Service Marketing

Topics: Risk, Decision making, Cognition Pages: 3 (373 words) Published: September 12, 2014

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...
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