Consumer Behaviour in Services
CONSUMER PROBLEM
TIME DEFICIENCY REASONS: dual career couples, single parent families IT LEADS TO: demand for different services
SEARCH, EXPERIENCE & CREDENCE PROPERTIES
SEARCH QUALITIES: attributes that a consumer can determine before the purchase EXPERIENCE QUALITIES : attributes that a consumer can determine only after the purchase CREDENCE QUALITIES : attributes that consumer may find impossible to evaluate even after purchase & consumption
Continuum of Evaluation for Different Types of Products/services
Most Goods Most Services
High in search qualities
High in experience High in credence qualities qualities
GLOBAL DIFFERENCES ROLE OF CULTURE DIFFERENT VALUES, ATTITUTEDS DIFFERENT CUSTOMS
UNDERSTANDING DIFFERENCES AMONG CONSUMERS
CUSTOMER EXPECTATION OF SERVICE
Customer expectations are the beliefs about service delivery that serve as standards or reference points against which performance is judged.
LEVELS OF EXPECTATION
DUAL CUSTOMER EXPECTATIONS
Desired Service
Adequate Service
THE ZONE OF TOLERANCE
Desired Service
Zone of Tolerance
Adequate Service
ZONES OF TOLERANCE FOR DIFFERENT SERVICE DIMENSIONS
Desired Service
Zone of Tolerance
Adequate Service
Desired Service Zone of Tolerance
Adequate Service
Reliability
Tangibles
FACTORS THAT INFLUENCE DESIRED SERVICE
Lasting Service Intensifiers
Desired Service
Personal Needs
Zone of Tolerance Adequate Service
Lasting Service Intensifiers are individual, stable factors that lead the customer to a heightened sensitivity to service.
FACTORS THAT INFLUENCE ADEQUATE SERVICE
Temporary Service Intensifiers
Desired Service
Perceived Service Alternatives
Zone of Tolerance
Predicted Service
Self-Perceived Service Role
Adequate Service
Situational Factors
FACTORS THAT INFLUENCE DESIRED AND PREDICTED SERVICE
Explicit Service Promises
Implicit Service Promises
Desired Service
Word-of-Mouth
Zone of Tolerance Adequate Service
Past Experience
Predicted Service
CUSTOMER PERCEPTION OF SERVICE
Customers perceive services in terms of quality of service & how satisfied they are overall with their experiences.
CUSTOMER PERCEPTIONS OF QUALITY AND CUSTOMER SATISFACTION
BUILDERS OF CUSTOMER PERCEPTION
SINGLE TRANSACTION SPECIFIC ENCOUNTER: how the customer has been treated in a particular encounter with a particular employee. CUMULATIVE PERCEPTION: customers overall experience with the company.
CUSTOMER SATISFACTION
It is a judgment that a product or service feature or the product or service itself provides a pleasurable level of consumption related fulfillment. It is the customers evaluation of a product or service in terms of whether it has met the customers needs & expectations. Its failure leads to dissatisfaction.
DETERMINANTS OF CUSTOMER SATISFACTION
PRODUCT & SERVICE FEATURES CUSTOMER EMOTIONS- your mood ATTRIBUTION FOR SERVICE SUCCESS OR FAILURE: how much the customer blames or credits the failure or success of a service on the service provider PERCEPTION OF EQUITY OR FAIRNESS: have I been treated fairly compared to other customers? PERCEPTION OF FAMILY MEMBERS, FRIENDS, PEERS ETC
OUTCOMES OF CUSTOMER SATISFACTION
Increased customer retention Positive word-of-mouth communications Increased revenues
RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND LOYALTY IN COMPETITIVE INDUSTRIES
Source: James L. Heskett, W. Earl Sasser, Jr., and Leonard A. Schlesinger, The Service Profit Chain, (New York, NY: The Free Press, 1997), p. 83.
Common Themes in Critical Service Encounters Research
Recovery:
employee response to service delivery system failure
Adaptability:
employee response to customer needs and requests
Coping:
employee response to problem customers
Spontaneity:
unprompted and unsolicited employee actions and attitudes
UNDERSTANDING CUSTOMER EXPECTATION AND PERCEPTION THROUGH MARKETING
RESEARCH
CUSTOMER
Customer
Expected Service
(Customer Gap)
GAP 1
Perceived Service
COMPANY
Company Perceptions of Consumer Expectations
Company
WHY DO SERVICE RESEARCH?
To identify dissatisfied customers To discover customer requirements or expectations To monitor and track service performance To assess overall company performance compared to competition To assess gaps between customer expectations and perceptions To gauge effectiveness of changes in service To appraise performance of individuals/teams for rewards To determine expectations for a new service To monitor changing expectations in an industry To forecast future expectations
CRITERIA FOR AN EFFECTIVE SERVICE RESEARCH PROGRAM
Includes both qualitative and quantitative research Includes both expectations and perceptions of customers Balances the cost of the research and the value of the information Includes statistical validity when necessary Measures priorities or importance of attributes Occurs with appropriate frequency Includes measures of loyalty, behavioral intentions, or actual behavior
STAGES IN THE RESEARCH PROCESS
Stage 1 : Define Problem Stage 2 : Develop Measurement Strategy Stage 3 : Implement Research Program Stage 4 : Collect and Tabulate Data Stage 5 : Interpret and Analyze Findings Stage 6 : Report Findings
PORTFOLIO OF SERVICES RESEARCH
Research Objective
Identify dissatisfied customers to attempt recovery; identify most common categories of service failure for remedial action Assess companys service performance compared to competitors; identify service-improvement priorities; track service improvement over time Obtain customer feedback while service experience is fresh; act on feedback quickly if negative patterns develop Use as input for quantitative surveys; provide a forum for customers to suggest service-improvement ideas Measure individual employee service behaviors for use in coaching, training, performance evaluation, recognition and rewards; identify systemic strengths and weaknesses in service Measure internal service quality; identify employeeperceived obstacles to improve service; track employee morale and attitudes Determine the reasons why customers defect Forecast future expectations of customers; develop and test new service ideas
Type of Research
Customer Complaint Solicitation
Relationship Surveys Post-Transaction Surveys
Customer Focus Groups
Mystery Shopping of Service Providers Employee Surveys
Lost Customer Research Future Expectations Research
