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.

1. Consumer Decision Making
in Services
&
Three Stage Model
1
Dr. Amitabh Mishra

2. 2
Dr. Amitabh Mishra
Consumer Decision Making
• A decision is defined as-
“Decision making is the process of choosing
between two or more alternatives”
“Choosing an option of the few/many available”
“The selection of an action from two or more
alternative choices”

3. 3
Dr. Amitabh Mishra
• Decision making is:
• A goal oriented process
• It is a problem solving process
• It helps taking advantage of opportunities and fight
threats
• It is the selection of an alternative out of the
few/many choices that are available

4. 4
Dr. Amitabh Mishra
Three Stage Model of Service
Consumption

5. 5
Dr. Amitabh Mishra
 Service consumption can be divided in to three
principle stages-
 Pre- purchase Stage
 Service Encounter Stage
 Post Purchase stage

6. Pre purchase Stage
 Pre purchase Stage is characterized by-
 Awareness of need
 Information search
 Evaluation of alternatives
Dr. Amitabh Mishra

7.  Customers seek solutions to their aroused needs.
 Evaluation alternatives is more difficult when a
service involves experience and credence
attributes.
 Customers face a variety of perceived risks in
selecting, purchasing and using services.
Dr. Amitabh Mishra

8. 8
Dr. Amitabh Mishra
Service Encounter Stage
“Service encounter involves a series of
contacts/encounters with the chosen service
provider”
 Service encounter stage is characterized by-
1) Placing an order/requesting a reservation/or submit
an application
2) Service delivery by staff or self-servicing

9. 9
Dr. Amitabh Mishra
Post purchase stage
 Post purchase stage is characterized by-
 Evaluation of service performance.
 Future intentions.
 In evaluating service performance, customers
expectations can be-
 Positively dis-confirmed.
 Confirmed, or
 Negatively dis-confirmed

10.  Service encounters range from high contact to
low contact.
 During the service delivery many customers start
evaluating the quality of services.
Dr. Amitabh Mishra

11. Post Purchase Stage
Dr. Amitabh Mishra