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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

The Purchase Process For Services

Dr. Donna J. Hill

Mtg. 410

Fall 2000

slide2

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

slide4

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

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