Flashcards
Lecture 2
Cards in this deck (20)
- 1Search, Experience and Credence QualitiesThis is one framework to differentiate the differences between goods and services.
Search Qualities: these are attributes that a customer can determine before purchasing a product (ex. color, style, price, smell, etc.)
Experience Qualities: attributes that can only be discerned after purchasing or during consumption (ex.vacations, dinning)
Credence Qualities: these are characteristics customers may find impossible to evaluate after purchase & consumption. (ex. insurance, car break replacement (no ability to evaluate if the service has been produced properly) - 2Consumer choiceCustomers follow a logical sequence that lead to a choice of a particular service:
- Need recognition;
- Informations search;
- Evaluation of alternatives;
- Purchases;
- Consumer experience;
- Post-purchase evaluation; - 3Consumer choice: Need recognitionRecognition that a need or a want exists (ex. drivers from Maslow pyramid)
1. Physiological needs are biological needs such as food, water and sleep (Hotel, restaurant)
2. Safety and Security needs include shelter, protection & security (Police, insurance)
3. Social needs are for affection friendship and acceptance (social media)
4. Ego needs are for prestige, success, accomplishment and self esteem (fitness, instagram?)
5. Self-actualization involves self-fulfillment and enriching experiences. (bungee jump) - 4Consumer choice: Information SearchDepending on the importance of the service, the information search can be extensive and formal process to REDUCE RISK.
- 5Consumer choice: Information search: Customer opinion is greater source than promotion serviceso Customers tend to rely to a greater extent on personal sources when purchasing services
o First: promotion services do not provide information about the experience qualities of the service
o Second: Its tough expensive to advertise and experience (think professional services – lawyers, architects, doctors, etc.)
o Lastly: it’s hard for consumers to assess the attributes of a service before purchasing making personal influence pivotal as the service complexity increases. - 6Consumer choice: Information Search: Perceived Risko All transactions have risk to a degree.
o More risk is involved in the purchase of services, due to the reduction in pre-purchase information
o Less tangible the product => more perceived risk
o Risk can be found in many forms: Financial, time, performance, social or psychological
o Risk in not being able to “return” a service
Being aware of perceived risk in purchasing services means companies should use strategies to reduce this risk.
(ex. Guarantees – Starbucks, if you don’t like, we will remake your drink. DHL provides tracking numbers to ensure your package is delivered. Risk free trial period for gym memberships) - 7Consumer choice: Evaluation of Service Alternatives- Fewer service alternatives are available than goods alternatives;
- Consumers will tend to take the first recommendation of a service provider because of the time involved asking and getting personal opinions.
- Customers can even choose to do it themselves with Self-Service technologies. - 8Consumer choice: Consumer experienceExperience of the service is critical in the evaluation process and the decision to repurchase later.
Factors:
- Services as processes (hospital, pharmacy);
- Service provision Drama (services as theater ex. Disneyland);
- Service Roles and Scripts: Scripts are a logical sequence of events expected by a customer involving them as a participant or observes (dental check-up, patient needs to be present)
- The compatibility of Service Customers: the role of the other customers who are receiving the services at the same time (airline, education);
- Customer co-production: customer has a profound influence on the service experience (personal trainer);
- Emotion and Mood - 9Consumer choice: Post-experience evaluationEvaluation that determines if the customer will return or continue to patronize the service organization.
Companies capture this in measures of satisfaction, service quality, loyalty and sometimes emotional engagement.
- Word of mouth. Consumers are strongly influenced by the personal opinions of others, making controlling word-of-mouth important for companies. Best way to do this is to create a positive memorable experience.
- Attribution of dissatisfaction. When consumers are disappointed with purchases because product did not fulfill the intended needs or perform satisfactory. (Examples: Stylist – lack of skill, customer chose wrong stylist, customer didn’t communicate hair cut properly)
- Positive or negative biases. people tend to remember negative events more than positive events and are more influenced by negative than positive information. However, negative experiences are often attributed with an individual than with a firm.
- Brand Loyalty. Degree which consumers are committed to a brand of good or services is dependent on switching costs. - 10Understanding differences among consumers- Global Differences: the role of culture. (norms, manners, customs, aesthetics, etc.)
- Group decision-Making. (B2C (individuals vs family households, cultural aspects (patriarchal, autocratic) or B2B (how companies make choices). - 11Roles in decision makingInitiator - identifies the organizations service needs
Gatekeeper - collects & controls information about the purchase
Decider - determines what services to purchase
Buyer - this person acquires the service
User - this person consumes the service & may or may not have influence of the purchase decision. - 12How to develop a model of consumer behavior and decisions: (A Behavior Sequence Model - BSM)A model of buyer behavior that’s built upon the stages involved in brand choice, identifying touch points where marketing communication is likely to affect the decision in a positive way.
For each stage, decide:
- Who and which role perform stage
- Where is it performed
- When, timing/sequence of each element - 13Importance of Customer ExpectationsCustomer expectations are beliefs about service delivery that serve as standards or reference points against which performance is judged.
3 ways to think about customer expectations
1. the meaning and types of expected service
2. factors that influence customer expectations
3. current issues that involve customer services expectations
Being wrong about what customers expect means losing the customer when other companies hit the target right on. - 14Customer Expectations: Meanings and Types of Service ExpectationsExpected Service: Levels of expectations
- Desired Service – this is what customer hope for and is a blend of that the customer believe” should be” or” can be”
- Adequate Service (minimum tolerable expextations)
- Zone of tolerance lies in between Desired and Adequate service expectations (in this zone customers usually do not notice service performance. It’s when the service level is outside this zone the customers be positively or negatively attentive of it.)
- Customers possess different zones of tolerance (ex. Wait times)
- Zones of tolerance vary for service dimensions – with the important factors of the service having lower tolerance levels - 15Customer Expectations: Sources of Desired Service Expectations- Lasting service intensifiers: individual, stable factors that lead the customer to a heightened sensitivity to service. Desire for good service is derived from a person’s own expectations but also from the pressure of the “customers” served (ex. IT manager choosing a IT service provider)
- Personal needs: conditions essential to the physical or psychological wellbeing of the customer. (ex. movies after work: customer hope the popcorn line is short as he is coming straight from work) - 16Customer Expectations: Sources of Adequate Service Expectations- Temporary service intensifiers – short term factors that often require urgency. (ex. car accident & car insurance)
- Perceived Service alternatives – multiple service providers, or perform themselves. (ex. Personal Grooming, Lawn care, DSB)
- Self-perceived service role – customer perception of how well they are performing their role in service delivery. (ex. customer states specifically how they would like their steak cooked vs someone who does not specify)
- Situational factors – conditions that customers view as beyond the control of the service provider. (ex. after a catastrophe (tsunami), people are more tolerant with insurance than they might be after a single even accident (house fire))
- Predicted Service – the level of service customer believes they are likely to get – predictions made by customer about what is likely to happen.(ex. flying Ryanair vs SAS, flying at Christmas vs late January) - 17Customer Expectations: Sources of both Desired & Predicted Service expectations- Explicit service promise – personal and non-personal statements about the service made by the company to the customer. These are one of the few influences that is completely in control of the service provider.
- Implicit service promise – services related cues other than explicit promises (the insurance company that costs more, should provide high level of service)
- Word of mouth – carries weight as an info source because it is perceived as unbiased. (ex. online customer reviews, friends and family)
- Past experience – customers previous experience to service that is related to the focal service. - 18How marketers can influence these (Personal needs, inensifiers, alternatives, word-of-mouth, etc.) factors?- Educate and communicate;
- Be aware and prepared;
- Use service guarantees;
- Use testimonials;
- Make realistic promises; - 19Issues Involving Customers Expectations- What to do if expectations are too high/unrealistic?: Simply put, customers expect service companies to do what they are supposed to do. They expect the fundamentals not fanciness. Performance, not empty promises
- Should we try to delight customers?: Comes with extra effort and cost to the company and the delight may not last very long.
- How to exceed expectations?: Goal should be to deliver as promised, exceeding may lead to expecting such.
- Will customers’ expectations continually escalate?: Its important to continually monitor adequate expectations of customers to prevent escalations
- How to stay ahead of competitors?: Goal is to meet the expectations of the customer better than the competition can. This is done by understating the customer. - 20How can you delight your customers and provide them with world-class services?- Understand how to delight a customer;
- Devise/produce service strategies;
- Understand the WOW elements in delighting a customer and learn how to incorporate them in the service strategies, plans and actions;
- Walk through a day in a customer life cycle and identify the various contact points;
- Find ways to delight the customers although customers may have just encountered a service failure.
Information
- Description
- Other Service Marketing Flashcards on Lecture 2, created by Roberta Daugelai on 28/03/2016.
- Created by
- Roberta Daugelai
- Views
- 0
- Rating