Chapter 2 Flashcards
THE THREE-STAGE MODEL OF SERVICE CONSUMPTION
I. PRE-PURCHASE STAGE
II. SERVICE ENCOUNTER STAGE
III. POST-ENCOUNTER STAGE
I. PRE-PURCHASE STAGE
1.Need awareness
2.Information search
3.Evaluation of alternatives
the beginning of the pre-purchase stage
Need Awareness
Needs may be triggered by:
People’s unconscious minds
Physical conditions
External sources
happens once a need has been recognized, and
customers are motivated to search for solutions to satisfy that need.
Information Search
several alternatives that come and form in our mind can be
derived from past experiences or external sources
Evoked Set
a narrowed down few alternatives to seriously consider.
Consideration Set
During the search process, consumers also learn about service
attributes they should consider and form expectations of how firms in the
consideration set perform on those attribute
Information Search
holds that consumers use service attributes that are
important in evaluating and comparing alternative offerings in their
consideration set
multi-attrubute model
Understanding this helps managers to cement the strengths of the
firm’s services and to focus improvement efforts on where it matters most
multi-attribute model
TWO COMMON DECISION
RULES TO DECIDE
Linear compensatory rule and Conjunctive rule
This is
done by multiplying the score for the dry
cleaner on each attribute by the importance
weight. The scores are then added up.
Linear compensatory rule
the consumer will decide
based on the total overall score in conjunction
with minimum performance levels on one or
several attributes.
Conjunctive rule
EVALUATING ALTERNATIVE
SERVICE ATTRIBUTES
1.Search attributes
2.Experience attributes
3.Credence Attributes
• they are tangible characteristics that
customers can evaluate before
purchase.
• It helps the customers evaluate
the product before purchase.
Search attributes
they cannot be
evaluated before purchase. Customers must
“experience” the service before they can assess
attributes such as reliability, ease-of use, and
customer support.
Experience attributes
• are characteristics that customers
find hard to evaluate even after
consumption.
• Here, the customer is forced to
believe or trust that certain tasks
have been performed at the
promised level of quality.
refers to the customer’s perception of the risks associated
with any purchase.
Perceived Risk
are formed during the search and decision-making process,
through a customer’s search and evaluation of information and alternatives.
Expectations
COMPONENTS OF SERVICE
EXPECTATIONS
Desired service
Adequate service
Predicted service
Zone of tolerance
• The type of service customers hope to receive is termed
desired service. • It’s a “wished for” level — a combination of what customers
believe can and should be delivered in the context of their personal needs.
Desired service.
The minimum level of service customers will accept
without being dissatisfied.
Adequate service.
This is the level of service that customers actually
anticipate to receive. Predicted service can also be affected by service
provider promises word-of-mouth, and past experience.
Predicted service.
The extent to which customers are willing to accept this
variation
Zone of tolerance
the outcome of the pre-purchase stage based largely on
expectations of the likely performance of a service based on important attributes
and associated risk perceptions.
Purchase Decision
when the customer interacts directly with
the service firm. Number of models and frameworks to better understand the
consumers’ behavior and experience during the service encounter
the service encounter stage
It is where the perceived quality is
realized.
Moment of Truth
When the service provider and the
service customer confront one
another.
Moment of Truth
It is when the relationship between
the customer and the firm is at
stake.
Moment of Truth
LEVELS OF CUSTOMER
CONTACT WITH SERVICE FIRMS
High-Contact Services and Low-Contact Services
means there is direct contact between customers and the
firm throughout the entire service delivery.
High-Contact Services
involve little, physical contact if any, between
customers and service providers. Instead, contact takes place at arm’s
length through electronic or physical distribution channels.
Low-Contact Services
shows all the
interactions that together make up a
typical customer experience in a high-
contact service
Servuction System
combination of service
and production coined by French
researchers Pierre Eiglier and Eric
Langeard
Servuction
servuction system consists of the following:
Technical core and Service delivery system
where inputs are processed and the elements of the
service product are created. Is typically back-stage and
invisible to the customer.
Technical Core
where the final “assembly” takes place and the
product is delivered to the customer.
service delivery system
This subsystem includes the visible part
of the service operations system — buildings, equipment, and personnel —
and possibly other customers
service delivery system
can be used as a metaphor for service delivery, and firms can view
their service as “staging” a performance with props and actors, and manage
them accordingly.
theater
THEATER AS METAPHOR FOR
SERVICE DELIVERY
1.Service facilities
2.Personnel
3.Role Theory
4. Script Theory
Imagine service facilities as containing the stage on which the drama unfolds.
Service facilities
The front-stage personnel are
like the members of a cast playing roles as
actors in a drama supported by a back-stage
production team.
Personnel.
expected to wear special costumes when on
stage (such as the fanciful uniforms often
worn by hotel doormen (or the more basic
brown uniforms worn by UPS drivers).
service personnel
is a set of behavior patterns learned through experience and
communication, to be performed by an individual in a certain social
interaction in order to attain maximum effectiveness in goal accomplishment.
Role
have also been defined as combinations of social cues or
expectations of society that guide behavior in a specific setting or context
Roles
specifies the sequences of
behavior employees and customers are expected to learn and follow during
service delivery.
service script
last stage of service consumption is the which
involves consumers’ attitudinal and behavioral responses to the service
experience.
post-encounter stage
customers evaluate the service performance
and compare it to their prior expectations
post-encounter stage
is a judgment following a series
of consumer product interactions
satisfaction
If performance perceptions are worse than expected,
it is called ____________
negative disconfirmation.
If performance is better than expected, it is called
__________________
positive disconfirmation.
If it is as expected, then it is simply called
______________
confirmation of expectations
CUSTOMER SATISFACTION
VERSUS SERVICE QUALITY
•Excellent service quality
•Customer satisfaction
•Service quality
defined as a high
standard of performance that consistently meets or
exceeds customer expectations.
Excellent service quality
which is transaction-
specific and refers to a single service experience.
Customer satisfaction
refers to relatively stable attitudes
and beliefs about a firm.
Service quality
consumer’s belief and attitude
about the general performance of a firm.
Service quality
To measure service quality, Valarie Zeithaml and her colleagues developed a
survey instrument called _________.
SERVQUAL
based on the premise that customers evaluate a firm’s
service quality by comparing their perceptions of its service with their own
expectations.
SERVQUAL
developed to measure service quality mostly in a face-to-
face service encounter context.
SERVQUAL
is seen as a generic measurement tool that can be applied
across a broad spectrum of service industries
SERVQUAL
DIMENSIONS TO EVALUATE
SERVICE QUALITY
- Tangibles
- Reliability
- Responsiveness
- Assurance
- Empathy
customer’s willingness to continue patronizing a firm over the
long-term, preferably on an exclusive basis, and recommending the firm’s
products to friends and associates.
Loyalty
an important outcome of satisfied customers who believe that the
firm delivers great service.
Loyalty
Customer loyalty extends beyond behavior and includes preference, liking,
and future intentions. (T or F?)
t
the opposite of customer loyalty
Defection
used to describe
customers who drop off a company’s radar screen and transfer their loyalty
to another supplier.
Defection
