Service Marketing
Consumer Decision Making: The Three-Stage Model of Service Consumption
Pre-purchase Stage
Service Encounter Stage
Post- encounter Stage
Customers seek solutions to aroused needs
Evaluating a service may be difficult
Decision to buy or use a service is triggered by need arousal.
What promts us to purchase? Needs.
Triggers of need:
Unconscius minds
Physical conditions
External sources
Need arousal leads to attempts to find a solution.
Evoked set – a set of products and brands that a consumer considers during the decision-making process – that is derived from past experiences or external sources.
(I’m hungry-I like McDonald’s-I go there to buy lunch)
Evaluating Alternatives
Perceived Risks of Purchasing and Using Services
Functional
Financial
Temporal
Physical
Psychological
Sensory
Social
How consumers handle perceived risk
Seek information from respected personal sources.
Compare service offerings
Relying on a firm with good reputation
Looking for guarantees and warranties
Trials
Asking employees
Understanding Customers’ service expectations
Customers evaluate service quality by comparing what they expect against what they perceive. Does a service meet the expections?
Components of customer expectations
Zone of tolerance: they are okay with it, not love it but also not give negative reviews.
Desidered Level of Service
Adequate Service Level
Predicted Service Level
Purchase Decision: possible alternatives are compared and evaluated, whereby the best option I s selected.
All of this is pre-purchase.
Service Encounter Stage
Service encounters range from high to low contrast
A period of time during which customer interacts directly with the service provider.
Moment of truth: importance of managing touchpoints
Service Encounters range from High-Contact to Low-Contact
Shakespeare quote: jobs during your life, many stages and many way to offer service
Entrance and exits
Pre-purchase Stage
Service Encounter Stage
Post- encounter Stage
Customers seek solutions to aroused needs
Evaluating a service may be difficult
Decision to buy or use a service is triggered by need arousal.
What promts us to purchase? Needs.
Triggers of need:
Unconscius minds
Physical conditions
External sources
Need arousal leads to attempts to find a solution.
Evoked set – a set of products and brands that a consumer considers during the decision-making process – that is derived from past experiences or external sources.
(I’m hungry-I like McDonald’s-I go there to buy lunch)
Evaluating Alternatives
Perceived Risks of Purchasing and Using Services
Functional
Financial
Temporal
Physical
Psychological
Sensory
Social
How consumers handle perceived risk
Seek information from respected personal sources.
Compare service offerings
Relying on a firm with good reputation
Looking for guarantees and warranties
Trials
Asking employees
Understanding Customers’ service expectations
Customers evaluate service quality by comparing what they expect against what they perceive. Does a service meet the expections?
Components of customer expectations
Zone of tolerance: they are okay with it, not love it but also not give negative reviews.
Desidered Level of Service
Adequate Service Level
Predicted Service Level
Purchase Decision: possible alternatives are compared and evaluated, whereby the best option I s selected.
All of this is pre-purchase.
Service Encounter Stage
Service encounters range from high to low contrast
A period of time during which customer interacts directly with the service provider.
Moment of truth: importance of managing touchpoints
Service Encounters range from High-Contact to Low-Contact
Shakespeare quote: jobs during your life, many stages and many way to offer service
Entrance and exits