Unit II

Consumer Behaviour in
Services
Prof. Arun Mishra
arunjimishra@gmail.com
9893686820

Learning Objectives
Overview the generic differences in consumer behavior
between services and goods
Introduce the aspects of consumer behavior that a
marketer must understand in five categories of
consumer behavior:
Information search
Evaluation of service alternatives
Service purchase and consumption
Post purchase evaluation
Role of culture

Categories in Consumer
Decision-Making and Evaluation of Services
Information
Search
Use of personal sources
Perceived risk

Purchase and
Consumption
Service provision as drama
Service roles and scripts
Compatibility of customers

Evaluation of
Alternatives
Evoked set
Emotion and mood

Post-Purchase
Evaluation
Attribution of dissatisfaction
Innovation diffusion
Brand loyalty

Need Arousal
Decision to buy or use a service is triggered by need
arousal
Triggers of need:
Unconscious minds (e.g., personal identity and
aspirations)
Physical conditions (e.g., hunger )
External sources (e.g., a service firms marketing
activities)

Consumers are then motivated to find a solution for

their need

Information Search
Need arousal leads to attempts to find a solution
Personal & Nonpersonal Sources for information
search
In buying services consumers rely more on
personal sources. WHY?
Personal influence becomes pivotal as product
complexity increases
Word of mouth important in delivery of services

Alternatives then need to be evaluated before a

final decision is made

Perceived Risks of Purchasing &Using Services

More risk would appear to be involved with purchase of
services (no guarantees)
Many services so specialised and difficult to evaluate
(How do you know whether the plumber has done a
good job?)
Types of 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

How Might Consumers Handle

Perceived Risk?
Seek information from respected personal sources
Compare service offerings and search for independent
reviews and ratings via the Internet
Relying on a firm with good reputation
Looking for guarantees and warranties
Visiting service facilities or going for trials before purchase
and examining tangible cues or other physical evidence
Asking knowledgeable
services

employees

about

competing

Strategic Responses to
Managing Customer Perceptions of Risk

Evaluating Alternatives
Evoked set a set of products and brands that a
consumer considers during the decision-making
process that is derived from past experiences or
external sources
Emotion and mood are feeling states that
influence peoples perception and evaluation of
their experiences
Moods are transient
Emotions more intense, stable and pervasive
May have a negative or positive influence

Evaluating Alternatives Service Attributes

Search attributes help customers evaluate a product
before purchase
E.g., type of food, location, type of restaurant and price

Experience attributes cannot be evaluated before

purchase
The consumer will not know how much s/he will enjoy the
food, the service, and the atmosphere until the actual
experience

Credence attributes are those that customers find

impossible to evaluate confidently even after
purchase and consumption
E.g., hygiene conditions of the kitchen and the healthiness
of the cooking ingredients

How Product Attributes Affect

Ease of Evaluation
Most Goods

Most Services

EasyTo
Evaluate

Difficult
To evaluate
Clothing
Chair
Motor
Vehicle
Foods

Restaurant
Meals
Lawn Fertilizer
Haircut
Entertainment

Computer
Repair
Education
Legal Services
Complex
Surgery

High In
Search
Attributes

High In
Experience
Attributes

High In
Credence
Attributes

Purchase Decision
Purchase Decision: Possible alternatives are
compared and evaluated, whereby the best option
is selected
Simple if perceived risks are low and alternatives are
clear
Complex when trade-offs increase

Trade-offs are often involved

After making a decision, the consumer moves into
the service encounter stage

Service Provision as Drama

Need to maintain a desirable impression
Service actors need to perform certain routines
Physical setting important, smell, music, use of
space, temperature, cleanliness, etc.

Post Purchase Evaluation

Most important in predicting subsequent
Consumer behaviour and purchase.

Word-of-Mouth Communication
Attributes of Dissatisfaction
Positive or Negative Baises
Brand Loyalty

Role of Culture in Services

Information
Search

Evaluation of
Alternatives
Evoked set
Emotion and mood

Use of personal sources

Perceived risk

Culture
Values and attitudes
Manners and customs
Material culture
Aesthetics
Educational and social
institutions

Purchase and
Consumption

Post-Purchase
Evaluation

Service provision as drama

Service roles and scripts
Compatibility of customers

Attribution of dissatisfaction
Innovation diffusion
Brand loyalty