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Chapter Customer behaviour, culture & service encounters II Case: Dr Beckett’s dental office Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II SERVQUAL’s scales (Parasuraman, Zeithaml & Berry, 1988) Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Objectives • Explain the three-stage model of service consumption • Explain the effect of culture upon consumer behaviour in service settings • Explain the relevance of perceived risk and information search at the pre-purchase stage of the buying process • Explain why it is necessary to understand and accommodate customers’ intrinsic needs and values • Describe why mood states, role and script theory and control theory are central to understanding customer behaviour in service settings Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Understanding customer behaviour • Consumer behaviour is strongly influenced by culture • Asian/Eastern (collectivist) cultures are distinctly different from Western (individualistic) cultures Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Figure 2.1 A typical model of a customer’s decision process Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Impact of culture • Culture is the sum of learned beliefs, values & customs that create behavioural norms for a given society • Hofstede (1984) identified underlying dimensions of cultural values: Collectivism/individualism Uncertainty avoidance Power distance Masculinity/femininity Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Figure 2.2a Diffusion of innovation in a Western context SchÜtte & Clarlante (1998) Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Figure 2.2b Diffusion of innovation in an Asian context SchÜtte & Clarlante (1998) Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II The three-stage model of service consumption • Pre-purchase decision making • Purchase and consumption - the service encounter • Post-encounter stage Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Need arousal • People’s unconscious minds (e.g., personal identity and aspirations) • Physical conditions (e.g your hunger need drove you to Starbucks for breakfast) • External sources (e.g a service firm’s marketing activities - e.g., advertising) Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Evaluating alternatives • Search attributes • Experience attributes • Credence attributes Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Table 2.3 Perceived risks in purchasing and using services Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Several factors may enhance risk and uncertainty (1) • When the service is highly intangible (a ‘pure service’) • When the service is relatively new • When the service is complex (e.g., medical, legal, higher education and financial services) Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Several factors may enhance risk and uncertainty (2) • When the customer is relatively inexperienced, and thus lacks knowledge and confidence to evaluate different suppliers (e.g., pest control) • When service brands are customised rather than standardised • When the purchase is important to the customer Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Strategies for risk reduction (1) • Seek more information, especially from respected personal sources (e.g., friends & respected peers) • Rely on the reputation of the firm • Look for guarantees and warranties • Ask knowledgeable employees about competing services Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Strategies for risk reduction (2) • Look for opportunities to try the service prior to purchase (e.g., first visit free at the fitness centre) • Use the World Wide Web to search for information • Remain loyal to their current service because they know what to expect • Look for tangible cues or other physical evidence as a means of assessing the quality of the service and reducing perceived risk Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Information sources used to select business services • Whether the client had used the supplier before • Degree of experience possessed by the client in buying this type of service Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Stage 2: Purchase and consumption— the service encounter Service encounters: three levels of customer contact Mood states Role and script theory Control theory Employees also need control Understanding customers’ psychological needs & values Critical incidents in service encounters Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Service encounters: three levels of customer contact • High-contact services • Medium-contact services ã Low-contact services Copyright â 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Control theory • Behavioural control • Cognitive control Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Understanding customers’ psychological needs and values • Security • Respect • Esteem • Fairness Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Table 2.4 Categorising critical incidents leading to significant customer satisfaction or dissatisfaction with an employee of an airline, hotel or restaurant Copyright © 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition II Stage 3: Post-encounter stage • Customer satisfaction with service experiences ã Service expectations Copyright â 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442517011/Lovelock/Services Marketing/5th edition ... Masculinity/femininity Copyright © 20 11 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –97814 425 17011/Lovelock/Services Marketing/5th edition II Figure 2. 2a Diffusion of innovation... Clarlante (1998) Copyright © 20 11 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –97814 425 17011/Lovelock/Services Marketing/5th edition II Figure 2. 2b Diffusion of innovation... Copyright © 20 11 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –97814 425 17011/Lovelock/Services Marketing/5th edition II The three-stage model of service consumption • Pre-purchase
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