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1、,Chapter 2: Customer Behavior in Service Encounters,Overview Of Chapter 2,How Differences among Services Affect Customer Behavior Customer Decision Making: The Three Stage Model of Service Consumption Prepurchase Stage Service Encounter Stage Post-Encounter Stage,How Differences among Services Affec
2、t Customer Behavior,Differences among Services Affect Customer Behavior,Consumers are rarely involved in the manufacture of goods but often participate in service creation and delivery Challenge for service marketers is to understand how customers interact with service operations Based on difference
3、s in nature of service act (tangible/intangible) and who or what is direct recipient of service (people/possessions), there are four categories of services: People processing Possession processing Mental stimulus processing Information processing,Four Categories Of Services (Fig 2.1),People Processi
4、ng Customers must: Physically enter the service factory Co-operate actively with the service operation Managers should think about process and output from customers perspective To identify benefits created and non-financial costs: Time, mental, physical effort,Four Categories Of Services,Possession
5、Processing,Possession Processing Customers are less physically involved compared to people processing services Involvement is limited Production and consumption are separable,Mental Stimulus Processing,Mental Stimulus Processing Ethical standards required when customers who depend on such services c
6、an potentially be manipulated by suppliers Physical presence of recipients not required Core content of services is information-based Can be “inventoried”,Information Processing,Information Processing Information is the most intangible form of service output But may be transformed into enduring form
7、s of service output Line between information processing and mental stimulus processing may be blurred.,Customer Decision Making:Three-Stage Model of Service Consumption,The Purchase Process for Services,Prepurchase Stage,Service Encounter Stage,Post-Encounter Stage,Prepurchase Stage,Prepurchase Stag
8、e,Service Encounter Stage,Post-Encounter Stage,Prepurchase Stage: Overview,Customers seek solutions to aroused needs Evaluating a service may be difficult Uncertainty about outcomes increases perceived risk What risk reduction strategies can service suppliers develop? Understanding customers service
9、 expectations Components of customer expectations Making a service purchase decision,Customers Seek Solutions to Aroused Needs,People buy goods and services to meet specific needs/wants External sources may stimulate the awareness of a need Companies may seek opportunities by monitoring consumer att
10、itudes and behavior Evoked set ?,Figure 2.4 Prudential Financials advertising stimulates thinking about retirement needs,Courtesy of Masterfile Corporation,Customer needs,What is Marketing? How do you think on the premise: - Customer needs are not created by marketers; they are basic parts of human
11、makeup. - John Galbraiths “Dependence effect” Customer-driven Marketing vs. Customer-driving Marketing,Evaluating a Service May Be Difficult,Search attributes help customers evaluate a product before purchase Style, color, texture, taste, sound Experience attributes cannot be evaluated before purcha
12、semust “experience” product to know it Vacations, sporting events, medical procedures Credence attributes are product characteristics that customers find impossible to evaluate confidently even after purchase and consumption Quality of repair and maintenance work,How Product Attributes Affect Ease o
13、f Evaluation,Perceived Risks in Purchasing and Using Services,Functionalunsatisfactory performance outcomes Financialmonetary loss, unexpected extra costs Temporalwasted time, delays leading to problems Physicalpersonal injury, damage to possessions Psychologicalfears and negative emotions Socialhow
14、 others may think and react Sensoryunwanted impact on any of five senses,How Might Consumers Handle Perceived Risk?,Seeking information from respected personal sources Relying on a firm that has a good reputation Looking for guarantees and warranties Visiting service facilities or trying aspects of
15、service before purchasing Asking knowledgeable employees about competing services Examining tangible cues or other physical evidence Using the Internet to compare service offerings and search for independent reviews and ratings,Strategic Responses to Managing Customer Perceptions of Risk,Offer perfo
16、rmance warranties, guarantees to protect against fears of monetary loss For products where customers worry about performance, sensory risks: Offer previews, free trials (provides experience) Advertising (helps to visualize) For products where customers perceive physical or psychological risks: Insti
17、tute visible safety procedures Deliver automated messages about anticipated problems Websites offering FAQs and more detailed background Train staff members to be respectful and empathetic,AOL Offers Free Trial Software to Attract Prospective Customers (Fig 2.6),Understanding Customers Service Expec
18、tations,Customers evaluate service quality by comparing what they expect against what they perceive Situational and personal factors also considered Expectations of good service vary from one business to another, and among differently positioned service providers in the same industry Expectations ch
19、ange over time Example: Service Perspectives 2.1 Parents wish to participate in decisions relating to their childrens medical treatment for heart problems Media coverage, education, the Internet has made this possible,Factors Influencing Customer Expectations of Service (Fig 2.8),Source: Adapted fro
20、m Valarie A. Zeithaml, Leonard A. Berry, and A. Parasuraman, “The Nature and Determinants of Customer Expectations of Service,” Journal of the Academy of Marketing Science 21, no. 1 (1993): pp 112.,Components of Customer Expectations,Desired Service Level: Wished-for level of service quality that cu
21、stomer believes can and should be delivered Adequate Service Level: Minimum acceptable level of service Predicted Service Level: Service level that customer believes firm will actually deliver Zone of Tolerance: Range within which customers are willing to accept variations in service delivery,Servic
22、e Encounter Stage,Prepurchase Stage,Service Encounter Stage,Post-Encounter Stage,Service Encounter Stage: Overview,Service encounters range from high- to low-contact Understanding the servuction system Service marketing systems: high-contact and low-contact Role and script theories Theater as a meta
23、phor for service delivery: An integrative perspective Implications for customer participation in service creation and delivery,Service Encounters Range from High-Contact to Low-Contact (Fig 2.9),Figure 2.9 Levels of Customer Contact with Service Organizations,Distinctions between High-Contact and Lo
24、w-Contact Services,High-Contact Services Customers visit service facility and remain throughout service delivery Active contact between customers and service personnel Includes most people-processing services Low-Contact Services Little or no physical contact with service personnel Contact usually a
25、t arms length through electronic or physical distribution channels New technologies (e.g. the Web) help reduce contact levels Medium-Contact Services Lie in between These Two,The Servuction System:Service Production and Delivery,Service Operations (front stage and backstage) Where inputs are process
26、ed and service elements created Includes facilities, equipment, and personnel Service Delivery (front stage) Where “final assembly” of service elements takes place and service is delivered to customers Includes customer interactions with operations and other customers Service Marketing (front stage)
27、 Includes service delivery (as above) and all other contacts between service firm and customers,Service Marketing System for aHigh-Contact Service (Fig 2.10),SERVICE MARKETING SYSTEM,Service Marketing System for aLow-Contact Service (Fig 2.11),SERVICE MARKETING SYSTEM,Theater as a Metaphor for Servi
28、ce Delivery,“All the worlds a stage and all the men and women merely players. They have their exits and their entrances and each man in his time plays many parts” William Shakespeare As You Like It,Theatrical Metaphor: An Integrative Perspective,Service dramas unfold on a “stage”settings may change
29、as performance unfolds Many service dramas are tightly scripted, others improvised Front-stage personnel are like members of a cast Like actors, employees have roles, may wear special costumes, speak required lines, behave in specific ways Support comes from a backstage production team Customers are
30、 the audiencedepending on type of performance, may be passive or active participants,Implications of Customer Participation in Service Delivery,Greater need for information/training to help customers to perform well, get desired results Customers should be given a realistic service preview in advanc
31、e of service delivery, so they have a clear picture of their expected role,Figure 2.13: Tourists Appreciate Easy-to-Understand Instructions When Traveling,Post-Encounter Stage,Prepurchase Stage,Service Encounter Stage,Post-Encounter Stage,Post-Encounter Stage: Overview,Evaluation of service performa
32、nce Future intentions,Customer Satisfaction Is Central to the Marketing Concept,Satisfaction defined as attitude-like judgment following a service purchase or series of service interactions Customers have expectations prior to consumption, observe service performance, compare it to expectations Sati
33、sfaction judgments are based on this comparison Positive disconfirmation if better than expected Confirmation if same as expected Negative disconfirmation if worse than expected Satisfaction reflects perceived service quality, price/quality tradeoffs, personal and situational factors Research shows
34、links between customer satisfaction and a firms financial performance,Customer Delight:Going Beyond Satisfaction,Research shows that delight is a function of three components: Unexpectedly high levels of performance Arousal (e.g., surprise, excitement) Positive affect (e.g., pleasure, joy, or happin
35、ess) Is it possible for customers to be delighted by very mundane services? Strategic links exist between customer satisfaction and corporate performance. Getting feedback during service delivery help to boost customer loyalty Progressive Insurance seeks to delight customers through exceptional cust
36、omer service (Best Practice in Action 2.1),Summary of Chapter 2: Customer Behavior in Service Encounters (1),Four broad categories of services People processing, possession processing, mental stimulus processing, information processing Based on differences in nature of service act (tangible or intan
37、gible), and who or what is direct recipient of service (people or possessions) Each poses distinctive service management challenges Three-Stage Model of service consumption helps us to understand and better manage customer behavior,Summary of Chapter 2: Customer Behavior in Service Encounters (2),Pr
38、epurchase stage Customers seek solutions to aroused needs Evaluation alternatives are more difficult when a service involves experience and credence attributes Customers face a variety of perceived risks in selecting, purchasing and using services Steps taken to reduce customers risk perceptions, in
39、clude: (1) guarantees and warranties, (2) previews of service and visits to service facilities, (3) employee training, (4) instituting visible safety procedures, (5) easy access to information, and (6) advance notice of problems or delays Customer expectations of service range from “desired” to “adequate” wi
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