Lecture 2: Customers Flashcards
What are the 2 dimensions of the 2nd services framework?
- Nature of the service/act
- What or who is the direct recipient
What are search attributes?
Characteristics of a product or service that can be easily evaluated before purchase. Examples are price, color, style, size
What are experience attributes?
Characteristics that can only be evaluated after the product is purchased and used. Examples are taste, comfort, durability, user experience
Credence Attributes
Characteristics that are difficult or impossible for consumers to evaluate accurately, even after purchase and consumption
Examples are: Ethical sourcing, environmental impact, true efficacy of a health product
What are the stages in service consumption for the customer?
- Orientation
- Choice
- Consumption
- Post-consumption evaluation
What are the stages in service consumption for the service provider?
- Attraction
- Conversion
- Delivery
- Retention
What does heterogeneity cause during orientation (information search)?
The heterogeneity of service increases the risk for consumers because they might receive a service that does not
What does intangiblity cause during orientation (information search)
Due to intangibility and the experience-credence nature of services, consumers face high uncertainty when deciding to purchase a service
High motivation to evaluate + low ability to evaluate is applicable to ..
Many services
Low motivation to evaluate + high ability to evaluate is applicable to …
Many products
Choice sets are divided into which three levels?
- Universal Set
- Awareness Set
- Evoked Set
List the 6 choice heuristics
- Disjunctive
- Conjunctive
- Lexicographic
- Elimination by aspects
- Affect Referral
- Linear Compensatory
What is an example of a disjunctive choice?
When selecting a restaurant, a consumer may decide that any option with at least one exceptional attribute, like a Michelin star is acceptable.
What is an example of a conjunctive choice?
A travel looking for a hotel might have minimum requirements for multiple aspects like free WIFI and Central Location. Only hotels that meet all these criteria will be considered.
What is an example of lexicographic?
When buying a smartphone, a consumer might rank camera quality over all other features. They would select the phone with the best camera, but if there are multiple they then consider the next most important attribute, like battery life.
What is an example of Elimination by Aspects (EBA)?
In choosing a university, a student might first eliminate options that don’t offer their preferred major. Then, among thoe remaining, they might eliminate universities that don’t offer scholarships. THis process continues till they find their desired choice.
What is an example of affect referral?
A consumer might choose a brand of soda not based on price, flavor or variety, but simply because they have positive feelings towards the product or brand.
What is an example of linear compensatory choice making?
A consumer might assign different importance weights to attributes like price, processing speed, and battery life. They would then multiply each laptops performance on these attributes by the assigned importance and sum them. Conclude based on this sum .
