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  • 1. The services sector has been growing at a rate of 8% per annum in recent years More than half of our GDP is accounted for from the services sector This sector dominates with the best jobs, best talent and best incomes

2. It is the part of the product or the full product for which the customer is willing to see value and pay for it. 3. It is intangible. It does not result in ownership. It may or may not be attached with a physical product 4. Physical goods Services tangible intangible homogeneous heterogeneous Production and distribution are separated from consumption Production, distribution and consumption are simultaneous processes A thing An activity or process Core value processed in factory Core value produced in the buyer-seller interaction Customers do not participate in the production process Customers participate in production Can be kept in stock Cannot be kept in stock Transfer of ownership No transfer of ownership 5. Personal needs haircuts, tution, massage parlours Business needs courier services, office cleaning services, delivering fresh flowers 6. Intangibility Inseparability Perishability Heterogeneity 7. Intangible Actions or events Cant be seen, held, or touched Heterogeneous No two service experiences alike Service quality depends on uncontrollable factors Actual service often not what was planned 8. Production and consumption inseparable Services cant be saved, returned, or resold Once services are delivered, they are lost Difficult to synchronize supply and demand 9. Asim Sarwar 10. Overview the generic differences in consumer behavior between services and goods Introduce the aspects of consumer behavior that a marketer must understand in six categories of consumer behavior: Need Recognition Information search Evaluation of service alternatives Service purchase and consumption Post purchase evaluation Role of culture 11. Primary Need : Need by occasion urgency and priority Secondary need : Follow up needs to primary demands which could include both goods as well as services. 12. The need recognition is the first and most important step in the buying process. If there is no need, there is no purchase. This recognition happens when there is a lag between the consumers actual situation and the ideal and desired one. 13. Esteem Needs Social Needs Safety Needs Physiological Needs Self-Actualization 14. Information search Personal and non-personal sources Perceived risk 15. Previous personal experience Word of Mouth recommendation(WOM) Reference groups Media communications Internet sources 16. Evaluation of service alternatives During the evaluation of alternatives stage, the consumer evaluates all the products available on a scale of particular attributes. 17. Post purchase Behavior Post-purchase behavior is when the customer assesses whether he is satisfied or dissatisfied with a purchase. If the product has brought satisfaction to the consumer, he will then minimize stages of information search and alternative evaluation for his next purchases in order to buy the same brand. Which will produce customer loyalty. 18. Information Search Evaluation of Alternatives Purchase and Consumption Post-Purchase Evaluation 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 social institutions 19. Ali Kamran 20. Culture 1. Sub culture 2. Social class Social factors 1. Reference Group 2. Family 3. Role and status Personal Factors 1. Age 2. Occupation 3. Lifestyle Psychological Factors 1. Motivation 2. Perception 21. 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 22. Customer Gap: difference between expectations and perceptions Provider Gap 1: not knowing what customers expect Provider Gap 2: not having the right service designs and standards Provider Gap 3: not delivering to service standards Provider Gap 4: not matching performance to promises 23. The Customer Gap Expected Service Perceived Service GAP 24. Make realistic accurate promises that reflect the service actually delivered rather than idealized version of service. Ask contact people for feedback on the accuracy of promise made in advertising and selling Ensure service tangibles accurately reflect the type and level of service provided. Use market research to determine sources of derived customer expectation and their requirement. Educate customers to understand their role and perform better. Identify influencers and opinion leaders for the service and concentrate marketing efforts on them. 25. Getting Enhancing Retaining Satisfying 26. The first step in managing a loyalty based business system is finding and acquiring the right customers. After acquisition of the desirable customers the next step is to build relationships and turn them into loyal customers who will generate a growing revenue stream for the company. A loyal customer is a consistent source of revenue for the organization. This loyalty has to be sustained by continuously providing superior quality and value.