Chapter 3

Customer Behaviour in Service Settings

Chapter 3 Objectives

Examine the typical CB process for buying and consuming services Explore key differences between Eastern & Western cultures that impact services Examine the impact of mood states, role, script and control theory

Understand customers intrinsic needs

Lovelock, Patterson, Walker: Services Marketing 3e 2004 Pearson Education Australia

The Consumers Decision Making Process

The Decision making process is influenced by our cultural values and norms and comprises three stages: The pre-purchase stage The service encounter stage The post-purchase stage
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The Pre-purchase Stage

Recognition of needs
Information search Evaluation of alternatives

Lovelock, Patterson, Walker: Services Marketing 3e 2004 Pearson Education Australia

The Service Encounter Stage

Understanding customers intrinsic needs and values Mood states Role theory Script theory Control Theoty Communication Style Attribution theory (Ch.4)
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Culture
Human beings draw close to one another by their common nature, but habits and customs keep them apart (Confucian saying).

Lovelock, Patterson, Walker: Services Marketing 3e 2004 Pearson Education Australia

Hoftstedes Cultural Dimensions

Collectivism Vs. Individualism: Do people rely on themselves or depend on and respect the group?

Power distance: Does society value equality or inequality in interpersonal interactions?

Lovelock, Patterson, Walker: Services Marketing 3e 2004 Pearson Education Australia

Hoftstedes Cultural Dimensions

Uncertainty avoidance: What is the attitude towards risk in society? How does this affect consumption patterns? Masculinity Vs. femininity: To what extent and at whose expense should the weaker members of society be cared for?
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Figure 3.3a: Diffusion of innovation in a Western context

Lovelock, Patterson, Walker: Services Marketing 3e 2004 Pearson Education Australia

Figure 3.3b: Diffusion of innovation in an Asian context

Lovelock, Patterson, Walker: Services Marketing 3e 2004 Pearson Education Australia

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Types of Risk

Functional: this is a concern about performance outcomes e.g. How can I be sure my car will be properly serviced? Financial: this reflects financial risks and unexpected costs e.g. Will I incur extra expenses? Temporal: this is about wasting time or unexpected delays e.g. Will the service be too slow?

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Types of Risk

Psychological: personal fears and other negative emotions e.g. Will the service make me feel good? Social: how others think and react e.g. Will my friends approve or admire me? Sensory: these are unwanted impacts on the five senses e.g. Will the restaurant be too noisy?
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Strategies for Risk Reduction

Provide information Firms reputation Provide guarantees/warrantees Standardise the service Internet search Seek tangible cues (Nokia dealer)
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Factors Influencing the Consumers Service Evaluation

Mood states Role theory Script theory Control theory

Behavioural control Cognitive control

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Factors Influencing the Consumers Service Evaluation

Mood States- moods are part of the affective domain, they may include: boredom, aggression, joy, enthusiasm, disgust, interest etc. Moods alter but can vary in duration. Role Theory- this implies that consumers are often acting a role-there may be a pattern of behaviour, responses and attitudes that are learned (buyer socialisation) and applied to different situations
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Factors Influencing a Consumers Service Evaluation

Script Theory- Scripts are cognitive (Learning and acting) structures that provide a framework for service delivery. They may vary in scope and intensity. Control Theory- there are two main modes of control-behavioural and cognitive. This theory looks at the correlation between the consumers feeling of control, behaviour and judgement of service provision (Back ground of consumer)
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Consumers Needs in a Service Setting

Security: this includes serious physiological issues as well as safety needs such as our need for protection and stability. Security needs may include avoidance of physical and/or financial risks. (Plastic surgery/piercing/cosmetics surgery))

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Consumers Needs in a Service Setting

Respect: a fundamental, higher-level human need. Esteem: the individuals self concept, or self identity

What about Private and Public sectorS? a) House building VS DBH b) Billing system in Public sectors c) Airlines/Bangladesh Biman

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Consumers Needs in a Service Setting

Face: this represents dignity based on a correct relationship between a person and the groups to which they belong i.e. all interpersonal relationships. Face incorporates personal pride, a high sensitivity to shame and dislike of open conflict.

Lovelock, Patterson, Walker: Services Marketing 3e 2004 Pearson Education Australia

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Consumers Needs in a Service Setting

Fairness / Equity: this is about how people feel they are treated in terms of fairness, justice or equity. Distributional fairness: perceived fairness of the outcome or decision Procedural fairness: the perception of whether the procedures used to arrive at the outcome or decision are fair.
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Issues of Fairness and Equity

Keeping promises Inequity of waiting lines or queues Discrimination

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