The purchase process for services
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The Purchase Process For Services. Dr. Donna J. Hill Mtg. 410 Fall 2000. Gaps Model of Service Quality. Expected Service. CUSTOMER. Customer Gap. Perceived Service. External Communications to Customers. Service Delivery. COMPANY. GAP 4. GAP 1. GAP 3.

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The Purchase Process For Services

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The purchase process for services

The Purchase Process For Services

Dr. Donna J. Hill

Mtg. 410

Fall 2000


The purchase process for services

Gaps Model of Service Quality

Expected Service

CUSTOMER

Customer

Gap

Perceived

Service

External Communications to Customers

Service Delivery

COMPANY

GAP 4

GAP 1

GAP 3

Customer-Driven Service Designs and Standards

GAP 2

Company Perceptions of Consumer Expectations

Part 1 Opener


Gaps model of service quality

Gaps Model of Service Quality

  • 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

  • Part 1 Opener


    The purchase process for services

    The Customer Gap

    Expected

    Service

    GAP

    Perceived

    Service

    Part 1 Opener


    Objectives for chapter 2 consumer behavior in services

    Objectives for Chapter 2:Consumer Behavior in Services

    • Information search

    • Evaluation of service alternatives

    • Service purchase and consumption

    • Postpurchase evaluation

    • Role of culture


    Purchase model for services

    Purchase Model for Services

    • Prepurchase Phase

    • Service Encounter

    • Postpurchase Phase


    Consumer evaluation processes for services

    Consumer Evaluation Processes for Services

    • 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


    Figure 2 1 continuum of evaluation for different types of products

    Figure 2-1Continuum of Evaluation for Different Types of Products

    Clothing

    Jewelry

    Furniture

    Houses

    Automobiles

    Restaurant meals

    Vacations

    Haircuts

    Child care

    Television repair

    Legal services

    Root canals

    Auto repair

    Medical diagnosis

    Most

    Services

    Most

    Goods

    Easy to evaluate

    Difficult to evaluate

    {

    {

    {

    High in experience

    qualities

    High in credence

    qualities

    High in search

    qualities


    Prepurchase phase information search

    Prepurchase PhaseInformation Search

    • Use of personal sources

    • Perceived risk

    • Competitive options.

    • Social context


    Prepurchase phase firm produced factors

    Prepurchase PhaseFirm-Produced Factors

    • Promotions

    • Pricing

    • Distribution


    Prepurchase phase risk

    Prepurchase PhaseRisk

    • Performance

    • Financial

    • Time loss

    • Opportunity

    • Psychological

    • Social

    • Physical


    Strategies to reduce performance risk

    Strategies to Reduce Performance Risk

    Uncertainty: Certification, branding, communications

    Consequences: Quality control standards & procedures,

    Warranties

    Strategies to Reduce Financial Risk

    Uncertainty: Trial purchases, sampling,

    promotional incentive

    Consequences: Guarantees

    Strategies to Reduce Time Loss Risk

    Uncertainty: Branding

    Consequence: Compensation offers


    Strategies to reduce opportunity risk

    Strategies to Reduce Opportunity Risk

    Uncertainty: Branding

    Consequence: Quality control standards & procedures

    Strategies to Reduce Psychological & Social Risk

    Uncertainty: Branding, communications

    Consequences: Quality control standards & procedures

    Strategies to Reduce Physical Risk

    Uncertainty: Instruction, communications

    Consequence: Safety standards


    Pre purchase phase evaluation of alternatives

    Pre-Purchase PhaseEvaluation of Alternatives

    • Evoked set

    • Emotion and mood


    Service purchase and consumption the service encounter

    Service Purchase and ConsumptionThe Service Encounter

    • No marketing exchange occurs in a vacuum.

    • The social and physical settings influence the impression made on customers.

    • Service personnel, physical setting, and other customers all provide customers with tangible indicators of the service.


    The service encounter

    The Service Encounter

    • Service provision as drama

    • Service roles and scripts

    • Compatibility of customers


    Postpurchase phase service quality evaluation

    Repeat purchases

    Firm loyalty

    Positive word-of-mouth communications

    Firm switching

    Negative word-of-mouth communications

    Postpurchase PhaseService Quality Evaluation

    Satisfaction

    Dissatisfaction


    Postpurchase phase

    Postpurchase Phase

    • Attribution of dissatisfaction

    • Innovation diffusion

    • Brand loyalty


    Attribution theory

    Attribution Theory

    • Where does the customer assign blame.

    • Controllable or Uncontrollable.

    • Situational factors play a significant role..


    Figure 2 3 categories in consumer decision making and evaluation of services

    Information Search

    Evaluation of Alternatives

     Evoked set

     Emotion and mood

     Use of personal sources

     Perceived risk

    Culture

    • Values and attitudes

    • Manners and customs

    • Material culture

    • Aesthetics

    • Educational and social institutions

    Purchase and Consumption

    Post-Purchase Evaluation

     Service provision as drama

     Service roles and scripts

     Compatibility of customers

     Attribution of dissatisfaction

     Innovation diffusion

     Brand loyalty

    Figure 2-3Categories in Consumer Decision-Making and Evaluation of Services


    Global feature differences in the service experience in the u s and japan

    Global Feature:Differences in the Service Experience in the U.S. and Japan

    • Authenticity

    • Caring

    • Control Courtesy

    • Formality

    • Friendliness

    • Personalization

    • Promptness


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