Professional Documents
Culture Documents
Chapter 02
Chapter 02
Chapter 02
1
• Consumer behaviour is defined as the actions or
beliefs that guide a person to purchase and consume
a product or service.
• Consumer behaviour deals with:
-Factors that influence him/her
-Process he has to go through to evaluate product or
service prior to & even after its purchase & use.
• Main challenge for the service provider is to
tangibilise the intangible services.
2
Differences Between Characteristics of
Goods and Services
Search Qualities:color, style, price, fit…
(Qualities estimated before the purchase)
Experiences Qualities: taste & wearability
(Qualities that can be assessed after the
use of products)
Credence qualities:
(Difficult to assess even after purchase
and consumption)
3
Consumer Decision Making Process
Marketer
Internal sources
Activities Purchase decision
Consumer Experience
Post-purchase 4
evaluation
Understanding Customer Requirements
Service provider needs to change according to the
change of customer’s needs and preferences.
5
Customer Expectations
Customer wants the fulfillment of words which were told by
the service provider.
Customers do not expect that all their needs will be fulfilled
but atleast those promised by the company.
Assurance : Knowledge & courteous-instill trust & confidence
Empathy : Concern & individual attention
Reliability : Accurate performance of duties
Responsiveness : Willingness to provide assistance & prompt service
Tangible :
6
Service Level Expectations
Adequate Desired
Zone of tolerance
Low High
Expectations
7
Factors that Influence Customer
Expectations of Service
Factors that influence customer
expectations of desired service
Personal needs
Derived service expectations
Personal service philosophy
8
Factors that Influence Customer
Expectations of Adequate Service
9
Factors that influence both Desired &
Predicted Expectations (Contd.)
Word-of-mouth publicity
Past experience
10
Factors that Influence Both Desired
& Predicted Expectations
• Criteria to evaluate a service based on
customer’s service expectations
Speed
Certainty
Ease
Personal recognition
11
Managing Customer Service Expectations
Managing promises
Effective communication
12
Exceeding Customer Service Expectations
13
Customer Perceptions
Perception is the process of making meaningful
picture by selectively organizing a set of stimuli.
16
Service Encounters
17
Sources of pleasure & displeasure in
service Encounters
18
Customer Satisfaction
• Satisfaction is the consumer’s fulfillment
response.
19
Determinants of Customer Satisfaction
• Product & service features(Focus Groups)
• Consumer Emotions.
• Attributions for service success or failure.
-Perceived causes of events
-Customer take atleast partial responsibility.
• Perceptions of Equity or Fairness
• Other Consumers, Family members, & Co-workers
20
Service Quality
• Outcome, Interaction, & Physical Environment
quality.
• Service Quality Dimensions
Assurance : Knowledge & courteous-instill trust & confidence
Empathy : Concern & individual attention
Reliability : Accurate performance of duties(Delivery of promises)
Responsiveness : Willingness to provide assistance & prompt service
Tangibles: Representing the service physically
::
21
Strategies for Influencing Customer Perceptions
22
Ad Agencies & their clients
• Ogilvy & mathar Ltd: Pantaloons, TVS, HUL, Hero Honda etc
• MCS Communication Ltd: BAJAJ bikes, HDFC bank..
• Mc Cann Erickson India Ltd: CoCo cola, Nestle & Khaitan.
• Mudra Communications: MTNL, LIC, Dabur….
• Chaithra leo burnette ltd: ICICI, Toyota…
• Hindustan Thompson Associates: Apollo hospital, Pepsi foods,
ESPN, Madura Garments..
• Saatchi & Saatchi Pvt Ltd: Maruthi udyog, BPC, VISA, P&G..
• Triton Communication: Samsung, LG…
• Lintas India Ltd: ITC, J&J, United india assurance, BHEL,
ELF gas..
• Marketing Consultants & Agencies Ltd: KSDL, KSIC, 23
KSHDC…