Chapter- 3

Consumer Behavior

Objectives of the Session

To Understand Differences Between Characteristics of Goods and Services Consumer Decision Making Process External Factors Influencing Consumer Behavior Implications for Service Providers
2

Differences Between Characteristics of Goods and Services

Search Qualities: (Qualities estimated before the purchase) Experiences Qualities: (Qualities that can assessed after the use of products) Credence qualities: (Difficult to assess even after purchase and consumption)
3

Consumer Decision Making Process

Need Perception
Environmental Factors External sources

Culture Subculture Social class Reference groups Family

Search for Information

Personal sources Commercial sources Public sources Experiential sources

Evaluation of alternatives Marketer Activities

Internal sources

Purchase decision

Post-purchase evaluation

External Factors Influencing Consumer Behavior

Culture Subculture Social class Reference groups Family

Implications for Service Providers Customers

rely on information obtained from personal sources. Customers need assistance of service provider to assess the value of service Co-production Time Intangibility Quality and customization
6

Summary
Differences Between Characteristics of Goods and Services Consumer Decision Making Process External Factors Influencing Consumer Behavior Implications for Service Providers

Thank you
8