Chapter 2

Chapter 2

1. this chapter mainly talks about the 3 stages of service consuption

   • Prepurchase Stage
     • fisrt stage
     • Need Awareness: Recognizing a need motivates the search for solutions.
       • Information Search: Customers form an Evoked Set (alternatives that come to mind) and then a Consideration Set (serious options).
         • Evaluation of Alternatives: Comparing service beneffits and performance expectations.
           • Purchase Decision: Choosing a service based on expected performance and perceived risk.
     • another related concepts that this chapter talks about prepurchase are
       • Multi-attribute Model: Simulates decision making by combining attribute weights and performance.
         • Linear Compensatory Rule
           • clients asign a grade to each attribute based on its importance and sum them up to obtain a total score for each supplier.
         • Conjunctive Rule
           • Its the most realistic.,the client establishes minimum performance levels (cut-off points) in one or more attributes that the service must meet in order to be considered.
       • Perceived Risk: Services are harder to evaluate, so firms use trials and guarantees to reduce risk
       • Service Expectations: Includes Desired, Adequate, and Predicted levels. The gap between desired and adequate is the Zone of Tolerance.

2. Service Encounter Stage

   • Moments of Truth: these are the specific points in time when the customer interacts with the firm and forms an impression of its quality
     • Servuction System: The part of the service "factory" that the customer sees (visible, service delivery system) and the part they don't see (invisible/backstage) that its the technical core
       • Theater Metaphor: Service as a "performance" with props (facilities) and actors (staff and customers).
         • Type of services
           • high contact
             • Many points of physical contact.
           • low contact
             • Delivered via apps, websites, or ATMs
           • Customers seek Behavioral, Decisional, and Cognitive (predictive) control.
   • second stage

3. third satage

   • Post-Encounter Stage
     • Expectancy-Disconfirmation Model: Comparing expectations vs. actual performance perceptions
       • satisfaction levels
         • Delighted: Performance exceeds desired levels.
         • Satisfied: Performance is within the zone of tolerance.
         • Dissatisfied: Performance is below the adequate level.
     • Service Quality (SERVQUAL)is a stable belief based on 5 dimensions: Tangibles, Reliability, Responsiveness, Assurance, and Empathy
       • if you do this steps correctly the outcome will be customer loyalty
         • Willingness to continue with a firm and recommend it (Customer Engagegment)