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Chapter 2

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Department
Business
Course
BU412
Professor
Lisa Giguere
Semester
Fall

Description
BU412Chapter 2Consumer Behaviour in a Services ContextWeek 2The ThreeStage Model of Service ConsumptionIn marketing it is very important to understand why customers behave the way they do Service consumption can be divided into three main stages prepurchase service encounter and postpurchase Each stage consists of several steps The nature of these steps vary depending on whether the service is highcontact or lowcontact PrePurchase StageBegins with need awareness and continues through information search and evaluation of alternatives to deciding whether or not to buy a particular serviceNeed AwarenessWhen a person decides to buy or use a service it is triggered by an underlying need or need arousal The awareness of a need will lead to an information search and an evaluation of alternatives before a decision is reachedNeeds may be triggered by the following unconscious minds physical conditions external sources When a need is recognized people are likely to be motivated to take action to resolve it Information SearchOnce a need or a problem has been recognized customers are motivated to search for solutions to satisfy that need Several alternatives may come to mind and these form an evoked set this can be derived from past experiences or external sources such as advertising The consumer is likely to narrow it down to a few alternatives to seriously consider which form the consideration set Evaluation of Alternative ServicesWe use multiattribute models to stimulate consumer decision making MultiAttribute ModelThis model holds that consumers use product attributes that are important to them to evaluate and compare alternative offerings of firms in their consideration set Each attribute has an importance weight A higher weight means the attribute is more important Using the linear compensatory rule you mentally calculate each stores weight and total it and choose the store with the highest score Using the conjunctive rule the consumer will make the decision based on the total overall score in conjunction with minimum performance levels on one or several attributes Firms need to ensure that their service is in the consideration set Firms can change and correct consumer perceptions Firms can also shift importance weights Firms can introduce new attributes Service AttributesSearch attributes are tangible characteristic customers can evaluate before purchase Ex For a restaurant the location or type of food Experience attributes are those that cannot be evaluated before purchaseEx Vacations Credence attributes are characteristics that customers find hard to evaluate even after consumptionEx the quality of repair done on a car All products can be placed on a continuum ranging from easy to evaluate to difficult to
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