Customer Behavior in Service Encounters Chapter 2: Lovelock Effective Service Marketing Strategies Three-Stage Model of Service Consumption Prepurchase Stage: Search, evaluation of alternatives, decision Service Encounter Stage: Role in high-contact vs. low-contact delivery
Post-Encounter Stage: Evaluation against expectations, future intentions The Purchase Process for Services Prepurchase Stage Service Encounter Stage Post-Encounter Stage Pre Purchase Stage Need Awareness
Unconscious Mind Physical Conditions External Sources Information Search Evoked Set Examples? Evaluating a Service May Be Difficult Search attributes: Physical Evidence Sampling
Experience attributes Must experience product to know it Vacations, movies, medical procedures Credence attributes Quality of repair and maintenance work of elevator Dental Surgery Legal matters Perceived Risks in Purchasing and Using Services Functionalunsatisfactory performance outcomes
Financialmonetary loss, unexpected extra costs Temporalwasted time, delays leading to problems Physicalpersonal injury, damage to possessions Psychologicalfears and negative emotions
Socialhow others may think and react Sensoryunwanted impact on any of five senses Refer to Table 2.1 How Product Attributes Affect Ease of Evaluation Most Goods Most Services Difficult to evaluate*
Easy to evaluate Clothing Chair Restaurant meals Lawn fertilizer Computer repair Education Motor vehicle Haircut Entertainment Legal services Complex surgery
Foods High in search attributes High in experience High in credence attributes attributes *NOTE: Difficulty of evaluation tends to decrease with broad exposure to a service category and frequency of use of a specific supplier Source: Adapted from Zeithaml Service Encounter Stage
The moment of Truth. 'A service business's performance is made up of the sum of its countless interactions with its clients A moment of truth is when an interaction occurs between a customer and the service provider that can leave a lasting positive or negative impression on a customer. Distinctions between High-Contact and Low-Contact Services High Contact
Low Contact Customers visit service remain throughout Contact is physical Contact is tangible Little or no physical contact with service personnel Trend of Self Service Active contact between customers and service personnel Contact usually at arms length through
electronic or physical distribution channels Includes most peopleprocessing services New technologies (e.g. the Web) help reduce contact levels Medium Contact Medium-Contact Services Lie in between These Two The Servuction System: Service Production and
Delivery Service Operations Service Delivery Service Marketing (front stage and backstage) (front stage) Where inputs are Where final processed and service assembly of service elements created elements takes place and service is delivered to customers Includes facilities, equipment, and
personnel Includes customer interactions with operations and other customers (front stage) Includes service delivery (as above) and all other contacts between service firm and customers Service Marketing System for a High-Contact Service SERVICE MARKETING SYSTEM
Service Delivery System Service Operations System Other Customers Interior & Exterior Facilities Technical Core Equipment Other Contact Points Advertising Sales Calls Market Research Surveys
The Customer Billing/Statements Misc. Mail, Phone Calls, E-mails, Faxes, etc. Website Service People Backstage (invisible) Front Stage (visible) Random Exposure to
Facilities/Vehicles Other Customers Chance Encounters with Service Personnel Word of Mouth Service Marketing System for a Low-Contact Service Service Operations System SERVICE MARKETING SYSTEM Service Delivery System Advertising
Mail Technical Core Self Service Equipment The Customer Phone, Fax, Website, etc. Backstage (invisible) Other Contact Points
Front Stage (visible) Market Research Surveys Billing/Statements Random Exposure to Facilities/Vehicles Word of Mouth Consumer experience Service as a process
Service as a drama Compatibility with other customers Customer co-production Emotion and mood Service as a process Service as a drama/theatre All the worlds a stage and all the men and women merely players. They have their exits and their entrances and each man in his time plays many parts William Shakespeare As You Like
It Theater as a Metaphor for Service Delivery Audition Cast Rehearsals Stage/Production Script
Role & Performers Audience Tickets Compatibility of service customers Sometimes the crowd makes us decide Customers may be incompatible for Beliefs Values Experiences Inability to pay Appearance Age and health
Customer co-production Emotion and mood Post experience evaluation Word of mouth Attribution of dissatisfaction Positive or negative biases Brand loyalty Understanding differences
Global differences: role of culture Values and attitudes Manners and customs Material culture
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