Consumer Behavior

1
Differences Between Characteristics of Goods and Services

 Search Qualities:
 Qualities estimated before the purchase
 Search Qualities for services include attributes such as price,
convenience, mannerisms of service personnel.
 Experiences Qualities:
 Qualities that can assessed after the use of products
 Services have higher experience characteristics than goods.
 Credence qualities:
Difficult to assess even after purchase and consumption
Services have more credence qualities than goods. Services offered by doctors
and consultants are high in credence qualities.

2
 Consumer Decision Making Process

Need Perception
Environmental Factors
External sources
•Culture
•Personal sources
•Subculture
•Commercial sources
•Social class
Search for Information •Public sources
•Reference groups
•Experiential sources
•Family

Evaluation of alternatives
Internal sources

Marketer Activities
Purchase decision

Post-purchase evaluation
External Factors Influencing Consumer Behavior

 Culture : values, norms, roles and customs shared by members of a society.

 Subculture : Age, lifestyle, geography, race and religion
 Social class : behaviors and norms are grouped under a social class.
 Reference groups : individual uses the perspectives of a reference group as the
basis for his actions, judgment and opinion.
 Family: buyer, influencer, decision maker, purchaser
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