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7/28/2019 Service Encounters
1/20
Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 1
Consumer Behavior in
Service Encounters
http://blog.oureducation.in/7/28/2019 Service Encounters
2/20
Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 2
Where Does the Customer Fit in aService Organization? (Fig. 2.1)
Consumers rarely involved in manufacture of goods butoften participate in service creation and delivery
Challenge for service marketers is to understand howcustomers interact with service operations
Flowcharting clarifies how customer involvement in serviceencounters varies with type of process - see Fig. 2-1: People pro cessin g (e.g., motel stay):customer is physically involved
throughout entire process
Poss ession p roc essing (e.g., DVD repair):involvement may be limited to
drop off of physical item/description of problem and subsequent pick up Mental st imulus proc essing (e.g. , weather forecast):involvement is
mental, not physical; here customer simply receives output and acts on it
Inform at ion pro cessing (e.g. , health insu rance):involvement is mental -specify information upfront and later receive documentation of coverage
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 3
High-Contact and Low-Contact Services
High Contact Services
Customers visit service facility and remain throughoutservice delivery
Active contact between customers and service personnel Includes most people-processing services
Low Contact Services
Little or no physical contact with service personnel
Contact usually at arms length through electronic orphysical distribution channels
New technologies (e.g. Web) help reduce contact levels
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 4
Levels of Customer Contact with ServiceOrganizations (Fig. 2.2)
Emphasizes encounters
with service personnel
Emphasizes encounters
with equipment
High
Low
ManagementConsulting
CarRepair
InsuranceMotel
FastFood
NursingHome
AirlineTravel(Econ.)
CableTV
TelephoneBanking
HairCut
GoodRestaurant
4-StarHotel
DryCleaning
RetailBanking
Mail Based Repairs
Internet-basedServices
Movie Theater
Internet Banking
Subway
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 5
Managing Service Encounters--1
Service encounter:A period of time during which customersinteract directly with a service
Moments of truth:Definingpoints in service delivery wherecustomers interact with employees or equipment
Critical incidents: specific encounters that result inespecially satisfying/dissatisfying outcomes for eithercustomers or service employees
http://blog.oureducation.in/7/28/2019 Service Encounters
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Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 6
Managing Service Encounters--2
Service success often rests on performance of juniorcontact personnel
Must train, coach, role model desired behavior
Thoughtless or badly behaved customers can causeproblems for service personnel (and other customers)
Must educate customers, clarify what is expected, managebehavior
http://blog.oureducation.in/7/28/2019 Service Encounters
7/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 7
The Purchase Process for Services(Adapted from Fig. 2-3)
Prepurchase Stage
Awareness of need Information search Evaluation of alternative service suppliers
Service Encounter Stage
Request service from chosen supplier Service delivery
Postpurchase Stage
Evaluation of service performance Future intentions
http://blog.oureducation.in/7/28/2019 Service Encounters
8/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 8
Perceived Risks inPurchasing and Using Services (Table 2.1)
Funct ionalunsatisfactory performance outcomes
Financialmonetary loss, unexpected extra costs
Temporalwasted time, delays lead to problems
Physicalpersonal injury, damage to possessions
Psychologicalfears and negative emotions
Socialhow others may think and react
Sensoryunwanted impacts to any of five senses
http://blog.oureducation.in/7/28/2019 Service Encounters
9/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 9
Factors that InfluenceCustomer Expectations of Services (Fig. 2.4)
Predicted Service
Explicit & ImplicitService Promises
Word-of-Mouth
Past ExperienceDesired Service
ZONEOF
TOLERANCE
Adequate Service
Personal Needs
Beliefs aboutWhat Is Possible
Perceived ServiceAlterations
Situational Factors
Source: Adapted from Zeithaml, Parasuraman & Berry
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10/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 10
Components of Customer Expectations
Desired Service Level: wished-for level of service qualitythat customer believes can and should be delivered
Adequate Service Level: minimum acceptable level ofservice
Predicted Service Level: service level that customerbelieves firm will actually deliver
Zone of Tolerance:range within which customers arewilling to accept variations in service delivery
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11/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 11
Intangible Attributes, Variability, and QualityControl Problems Make Services Hard to Evaluate
Search attr ibutesTangible characteristics that allowcustomers to evaluate a product before purchase
Experience attr ibutesCharacteristics that can beexperienced when actually using the service
Credence attr ibutesCharacteristics that are difficult toevaluate confidently even after consumption
Goods tend to be higher in search attributes, services tendto be higher in experience and credence attributes
Credence attributes force customers to trust that desiredbenefits have been delivered
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12/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 12
How Product Attributes AffectEase of Evaluation) (Fig. 2.5)
Source: Adapted from Zeithaml
Most Goods
High in searchattributes
High in experienceattributes
High in credenceattributes
Difficultto evaluate
Easyto evaluate
Most Services
Clothing
Chair
Motorvehicle
Foods
Restau
rantmeals
Law
nfertilizer
Haircut
Ente
rtainment
Comp
uterrepair
Legalservices
Complexsurgery
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13/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 13
Customer Satisfaction is Central to theMarketing Concept
Satisfaction defined as attitude-like judgment following aservice purchase or series of service interactions
Customers have expectations prior to consumption, observeservice performance, compare it to expectations
Satisfaction judgments are based on this comparison Positive disconfirmation if better than expected
Confirmation if same as expected
Negative disconfirmation if worse than expected
Satisfaction reflects perceived service quality, price/qualitytradeoffs, personal and situational factors
Research shows links between customer satisfaction and afirms financial performance
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14/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 14
Customer Delight:Going Beyond Satisfaction
Research shows that delightis a function of 3 components
Unexpectedly high levels of performance
Arousal (e.g., surprise, excitement)
Positive affect (e.g., pleasure, joy, or happiness)
Is it possible for customers to be delighted by verymundane services?
Progressive Insurance has found ways to positively surprisecustomers with customer-friendly innovations andextraordinary customer service
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15/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 15
A Service Business is a System ComprisingThree Overlapping Subsystems
Service Operations (front stage and backstage)Where inputs are processed and service elements created. Includes facilities, equipment, and personnel
Service Delivery (front stage)
Where final assembly of service elements takes placeand service is delivered to customers
Includes customer interactions with operations and othercustomers
Service Marketing (front stage)
Includes service delivery (as above) and all other contactsbetween service firm and customers
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16/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 16
Service Marketing System:(1) High Contact Service--e.g., Hotel (Fig. 2.7)
TheCustomer
TechnicalCore
Interior & ExteriorFacilities
Equipment
Service People
Other
Customers
Other
Customers
Advertising
Sales Calls
Market ResearchSurveys
Billing / Statements
Miscellaneous Mail,
Phone Calls, Faxes, etc.
Random Exposure to
Facilities / Vehicles
Chance Encounters
with Service Personnel
Word of Mouth
Service Operations System
Backstage(invisible)
Front Stage(visible)
Service Delivery System Other Contact Points
Service Marketing System
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17/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 17
Service Marketing System:(2) Low Contact Service--e.g., Credit Card (Fig. 2.8)
TechnicalCore
Self Service
Equipment
Phone, Fax,Web site etc.
The
Customer
Service Operations System
Service Delivery System Other Contact Points
Backstage
(invisible)
Front Stage
(visible)
Advertising
Market ResearchSurveys
Random Exposures
Facilities, Personnel
Word of Mouth
Service Marketing System
http://blog.oureducation.in/7/28/2019 Service Encounters
18/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 18
Service as Theater
All the worlds a stage and allthe men and women merely
players. They have their exitsand their entrances and eachman in his time plays many
parts
William ShakespeareAs You Like It
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19/20Slide2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 2 - 19
The Dramaturgy of Service Delivery
Service dramas unfold on a stage--settings may change asperformance unfolds
Many service dramas are tightly scripted, others improvised
Front-stage personnel are like members of a cast
Like actors, employees have roles, may wear specialcostumes, speak required lines, behave in specific ways
Support comes from a backstage production team
Customers are the audiencedepending on type ofperformance, may be passive or active
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Role and Script Theories
Role: A set of behavior patterns learned throughexperience and communication
Role congruence: In service encounters, employees and
customers must act out defined roles for good outcomes
Script:A sequence of behavior to be followed by employeesand customers during service delivery
Some scripts (e.g. teeth cleaning) are routinized, others flexible
Technology change may require a revised script
Managers should reexamine existing scripts to find ways to improvedelivery, increase productivity, enhance experiences
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