Consumer Behaviour in Services

CONSUMER BEHA BEHAVIOR VIOR IN SERVICES SERVICE MARKETING

CONSUMER CONSUME R NEEDS NEED S & EXPECT EXPECTA ATIONS

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Customers buy goos !" ser#$%es to met se%$'% "ees( !" t)ey e#!*u!te t)e out%omes o+ t)e$r ur%)!ses b!se o" ,)!t t)ey e-e%t to re%e$#e.

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/)e" eo*e +ee* ! "ee( t)ey !re mot$#!te to t!0e !%t$o" to +u*'* $t.

CONSUMER CONSUME R NEEDS NEED S & EXPECT EXPECTA ATIONS Customer e-e%t!t$o"s embr!%e se#er!* $1ere"t e*eme"ts( $"%*u$"g desired service ( adequate service, predicted service ( !" ! zone of tolerance tolerance t)!t +!**s bet,ee" t)e es$re !" !e2u!te ser#$%e *e#e*s.

Desired and adequate service levels- Des$re ser#$%e $s t)e tye o+ ser#$%e %ustomers )oe to re%e$#e. It $s ! ,$s)e3+or *e#e* o+ ser#$%e3! %omb$"!t$o" o+ ,)!t customers believe can be and should be delivered in the context of their personal needs.  Ho,e#er( most %ustomers !re re!*$st$% !" u"erst!" t)!t %om!"$es %!"4t !*,!ys e*$#er t)e *e#e* o+ ser#$%e t)ey ,ou* re+er5 )e"%e( they also have a threshold level of expectations, termed adequate service ( which is dened as the minimum level of service customers will accept without being dissatised. Predicted service 3T)e *e#e* o+ ser#$%e customers actually anticipate receiving is known as  predicted service service !" $re%t*y !1e%ts )o, t)ey e'"e !e2u!te ser#$%e o" !"y g$#e" o%%!s$o". I+ goo ser#$%e $s re$%te( t)e !e2u!te *e#e* ,$** be )$g)er t)!" $+ oorer ser#$%e $s re$%te. Customers re$%t$o"s o+ ser#$%e m!y be s$tu!t$o" se%$'%.

Co"sumer Nees & E-e%t!t$o"s  Zone of tolerance

 T)e $")ere"t "!ture o+ ser#$%es m!0es %o"s$ste"t ser#$%e e*$#ery $6%u*t !%ross em*oyees $" t)e s!me %om!"y !" e#e" by t)e s!me ser#$%e em*oyee +rom o"e !y to !"ot)er. he extent to which customers are willing to accept this variation is called the !zone of tolerance".  # performance that falls below the adequate service level will cause frustration and dissatisfaction, whereas one that exceeds the desired service level will both please and surprise customers, creating what is sometimes referred to as customer delight. A"ot)er ,!y o+ *oo0$"g !t t)e 7o"e o+ to*er!"%e $s to t)$"0 o+ $t !s t)e r!"ge o+ ser#$%e ,$t)$" ,)$%) %ustomers o"4t !y e-*$%$t !tte"t$o" to ser#$%e er+orm!"%e. By %o"tr!%t( ,)e" ser#$%e +!**s outs$e t)e r!"ge( %ustomers ,$** re!%t e$t)er

DECISION MAKING RO8ES I" t)e buy$"g e%$s$o" ro%ess( !t t$mes( ot)er eo*e !*so $"9ue"%e t)e buy$"g e%$s$o" !" t)ese eo*e )!#e ! e'"$te ro*e to *!y. I" t)e ur%)!se o+ !"y !rt$%u*!r ser#$%e( s$- $st$"%t ro*es !re *!ye. T)ese !re:

$nitiator . T)e erso" ,)o re2uests t)!t somet)$"g be ur%)!se. %atekeeper . T)e erso" reso"s$b*e +or t)e 9o, o+ $"+orm!t$o" to t)e buy$"g %e"ter. T)$s %ou* be t)e se%ret!ry or t)e re%et$o"$st t)!t s%ree"s %!**s !" re#e"ts s!*eseo*e +rom !%%ess$"g users or e%$ers. By )!#$"g %o"tro* o#er $"+orm!t$o"( t)e g!te0eeer )!s ! m!;or $m!%t o" t)e ur%)!s$"g ro%ess. Purchaser or buyer . T)e erso" ,)o m!0es t)e !%tu!* ur%)!se. &ecider . T)e erso" ,)o e%$es o" rou%t re2u$reme"ts( su*$ers( or bot).  #pprover . T)e erso" ,)o !ut)or$7es t)e roose !%t$o"s o+ t)e e%$er or t)e buyer. $n'uencer . T)e erso" ,)o $"9ue"%es t)e buy$"g e%$s$o" but oes "ot "e%ess!r$*y use t)e rou%t or t)e ser#$%e. T)e $"9ue"%er m!y !ss$st $" t)e re!r!t$o" o+ rou%t or ser#$%e se%$'%!t$o"s( ro#$e #e"or $e!s( !" suggest %r$ter$! +or e#!*u!t$"g #e"ors.

CONSUMER BUACTORS IN>8UENCING CONSUMER BEHAVIOR 1. Situational

factors

 T)e s$tu!t$o"!* +!%tors $"9ue"%$"g t)e buy$"g be)!#$our !re3 the in'uence of time pressure in service and brand choice, the atmosphere of the service outlet, occasion of purchase ( et%. >or e-!m*e( $+ you !re tr!#e*$"g( t)e" em!" +or *og$"g !" bo!r$"g ,$** ob#$ous*y be t)ere.

2. Socio-cultural factors Buyers or %o"sumers o "ot t!0e buy$"g e%$s$o"s or t)e e%$s$o" "ot to buy( $" ! #!%uum. R!t)er( t)ey !re stro"g*y $"9ue"%e by %u*tur!* !" so%$!* +!%tors.

3. Cultural factors 3C)$*re" !%2u$re +rom t)e$r e"#$ro"me"t ! set o+ be*$e+s #!*ues !" %ustoms ,)$%) %o"st$tute %u*ture. T)ese be*$e+s( #!*ues !" %ustoms go eeer !" eeer !s ! erso" gro,s. T)ere+ore( $t $s somet$mes s!$ t)!t %u*ture $s *e!r"e !s ! !rt o+ so%$!* e-er$e"%e. T)e #!r$ous sub3%!tegor$es ,$t)$" ! %u*ture %!" be $e"t$'e b!se o" re*$g$o"( !ge( ge"er( o%%u!t$o"( so%$!* %*!ss( geogr!)$%!* *o%!t$o"( et%.

>ACTORS IN>8UENCING CONSUMER BEHAVIOR 4. Reference groups 3T)ere !re %ert!$" grous to ,)$%) eo*e *oo0 to gu$e t)e$r be)!#$our. T)ese re+ere"%e grous m!y gu$e t)e %)o$%e o+ ! rou%t but "ot "e%ess!r$*y t)e br!". Peer grou !" eer ressure )!s ge"er!**y bee" obser#e to *!y !" $mort!"t ro*e $" t)e ur%)!se o+ %re$t %!rs( %e** )o"es( et%. T)e 0"o,*ege o+ re+ere"%e grou be)!#$our )e*s $" "ot o"*y o1er$"g subst$tutes but !*so $" r$%$"g !" os$t$o"$"g t)em. 5. Family- T)e +!m$*y $s !"ot)er m!;or $"9ue"%e o" %o"sumer be)!#$our. >!m$*y %o"sumt$o" be)!#$our( to ! *!rge e-te"t( ee"s o" t)e +!m$*y *$+e %y%*e. he stages in family life cycle include bachelorhood, newly married, parenthood with growing or grown up children, post)parenthood and dissolution . K"o,*ege o+ t)ese st!ges )e*s gre!t*y $" 0"o,$"g t)e buy$"g ro%ess. O+te" +!m$*y members *!y ! s$g"$'%!"t ro*e $" t)e ur%)!se o+ ! !rt$%u*!r ser#$%e.

6. PSYCHOLOGICAL FACTORS Perception)$t is the process by which buyers select, organize and interpret information into a meaningful impression in their minds . Per%et$o" $s !*so se*e%t$#e ,)e" o"*y ! sm!** !rt $s er%e$#e out o+ t)e tot!* o+ ,)!t $s er%et$b*e. Buyer4s er%et$o" o+ ! !rt$%u*!r ser#$%e gre!t*y $"9ue"%es buy$"g be)!#$our. ttitude 3 #n attitude is a learned predisposition to respond in a consistently favourable or unfavourable manner with respect to a market o*er ?$.e.( ! br!"( ! !rt$%u*!r s)o or ret!$* out*et( !" !#ert$seme"t( et%.@. Att$tue $s ! $sos$t$o"!* term $"$%!t$"g t)!t !tt$tues m!"$+est t)emse*#es $" be)!#$our o"*y u"er %ert!$" %o"$t$o"s. K"o,$"g ! buyer4s !tt$tue to,!rs ! rou%t ,$t)out 0"o,$"g t)e erso"!* go!*s $s "ot *$0e*y to g$#e ! %*e!r re$%t$o" o+ )$s be)!#$our.

!otivation 3 +otivation is the driving force within individuals that compels them to action. T)$s r$#$"g +or%e $s sub%o"s%$ous !" t)e out%ome o+ %ert!$" u"+u*'**e "ees. Nees !re b!s$%!**y o+ t,o tyes3 'rst( t)e $""!te "ees4 !re t)ose "ees ,$t) ,)$%) !" $"$#$u!* $s bor" !" t)ey !re m!$"*y )ys$o*og$%!*. T)ey $"%*ue !** t)e +!%tors re2u$re to sust!$" )ys$%!* *$+e e.g.(

". #$RS%&' FC(%RS #ersonality- Personality can be described as the psychological characteristics that determine how an individual will react to his or her environment . 'ife style 3 8$+e sty*e !s $st$"%t +rom so%$!* %*!ss or erso"!*$ty $s "ot)$"g but a person’s  pattern of living and is generally expressed in his/ her activities, interests and opinions. 8$+e sty*e suggests $1ere"%es $" t)e ,!y eo*e ot to se" o" $1ere"t rou%ts or ser#$%es $1ere"t*y. Demograp)ic factors3Buyers emogr!)$% +!%tors *$0e age, gender, education, occupation, etc., also inuence his/her purchase behaviour. I" sum( 0"o,*ege o" !** su%) $me"s$o"s o+ t)e %o"sumer ,$** )e* $" u"erst!"$"g )$s "ees !" ,!"ts !" !*so )e* $" $"tegr!t$"g !** t)ese e*eme"ts $" ser#$%e o1er ,)$%) t)e %o"sumer ,!"ts.

A MODE8 O> BUACTORS IN>8UENCING CONSUMER BEHAVIOUR Psychological •Motivation •Perception •Learning (memory) •eliefs & attitudes •Personality & self!concept

Personal • "ge & lifecycle stage •#ccupation •$ducation •$conomic situation

Social •Household type •Reference groups •Roles & status

Consumer  BU#!R D!CISI$% PR$C!SS

Mareting programs •Mar%eting obectives •Mar%eting strategy •Mar%eting mi' !n"ironmental influences •$conomic •echnological •Political

$*periences &ifestyle

Cultural •Culture •Subculture •Social Class

Buyers’ responses •Product service & category selection •rand selection •Reseller selection •Purchase timing & repurchase intervals •Purchase amount

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 T BU EVA8UATION >OR DI>>ERENT T PRODUCTS Most Ser"ices

Most -oods $asy to evaluate           g                   n    i                          t   h                o    l              C

               yr                  l          e          *          e              )

               er   u            t              i  r          n          u              +

         s          e          s          u          o              H

         s                e    l              i              b          o          m                o    t          u              "

             . High in search

  s            l          a          e          m              t          n                ar          u                a    t          s          e              R

         s          n   i              o   t          a          c          a              ,

               s    t          u                cr              i          a              H

               er          a          c                            ild              h              C

               r    i          a           p                   er

         n                o    i                s    i          v                e    l          e              (

             .

         s  e                c    i  r          v          e          s              l          a           g             e              L

               s    l          a          n  a          c              t  o          o              R

               r    i          a           p                   er

               o    t          u              "

-ifficult to evaluate                s    i          s          o          n           g                   a    i              d              l          a                c    i              d          e              M

             .

High in e'perience High in credence

0xperience attributes hese are properties that can"t be evaluated prior to purchase . Customers must e-er$e"%e t)ese +e!tures to 0"o, ,)!t t)ey !re gett$"g. Ho*$!ys( *$#e e"tert!$"me"t er+orm!"%es( sort$"g e#e"ts( !" rest!ur!"ts +!** $"to t)$s %!tegory. -

>or E-!m*e ( you rob!b*y ,!*0e $"to t)e t)e!tre ,$t) )$g) e-e%t!t$o"s( you ,ou* )!#e +e*t $s!o$"te !+ter #$e,$"g t)e '*m $+ $t $ "ot *$#e u to your e-e%t!t$o"s. D$1ere"t eo*e m!y $"terret or reso" to t)e s!me st$mu*$ $" $1ere"t ,!ys.

redence attributes) #roduct c)aracteristics t)at customers nd impossi6le to evaluate condently even after purc)ase and consumption are 7no8n as credence attri6utes be%!use t)e %ustomer $s +or%e to trust t)!t %ert!$" be"e'ts )!#e bee" e*$#ere e#e" t)oug) $t m!y be )!r to o%ume"t t)em. >or e-!m*e( re*!t$#e*y +e, eo*e ossess e"oug) 0"o,*ege !bout '"!"%$!* m!r0ets to !ssess ,)et)er t)e$r sto%0 bro0er got t)e best oss$b*e retur"s o" t)e$r $"#este +u"s. P!t$e"ts %!"4t usu!**y e#!*u!te )o, ,e** t)e$r e"t$sts )!#e er+orme %om*ee"t!* ro%eures. A" most %o**ege stue"ts must s$m*y )!#e +!$t) t)!t t)e$r ro+essors !re ro#$$"g t)em ,$t) ! ,ort),)$*e eu%!t$o"!* e-er$e"%e

SERVICE DECISION MAKING PROCESS Co"sumer e%$s$o"3m!0$"g ro%ess )!#e >$#e m!$" %!tegor$es: . . . F.

Nee Re%og"$t$o" I"+orm!t$o" Se!r%) E#!*u!t$o" o+ Ser#$%e A*ter"!t$#es Ser#$%e Pur%)!se

&eed Recognition : T)e Pro%ess o+ buy$"g ! Ser#$%e beg$"s ,$t) t)e re%og"$t$o" t)!t ! "ee or ,!"t e-$sts ( B!se o" M!s*o,s H$er!r%)y o+ "ees ser#$%es !re %!!b*e o+ s!t$s+y$"g +rom *o,er *e#e* "ees to )$g)er *e#e* "ees( )o,e#er t)ey be%ome $"%re!s$"g*y $mort!"t +or )$g)er  *e#e* so%$!* ( ego ( !" se*+3 !%tu!*$7!t$o" "ees. . P)ys$o*og$%!* "ees : B$o*og$%!* Nees su%) !s +oo( ,!ter & s*ee ?Rest!ur!"ts@ . S!+ety & Se%ur$ty Nees : I"%*ues S)e*ter ( Prote%t$o" & Se%ur$ty ?Re!* Est!te@ . So%$!* Nees : A1e%t$o"( >r$e"s)$ & A%%et!"%e ?So%$!* Net,or0$"g@ F. Ego Nees : Prest$ge( Su%%ess( A%%om*$s)me"t ( & Se*+3 Esteem ?Perso"!* Ser#$%es Su%) !s S!( P*!st

%$ (se of personal 1 2on Personal resources) Co"sumers obt!$" $"+orm!t$o" !bout rou%ts !" ser#$%es +rom personal sources 9e.g.: friends or e*perts;  !" from non)personal sources 3e.g., mass or selective media4 . /)e" ur%)!s$"g goos %o"sumers m!0e ge"erous use o+ bot) erso"!* !" "o"3erso"!* sour%es be%!use bot) e1e%t$#e*y %o"#ey $"+orm!t$o" !bout se!r%) 2u!*$t$es. 5hen purchasing services, on the other hand, consumers seek and rely to a greater extent on personal sources  .

$nformation searc Perceived risk 3/)$*e some egree o+ er%e$#e r$s0 rob!b*y !%%om!"$es !** ur%)!se tr!"s!%t$o"s( more r$s0 ,ou* !e!r to be $"#o*#e $" t)e ur%)!se o+ ser#$%es t)!" $" )e ur%)!se o+ goos be%!use ser#$%es !re $"t!"g$b*e( "o"3st!"!r$7e( !" usu!**y so* ,$t)out gu!r!"tees or ,!rr!"t$es. 6irst, the intangible nature of services and their high level of experience qualities imply that services generally must be selected on the basis of less pre)purchase information than is the case for products . Se%o"( be%!use ser#$%es !re "o"3st!"!r$7e( t)ere ,$** !*,!ys be u"%ert!$"ty !bout t)e out%ome !" %o"se2ue"%es e!%) t$me ! ser#$%e $s ur%)!se. T)$r( ser#$%e ur%)!ses m!y $"#o*#e more er%e$#e r$s0 t)!" rou%t ur%)!ses be%!use( ,$t) +e, e-%et$o"s( ser#$%es !re "ot !%%om!"$es by ,!rr!"t$es or

$valuation of service alternatives /maller 0voked set ) he evoked set refers to the number of alternatives 3group of products4 a consumer considers acceptable options. E#o0e set $s *$0e*y to be sm!**er ,$t) ser#$%es t)!" ,$t) goos. O"e re!so" $"#o*#es $1ere"%es $" ret!$*$"g bet,ee" goos !" ser#$%es.  To ur%)!se goos( %o"sumers ge"er!**y s)o $" ret!$* stores t)!t $s*!y %omet$"g rou%ts $" %*ose ro-$m$ty( %*e!r*y emo"str!t$"g t)e oss$b*e !*ter"!t$#es. To ur%)!se ser#$%es( o" t)e ot)er )!"( t)e %o"sumer #$s$ts !" est!b*$s)me"t ?e.g.( ! b!"0( ! ry %*e!"er( or ! )!$r s!*o"@ t)!t !*most !*,!ys o1ers o"*y ! s$"g*e br!"L +or s!*e. A se%o" re!so" +or t)e sm!**er e#o0e set $s t)!t %o"sumers !re u"*$0e*y to '" more t)!" o"e or t,o bus$"esses ro#$$"g t)e s!me ser#$%es $" ! g$#e" geogr!)$% !re!( ,)ere!s t)ey m!y '" "umerous ret!$* stores %!rry$"g t)e $e"t$%!* m!"u+!%turer4s rou%t. A t)$r re!so" +or ! sm!**er e#o0e set $s t)e $6%u*ty o+ obt!$"$"g !e2u!te re3ur%)!se $"+orm!t$o" !bout ser#$%es.

$motion and mood  Emot$o" !" moo !re +ee*$"g st!tes t)!t $"9ue"%e eo*e4s ?!" t)ere+ore %ustomers4@ er%et$o"s !" e#!*u!t$o"s o+ t)e$r e-er$e"%es. !oods are distinguis)ed from emotions in t)at moods refer to transient feeling states t)at occur at specic times and in specic situations: 8)ereas emotions are more intense: sta6le: and pervasive. Be%!use ser#$%es !re e-er$e"%es( moos !" emot$o"s !re %r$t$%!* +!%tors t )!t s)!e t)e er%e$#e e1e%t$#e"ess o+ ser#$%e e"%ou"ters. I+ ! ser#$%e %ustomer $s $" ! b! mooL ,)e" )e e"ters ! ser#$%e est!b*$s)me"t( ser#$%e ro#$s$o" ,$** *$0e*y be $"terrete more "eg!t$#e*y t)!" $+ )e ,ere $" ! buoy!"t( os$t$#e moo. S$m$*!r*y( $+ ! ser#$%e ro#$er $s $rr$t!b*e or su**e"5 )$s $"ter!%t$o" ,$t) %ustomers ,$ ** *$0e*y be %o*ore by t)!t moo.  >urt)ermore( ,)e" !"ot)er %ustomer $" ! ser#$%e est!b*$s)me"t $s %r!"0y or +rustr!te( ,)et)er +rom rob*ems ,$t) t)e ser#$%e or +rom e-$st$"g emot$o"s u"re*!te to t)e ser#$%e( )$s or )er moo !1e%ts t)e ro#$s$o"s o+ ser#$%e +or !** %ustomers ,)o se"se t)e "eg!t$#e moo. I" sum( !"y ser#$%e %)!r!%ter$7e by )um!" $"ter!%t$o" $s stro"g*y ee"e"t o" t)e moos !" emot$o"s o+ t)e ser#$%e

Ser#$%e ur%)!se !" %o"sumt$o" Service provision as drama 3 Rese!r%)ers !" m!"!gers o+ ser#$%e bus$"esses )!#e compared service  provision with drama, observing that both aim to create and maintain a desirable impression before an audience( !" bot) re%og"$7e t)!t t)e ,!y to !%%om*$s) t)$s $s by %!re+u**y m!"!g$"g t)e !%tors !" t)e )ys$%!* sett$"g o+ t)e$r be)!#$our. I" +!%t t)e ser#$%e m!r0eter must *!y m!"y r!m!3re*!te ro*es ?$"%*u$"g $re%tor( %)oreogr!)er( !" ,r$ter@ to be sure t)e er+orm!"%es o+ t)e !%tors !re *e!s$"g to t)e !u$e"%e.  T)e s0$** o+ t)e ser#$%e !%torsL $" er+orm$"g t)e$r rout$"es( t)e ,!y t)ey !e!r( !" t)e$r %omm$tme"t to t)e s)o,L !re !** $#ot!* to ser#$%e e*$#ery. /)$*e ser#$%e !%tors !re rese"t $" most ser#$%e er+orm!"%es( t)e$r $mort!"%e $"%re!ses ,)e" t)e egree o+ $re%t erso"!* %o"t!%t $"%re!ses ?su%) !s $" ! )os$t!*( resort( or rest!ur!"t@( ,)e" t)e ser#$%es $"#o*#e ree!t %o"t!%t( !" ,)e" t)e %o"t!%t erso""e* !s !%tors )!#e $s%ret$o" $" eterm$"$"g t)e "!ture o+ t)e ser#$%e !" )o, $t $s

Services roles and scripts -I+ ,e t)$"0 o+ ser#$%e er+orm!"%es !s r!m!( ,e %!" #$e, e!%) *!yers !s )!#$"g ! ro*e to er+orm. Roles )ave 6een dened as com6inations of social cues t)at guide ad direct 6e)aviour in a given setting . T)e su%%ess o+ !"y ser#$%e er+orm!"%e ee"s $" !rt o" )o, ,e** t)e ro*e setL or *!yers3 bot) ser#$%e em*oyees !" %ustomers3 !%t out t)e$r ro*es. Ser#$%e em*oyees "ee to er+orm t)e$r ro*es !%%or$"g to e-e%t!t$o"s o+ t)e %ustomer5 $+ t)ey o "ot( t)e %ustomer m!y be +rustr!te !" $s!o$"te.

O"e o+ t)e +!%tors t)!t most $"9ue"%es t)e e1e%t$#e"ess o+ ro*e er+orm!"%e $s a script- a co)erent sequence of events e*pected 6y t)e individual: involving t)em eit)er as a participant or as an o6server . Ser#$%e s%r$ts %o"s$st o+ ! set o+ orere !%t$o"s( !%tors( !" ob;e%ts t)!t( t)roug) ree!te $"#o*#eme"t( e'"e ,)!t t)e %ustomer e-e%ts. Co"+orm!"%e to s%r$ts $s s!t$s+y$"g to t)e %ustomer( ,)$*e e#$!t$o"s +rom t)e s%r$t *e! to %o"+us$o" !" $ss!t$s+!%t$o".

Post purchase evaluation ttri6ution of dissatisfaction 3 /)e" %o"sumers !re $s!o$"te ,$t) ur%)!ses3be%!use t)e rou%ts $ "ot +u*'** t)e $"te"e "ees( $ "ot er+orm s!t$s+!%tor$*y( or ,ere "ot ,ort) t)e$r r$%e3 t)ey m!y !ttr$bute t)e$r $ss!t$s+!%t$o" to ! "umber o+ $1ere"t sour%es( !mo"g t)em t)e rou%ers( t)e ret!$*ers( or t)emse*#es.