FOCUS ON THE

CUSTOMER
 Check your understanding
H &R Block prepares income tax forms for its
customers. Because many people avoid doing their
taxes until the last minute, H&R Block offices are
busiest during the six-week period prior to April 15th.
The company instituted a sales promotion which
awarded customers who had their taxes prepared
early the opportunity to win double the amount of
their tax refund. This strategy is to deal with the _____
nature of services.
standardized
perishable
tangible
heterogeneous
homogeneous

 In order to increase usage of the family-
oriented resort, its owner sent letters to
several college fraternities inviting them to
spend their winter vacation at the resort. By
inviting college students, the resort more
than likely widened provider:
A.Gap 1
B.Gap 2
C.Gap 3
D.Gap 4
E.Gap 5
 What kind of service is
Netflix
People processing
Possession processing
Information processing
Mental stimulus processing
The Customer Gap

Expected
service

Customer Gap

Perceived
service
Customer Decision Making:
The Three-Stage Model of
Service Consumption

Pre-purchase Stage -------triggered by

need

Service Encounter Stage

Post-encounter Stage
 Information Search

Is the evoked set is narrow or broad in

case of service?
 Continuum of Evaluation for
Different Types of Products

Most Most
Goods Services

Easy to evaluate Difficult to evaluate

Clothing

Jewelry

Furniture

Houses

Automobiles

Restaurant meals

Vacations

Haircuts

Child care

Television repair

Legal services

Root canals

Auto repair

Medical diagnosis
High in searchHigh in experience
High in credence
qualities qualities qualities
 Consumer Evaluation
Processes for Services
Search Qualities
attributes a consumer can determine prior to
purchase of a product

Experience Qualities
attributes a consumer can determine after
purchase (or during consumption) of a product

Credence Qualities
characteristics that may be impossible to
evaluate even after purchase and consumption
 Perceived Risks of Purchasing
Services
 How does consumer handle
risk?
Seek information from respected personal sources

Compare service offerings and search for independent reviews

and ratings via the Internet.

Relying on a firm with good reputation.

Looking for guarantees and warranties.

Visiting service facilities or going for trials before purchase and

examining tangible cues or other physical evidence.

Asking knowledgeable employees about competing services

Stages in Consumer Decision Making and
Evaluation of Services
 Issues to Consider in Examining the
Consumers Service Experience

Services as processes

Service provision as drama

Service roles and scripts

The compatibility of service customers

Customer coproduction

Emotion and mood

 Post Experience Evaluation
WOM
Brand Loyalty
Attribution of dissatisfaction.