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The Purchase Process For Services

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  1. The Purchase Process For Services Dr. Donna J. Hill Mtg. 410 Fall 2000

  2. 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

  3. 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

  4. The Customer Gap Expected Service GAP Perceived Service Part 1 Opener

  5. Objectives for Chapter 2:Consumer Behavior in Services • Information search • Evaluation of service alternatives • Service purchase and consumption • Postpurchase evaluation • Role of culture

  6. Purchase Model for Services • Prepurchase Phase • Service Encounter • Postpurchase Phase

  7. 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

  8. 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

  9. Prepurchase PhaseInformation Search • Use of personal sources • Perceived risk • Competitive options. • Social context

  10. Prepurchase PhaseFirm-Produced Factors • Promotions • Pricing • Distribution

  11. Prepurchase PhaseRisk • Performance • Financial • Time loss • Opportunity • Psychological • Social • Physical

  12. 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

  13. 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

  14. Pre-Purchase PhaseEvaluation of Alternatives • Evoked set • Emotion and mood

  15. 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.

  16. The Service Encounter • Service provision as drama • Service roles and scripts • Compatibility of customers

  17. Repeat purchases Firm loyalty Positive word-of-mouth communications Firm switching Negative word-of-mouth communications Postpurchase PhaseService Quality Evaluation Satisfaction Dissatisfaction

  18. Postpurchase Phase • Attribution of dissatisfaction • Innovation diffusion • Brand loyalty

  19. Attribution Theory • Where does the customer assign blame. • Controllable or Uncontrollable. • Situational factors play a significant role..

  20. 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

  21. Global Feature:Differences in the Service Experience in the U.S. and Japan • Authenticity • Caring • Control Courtesy • Formality • Friendliness • Personalization • Promptness