Week 3: Chapter 2 & 3 Flashcards
What does the three stage model include?
- Pre-purchase Stage
- Service Encounter Stage
- Post-purchanse Stage
Pre-purchase: Decision to buy or use a service is triggered by?
‘need arousal’
Pre-purchase: What triggers need?
- Unconscious minds(personal identity and aspirations)
- Physical condition (hunger)
- External sources (service firm’s marketing activities)
Pre-purchase: Information search stages
“Top of mind”
- Awareness Set (all the brands in the awareness)
- Brands not recalled
- Evoked Set (brands recalled)
- Consideration set (brands considered)
- Brands not considered
What are the Pre-purchase perceived risks? (7)
- Functional Risk
- Financial Risk
- Temporal Risk
- Physical Risk
- Psychological Risk
- Social Risk
- Sensory Risk
Pre-Purchase: Functional Risk
Unsatisfactory Performance (How do I know they will service my car correctly?)
Pre-Purchase: Financial Risk
Monetary loss or unexpected extra costs
I didn’t realise id need to make in-app purchases to play this online game?
Pre-Purchase: Temporal Risk
Wasting time, delays
How long will I be waiting in the queue?
Pre-Purchase: Physical Risk
Personal injury, damage to possessions
Will the carwash damage my vehicle
Pre-Purchase: Psychological Risk
Personal fears, negative emotions
What if I say something wrong in the tutorial
Pre-Purchase: Social Risk
How will others think and react
What if no-one ‘likes’ my Facebook page
Pre-Purchase: Sensory Risk
Unwanted impacts on the 5 senses
What is the hotel room I book is next to a noisy road
Pre-purchase: Perceived risk minimisations? (6)
- Seeking information from respected personal sources
- Using internet to compare service offerings and search for independent reviews and ratings
- Relying on a firm that has a good reputation
- Looking for guarantees and warranties
- Visiting service facilities or trying aspects of services before purchasing
- Asking knowledgeable employees about competing services
Pre-purchase: List of responses to managing consumers perceptions of risk
- Free trial
- Advertise
- Display credentials
- Use evidence management
- Offer guarantees
- Encourage visit to service facility
- Give customers online access about order status
How to customers evaluate services?
Customers evaluate services by comparing what they expect against what they perceive
How do expectations vary?
Expectations of good service varies between service industries , as well as positioning in the same industry
Pre-purchase: Define Desired Service Level
Wished-for level of service
Pre-purchase: Define Zone of Tolerance
Acceptable range of variations in services
Pre-purchase: Define Adequate Service Level
Minimum acceptable level of service
Pre-purchase: Define Predicted Service Level
Service level that customers believes firms will actually deliver
Pre-purchase: Purchase Decision. When is the best option selected?
When possible alternatives have been compared and evaluated, the best option is selected
When is a decision simple?
A decision is simple if perceived risks are low and alternatives are clear
Pre-Purchase stage comprises:
- New awareness
- Information search
- Evaluation of alternative
- purchase decision
Service Encounter: Contact Level. Define Intangible dominant
Emphasizers encounters with service personal
Service Encounter: Contact Level. Define Tangible Dominant
Emphasizers encounters with physical service elements
Service Encounter: Theatre Metaphor Stages
Service Facilities
- Stage on which drama unfolds
- This may changes from one act to another
Personnel
- Front stage personnel are like members of a cast
- Backstage personnel are production team
Roles
- Like actors, employees have roles to play and behave in specific ways
Scripts
- Specifies the sequences of behaviour for customers and employees
The Sevuction System
The sevustion system depicts the visible frontage and invisible backstage.
Customer-to-customer interactions occur in the visible frontstage.
Post-purchase stage: satisfaction
- Satisfaction is a post-purchase evaluation of the overall service experience.
- Customers have expectations prior to consumption, observe service performance, compare it to expectations
- It is emotive and cognitive
Post-Purchase: (Dis)satisfaction
- Service performance that does not match specifications
- Not living up to the levels of performance promised and promoted
- Not knowing wha the customers expect
- Management specifying service standards that do not accurately reflect customers expectations
Post-purchase: Beyond Satisfaction. Delight is a function of 3 components
- Unexpectdedly high levels of performance
- Arousal (Surprise, excitement)
- Positive affect (Pleasure, joy, or happiness)
Delight = raised expectations (ratchet effect)
Why does customer satisfaction matter?
- Insulates customers from competition
- Create sustainable advantage
- Reduces failure costs
- Lowers costs of attracting new customers
Enhances/promotes positive word-of-mouth - Encourages repeat patronage and loyalty
What does loyalty =
Sustained viability of service
Strategies for services
Wide service offerings + few markets served = market focused
Wide service offerings + many markets served = unfocused (everything for everyone)
Narrow service offerings + few markets served = Fully focused (service and market focused)
Narrow service offerings + Many markets served = Service Focused
What is market segment?
A market segment is composed of a group of buyers sharing common characteristics, needs, purchasing behaviour, and consumption patterns
Target segments should be selected with references to?
- Firm’s ability to match or exceed competing offerings directed at the same segment
- Not just profit potential
Determinant attributes
Determinant attributes determine buyers’ choices between competing alternatives
marketing positioning strategy: Market Analysis?
- size
- composition
- location
- threats
marketing positioning strategy: Internal analysis
- resources
- reputation
- constraints
- values
marketing positioning strategy: Competitive analysis
- Strengths
- weaknesses
- current positioning
To develop a marketing positioning strategy, you need?
- Market analysis
- Internal analysis
- Competitor analysis
