Post on 07-Apr-2018
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Chapter 2
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We are -
Md. Shoeb-Ul-Islam ID # ZR1002017
Mahbubul Haque ID # ZR1002019
Shakhowath Chowdhury ID # ZR10020
Shaikat Borua ID # ZR10020
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Chapter Preview
Understanding Customer Behavior lies at the heart ofmarketing
In this chapter, we focus on examining the nature ofencounters with customer during service delivery andconsumption
o Not all services are alike and have different implicationsfor customer behavior:
o 4 broad categories of serviceo
3 stage model of service consumptiono Customer's risk in serviceo Expectation of customero Role Theory, Script theory
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4 Categories of Services
People Processing Possession Processing Mental Stimulus Processing
Information Processing
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People Processing
Services directed at People's bodies Customers physically enter into the service system Customers Co operate with the service provider Example: Beauty saloon, fitness center
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Possession Processing
Tangible treatment for physical possession
Less Physical involvement with customer Example: Repair, Laundry
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Mental Stimulus Processing
Service Directed at people's minds Has the power to shape attitudes and influence behavior Full benefit requires investment of time and effort Physical presence of customer is not mandatory
Example: Education, Religion,
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Information Processing
Revolutionized by using computers Information is the most intangible form of service output Example: Accounting, Programming, Research
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Customer Decision Making3-Stage Model of Service Consumption
1. Prepurchase Stage
2. Service Encounter Stage
3. Post-encounter Stage
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The Prepurchase Stage
Begins with Need Arousal
Customer Awareness fromUnconscious Mind or Marketing
Activitieseg. Hunger / Life Security
Seeks Solution to Aroused Needs
Low Risk Quick / Repeat Purchase High Risk / First Time Use
Complex
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The Prepurchase Stage cont.
Evaluating a Service (few tangible clues,more difficult to choose)
eg. Fitness Centers, Music Concerts.
1. Search Attributes
2. Experience Attributes
3. Credence Attributes
eg. Restaurant.
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The Prepurchase Stage cont.
Handling Perceived Risks byConsumers:
Seeking info from FnFs / peers
Relying on brands
Seeking guarantees / warranties
Discussing with opinion leaders
Accessing internet to get reviews /ratings
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The Prepurchase Stage cont.
Risk Reduction Strategies byService Suppliers:
Offering warranties
Money-back guarantees
Making available sufficient info /FAQs through web / brochure
Training up staffs to be empathetic tocustomers
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Understanding CustomersService Expectations
Customers evaluate service quality bycomparing what they expect against whatthey perceive
Situational and personal factors also considered
Expectations of good service vary from onebusiness to another, and among differently
positioned service providers in the sameindustry
Expectations change over time
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Components of CustomerExpectations Desired Service Level:
The type of service customers hope to receive and alsobelieve that can and should be delivered
Adequate Service Level:
Minimum level of service customers will acceptwithout being dissatisfied.
Predicted Service Level: Service level that customer believes firm will actually
deliver Zone of Tolerance:
Range within which customers are willing to acceptvariations in service delivery
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Factors Influencing CustomerExpectations of Service
Predicted Service
Explicit & Implicit
Promises by the provider,
Word-of-Mouth,
Customers Past ExperienceDesired Service
ZONE
OF
TOLERANCE
Adequate Service
Personal Needs
Beliefs about
What Is Possible
Perceived Service
Alterations
Situational Factors
Source: Adapted from Valarie A. Zeithaml, Leonard A. Berry, and A. Parasuraman, The Nature and Determinants of Customer Expectations of
Service,Journal of the Academy of Marketing Science 21, no. 1 (1993): pp 112.
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Service Encounter Stage:Overview
Prepurchase Stage
Service Encounter Stage
Post-Encounter Stage
Service encounters range from high- tolow-contact
Understanding the servuction system
Service marketing systems: high-
contact and low-contact
Role and script theories
Theater as a metaphor for servicedelivery: An integrative perspective
Implications for customerparticipation in service creation anddelivery
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Service Encounters Range fromHigh-Contact to Low-Contact High-Contact Services
Customers visit service facility and remain throughoutservice delivery
Active contact between customers and servicepersonnel
Includes most people-processing services Low-Contact Services
Little or no physical contact with service personnel Contact usually at arms length through electronic or
physical distribution channels New technologies (e.g. the Web) help reduce contact
levels
Medium-Contact Services Lie in between TheseTwo
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Service Encounters Range fromHigh-Contact to Low-Contact (Contd..)
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The Servuction System:Service Production and Delivery Service Operations (front stage and
backstage) Where inputs are processed and service elements created Includes facilities, equipment, and personnel
Service Delivery (front stage) Where final assembly of service elements takes placeand service is delivered to customers
Includes customer interactions with operations and othercustomers
Service Marketing (front stage) Includes service delivery (as above) and all other contacts
between service firm and customers
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Service Marketing System for aHigh-Contact Service (Fig 2.10)
The
CustomerTechnical
Core
Interior & Exterior
Facilities
Equipment
Service People
Other
Customers
Advertising
Sales Calls
Market Research Surveys
Billing/Statements
Misc. Mail, Phone Calls,E-mails, Faxes, etc.
Website
Random Exposure toFacilities/Vehicles
Chance Encounters withService Personnel
Word of Mouth
Service Delivery System Other Contact Points
Service Operations System
Backstage
(invisible)
Front Stage
(visible)Other
Customers
SERVICE MARKETING SYSTEM
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Service Marketing System for aLow-Contact Service (Fig 2.11)
The
Customer
Backstage(invisible)
Front Stage(visible)
Advertising
Market ResearchSurveys
Billing/Statements
Random Exposure to
Facilities/Vehicles
Word of Mouth
Phone, Fax,Web- site,etc.
SelfServiceEquipment
TechnicalCore
Other Contact PointsService Delivery System
Service OperationsSystem
SERVICE MARKETING SYSTEM
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Theatrical Metaphor:An Integrative Perspective Service dramas unfold on a stagesettings maychange as performance unfolds
Many service dramas are tightly scripted, othersimprovised
Front-stage personnel are like members of a cast Like actors, employees have roles, may wear special
costumes, speak required lines, behave in specificways
Support comes from a backstage production team Customers are the audiencedepending on type of
performance, may be passive or active participants
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Implications of CustomerParticipation in Service Delivery
Greater need forinformation/training tohelp customers toperform well, get desired
results Customers should be
given a realistic servicepreview in advance ofservice delivery, so theyhave a clear picture oftheir expected role
Figure 2.13: Tourists Appreciate Easy-to-Understand Instructions When Traveling
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Prepurchase Stage
Service Encounter Stage
Post-Encounter Stage
Post-Encounter Stage: Overview
Evaluation of serviceperformance
Future intentions
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Customer Satisfaction Is Central tothe Marketing Concept
Satisfaction defined as attitude-like judgment following aservice purchase or series of service interactions
Customers have expectations prior to consumption, observeservice performance, compare it to expectations
Satisfaction judgments are based on this comparison Positive disconfirmation if better than expected
Confirmation if same as expected
Negative disconfirmation if worse than expected
Satisfaction reflects perceived service quality, price/quality
tradeoffs, personal and situational factors Research shows links between customer satisfaction and a
firms financial performance
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Customer Delight:Going Beyond Satisfaction
Research shows that delight is afunction of three components: Unexpectedly high levels of
performance Arousal (e.g., surprise, excitement) Positive affect (e.g., pleasure, joy,
or happiness)
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Thank youfor beingwith us.