The Purchase Process For The Purchase Process For ServicesServices

Dr. Donna J. Hill

Mtg. 410

Fall 2000

PerceivedService

Expected Service

CUSTOMER

COMPANY

CustomerGap

GAP 1

GAP 2

Gaps Model of Service QualityGaps Model of Service Quality

GAP 3

External Communications

to CustomersGAP 4Service Delivery

Customer-Driven Service Designs and Standards

Company Perceptions of Consumer Expectations

Part 1 Opener

Gaps Model of Service QualityGaps 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 Customer GapThe Customer Gap

ExpectedService

PerceivedService

GAP

Part 1 Opener

Objectives for Chapter 2:Objectives for Chapter 2:Consumer Behavior in Consumer Behavior in

ServicesServices

• Information search

• Evaluation of service alternatives

• Service purchase and consumption

• Postpurchase evaluation

• Role of culture

Purchase Model for ServicesPurchase Model for Services

• Prepurchase Phase

• Service Encounter

• Postpurchase Phase

Consumer Evaluation Consumer Evaluation Processes for ServicesProcesses 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 2-1Figure 2-1Continuum of Evaluation for Continuum of Evaluation for Different Types of ProductsDifferent Types of Products

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Ha i

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Difficult to evaluateEasy to evaluate

{High in search

qualitiesHigh in experience

qualitiesHigh in credence

qualities

{{Most

GoodsMost

Services

Prepurchase PhasePrepurchase PhaseInformation SearchInformation Search

• Use of personal sources

• Perceived risk• Competitive

options.

• Social context

Prepurchase PhasePrepurchase PhaseFirm-Produced FactorsFirm-Produced Factors

• Promotions

• Pricing

• Distribution

Prepurchase PhasePrepurchase PhaseRiskRisk

• Performance• Financial• Time loss• Opportunity• Psychological• Social• Physical

Strategies to Reduce Performance RiskStrategies to Reduce Performance RiskUncertainty: Certification, branding, communications

Consequences: Quality control standards & procedures,Warranties

Strategies to Reduce Time Loss RiskStrategies to Reduce Time Loss Risk

Uncertainty: Trial purchases, sampling,promotional incentive

Consequences: Guarantees

Strategies to Reduce Financial RiskStrategies to Reduce Financial Risk

Uncertainty: BrandingConsequence: Compensation offers

Strategies to Reduce Opportunity RiskStrategies to Reduce Opportunity Risk

Uncertainty: BrandingConsequence: Quality control standards & procedures

Strategies to Reduce Psychological & Social RiskStrategies to Reduce Psychological & Social Risk

Uncertainty: Branding, communicationsConsequences: Quality control standards & procedures

Strategies to Reduce Physical RiskStrategies to Reduce Physical Risk

Uncertainty: Instruction, communicationsConsequence: Safety standards

Pre-Purchase PhasePre-Purchase PhaseEvaluation of AlternativesEvaluation of Alternatives

• Evoked set• Emotion and mood

Service Purchase and Service Purchase and ConsumptionConsumption

The Service EncounterThe 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 EncounterThe Service Encounter• Service provision as

drama• Service roles and

scripts• Compatibility of

customers

Postpurchase PhasePostpurchase PhaseService Quality EvaluationService Quality Evaluation

• Repeat purchases

• Firm loyalty

• Positive word-of-mouth communications

• Firm switching

• Negative word-of-mouth communications

Satisfaction Dissatisfaction

Postpurchase PhasePostpurchase Phase

• Attribution of dissatisfaction• Innovation diffusion• Brand loyalty

Attribution TheoryAttribution Theory

• Where does the customer assign blame.

• Controllable or Uncontrollable.

• Situational factors play a significant role..

Figure 2-3Figure 2-3

Categories in Consumer Decision-Making Categories in Consumer Decision-Making and Evaluation of Servicesand Evaluation of Services

Information Search

Evaluation of Alternatives

Purchase and Consumption

Post-Purchase Evaluation

Use of personal sources Perceived risk

Evoked set Emotion and mood

Service provision as drama Service roles and scripts Compatibility of customers

Attribution of dissatisfaction Innovation diffusion Brand loyalty

Culture Values and attitudes Manners and customs Material culture Aesthetics Educational and social

institutions

Global Feature:Global Feature:Differences in the Service Experience in Differences in the Service Experience in

the U.S. and Japanthe U.S. and Japan Authenticity Caring Control Courtesy Formality Friendliness Personalization Promptness