CHAPTER 6:

CONSUMER, ORGANIZATIONAL

BEHAVIOR AND EXPECTATIONS

UNDERSTANDING CONSUMER NEEDS

Self Actualization Needs

Esteem Needs

Social Affiliation

Security and Safety

Basic Physiological needs

UNDERSTANDING CONSUMER EXPECTATIONS

Predicted Service

Explicit & Implicit Service Promises

Word-of-Mouth

Past ExperienceDesired Service

ZONE OF

TOLERANCE

Adequate Service

Personal Needs

Beliefs about What Is Possible

Perceived Service Alterations

Situational Factors

HOW CUSTOMERS EVALUATE SERVICE PERFORMANCE

Most Goods

High in search attributes

High in experience attributes

High in credence attributes

Difficult to evaluate

Easy to evaluate

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nCONTINUUM OF PRODUCT ATTRIBUTES

PSYCHOLOGICAL FACTORS PERSONAL FACTORS

CULTURAL FACTORSSOCIAL FACTORS

CONSUMER AS DECISION MAKER

Family influence

Reference group influence

Roles and status

Culture

Subculture

Social class

Beliefs and attitudes

Learning

Age & family life cycle

Economic circumstances

Occupation

Personality & self concept

Psychographics

FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS SERVICES

COSUMER PURCHASE PROCESS

1. Awareness/ Need Perception

2. Search and Comprehension

3. Attitude Development

4. Evaluation of Alternatives

5. Purchase and Consumption

6. Adoption and Post Purchase Behavior

CHAPTER 7:

SEGMENTATION,TARGETING &

POSITIONING IN SERVICES

BASIS FOR SEGMENTATION

1) Geographic

2) Demographic

• Age

• Sex

• Size and structure of family

• Income

• Educational level

3) Psychographic• Lifestyle• Personality

4) Behavioristic• Benefit• Purchase occasion• User status• Usage rate• Loyalty• Buyer readiness and marketing factors

TARGETING STRATEGIES

1. Undifferentiated Marketing (Mass Marketing)

2. Differentiated Marketing (Multiple Segmentation)

3. Concentrated Marketing (Single segment)

POSITIONING OF SERVICES- IMAGE

• Image : picture of organization as perceived by the target group

• Current image: way it is actually seen• Mirror image: way it thinks it is seen• Wish image: way it would like to be seen

THE IDEAL SITUATIONWish= Current

If no then various positioning strategies are used

POSITIONING APPROACHES

1. Attributes/features/customer benefits2. Price/value3. Use or application4. Users or classes of users5. Product class6. Against competition7. Endorsement8. Quality dimensions: RATER9. Service Evidence

PeoplePhysical EvidenceProcess

POSITIONING MAP

ATTRIBUTE 1

ATTRIBUTE

2

SERVICE D

SERVICE A

SERVICE B

SERVICE C

SERVICE E

CHAPTER 8:

MANAGING DEMAND AND SUPPLY OF

SERVICES

DEMAND PATTERNS

• Stable, Constant

• Increasing: Accelerating

• Decreasing: Decelerating

• Stable, Cyclical

• Increasing: Saturating

• Decreasing: Vanishing

• Life Cycle

STRATEGIES FOR MANAGING CAPACITY TO MATCH DEMAND

DEMAND HIGHER THAN CAPACITY• Stretching time, labour, facilities,

Equipments• Cross train• Overtime• Rent or share facilities• Part time employees• Subcontract or Outsource

DEMAND LOWER THAN CAPACITY

• Performance maintenance/ renovations

• Schedule vacations

• Employee training

• Lay-off employees

STRATEGIES FOR MANAGING DEMAND TO MATCH CAPACITY

• Partitioning demand• Vary service offering• Complementary services• Promoting off- peak demand• Pricing incentives• Communicate with customers• Modify timing and location of service• Advertising and sales promotion

STRATEGIES WHEN DEMAND AND CAPACITY CANNOT BE MATCHED

• Reservations and appointments

• Waiting lines

• Triage- Sorting

• Delaying Service Delivery

CHAPTER 9:

MARKETING STRATEGIES FOR

SERVICES

SCA: SUSTAINABLE COMPETITIVE ADVANTAGE

Features of SCA

• Customer must value the concept

• Non substitutable

• Firm must have the capabilities

• Sustainable

SOURCES OF COMPETITIVE ADVANTAGE FOR FIRMS

• Operational position• Scale effect• Cost and demand synergy• Brand/ firm equity• Customer relationships• Spatial preemption• Service package• Information technology

PROACTIVE SERVICE MODEL

MARKET PLANNING PROCESS

1. Analysis of marketing opportunities

2. Marketing research and selection of target markets

3. Designing marketing strategies

4. Designing and implementing detailed marketing plan

5. Effective monitoring and control

TYPES OF MARKETING/ SERVICE MARKETING TRIANGLE