Chapter 2 Terms Flashcards
Need Awareness, Information Search, Evaluation of Alternatives
are example of what stage?
Pre-Purchase Stage
_____________________ is the beginning of the pre-purchase stage
Need Awareness
____________________(e.g., personal identity and aspirations).
People’s unconscious minds
NEED AWARENESS
_____________________ (e.g., hunger that drove you to Burger King).
Physical conditions
NEED AWARENESS
________________ (e.g., social media or a service firm’s marketing activities)
External sources
NEED AWARENESS
___________________ 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 such as social media, online reviews, online searches, advertising, retail displays, news stories, and recommendations from service personnel, friends, and family.
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 ____________________ perform on those attribute
Consideration set
holds that consumers use service attributes that are important in evaluating and comparing alternative offerings in their consideration set.
Multi-attribute Model
Each attribute has an importance weight. A higher weight means the attribute is more important.
Multi-attribute Model
____________________ help to better understand the formation process of customer satisfaction.
Multi-attribute models
Specifically, they help managers identify specific attributes with strong impacts on overall satisfaction, which is especially important if customers are satisfied with some attributes but dissatisfied with other.
Multi-attribute models
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 models
This is done by multiplying the score for the dry cleaner on each attribute by the importance weight.
Linear compensatory rule
The scores are then added up. If you do this computation for all three alternatives, you will get a total score for the current dry cleaner of 7.7, the campus dry cleaner of 9.2, and 9.0 for the new dry cleaner. Therefore, the choice would be the on-campus dry cleaner
Linear compensatory rule
the consumer will decide based on the total overall score in __________ minimum performance levels on one or several attributes.
For example, you may only consider a dry cleaner that scores a minimum of 9 on location convenience as you do not want to carry your dry cleaning over longer distances.
Conjunctive rule
In that case, the choice is between the current and the new dry cleaner in your neighborhood. You will pick the new dry cleaner of the two as it has the higher overall score. If none of the brands meet all the cutoffs in a ___________________, then you may delay making a choice, change the decision rule, or modify the cutoffs.
conjunctive model
INFLUENCE THE CUSTOMER’S
DECISION-MAKING PROCESS
First, firms need to ensure that their service is in the _____________, as without being considered, a firm cannot be chosen! This can be done through advertising or viral marketing
consideration set
INFLUENCE THE CUSTOMER’S
DECISION-MAKING PROCESS
Next, firms can change and correct ______________________ (e.g., if a clinic has superior performance on personalized and special care offered by their doctors but customers do not see this, it can focus its communications on correcting customer perceptions).
consumer perceptions
INFLUENCE THE CUSTOMER’S
DECISION-MAKING PROCESS
They can also ________ importance weights (e.g., communicate messages that increase weights of attributes the firm excels in, and de-emphasize those the firm is not so strong at)
shift
INFLUENCE THE CUSTOMER’S
DECISION-MAKING PROCESS
Firms can even introduce new ____________
attributes
INFLUENCE THE CUSTOMER’S
DECISION-MAKING PROCESS
The objective is to shape the target customers’ decision-making so that they make the “_____________ that is, choose the firm’s service offering
right” choice
they are tangible characteristics that customers can evaluate before purchase. It helps the customers evaluate the product before purchase.
Search attributes
For example, _______________________ for a restaurant include type of food, location, type of restaurant (e.g., fine dining, casual or family-friendly), and price.
Color
Material
size
price
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
Ex. In a restaurant you won’t know how much you actually like the food, the service provided by your waiter, and the atmosphere in the restaurant until you are actually using the
Service
Live entertainment performances
Many medical procedures all have high experience attributes.
Hiking
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.
Credence Attributes
Ex. In a restaurant _____________________ include the hygiene conditions in the kitchen, the nutritional quality and the
freshness of ingredients used.
Coconut oil
Olive oil
credence attributes
You had not tried coloring your hair before and were uncertain how it would turn out. Hence, when the hairstylist suggested to lighten your hair color, you declined. Your uncertainty increased your ____________________.
PERCEIVED RISK
is usually greater for services that are high in experience and credence attributes, and first-time users are likely to face greater uncertainty.
PERCEIVED RISK
refers to the customer’s perception of the risks associated with any purchase.
PERCEIVED RISK
WILL THIS TRAINING COURSE GIVE ME THE SKILLS I NEED TO GET A BETTER JOB?
A. FUNCTIONAL
B. PHYSICAL
C. TEMPORAL
D. FINANCIAL
A. FUNCTIONAL
WILL I LOSE MONEY IF I MAKE THE INVESTMENT RECOMMENDED BY MY STOCKBROKER?
A. FUNCTIONAL
B. PHYSICAL
C. TEMPORAL
D. FINANCIAL
D. FINANCIAL
WILL I HAVE TO WAIT IN LINE FOR A LONG TIME BEFORE I CAN ENTER THE EXHIBITION?
A. FUNCTIONAL
B. PHYSICAL
C. TEMPORAL
D. FINANCIAL
C. TEMPORAL
WILL THERE BE COMPLICATIONS OR SCARS IF I GO FOR THIS COSMETIC SURGERY?
A. FUNCTIONAL
B. PHYSICAL
C. TEMPORAL
D. FINANCIAL
B. PHYSICAL
WILL THIS CREDIT CARD BE ACCEPTED WHEREVER I WANT TO MAKE A PURCHASE?
A. FUNCTIONAL
B. PHYSICAL
C. TEMPORAL
D. FINANCIAL
A. FUNCTIONAL
WILL THE DRY CLEANER BE ABLE TO REMOVE THE STAINS FROM THIS JACKET?
A. FUNCTIONAL
B. PHYSICAL
C. TEMPORAL
D. FINANCIAL
A. FUNCTIONAL