1 Explain the three-stage model of service consumption

Three stage
model of service
consumption

Service -
Pre-purchase
encounter
Post – encounter
 How can customer choice between services in their consideration set
2 be modeled?

Search Evaluate
Need
informatio alternative
Arousal
n s
Example:
Evoked set Consideration set
Bánh mỳ 110
Bánh mỳ 110

Bánh mỳ Đức Phát

Bánh mỳ Huỳnh Hoa Bánh mỳ Như Lan

Bánh mỳ như Lan

Once the consideration set and key attributes are understood, the consumer
typically makes a purchase decision. In marketing, we often use multi-attribute
models to simulate consumer decision-making.
 What is the difference between the linear compensatory rule and the
3 conjunctive rule?
Atributes Bánh mỳ 110 Bánh mỳ Như Lan Importance weight
(%)

Quality 7 9 40

Convenience of 10 7 25
location

Price 8 6 20

Opening hours 8 9 5

Staff attitude 5 9 10

Total score 8.05 8.35 100

Linear compensatory vs Conjunctive rule

 Linear
compensatory
 Consumer consider all the relevant
factors and multiply it with their
importance weight percent.
 They will pick a choice with highest
score.
 Consumers don’t set any minimum
acceptable point for one or more
attributes.
Conjunctive rule
 Consumers don’t set any minimum
acceptable point for one or more
attributes.
 If the choice does not meet the
requirement it will be eliminated
from consumer’s choice.
 Describe search, experience, and credence attributes. Give the example
4
Attributes Search Experience Credence

Meaning help customers evaluate a product before cannot be evaluated before customers find
purchase purchase impossible to
evaluate
confidently even
after purchase and
consumption

Example type of food, location, type of restaurant and The consumer will not know how hygiene conditions
price much they will enjoy the food, the of the kitchen and
service, and the atmosphere until the healthiness of
the actual experience the cooking
ingredients
 Explain why service tend to be harder for customer to evaluate than
5 goods?

What’s the difference between goods and services?

Basis for comparison Goods Services

Meaning Goods are the material items that can be Services are amenities, facilities, benefits
seen, touched or felt and are ready for
sale to the customers. or help provided by other people.

Nature Tangible Intangible

Transfer of ownership Yes No

Evaluation Very simple and easy Complexity

Return Can be returned Services cannot be returned back once

they are provided.

Separable can be separated from the seller. services cannot be separated from the
service provider.

Storage Goods can be stored for use in future or Services cannot be stored.
multiple use.

Production and Consumption There is a time lag between production Production and Consumption of services
and consumption of goods. occurs simultaneously.
 • Why do consumer’s perceptions of risk play an important
role in choosing between alternative service offers?
6 • How can firms reduce consumer risk perceptions?

• 3 Service Attributes
- Search attributes
- Experience attributes
- Credence attributes
• Firms reduce consumer risk perceptions
- Preview the service through their company websites and videos
- Visit the service facilities before purchase
- Offering free trials
- Display credentials
- Use evidence management
- Visible safety procedures
- Status of an order to procedure
- Service guarantees
 • How are customers’ expectations formed?

7 • Explain the difference between desired service and adequate service

with reference to a service experience you’ve had recently.

• Factor influencing customer’s

expectations
• Example: go to drink milk tea
 What are “moments of truth”?
8
We could say that the perceived quality is realized at the moment of truth,
when the service provider and the service customer confront one another
in the arena. At that moment they are very much on their own… It is the
skill, the motivation, and the tools employed by the firm’s representative
and the expectations and behavior of the client which together will create
the service delivery process.

Richard Normann
 •Describe the difference between high-contact and low-contact services.

9 •Explain how the nature of a customer’s experience may differ between

the two.

High-Contact Services
- Customers visit service facility and
remain throughout service delivery
- Active contact
- Includes most people-processing
services

Low-Contact Services
- Little or no physical contact
- Contact usually at arm’s length through
electronic or physical distribution
channels
- Facilitated by new technologies
 Choose a service you are familiar with, and create a
10 diagram that represents the servuction system.
Define the “front-stage” and “back-stage” activities.

Back
stage:
light, Contact
decoration, personel
air Customer
e
conditions, B IIt’s m er
om
scissors..... Cust
A