CHAPTER 6:

CONSUMER,
ORGANIZATIONAL
BEHAVIOR AND
EXPECTATIONS
UNDERSTANDING CONSUMER NEEDS

Self Actualization Needs

Esteem Needs

Social Affiliation

Security and Safety

Basic Physiological needs

 UNDERSTANDING CONSUMER
EXPECTATIONS
Explicit & Implicit
Personal Needs Service Promises
Word-of-Mouth
Desired Service Past Experience
Beliefs about
What Is Possible
ZONE
OF
TOLERANCE
Perceived Service
Alterations

Adequate Predicted Service

Service
Situational Factors
 HOW CUSTOMERS EVALUATE SERVICE
PERFORMANCE
Most Goods Most Services

Easy Difficult
to evaluate to evaluate
Restaurant meals

Computer repair
Clothing

Complex surgery
Legal services
Motor vehicle

Haircut
Lawn fertilizer

Entertainment
Foods
Chair

Education
High in search High in experience High in credence
attributes attributes attributes

CONTINUUM OF PRODUCT ATTRIBUTES

 FACTORS AFFECTING CONSUMER BUYING
BEHAVIOUR TOWARDS SERVICES
SOCIAL FACTORS CULTURAL FACTORS

Family influence Culture

Reference group influence Subculture
Roles and status Social class

CONSUMER AS
DECISION MAKER
Age & family life cycle
Beliefs and attitudes
Economic circumstances
Learning
Occupation
Personality & self concept
Psychographics
PSYCHOLOGICAL FACTORS PERSONAL FACTORS
 COSUMER PURCHASE PROCESS

1. Awareness/ Need Perception

2. Search and Comprehension
3. Attitude Development
4. Evaluation of Alternatives
5. Purchase and Consumption
6. Adoption and Post Purchase Behavior
CHAPTER 7:
SEGMENTATION,
TARGETING &
POSITIONING IN
SERVICES
 BASIS FOR SEGMENTATION

1) Geographic

3) Demographic
• Age
• Sex
• Size and structure of family
• Income
• Educational level
1) Psychographic
• Lifestyle
• Personality

• Behavioristic
• Benefit
• Purchase occasion
• User status
• Usage rate
• Loyalty
• Buyer readiness and marketing factors
 TARGETING STRATEGIES

1. Undifferentiated Marketing (Mass

Marketing)

3. Differentiated Marketing (Multiple

Segmentation)

5. Concentrated Marketing (Single

segment)
POSITIONING OF SERVICES- IMAGE
• Image : picture of organization as perceived by
the target group

• Current image: way it is actually seen

• Mirror image: way it thinks it is seen
• Wish image: way it would like to be seen

THE IDEAL SITUATION

Wish= Current

If no then various positioning strategies are used

 POSITIONING APPROACHES
1. Attributes/features/customer benefits
2. Price/value
3. Use or application
4. Users or classes of users
5. Product class
6. Against competition
7. Endorsement
8. Quality dimensions: RATER
9. Service Evidence
People
Physical Evidence
Process
 POSITIONING MAP
ATTRIBUTE 1

SERVICE A
SERVICE E

SERVICE B
ATTRIBUTE
2

SERVICE C

SERVICE D
 CHAPTER 8:
MANAGING DEMAND
AND SUPPLY OF
SERVICES
 DEMAND PATTERNS
• Stable, Constant
• Increasing: Accelerating
• Decreasing: Decelerating
• Stable, Cyclical
• Increasing: Saturating
• Decreasing: Vanishing
• Life Cycle
 STRATEGIES FOR MANAGING
CAPACITY TO MATCH DEMAND
DEMAND HIGHER THAN CAPACITY
• Stretching time, labour, facilities,
Equipments
• Cross train
• Overtime
• Rent or share facilities
• Part time employees
• Subcontract or Outsource
DEMAND LOWER THAN CAPACITY
• Performance maintenance/ renovations
• Schedule vacations
• Employee training
• Lay-off employees
 STRATEGIES FOR MANAGING
DEMAND TO MATCH CAPACITY
• Partitioning demand
• Vary service offering
• Complementary services
• Promoting off- peak demand
• Pricing incentives
• Communicate with customers
• Modify timing and location of service
• Advertising and sales promotion
STRATEGIES WHEN DEMAND AND
CAPACITY CANNOT BE MATCHED
• Reservations and appointments
• Waiting lines
• Triage- Sorting
• Delaying Service Delivery
 CHAPTER 9:
MARKETING
STRATEGIES FOR
SERVICES
 SCA: SUSTAINABLE COMPETITIVE
ADVANTAGE
Features of SCA

• Customer must value the concept

• Non substitutable
• Firm must have the capabilities
• Sustainable
 SOURCES OF COMPETITIVE
ADVANTAGE FOR FIRMS
• Operational position
• Scale effect
• Cost and demand synergy
• Brand/ firm equity
• Customer relationships
• Spatial preemption
• Service package
• Information technology
PROACTIVE SERVICE MODEL
 MARKET PLANNING PROCESS

1. Analysis of marketing opportunities

2. Marketing research and selection of
target markets
3. Designing marketing strategies
4. Designing and implementing detailed
marketing plan
5. Effective monitoring and control
TYPES OF MARKETING/ SERVICE
MARKETING TRIANGLE