Part 2 Ch 3: Consumer Behaviour in Services

Question 1

Consumer Evaluation Processes for Services - Search Qualities (Before):

Answer 1

Definition:
Attributes a consumer can determine prior to purchase.

Examples:
Color, style, price, fit, feel, and smell.

Question 2

Consumer Evaluation Processes for Services - Experience Qualities (After):

Answer 2

Definition:
Attributes a consumer can determine after purchase (or during consumption).

Examples:
Taste, wearability, and other aspects experienced during or after using the service.

Question 3

Consumer Evaluation Processes for Services - Credence Qualities:

Answer 3

Definition:
Characteristics that may be impossible to evaluate even after purchase and consumption.

Examples:
Insurance, financial or medical performance (often based on trust).

Question 4

Stages in consumer decision making and evalution services

Answer 4

1. Consumer choice of service
2. Consumer experiece of the sevrice during delivery
3. Consumer post-experience evaluation

Question 5

Consumer choice of service

Answer 5

1. Need recognition (Maslow’s hierarchy of needs)
2. Information search
3. Evaluation of service alternatives
4. Service purchase

Question 6

Information Search and Perceived Risk in Services

Answer 6

• With services, consumers rely heavily on online review sites, social media networks, and personal sources for information.
• Aims to reduce perceived risk associated with the service

Question 7

Perceived Risk:

Answer 7

More risk is perceived in service purchases compared to goods.
Reasons:
- Intangibility makes it difficult to rely on concrete cues.
- Variability as few services can be standardized.
- Perishability as services cannot be returned once consumed.

Question 8

Evaluation of Service Alternatives

Answer 8

• Services have fewer alternatives compare to goods.
• Sometimes the set of available alternatives may focus on “people” (i.e. I choose that dentist because I know that doctor)

Question 9

Service Purchase and Trials

Answer 9

Reducing Risk:
Services often offer “initial trials” to reduce the risk for consumers in making the final purchase decision.

Importance of Trials:
Trials let consumers experience the service before deciding, lowering the uncertainty and making the decision-making process easier.

Question 10

Importance of Post-Experience Evaluation

Answer 10

• The experience shapes if customers will come back.