Case-Want to Perfect Your

Company’s Service?
Use Behavioural Science
Consumer Behaviour(Sec A)
Date:- 03rd Sept 2021 Group 1
Abhishek Gautam MBA19166
Abhishek Patra MBA20148
Aditya Chauhan MBA20217
Ankur Prasun MBA20220
Deepesh MBA20334
Prajjwal Kamboj MBA20118
 Behavioural Science offers new
insights into better service
What are management

underlying
psychology Customer’s experience of
passing the time

of service
encounters? Customer’s interpretation of
event after it gets finished
Applied Behavioural Science-Perception is
Reality
• Sequence Effects-Every single moment is not remembered(unless the experience was short and traumatic). Few significant moments
are remembered and assessment of overall experience is done on the following basis:
1.The trend in sequence of pain or pleasure
2.The high or low points
3.The ending
• Duration Effects- People way to process the passage of time provides following insights:
1.People who are completely engaged in a task don’t worry/notice about the duration.
2.People also overestimate the time elapsed when prompted to pay attention to the passage of time.
3.Increasing the number of segments in an encounter lengthens its perceived duration.
Question: When does duration matter?
After research, it is found that much longer or much shorter activity than expected force people to think about duration.
1.Pleasurable content of the experience and how it is arranged
2.Service encounters are rarely identical in length, so people have only general reference points for evaluating duration
Applied Behavioural Science-Perception is
Reality

• Rationalization Effects-People desperately wants things to make sense so they depends on

“counterfactual thinking” or second guessing. In their mental simulation they try to capture
the specific what-ifs. Three main characteristics stand out in this simulation:
1. Cause is seen as a discrete thing t=rather then continuous intertwined process
2.Deviations from rituals and norms caused the unexpected outcome
3.People tend to ascribe credit or blame to individuals, not systems. The more empowered and engaged
people feel about the process, they tend to handle the situation in a more controlled way
In conclusion, people want explanations to justify. The explanation focuses on something they can observe and
concrete enough to be changed in their if-only fantasies.
Operating principles
Principle 1: Finish strong
• The end is far more important because it's what remains in the customer's recollections. Sure, it's important to
achieve a base level of satisfactory performance at the beginning, but a company is better off with a relatively
weak start and a modest upswing
• People's innate preference for improvement is another factor in this principle. The desire for improvement
applies not only to lengthy encounters but also to short, technology-mediated encounters, such as on a Web
site

Principle 2: Get the Bad Experiences Out of the Way Early

• Behavioral science tells us that, in a sequence of events involving good and bad outcomes, people prefer
to have undesirable events come first-so they can avoid dread and to have desirable events come at the
end of a sequence so they can savor them
• There is need to get bad news, pain, discomfort, long waits in line, and other unpleasant things out of the
way as soon as possible so they don't dominate the customer's recollection of the entire experience.

Principle 3: Segment the Pleasure, Combine the Pain

• Experiences seem longer when they The are broken into segments. In addition, people have an asymmetric reaction to
losses and gains
• For example, people winning $10 in one gamble with winning $5 twice. Winning twice is preferrable. What about losing
$10 in one of game as compared with losing $5 in each of two gambles? Here, most people prefer only one loss. That's
why companies should break pleasant experiences into multiple stages and combine unpleasant ones into a single stage
Operating principles
Principle 4: Build Commitment Through Choice
• The Providing choice to customers are extremely important, high-stake decisions and great value is gained by including
the customers in the decision process. Customers enjoy having some control in the process
• Blood donors perceives significantly less discomfort when they are allowed to select the arm from which the blood
would be drawn. The lesson is clear: people are happier and more comfortable when they believe they have some
control over a process, particularly an uncomfortable one. Often the control handed over is largely symbolic (as in the
choice of arm).

Principle 5: Give People Rituals, and Stick to Them

• People find comfort, order, and meaning in repetitive, familiar activities. Rituals are particularly important in longer-term,
professional-service encounters: they're used to mark key moments in the relationship, establish professional credentials,
create a feeling of inclusion, flatter customers, set expectations, and get feedback
• Common rituals include glowing introductions of staff at the start of an engagement, kickoff dinners, elegant PowerPoint
presentations, final celebrations and formal presentations to the CEO (even though he or she may not have an interest in
the project)
• Rituals are so small in scale and hard to notice. Nonetheless, they play an important part in customers' perceptions of the
experience
• Behavioral researchers have observed that these rituals provide an implicit standard for evaluating service encounters.
Deviation from them is often cited as the cause of a failure-particularly in professional services, where customers have
difficulty evaluating precise causes and your effects.
Thank you