CHAPTER2:CONSUMERBEHAVIORINASERVICESCONTEXT

SERVICEMARKETING

OVERVIEW

2.1Pre-purchaseStage2.2ServiceEncounterStage2.3Post-encounterStage

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PRE-PURCHASESTAGE

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NEEDAROUSALCASE

Whenyouhaveanabnormallyhighbodytemperatureorwhenyourbodydoesnotfeelwell,youwouldprobablyfeeltheneedtoseea

doctortogettreated.Thisrealizationiscalledaneedarousal

Source:(1) https://assets.babycenter.com/ims/2014/11/494386309_wide.jpg?width=505(2) http://cdn.kevinmd.com/blog/wp-content/uploads/shutterstock_125888855.jpg

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Picture(1)showsakidhavingfeverandfeelingtheneedto

gotothedoctor

Picture(2)showsakidbeingtreatedbydoctor

NEEDAROUSAL

Needarousal:customer’s awareness oftheirneed

Needarousalaretriggeredby:1. Unconsciousminds(e.g.,personalidentityandaspirations)2. Physicalconditions(e.g.,Someonethatfeelillwouldgomeetthedoctor)3. Externalsources(e.g.,aservicefirm’smarketingactivities)

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EXAMPLEOFNEEDAROUSALTRIGGEREDBYEXTERNALSOURCES

Picture(1)isanadvertisingbyamusementparkcalledDunia Fantasi whichpromotetheirnewattraction.Thismarketingactivitycouldgrowsneedarousal

Source:(1)http://infojakarta.net/wp-content/uploads/2014/06/dufan-ancol.png

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INFORMATIONSEARCH

Evokedset(considerationset):thesetofproducts orbrandsacustomermayconsider inthedecision-makingprocess.

Theevokedsetcanbederivedfrom1. Pastexperience2. Externalsources(suchasadvertising,retail

displays,newsstories,onlinesearches,andrecommendationsfromservicepersonnel,friends,andfamily)

Inordertosatisfytheneed,customersaremotivatedtosearchsolutionsfortheirproblem.

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Source:(1)http://6iee.com/data/uploads/23/533833.jpg

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EVALUATINGALTERNATIVES-SERVICEATTRIBUTES

1) Searchattributes: customerscanevaluate aproductbeforepurchaseE.g.,facilities,location,typeofrestaurantandprice

Picture(1)showsawaterparkthatsuitableforrecreationandpicture(2)showsaswimmingpoolthatsuitable

forsports

(1)

(2)

Sources:(1)http://www.waterbom-jakarta.com/wp-content/uploads/2014/11/wahana_aquatube02.jpg(2)http://www.gsc.in/gsc_Facility/subfacility/Swimming03.JPG

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2) Experienceattributes:cannotbeevaluatedbeforepurchaseTheconsumerwillnotknowhowmuchs/hewillenjoythefood,theservice,andtheatmosphereuntiltheactualexperience

Picture(1)showsMasterchefstastingthedishandexperiencetheflavorof

thefood

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Source:(1)http://community.ew.com/wp-content/uploads/2014/07/masterchef-chefs-taste-the-food.jpeg?w=300

EVALUATINGALTERNATIVES-SERVICEATTRIBUTES(2)

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3) Credenceattributes:customersfindimpossibletoevaluateconfidentlyevenafterpurchaseandconsumptionE.g.,hygieneandthehealthinessofthecookingingredients

Picture(1)showsasurgeryperformance.Patientswhohaveundergonesurgerycouldnotevaluatethequalityoftheir

treatment

(1)

Source:(1)http://i2.cdn.cnn.com/cnnnext/dam/assets/151021092349-cnnpartnerimages-healthgrades-surgery-exlarge-169.jpg

EVALUATINGALTERNATIVES-SERVICEATTRIBUTES(3)

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HOWPRODUCTCHARACTERISTICSAFFECTEASEOFEVALUATION

Source:(1):AdaptedfromValarieA.Zeithaml,“HowConsumerEvaluationProcessesDifferBetweenGoodsandServices,”inJ.H.DonnellyandW.R.George,MarketingofServices(Chicago:AmericanMarketingAssociation,1981).

(1)MostGoods

DifficultToevaluate

EasyToEvaluate

MostServices

ClothingSmartphonesCarsFoods

HighInSearch

Attributes

RestaurantMealsLawnFertilizerHaircutEntertainment

HighInExperienceAttributes

ComputerRepairEducationLegalServicesComplexSurgery

HighInCredenceAttributes

Service aretendtobemoredifficulttoevaluate andhighinexperienceandcredenceattributeswhilemostgoodsaremoreeasytoevaluateandhighinsearchattributes

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EVALUATINGALTERNATIVES-PERCEIVEDRISK

Categoriesofperceivedrisks:

• Functional – unsatisfactoryperformanceoutcomes

• Financial – monetarylossandunexpectedextracosts

• Temporal – wastedtimeanddelaysleadingtoproblems

• Physical – personalinjuryanddamagetopossessions

• Psychological – personalfearsandnegativeemotions

• Social – howothersthinkandreact• Sensory – unwantedimpactonanyoffivesenses

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Methodstohandleperceivedrisk1. Searchinginformationfromtrustedpersonalsources2. Comparingserviceofferingsandsearchingforreviewsandratings

viainternet3. Relyinginagoodreputationfirm4. Lookingforguaranteesandwarranties5. Tryingaspectsoftheservicebeforepurchasing6. Askingknowledgeableemployeesaboutcompetingservices.

HOWTOHANDLEPERCEIVEDRISK?

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SUITABLESTRATEGIESFORREDUCINGCUSTOMERRISKPERCEPTIONS

Freetrial(forserviceswithhighexperienceattributes)

Displaycredentials(forprofessionalfirmorperson)

Encouragevisittoservicefacilities

Useevidencemanagement(e.g.,furnishing,equipment

etc.)

Advertise(forhighcredencequalities&highcustomer

involvement)

Givecustomersonlineaccessaboutorderstatus

Institutevisiblesafetyprocedures

OfferguaranteesEncouragetopreviewtheservice

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EVALUATINGALTERNATIVES-SERVICEEXPECTATIONS

Expectationsareformedduringthesearchanddecision-makingprocess

Expectationscanbesituation-specific

Expectationschangeovertime

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SITUATION-SPECIFICEXAMPLE

Yourexpectations abouthowlongyourdriverwillarrivearedependsonyourtimesituation.Youwilldemandfasterperformancewhenyouarelateforworkthanwhenyouintendtogotothemall

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FACTORSINFLUENCINGCUSTOMEREXPECTATIONSOFSERVICE

Source:(1)AdaptedfromValarieA.Zeithaml,LeonardA.Berry,andA.Parasuraman,“TheNatureandDeterminantsofCustomerExpectationsofService,”JournaloftheAcademyofMarketingScience 21,no.1(1993):1-12

PersonalNeeds

BeliefaboutPossibleThing

DesiredService

PerceivedServiceAlterations

SituationalFactors

AdequateService PredictedService

Explicit&ImplicitServicePromisesWord-of-MouthPastExperience

ZoneofTolerance

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Figure(1)showsthefactorsthatinfluencethedifferentlevelsofcustomerexpectationsofservice

Expectationsembraceseveralelements,includingdesired,adequate,andpredictedservice,andazoneoftolerancethatfallsbetweenthedesiredandadequateservicelevels

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COMPONENTSRELATEDTOCUSTOMEREXPECTATIONS

DesiredServiceLevel

AdequateServiceLevel

PredictedServiceLevel

ZoneofTolerance

Wished-forlevelofservicequalitythatcustomerbelievescanand

shouldbedelivered

Minimumlevelofservicethatcanbeacceptedwithoutbeingdissatisfied

Servicelevelthatcustomerbelieveswillbereceiving

fromfirms

Acceptablerangeofvariationsinservicedelivery

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1 2 3 4

Thecomponentsofcustomerexpectationsmaybevarydependingonfactorssuchascompetition,price,importanceofspecificserviceattributes,andcustomerexperiences

Picture(1)and(2)showsquirkyhairstylesofRihanna.Asapopsinger,actress,andfashionicon,Rihannamayhasahigherdesiredandadequateserviceforherhairstylistthanmostofus.

(1)

(2)

Source:(1)http://images.enstarz.com/data/images/full/168283/rihanna.jpg(2)https://media1.popsugar-assets.com/files/2010/11/47/1/498/4981324/b389d73dde78d588_Untitled-2.jpg

HOWEXPECTATIONSDIVERSE?

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PURCHASEDECISION

• Perceivedrisksarelow• Thealternativesareclear• Havebeenexperiencebefore

• Involvingtrade-offs• Involvingmultipleattributes

PurchaseDecision

Simple

Complex

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SIMPLEPURCHASEDECISION

Choosingmovietheaterisconsideredasasimplepurchasedecisionbecausetheperceivedrisksarelow

Picture(1)isaphotoofIndonesia’sfamouscinema,

CinemaXXI

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Source:(1)http://www.bintarojayaxchange.com/portals/3/img/storefront/FIRSTFLOOR/CINEMA-XXI.jpg

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Todecideonairlinefortravelling,wewouldconsidermanyfactorssuchasconvenienceofschedules,reliability,seatcomfort,safety,attentivenessofcabincrew,andavailability.Therefore,purchasedecisionforairlineismorecomplex

COMPLEXPURCHASEDECISION

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SERVICEENCOUNTERSTAGE

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SERVICEENCOUNTERSTAGE

Serviceencounterstage:aperiodoftime duringwhichacustomerinteractsdirectlywithaserviceprovider

BRIEFTIMEFRAME LONGTIMEFRAME

23Source:(1)https://uberflip.cdntwrk.com/files/aHViPTQ0ODg3JmNtZD1pdGVtZWRpdG9yaW1hZ2UmZmlsZW5hbWU9aXRlbWVkaXRvcmltYWdlXzU1MTUyMGZjOGRmMTEuanBnJnZlcnNpb249MDAwMCZzaWc9MGIyNjc5NGZlNjM0OTJlNGRmM2YyYzdhOWE0MjM0YzM%253D(2)http://www.tomatis-swidnica.pl/images/psycholog.jpg

Inbarbershop,customerand

serviceproviderhaslittletimetointeractbecausethebarberwouldmorefocustodo

hisjob

Whileincounseling,thecustomerandpsychologistneedalongertimetointeract

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MODELSANDFRAMEWORKINSERVICEENCOUNTEREXPERIENCE

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“MomentsofTruth”Importanceofmanaging

touchpoints

High/lowContactServiceModel

Extentandnatureofcontactpoints

Servuction ModelVariationsofinteractions

TheaterMetaphor

“Staging”serviceperformances

1.SERVICEENCOUNTERSARE“MOMENTSOFTRUTH”

“[W]ecouldsaythattheperceivedqualityisrealizedatthemomentoftruth,whentheserviceproviderandtheservicecustomerconfrontoneanotherinthearena.Atthatmomenttheyareverymuchontheirown....Itistheskill,themotivation,andthetoolsemployedbythefirm’srepresentativeandtheexpectationsandbehavioroftheclientwhichtogetherwillcreatetheservicedeliveryprocess.”

- RichardNormann,ManagementConsultant &founderofService

ManagementGroup

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“momentoftruth”showtheimportanceofcontactpointswithcustomers

Source:(1)https://www.gtc.ox.ac.uk/images/Normann.jpg

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2.SERVICEENCOUNTERSRANGEFROMHIGHCONTAACTTOLOWCONTACT

HIGH-CONTACTSERVICES• Customerscontacttotheserviceprovidertakesonaphysicalandtangiblenature• Customersvisittheservicefacility

LOW-CONTACTSERVICES• Involvelittlephysicalcontactbetweencustomersandserviceproviders• Communicatesbymediumofelectronic orphysicaldistributionchannel• Becomingmoreself-service

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LevelsofCustomerContactwithServiceOrganizations

Source(1):fromChristopherLovelockandJochen Wirtz,“ServiceMarketingPeople,Technology,StrategySeventhEdition”

LEVELSOFCUSTOMERCONTACTWITHSERVICEORGANIZATIONS

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Customercontactwithserviceorganizationsvaryfromhigh,medium,tolow.Italsodividedbyemphasizesencounterswithphysicalserviceelementsandwithservicepersonnel

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3.THESERVUCTIONSYSTEM

Servuction system:combinationofserviceandproductionwhichisdescribedasapartoftheserviceorganization’sphysicalenvironmentthatisvisibletoandexperiencedbycustomers.

TheServuction Model

TechnicalCore

BackStage(Invisible) FrontStage(Visible)

ContactPersonnel

InanimateEnvironment

CustomerA

CustomerB

ServiceOperationsSystem ServiceDeliverySystem

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Servuction modelcontains2system,serviceoperationsandservicedelivery

Theservuction systemconsistsof:

Technicalcorewhereinputsareprocessedandtheelementsofthe

serviceproductarecreated

Servicedeliverysystem“finalassembly”ofserviceelementstakesplaceand

serviceisdelivered(includingbuilding,equipment,and

personnel)

3.THESERVUCTIONSYSTEM

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TECHNICALCOREThekitcheninarestaurantisa

back-stagewheredishesaremade

andplatedSERVICEDELIVERYSYSTEMThefront-stageincludingequipment,personnel,andcustomer

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Source:(1)http://www.eiforces.org/wp-content/uploads/2017/06/dazzling-restaurant-open-kitchen-design-open-kitchen-jpg-kitchen.jpg

THESERVUCTIONSYSTEMEXAMPLE

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4.THEATERASMETAPHORFORSERVICEDELIVERY

Servicefacilities(thestage): thesettingwheredramaplayoutandcanchangesfromoneacttoanother

Personnel:memberofcastinthefront-stageandproductionteamintheback-stage

Role:combinationsofsocialcuesthatguidebehaviorinaspecificsettingorcontext

Script:Specifiesthesequencesofbehaviorforcustomersandemployees

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Professor hasrolestodeliverawell-structuredlecture,giveassignmentrelatedtotopic,andengagingthestudentsindiscussion.

Students haverolestocometoclasspreparedandontime,listenattentively,participateindiscussions,andnotdisrupttheclass.

Thescriptforalecturedescribesspecificactionstobetakenbyprofessorandstudentsstartingwithstudentsarriveatclassuntiltheprofessorleavetheclass.

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Source:(1)http://outest.clark.edu/_resources/images/Teach%20a%20class.jpg

ROLEANDSCRIPTTHEORYCOMPLEMENTEACHOTHER

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POST-ENCOUNTERSTAGE

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CUSTOMERSATISFACTIONWITHSERVICEEXPERIENCES

Satisfaction:anattitude-like judgment followingaservicepurchaseexperience.

Customersatisfactionjudgementislabeledas:• positivedisconfirmation- serviceperceived> serviceexpected• negativedisconfirmation- serviceperceived < serviceexpected• confirmation - serviceperceived = serviceexpected

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AREEXPECTATIONSALWAYSWORKSOUT?

Comparingserviceperceivedtoexpectationsworkswellinreasonablycompetitivemarketsinwhichcustomershaveadequateknowledgetochooseaservicethatmeetstheirneedsandwants.

However,thoseapproachcould bevagueinnoncompetitivemarketsorinsituationsinwhichcustomersdonothavefreechoice

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EXPECTATIONINNONCOMPETITIVEMARKETINDUSTRYEXAMPLE

Railwayindustryisanoncompetitivemarketindustry.Therefore,ifcustomerexpectationsarelowandactualservicedeliverymeetsthedismallevelthatwasexpected,customerswillhardlyfeeltheyarereceivinggoodservicequality.

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Source(1)http://www.radarcirebon.com/wp-content/uploads/2016/11/kereta.jpg

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CUSTOMERDELIGHT

Customerdelightisafunctionofthreecomponents:

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Unexpectedlyhighlevelsofperformance

Arousal(e.g.,surprise,excitement)

Positiveimpact(e.g.,pleasure,joy,happiness)

1 2 3

LINKSBETWEENCUSTOMERSATISFACTIONANDCORPORATEPERFORMANCE

ResearchersfromtheUniversityofMichiganfoundthatonaverage,every1percentincreaseincustomersatisfactionisassociatedwitha2,37percentincrease

inafirm’sreturnoninvestment(ROI).

Inotherwords,bycreatingmorevalueforthecustomer,asmeasuredbyincreasedsatisfaction,thefirmcreatesmorevalueforitsowners.

1%Increasein

customersatisfaction

2,37%Increasein

FirmReturnonInvestment

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