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Consumer Behaviour 

for Services

By Dr. Kevin Lance Jones

7/30/2019 3b. Consumer Behavior for Services

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Consumer Behaviour Service Differences 

Intangibility problem

Consumer involvement

Perceived Risk 

Sources of Information

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  Consumer Evaluation Processes for Services 

Search Qualities

attributes a consumer can determine prior to

purchase of a productExperience Qualities

attributes a consumer can determine afterpurchase (or during consumption) of a product

Credence Qualities

characteristics that may be impossible toevaluate even after purchase and consumption 

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Continuum of Evaluation for 

 Different Types of Products 

Difficult to evaluate Easy to evaluate 

High in search

qualities

High in experience

qualities

High in credence

qualities

Most

Goods 

Most

Services 

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Services - Decision Making Process Need awareness  Information search 

Evaluation of 

service suppliers 

Request service 

Service delivery 

Evaluation

Future Intentions 

Memory 

Memory

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Categories in Consumer Decision-Making and  Evaluation of Services

Information

SearchEvaluation of 

Alternatives

Purchase andConsumption

Post-PurchaseEvaluation

Use of personal sources

Perceived risk Evoked set

Emotion and mood

Service provision as drama

Service roles and scripts

Compatibility of customers

Attribution of dissatisfaction

Innovation diffusion

Brand loyalty

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 Consumer Categories in Decision-Making and Evaluation of Services

Information Search Evaluation of Alternatives

Purchase andConsumption

Post - PurchaseEvaluation

Use of personal sources

Perceived risk

Evoked set

Emotion and mood

Service provision as drama

Service roles and scripts

Compatibility of customers

Attribution of dissatisfaction

Innovation diffusion

Brand loyalty

Culture Values and attitudes

 Manners and customs

Material culture Aesthetics

Educational and socialinstitutions 

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 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 theservice offer?

What sources of information are used inevaluating competing service offers?

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 Maslow’s Hierarchy of Needs 

Self-

actualisation 

Esteem 

Love

Safety

Physiological

E.g -Meals 

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

Internal Satisfaction 

The respect of others

Action for and

from others

Survival

Satisfaction of 

 basic hunger 

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 Information SourcesPrevious personal experience

Word of Mouthrecommendation (WOM)

Reference groups

Media communications

Internet sources 

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 Evaluation of Alternatives A process of choice reduction.

 ‘Rules’ based approaches used. 

Critical attributes, average scoreof all attributes, or weightedattributes. 

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 Perceived Risk  Factors affecting perceived risk:

The level of tangible evidence

Buyer involvement

New purchase

Personal risk tolerance

Situational factors

Legal safeguards

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 Discussion Exercise

 Differences Between the Service Experience

in China and Other Countries

Authenticity Caring

Control Courtesy

Formality

Friendliness

Personalization

Promptness

Discuss cultural

differences with

the following …..