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									Consumer Behaviour for Services
By Neeraj Sharma

6/6/2009

SWARUP COLLEGE OF MANAGEMENT AND TECHNOLOGY

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Consumer Behaviour Service Differences

 Intangibility problem
 Consumer involvement  Perceived Risk

 Sources of Information
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Consumer Evaluation Processes for Services
Search Qualities
attributes

a consumer can determine prior to purchase of a product

Experience Qualities
attributes

a consumer can determine after purchase (or during consumption) of a product
that may be impossible to evaluate even after purchase and consumption
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Credence Qualities
characteristics

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Continuum of Evaluation for Different Types of Products

Most Goods
Easy to evaluate

Most Services
Difficult to evaluate

High in search qualities
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High in experience High in credence qualities qualities
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Services - Decision Making Process
Need awareness Information search

Memory

Memory

Evaluation of service suppliers

Future Intentions Request service

Evaluation Service delivery
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Categories in Consumer Decision-Making and Evaluation of Services
Information Search

 Use of personal sources  Perceived risk

Evaluation of Alternatives
 Evoked set  Emotion and mood

Purchase and Consumption
 Service provision as drama  Service roles and scripts  Compatibility of customers
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Post-Purchase Evaluation
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 Attribution of dissatisfaction  Innovation diffusion  Brand loyalty SWARUP COLLEGE OF MANAGEMENT AND
TECHNOLOGY

Consumer Categories in Decision-Making and Evaluation of Services
Information Search
 Use of personal sources  Perceived risk

Evaluation of Alternatives
 Evoked set  Emotion and mood

 Values and attitudes
 Manners and customs  Material culture  Aesthetics  Educational and social institutions

Culture

Purchase and Consumption
 Service provision as drama  Service roles and scripts  Compatibility of customers
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Post - Purchase Evaluation
Attribution of dissatisfaction Innovation diffusion Brand loyalty SWARUP COLLEGE OF MANAGEMENT AND
TECHNOLOGY 7

Key Issues for Decision Making
 Who is involved in the decision making process?  How long does the process take?  What is the set of competing services from which

consumers make their choice?  What is the relative importance attached by decision makers to different elements of the service offer?  What sources of information are used in evaluating competing service offers?

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SWARUP COLLEGE OF MANAGEMENT AND TECHNOLOGY

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Information Sources
Previous personal experience Word of Mouth recommendation

(WOM) Reference groups Media communications Internet sources

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SWARUP COLLEGE OF MANAGEMENT AND TECHNOLOGY

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Evaluation of Alternatives
A process of choice reduction. ‘Rules’ based approaches used.

Critical attributes, average score of all

attributes, or weighted attributes.

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SWARUP COLLEGE OF MANAGEMENT AND TECHNOLOGY

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Perceived Risk
Factors affecting perceived risk:  The level of tangible evidence  Buyer involvement  New purchase  Personal risk tolerance  Situational factors  Legal safeguards

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Discussion Exercise Differences Between the Service Experience in India and Other Countries
      

Discuss cultural differences with the following …..

Authenticity Caring Control Courtesy Formality Friendliness Personalization Promptness
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