45777229 Consumer Behavior in Services

8/2/2019 45777229 Consumer Behavior in Services

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Consumer Behavior in

Services


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Objective :

To Learn

Customer expectation of service

Buying situations faced by the consumer

Customer perception of service

Understanding customer expectation and perception through market research


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Introduction :

The customer is the main reason for the existence of the service firm.

They form the basis for all marketing strategies like segmenting, targeting and

positioning.

In the face of increasing competition, without an understanding of the

customers it would be impossible for the marketer to deliver the offer.

The buying behavior of the consumer is studied, because the consumers mind is

like a BlackBox.


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Introduction : Continue.

A. Company Controlled:

Service Offer

Price Advertising

Promotions

Distribution Outlets

B. Social Forces:

Words of Mouth

Reference Groups

CUSTOMERSMIND

RESPONSE

NO BUY

BUY

External stimuli and stimulation Process acting on the consumer


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Customer Expectation of Service:

Expectations can pose a major challenge because they can shift

constantly and easily.

How satisfied or dissatisfied the customers are is determined by

these expectations and service performance in meeting them.

Service performance

Customer Satisfaction =

Customer ExpectationIt is very hard to calculate the satisfaction by merely a formula as it is

influenced by complex factors. But this calculation serves as a

reminder that customers level of satisfaction can be affected by

changes in either their expectations or service performance.


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Always watch for the changes:

If the customers satisfaction level is changing, find out if something has

happened either at their end or at the service providers end.

If satisfaction is rising, find out what youre doing right, so you can

keep doing it.

if satisfaction is slipping downward, figure out how to reverse the

situation before it falls off the chart.


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What does the customer Buy ?

The customer mostly buys goods, services, people, places, events, ideas,information and experiences.

These can be :

High Involvement Offers.

Low Involvement Offers/ Impulse offers.

High involvement service product have the following characteristics:

Complexity of Features

High PriceHigh Perceived Risks

Large Differences in Features

Large Number of Users

Enduring Products

Reflects selfconcept of the Buyer


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Low involvement service products have the following features:

1. Low price2. Less Difference in Features

3. Simple Features in the Service Product

4. Does Not Reflect a Consumers Personality

5. The Products are of Mostly Daily Needs

6. Low Brand loyalty

Impulse Purchases:

A customer goes through such purchases without any premeditated

Plans made at the beginning of the day.

It is triggered by five senses


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Buying situations faced by the Consumer:

Customer find themselves in different buying situations, from purchase to purchase

and service transaction to service transaction.

The second buying situation would differ greatly from the first if one or more of the

following factors are absent:

The customer is aware of the service product category and service brands.

The customer has definite decision-making criteria about the purchase of the

service offer.

The customer is competent enough to evaluate the service offer and also has

definite evaluation criteria.


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The three buying situations as elaborated by Howard and Sheth are.

Straight Re-buy or Reutilized response behavior

Modified Re-buy or Limited problem solving

Extensive problem solving or critical problem solving or new task.


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Customer Perception of Service

Perception:

It involves the way we view the world around us. It adds meaning to

information gathered via five senses of touch, smell, hearing, vision and taste.

Servicequality

Productquality

Price

Situationalfactors

Customersatisfaction

Personalfactors

Customerloyalty


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Perception is the meaning that consumers ascribe to what they see around

them. The meaning that is given is influenced by:

Past experience or learning

preconceived notations, Prejudice and assumption

Expectations and personality

Family background, values, belief and others social factors and

Genuine knowledge and awareness


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The meaning and interpretation to what customers see finally become a greatinfluencer in the decision-making process of any service offer consumption

Example:

1. Jet Airways, to differentiate, set a dress code for its airhostesses and female

stewards. Three woman of a family spanning three generations, they would

all view the image that the airhostess presents differently. Based on their

individual perceptions, the three women might have different behavior in

their service consumption process, which the marketer would be quite keen

to know.

2. If toy company brings out their newest version of Barbie dressed in white,

they might get two types of reactions in the retail stores. The people in the

west would perceive that Barbie was getting married. While the other in east

may perceive Barbie to be a widow.


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The perception of the service firm or its offers consists of factors both internal and

external to the customer and is greatly affected by the following:

The external communication made by the service firm.

The quality of experience the customer undergoes in the service encounter

The post purchase feeling

Internal factors are most of the time psychological and personal elements like

motives and expectations that are unique to customers that affect attention and

perception. The marketer cannot control them and they limit the effectiveness ofservice strategy.

External factors are either the nature of the offer or its marketing mixes, which can

be controlled by the firm.


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External Factors

Size

Position

Movement

Repetition

Intensity

Contrast

Color

Directionality

Isolation

Novelty

Learned attention

Attractive spokesperson

Scene changes

Internal Factors

Selective attention

Selective exposure

Selective Reception,

Comprehension and

retention

Subliminal perception

Selective destortion

perceptual vigilance or

defense Expectation

Mood

Involvement

Experience

Customer

Perception


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THANK YOU

45777229 Consumer Behavior in Services

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