The Purchase Process For Services Dr. Donna J. Hill Mtg. 410 Fall 2000 Gaps Model of Service Quality Expected CUSTOMER Service Customer Gap Service Delivery COMPANY GAP 1 Perceived Service GAP 3 Customer-Driven Service Designs and Standards GAP 2 Part 1 Opener Company Perceptions of Consumer Expectations GAP 4 External Communications to Customers Gaps Model of Service Quality Part 1 Opener • 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 The Customer Gap Expected Service GAP Perceived Service Part 1 Opener 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 • Prepurchase Phase • Service Encounter • Postpurchase Phase 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 Most Goods Easy to evaluate Most Services Difficult to evaluate High in search qualities High in experience High in credence qualities qualities Prepurchase Phase Information Search • Use of personal sources • Perceived risk • Competitive options. • Social context Prepurchase Phase Firm-Produced Factors • Promotions • Pricing • Distribution Prepurchase Phase Risk • • • • • • • Performance Financial Time loss Opportunity Psychological Social Physical 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 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 • Evoked set • Emotion and mood Service Purchase and Consumption The 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 • Service provision as drama • Service roles and scripts • Compatibility of customers Postpurchase Phase Service Quality Evaluation Satisfaction Dissatisfaction • Repeat purchases • Firm loyalty • Positive word-of-mouth communications • Firm switching • Negative word-of-mouth communications Postpurchase Phase • Attribution of dissatisfaction • Innovation diffusion • Brand loyalty 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 Service provision as drama Service roles and scripts Compatibility of customers Post-Purchase Evaluation Attribution of dissatisfaction Innovation diffusion Brand loyalty Global Feature: Differences in the Service Experience in the U.S. and Japan Authenticity Caring Control Courtesy Formality Friendliness Personalization Promptness