Consumer Behaviour for Services

Consumer Behaviour Service Differences

Intangibility problem
Consumer involvement Perceived Risk Sources of Information

Consumer Evaluation Processes for Services

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

Continuum of Evaluation for Different Types of Products

Most Goods
Easy to evaluate

Most Services
Difficult to evaluate

High in search qualities

High in experience High in credence qualities qualities

Services - Decision Making Process

Need awareness Information search

Memory

Memory

Evaluation of service suppliers

Future Intentions

Evaluation Service delivery

Request service

Categories in Consumer Decision-Making and Evaluation of Services

Information Search

Use of personal sources Perceived risk

Evaluation of Alternatives
Evoked set Emotion and mood

Purchase and Consumption

Service provision as drama Service roles and scripts Compatibility of customers

Post-Purchase Evaluation
Attribution of dissatisfaction Innovation diffusion Brand loyalty

Consumer Categories in Decision-Making and Evaluation of Services

Information Search
Use of personal sources Perceived risk

Evaluation of Alternatives
Evoked set Emotion and mood

Values and attitudes

Manners and customs Material culture Aesthetics Educational and social institutions

Culture

Purchase and Consumption

Service provision as drama Service roles and scripts Compatibility of customers

Post - Purchase Evaluation

Attribution of dissatisfaction Innovation diffusion Brand loyalty

Key Issues for Decision Making

Who is involved in the decision making process? How long does the process take? What is the set of competing services from which consumers make their choice? What is the relative importance attached by decision makers to different elements of the service offer? What sources of information are used in evaluating competing service offers?

Maslows Hierarchy of Needs

E.g -Meals

Internal Satisfaction Selfactualisation The respect of others Action for and from others Survival Satisfaction of basic hunger Esteem Love Safety Physiological

Experiment with ethnic cuisine A meal at the best restaurant in town

Social meal with friends and family

Safe food from a reputable source Food from any uncontaminated source

Information Sources
Previous personal experience Word of Mouth recommendation (WOM) Reference groups Media communications Internet sources

Evaluation of Alternatives
A process of choice reduction.
Rules based approaches used. Critical attributes, average score of all attributes, or weighted attributes.

Perceived Risk
Factors affecting perceived risk: The level of tangible evidence Buyer involvement New purchase Personal risk tolerance Situational factors Legal safeguards