The Purchase Process For The Purchase Process For ServicesServices
Dr. Donna J. HillMtg. 410Fall 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
Cl o
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g
Jew
elry
Furn
it ur e
Ho u
ses
Au t
omob
i les
Re s
taur
ant m
eals
Vac
atio
ns
Ha i
r cu t
s
Ch i
l d c
a re
Tele
visi
on r e
pair
Leg a
l se r
vic e
s
Roo
t ca n
a ls
Au t
o r e
p air
Med
ical
dia
gno s
i s
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 RiskUncertainty: Branding
Consequence: Quality control standards & procedures
Strategies to Reduce Psychological & Social RiskStrategies to Reduce Psychological & Social RiskUncertainty: Branding, communications
Consequences: Quality control standards & procedures
Strategies to Reduce Physical RiskStrategies to Reduce Physical RiskUncertainty: Instruction, communications
Consequence: 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