Customer Behaviour

Question 1

LO1: Explain the 3-stage model of service consumption

Answer 1

Stage 1: Pre-Purchase decision making –> problem recognition
Stage 2: purchase and consumption -> the service encounter
Stage 3: Post-Purchase stage –> are the customers satisfied?

Question 2

LO2: explain the effect of culture on consumer behaviour

Answer 2

• Culture is the learned beliefs, values and customs that create behavioural norms for a given society.
• Hofstede’s dimensions
• Product diffusion model

Question 3

LO3: explain the relevance of perceived risk and information search at the pre-purchase stage of the buying process

Answer 3

• Functional risk –> concern about performance outcomes
• Financial risk –> monetary risk, unexpected
• Temporal risk –> wasting time, consequences of delays
• Psychological risk –> personal fears and emotions
• Social risk –> how other think and react
• Sensory risk –> unwanted impacts on any of the five senses

Question 4

LO4: understand the importance of mood states, role theory, script theory, and control theory.

Answer 4

Mood states: transient feelings that generally are not tied to a specific event or object, but affect the service experience. This includes: boredom, aggression, joy, enthusiasm

Role theory: consumers and employees are often acting a role, there may be a pattern of behaviour, responses and attitudes that are learned and applied to different situations. Role Congruence: how well each party plays their role

Script theory: scripts are cognitive structures that provide a framework for service delivery, helps to standardise service delivery and maintain quality