Lecture 2: Buyer Behaviour Flashcards
What’s in the (1) PRE-PURCHASE STAGE of the buyer decision-making process.
AWARENESS OF NEED
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INFORMATION SEARCH - Define Need - Explore Solution - Identify Alternative Service Suppliers ↓
EVALUATION OF ALTERNATIVE SERVICE SUPPLIER
- Review documentation
- Consult with other people
- Visit possible service supplier
- Speak to Personnel
What’s in the (2) SERVICE ENCOUNTER STAGE of the buyer decision-making process.
Request Service from Chosen Supplier or Initiate Self-Service
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Service Delivery
What’s in the (2) POSTPURCHASE STAGE of the buyer decision-making process.
Evaluation of Service Performance
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Future Intentions
What are the Influence factors that affect buyers at each stage?
PRE-PURCHASE STAGE
- Perceived Risk
SERVICE ENCOUNTER
- Role & Script Theory
- Behaviour of other customers
- Perceived Control
- Emotions & Moods
POST PURCHASE STAGE
- Perceived Risk
What are the factors differences in ease of evaluation of goods and services?
Search Qualities
Experience Factor
Credence Qualities
Define and explain Search Qualities
Search Qualities are attributes which a consumer can determine prior to purchasing a product i.e., colour, style, price, fit, feel, comfort, hardness and smell
Good likes clothes have qualities like colour easily evaluated whereas most components of a vacation such as hotel, spas, tour guides do not have qualities which can easily be Googled.
Define and explain Experience Qualities
Experience Qualities can only be determined after the purchase or during consumption of the product i.e., taste, durability and satisfaction
A vacation in Bali has high Experience Qualities
Define and explain Credence Qualities
Credence Qualities occur when it may be impossible to evaluate even after purchase & consumption because consumer lacks the technical or specialist knowledge to determine whether the service performed was in fact necessary and well done
Example: Car repair
- Explain the Continuum of Evaluation of Different Types of Products, give examples and explain the implications for managers.
The Continuum of Evaluation goes from Easy to Evaluate to Difficult to Evaluate.
Products which are high in Search Qualities include clothing, furniture, cars.
Products and services which are high Experience Qualities include restaurant meals, vacations, manicures.
Services which are high in Credence Qualities include Computer repairs, legal services and medical surgery.
Based on the Continuum of Evaluation, what are the implications for marketing managers?
If high in search qualities:
- Provide comprehensive information that are easily accessible for customers
If low in search qualities and high in experience qualities:
- Enhance search qualities by providing customer reviews.
Increase word-of-mouth
During service encounter, increase value proposition through supplementary (supporting and facilitating) services
Example: Vacation in Bali
If high in credence qualities:
- Provide assurance to decrease perceived risk (providing certifications, guarantees, the background story of real estate agents)
What are 3 factors that can increase pre-purchase risk perceptions?
Inexperienced customers lack the knowledge and confidence to evaluate between service suppliers
Service dominated by experience and/or credence properties
High customer involvement in service
- What is the definition of Perceived Risk and why is it important for marketing managers?
Definition: Function of uncertainty and consequence which increases as the likelihood of negative outcomes and the degree of importance of these outcomes increase
Important for marketing managers to be able to reduce customers’ perceived risk and encourage them to purchase the service
Give an example of a surgery service at a hospital. If you are the marketer of the hospital, how can you decrease customers’ perceived risk of surgery?
Uncertainty-
Patient may have never undergone surgery before
Patient is not guaranteed that the surgery will end with a successful outcome
Consequences-
Poor decision regarding surgery could be life threatening
One way to decrease perceived risk of surgery by providing the background, certifications, and qualifications of the surgeon to increase customers’ trust.
What are the categories of Perceived Risk?
Financial Risk Functional/Performance Risk Physical Risk Psychological Risk Sensory Risk Social Risk Temporal Risk
Define Financial Risk and give an example.
Definition: Customers’ monetary loss if service fails
Example: Is the bank going to default during my investment / the time I deposit my money?
Define Functional/Performance Risk and give an example.
Definition: Uncertainty of whether the service will offer what is promised/expected
Example: Will UberFood deliver the correct Pidapipo ice cream that I order?
Define Physical Risk and give an example.
Definition: Possible damage/harm to customers/their possession
Example: Will the silicone burst if I do breast augmentation?
Define Psychological Risk and give an example.
Definition: Risk that service will not fit customers’ self-concept
Example: Will I enjoy the tour?
Define Sensory Risk and give an example.
Definition: Negative effects on 5 senses: sight, hearing, smell, touch, taste
Example: Will I like the taste of the coffee? Will the dentist hurt me?
Define Social Risk and give an example.
Definition:Refers to individual’s concern regarding opinions of others
Example: Will my friends like the this new haircut?
Define Temporal Risk and give an example.
Definition: Concerns regarding wasted time/delays
Example: Will I be wasting my time going to the concern rather than studying? Will I be able to wake up early to do the dawn tour?
How do consumption stages for goods and services differ? What are the implications for service marketers?
With goods, consumption stage is largely free from marketer’s influence
With services and its characteristic of inseparability, consumption stage can be influenced by marketers
Implications: Marketer can attempt to maximise value from the consumption
What are the 4 factors influencing evaluation of service encounter?
- Congruence with customer and service worker’s role and script.
- Behaviour of other customers.
- Perceived control of the service encounter.
- Mood state or emotions of customer and service worker.
Define Role & Script, explain the importance and give an example.
Role definition:
A set of behaviour 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
Script definition:
A learned sequence of behaviour patterns that consumers and service providers follow during service transactions; can be modified via training and experience”
Role and script can ease the challenges of inseparability (to motivate customers to follow their role and script, as other customers affect service provision).
Example: Vacation in Bali
Government’s role: To control behaviour of Australians in Bali
Government’s script: Doing a campaign for Australians in Bali based on segments (bogans, all Australians, and all Australians travellers to Bali)
Bogans: Warning that there will be consequences if any rule in Bali is violated
All Australians: Bali is promoted as a sacred, cultural destination for honeymoon, meditation, and family vacations rather than partygoers
All Australian travellers to Bali: To respect local Balinese culture.
