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
