Week 2 Flashcards
explain the typical steps of a customers decision process
1. pre purchase: need arousal information seek perceived risk evaluation of alternatives evoked set
2. Service encounter purchase and consumption: mood states script and roles sense of control consumers physiological needs
stage 3. Post purchase
disconfirmed expectations
customer satisfaction
explain culture and impact on decision process
Culture is the sum of learned beliefs, values and customs that creates behavioural norms for a given society.
o Consumer behavior is strongly influenced by culture (collectivism e.g. Asian culture & individualism)
o Low uncertainty avoidance: Calculated risk is seen as necessary in order to seize opportunity (USA, Singapore, Sweden, Hong Kong)
o High uncertainty avoidance: risk is regarded as threatening and to be avoided (Thailand, South Korea, Japan). Brand image conscious and less impulse shopping
explain the notion of ‘power distance’
o The extent to which less powerful members of a society expect and accept that power is distributed unequally
o Lower power distance:
• Power is relatively equally distributed (Western countries)
o Higher power distance:
• Hierarchy is strong and power is centralised at the top (Asia). Age, power, nobility and wealth command respect.
• Less likely to form relationships with service workers (less personalised – not interested in making friendships with service providers)
3 stage model of service consumption
- Pre-purchase decision making
- Purchase and consumption - the service encounter
- Post-encounter stage
different types of need arousal
- People’s unconscious minds e.g. personality, identity and aspirations
- Physcial conditions e.g. hunger drove you to Starbucks
- External sources (e.g. a service firms marketing activities e.g. advertising)
several factors may enhance risk
o When the service is highly intangible (a ‘pure service’)
o When the service is relatively new (e.g. first time self boarding for an airplane)
o When the service is complex (e.g., medical, legal)
o When service brands are customised rather than standardised
o When the customer is relatively inexperienced, and lacks knowledge and confidence to evaluate different suppliers (e.g., life insurance, pest control)
o When the purchase is important to the customer (weddings
6 types of risk
functional risk - concern about the performance outcomes
financial risk - monetary loss, unexpected costs
temporal risk - wasting time, consequences of delays
physiological risk - personal fears and emotions (ego and self-image related)
Social risks - how other think and react
Sensory risk - unwanted impacts of the five senses
strategies for risk reduction
o Seek more information, especially from respected personal sources (e.g., friends)
o Rely on the reputation of the firm (brand image)
o Look for guarantees and warranties
o Ask knowledgeable employees
o Look for opportunities to try (sample) the service prior to purchase (e.g., first visit free at fitness centre)
o Use the Internet to search for information
o Remain loyal to their current service because they know what to expect (comfort in conformity)
o Look for physical evidence as a means of assessing the quality of the service (e.g. qualifications and awards)
factors influencing customer desired and adequate expectations of service
deprive from
past experiences with the brand
word of mouth
service promises from the firm
experience with competing brands
zone of tolerance sits between desired service and the adequate service
explain desired service
The type of service customers hope to receive is called desired service.
It’s a wished for level of service, which is a combination of what customers believe can and should be delivered. Desired service could also be influenced by explicit and implicit promises made by service providers, word of mouth and past experience.
However, most customers are realistic. They recognise that a firm can’t always deliver the wished for level of service. (variability)
Therefore they also have a minimum level of expectations, called adequate service, as well as a predicted service level.
Role and script theory explain
o A ‘role’ is a combination of social cues that guide and direct behaviour in a social setting
o Role theory defines behaviour customers expect and feel comfortable with
o Consumers are often acting a role—there may be a pattern of behaviour, responses and attitudes that are learned and applied to different situations
define role congruence
– whether or not enacted behaviour by customers and staff is consistent with expected roles
Define role ambiguity
uncertainty over wha your role entails
Define role conflict
uncomfortable about certain aspects of your role
explain script theory
• Scripts’ are cognitive structures that guide service transactions and specify the alternatives available,
e.g., bank tellers, flight attendants, Club Med, Wendy’s
Service customers and employees can be seen to be working to a script that is determined
E.g. timelines and plans (“would you like fries with that?”)
Highly developed scripts (airlines) enables to respond quickly to customers varying needs
