Like actors, employees • Specifies the sequences
have roles to play and of behavior for customers
behave in specific ways and employees
38
44. Customer Satisfaction Is Central to the
Marketing Concept
44
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
45. Customer Delight: Going Beyond Satisfaction
45
Research shows that delight is a function of
3 components
Unexpectedly high levels of
performance
Arousal (e.g., surprise, excitement)
Positive affect (e.g., pleasure, joy, or
happiness)
Once customers are delighted, their
expectations are raised
If service levels return to previous levels,
this may lead to dissatisfaction and it will
be more difficult to ―delight‖ customers in
future
46. Summary of Chapter 2:
Customer Behavior in a Services Context (1)
Three-stage Model of service consumption helps us to
understand and better manage customer behavior
Pre-purchase stage
Customers seek solutions to aroused needs
Evaluation alternatives is more difficult when a service involves
experience and credence attributes
Customers face perceived a variety of perceived risks in
selecting, purchasing and using services
Customers can use a variety of ways to reduce perceived risk
and firms can also manage risk perceptions
Customer expectations of service range from ―desired‖ to
―adequate‖ with a zone of tolerance in between; if actual
service is perceived as less than adequate, customers will be
dissatisfied
A purchase decision has to be made
46
47. Summary of Chapter 2:
Customer Behavior in a Services Context (2)
Service encounter stage
Service encounters range from high contact to low contact
Servuction system consists of two parts:
Service operations system
Service delivery system
Role and script theories help us understand, manage customer behavior
during encounters
Theatrical view of service delivery offers insights for design, stage-
managing performances, and relationships with customer ―audience‖
Post-purchase stage
In evaluating service performance, customers can have expectations
positively disconfirmed, confirmed, or negatively disconfirmed
Unexpectedly high levels of performance, arousal and positive affect
are likely to lead to delight
47
48. Sample Practice Exam Question:
48
Explain each of the following:
Search, experience and credence
attributes (6 marks)
At least four out of the seven types of
perceived risks involved in the purchase
and/or use of services (4 marks)
49. Chapter 14 : Service Quality
We want you to read Chapter 14 ONLY from pages 432 to 437
Understand what are the DIMENSIONS of Service Quality
What is meant by the concept of SERVICE GAPS
And what marketers can do to reduce service gaps
49
51. Why you need to read this early…
• When you pick a service company and study its products and
services you will need to articulate what are the dimensions of
its service
• From here you will start to observe, measure and clarify what
you think are some of the gaps or areas for improvements’
• These will give you some tentative ideas as to what kinds of
recommended strategies you will propose as part of your
service marketing plan.
51
52. The Five Dimensions of Service Quality
52
Tangibles: Appearance of physical elements
Reliability: Dependable and accurate performance
Responsiveness: Promptness; helpfulness
Assurance: Competence, courtesy, credibility, security
Empathy: Easy access, good communication,
understanding of customer
52
54. The GAP Model ― A Conceptual Tool to Identify and Correct Service
Quality Problems - Six Service Quality Gaps (Fig. 14.3)
54
55. Summary of the 6 Service Quality Gaps
55
Gap 1, the Knowledge Gap relates to a lack of management understanding of
what customers expect.
Gap 2, the Standards Gap is a failure to translate managers’ perceptions of
customer expectations into the quality standards established for service delivery.
Gap 3, the Delivery Gap is the difference between specified delivery standards
and the firm’s actual performance.
Gap 4, the Communications Gap is the difference between what the company
communicates and what is actually delivered to the customer.
Gap 5, the Perceptions Gap is the difference between what the company has
actually delivered and what the customer perceives s/he has received (note this
perception may be wrong due to difficulty in evaluating the service).
Gap 6 (the overall gap) or the Service Gap is the difference between what the
customer perceives and his/her original expectations.
56. The GAP Model ― A Conceptual Tool to Identify and Correct Service
Quality Problems
Suggestions for Closing the 6 Service Quality Gaps (1) (Table 14.2)
56
58. The GAP Model ― A Conceptual Tool to Identify and Correct Service
Quality Problems - Suggestions for Closing the 6 Service Quality Gaps
(3) (Table 14.2)
58