Unit II MOS-Final

Noida Institute of Engineering and Technology, Greater Noida
Understanding Consumer Behavior and Service Design
Unit: II
AMBAMK0413
Dr. Ajay Gangele
MARKETING OF SERVICES
School of Management
MBA
IV SEM
Ajay Gangele AMBAMK0413 Unit-2

1
06/27/2024
Index/Content
S. No. Index
1.
Name of Subject with code, Course and Subject Teacher
2.
Brief Introduction of Faculty member with Photograph
3. Evaluation Scheme
4. Syllabus
5. Branch wise Application
6. Course Objective(s)
7. Course Outcome(s)
8. Program Outcomes (PSOs)
9. Cos and POs Mapping
06/27/2024 Ajay Gangele AMBAMK0413 Unit-2 2

Index/Content
S. No. Index
10. Program Specific Outcomes (PSOs)
11. Cos and PSOs Mapping
12. Program Educational Objectives (PEOs)
13. Result Analysis
14. End Semester Question paper Templates
15. Prequisite/Recap
16. Brief Indtroduction about the Subject with Videos
17. Unit Contents
18. Unit Objectives
19. Topic Objectives/Topic Outcome

Index/Content
S. No. Index
20. Lecture related to topic
21. Daily Quiz
22. Weekly Assignment
23. Topic Links
24. MCQs
25. Glossary Questions
26. Old question papers
27. Expected Questions
28. Recap of unit

Faculty Profile
Faculty Name: Dr. Ajay Gangele

Designation: Assistant Professor
Department: MBA
Email ID: ajay.gangele@niet.co.in
Qualification: B.Sc. MBA,UGC NET, PhD
Specialisation: Marketing and HR
Research Area: Consumer Behavior
Teaching Area: Marketing and HR
Total Experience: 17 Years

Evaluation
EvaluationScheme
Scheme
06/27/2024 Ajay Gangele AMBAMK0413 UNIT-1 6

Syllabus

Syllabus

Branch wise Applications
1. Learning how to capture someone’s attention, nudge them towards

certain behaviours.
2. Services marketing is most commonly used by companies that sell to

individuals.
3. They research consumer behavior to create advertisements that appeal to
certain demographics, allowing companies to narrow the marketing focus

to a concentrated effort.
4. Use of customer data for achieving customer delight

Course Objective
• To develop an understanding of the basic concepts and issues in

service marketing.
• To build a working service marketing vocabulary so as to
understand and discuss marketing concepts in business settings.
• To learn about key characteristics of service and service
processes, customer service experiences, the role of internal
stakeholders in service delivery, and organizational challenges of
managing service.
• To strengthen the ability to justify and support decisions through
information acquisition and management.
• To provide an understanding of how service customers
determine value in a service exchange and how this translates
into a satisfied customer base.

06/27/2024 10
Course Outcome

CO-PO and PSO Mapping
Mapping of Course Outcomes and Program Outcomes
Sr. Course PO1 PO2 PO3 PO4 PO PO

No Outcome 5 6
1 CO 1 M H
2 H M M
CO 2
3 H H H
CO 3
4 H M H
CO 4
5 H H H
CO 5
Mapping of Program Specific Outcomes and Course

Outcomes
Course Outcomes
Program Specific Outcomes
1 2 3 4 5
1 M H H H H
2 M M H H H
3 - - - - -
*H= High*M= Medium

Program Educational Outcomes
PEO1: Conceptual Knowledge to adapt in rapidly changing environment

and learn new skills and demonstrate application of management
principles in professional work setting.
PEO2: Apply appropriate tools for decision making for solving complex
managerial problems in local or global context
PEO3: Exhibit Integrity, social responsibility and teamwork
PEO4: Exhibit ethics, communication skills, leadership qualities and

entrepreneurial mindset

Result Analysis (Department Result, Subject Result and
Individual Faculty Result)
100%

End Semester Question Paper Template
Will be display soon …….



Prerequisite and Recap
Pre requisite of the Unit

• Knowledge of marketing and selling concepts.
Recap:
• Promotion mix

Introduction to the subject
The subject of marketing of services gives students a thorough understanding of

the concepts and procedures that go into managing and marketing of services ,
and its promotion in related industries. It includes intellectual as well as practical
aspects of best practices in the service sector. It covers the Basics of service
marketing, pricing of services and current trends in services marketing, which
will help in enhancing the knowledge and skills of all the students who want to
be an entrepreneur or build a career in retail, sales, creative, and professional
talents.
https://www.youtube.com/watch?v=12h5NXPjsC8&t=58s

Content
• Understanding Consumer Behavior: Services vis-à-vis goods

• Consumer Behavior in Services
• Customer Expectations and Perceptions of Services – Evaluation of services
• Service Development Design & Standards: New Service Development
Process – Basic service to potential service
• Customer Defined Service Standards
• Demand and Capacity Management

Objective of the Unit
– To learn about consumer behavior and service design

– To build a working service marketing vocabulary so as to understand
and discuss marketing concepts in business settings.
– To learn about key characteristics of service and service processes,
customer service experiences, the role of internal stakeholders in
service delivery, and organizational challenges of managing service.

Topic Objective /Topic Outcome
Unit 2 : Consumer Behavior & Service Design
Topic 1:
 To know about consumer behavior
 To understand consumer decision
making process

• Introduction: Definition, Characteristics and Classification of

Services
• Difference between Product and Services Marketing
• Paradigms in Services Marketing
• Services Marketing Mix: Understanding the 7 P’s
• Strategies for Services Marketing: Segmentation, Targeting &
Positioning, Differentiation.

• To understand consumer behavior and factors affecting it

• To know decision making process
• To understand consumer behavior process of services
• To learn Continuum of Evaluation for Different Types of Products

Consumer Behavior (CO2)
• Consumer behavior Consumer behavior can be defined as “the decision

process and physical activity engaged in evaluating, acquiring, using or
disposing of goods and services.”

06/27/2024 25
Understanding Consumer Behavior(CO2)
 The study of Consumer Behavior helps in understanding how

individuals make decisions to spend their available resources like time,
money, and effort while purchasing goods and services. It is a subject
that explains the basic questions that a normal consumer faces − what
to buy, why to buy, when to buy, where to buy from, how often to buy,
and how they use it.
 Marketing strategies and tactics are normally based on explicit and
implicit beliefs about consumer behavior. Decisions based on explicit
assumptions and sound theory and research are more likely to be
successful than the decisions based solely on implicit intuition.

06/27/2024 26
Consumer Decision making Process (CO2)

Consumer behavior in Services (CO2)

Search, Experience, Credence (SEC) classification of
goods and services(CO2)
Search Qualities
Attributes a consumer can determine prior to purchase of a product. Eg
color, price, fit, feel Eg jewelry, cars clothing
Experience Qualities
Attributes a consumer can determine after purchase (or during
consumption) of a product eg taste wear ability Eg vacations and
restaurant meals
Credence Qualities
Characteristics that may be impossible to evaluate even after purchase
and consumption Eg surgeries, legal advice

Continuum of Evaluation for Different Types of
Products (CO2)
Most Most
Goods Services
Easy to evaluate Difficult to evaluate
High in search High in experience High in credence

qualities qualities qualities
Daily Quiz
1. List products of search qualities.

2. What are credence qualities?
3. Explain Experience qualities?
4. List down 7 O’s framework of consumer
behavior?
5. Explain Consumer Buying behavior process.

Topic 2:
• Perceived Risk in Services
• Understanding Customers service
expectations
• Zone of tolerance

• Meaning of consumer behavior

• Factors affecting consumer behavior
• Search, Experience, Credence (SEC) classification of goods and
services

Topic Objectives
 To know Perceived risk of customers

 To understand customer service expectations
 To learn levels of customer expectation.

Perceived Risk in Services (CO2)
• Functional - Perceived risks can include the fear and or doubt a consumer
has that the product they are buying will fail to perform its intended
function. The consumer might be afraid that if they buy a car, the engine or
other parts may malfunction.
• Social - If a person is of a high or wealthy social class, they want to buy

products that their friends would also buy. For example, they may decide
not to buy a cheap car for fear that their friends would disapprove or that
it might impact their social status among their peers.
• Financial -For example, buying a car could leave them with little to no
money or with loans that will affect their income for the next few months
or even years.

Perceived Risk in Services (CO2)
• Physical - An item that could cause bodily harm to a person or their family
causes perceived risk. Buying a gun, for instance. The gun could
accidentally malfunction and cause an accident. A book, on the other
hand, can rarely cause any physical harm.
• Time - If a product breaks or fails a few days after purchase and needs
replacement, this is a time risk. You’ll need to go back to the store and
wait in line to have it replaced or repaired, thus wasting time.

Ways to handle perceived risk (CO2)
• Security/Warranty: The period of the warranty will determine how
uncertain the buyer will be. A warranty makes them more trusting because
they know if the product breaks down, they can get a replacement. The
warrant should cover a long duration to boost the buyer’s confidence in the
product.
• Hidden Extra Costs: If there are hidden costs to the selling price, there is
cause for alarm. These costs could be just a scam to rip a couple more
dollars off the buyer.
• Reputation/Brand Name: When purchasing a product like a car, one wants
to get the best available product. He or she can ask around or conduct
research on the particular car he or she wants before deciding on which
manufacturer to go for. This way he or she can identify and cut risk.

Understanding Customers service expectations (CO2)
Basic Customer Service Expectations

• To feel heard, appreciated, and valued.
• For the process to feel easy and without friction.
• To see action being taken regarding the request or issue.
• For an action to be relatively quick.
• For all communication to happen on a channel that is convenient for
them.

Possible Levels of Customer Expectations (CO2)

Components of service expectations (CO2)

Desired and adequate service levels (CO2)

Factors influencing Customers expectation about service
(CO2)

Zone of tolerance (CO2)

Zone of tolerance (CO2)
• Size of ZOT will be large or small depending upon factors such as

competition, price, importance of specific service attributes which can
influence the level of adequate service Eg waiting time at checkout at
grocery store 9 eg 2-3 m vs 15 mins)
• Different customers possess diff zones of tolerance. Eg customers who
work/vs at home for repairing
• Also varies for service dimensions: less tolerant for unreliable service
than for service deficiencies

Sources of adequate service expectation (CO2)
Temporary service Perceived service Self perceived service

intensifiers alternatives role
• short term • Are other • Customer
individual factors providers from perceptions of the
that make customer whom the degree to which
more aware for customer can obtain customers exert an
service need. service. Eg influence on the level of
• Eg personal emergency salons, airlinbe service they receive
situations- accidents customer from a • Eg meal ordering
• Problems with smaller town in an restaurant
initial service also • Marketers should
leads to heightened fully understand the
expectations eg auto complete set of options
repair that customers view as
perceived alternatives.
Eg small town
customers view rail as
an another option
Sources of adequate service
Sources of adequate service expectation(CO2)
expectation
Situational factors Predicted service

• Service performance • Level of service that
conditions that customers view customers believe they are
as beyond the control of likely to get
service provider. • Its an estimate or
• Eg natural disasters calculation of service that a
Hurricane Sandy customer will receive in an
individual transaction rather
than in an overall relationship
with a service provider

Factor influences desired and predicted service expectations
(CO2)
Explicit service promise Implicit service promise Word of mouth communication

• Are personal/non personal • are service related cues • personal/non
statements about service other than explicit promises personal statements
made by the organization to that lead to inferences about made by customers
the customers what the service should and other than the
• Personal- salespeople, will be like organization
service personnel, non • • Carry more weight –
Quality cues are
personal: webpage, advt, dominated by price and unbiased
brochures etc other tangible components. • imp for services which are
• Completely within the • Higher the price, more difficult to
control of the service impressive the tangibles, more purchase/evaluate
provider the customer will expect from
• Sometimes companies the service
deliberately overpromise by
stating best estimates about
service delivery in the future
• Direct effect on service
expectation. Eg total solution,
24 hrs service

Daily Quiz
1. Explain Zone of tolerance.

2. Differentiate guarantee and warrantee
3. Explain perceived risk
4. Differentiate explicit and implicit service
promises
5. What are temporary service intensifiers?

Topic 3:
• Customer Decision Making
• Service Marketing system for High and
low contact services

 Perceived risk of customers

 Understand customer service expectations
 To learn levels of customer expectation.

Topic Objectives
 To understand three stage model of consumer decision making

process
 To learn about Levels of customer contact in service organization

Customer Decision Making (CO2)

The Pre Purchase stage (CO2)
• Pre Purchase stage

• Need Awareness
– Uncurious minds (e.g personal identity and aspiration)
– Physical conditions (e.g. if u r hunger drove o to Burger stall)
– External Sources (e.g. a service firm‟s marketing activities)
• Information Search
• Evaluation of alternatives
– Service attributes
– Perceived Risk
– Service expectations

The service encounter stage (CO2)
Service encounters are “ Moments of Truth”

• Service encounters range from High contact to Low contact
• The Servuction system
• Theater as Metaphor for services Delivery: An integrated perspective

Post Purchase stage(CO2)

•Service Encounters as “Moments of Truth”(CO2)
A moment of truth is usually defined as an instance wherein the

customer and the organization come into contact with one
another in a manner that gives the customer an opportunity to
either form or change an impression about the firm.

Service Encounters- high contact services (CO2)
• Using this service entails interactions through service delivery

between customers and the organization.
• The customers exposure to service provider takes a physical and
tangible nature.
• When customers visit the facility where service is being delivered , they
enter a “service” factory. Eg hotel- is a lodging factory, hospital is a health
treatment factory.
• These industries focus on processing people – challenge is to make
experience appealing one for customers in terms of service environment
and their interaction with service personnel
• During course of service delivery customers are exposed to many
physical clues abt the org- interior/exterior of building, equipment and
furnishings, appearance and behavior of service personnel and even
other customers

Low contact services (CO2)
• Involve little physical contact between customers and providers.

• Instead the contact takes place through physical distribution
channels/electronically
• Many high contact services are being converted to low contact services
as customers undertake more self service- conduct their
insurance/banking transactions by mail, telephone,internet and do
purchasing online

Levels of customer contact in service organizations (CO2)

Service Delivery (CO2)
• Where final assembly of elements takes place and product is delivered to

customers often in presence of other customers
• Includes the visible elements of the service (personnel, buildings,
equipment) but also exposure to other customers
• Customers of low contact services – normally never see the factory- will
talk to rep. Make judgments on ease of tel access, followed by voice and
responsiveness of tel based customer service rep
• If service is delivered electronically such as self service machines,
IVR, web etc- firms compensate by adding color, music, drama

Service Marketing system for High and low contact
services(CO2)
• The visible part of service operations ,service delivery and other

contact points – Service marketing system
• Represents all diff ways customer may learn and encounter
about the organization in questions
• Service is experiential, each of these many elements offers clues
about the nature and quality of service product
• Inconsistency amongst the various elements – weakens the credibility in
the customers eyes

Service Marketing system for High contact services (CO2)

Service Marketing system for LOW contact services(CO2)
OTHER CONTACT POINTS

SERVICE SERVICE DELIVERY SYSTEM
OPERATIONS
SYSTEM
MAIL ADVT
TECHNICAL SELF SERVICE THE MKT RESEARCH SURVEYS
CORE EQUIPMENT CUSTO BILLING/STATEMENTS
PHONE,FAX,W MER RANDOME EXPOSURE TO
EBSITE FACILITIES/VEHICLES
WORD OF MOUTH
BACK STAGE
INVISIBLE
FRONT STAGE
VISIBLE
Daily Quiz
1. Explain Service Marketing system for LOW contact services

2. What is technical core?
3. Give examples of low contact services?
4. What are moment of truths?
5. List any example of company providing service differentiation?

Topic 4:
• Role and script theory

 Three stage model of consumer decision making process

 High level service contact
 Low level service contact

Topic Objectives
 To understand role theory

 To learn how to make script of a service
 To know the concept of demand and capacity management

Role and script theories (CO2)

Scripts (CO2)
• Specifies the sequences of behaviour that employees and customers are

expected to learn and follow during service delivery.
• Employees receive formal training.

• Customers learn scripts through experience, education and communication.
• More experience- more familiarity with the script.
• Unwillingness to learn a new script may be a barrier to switch to
competition.
• Any deviation- employee and customer dissatisfaction.
• If co decides to change service script (technology), customers and

employees should be educated about the new approach and benefits it
provides.

Roles (CO2)
• A set of behavior patterns learned through experience and

communication, to be performed by an individual in a certain social
interaction in order to attain maximum effectiveness in goal
accomplishment
• As combination of social cues or expectations that guide behavior in
specific setting or context
• In service encounters both employees and customers have roles to play
• The satisfaction or productivity depends on extent to which each person
acts out his/her prescribed role during a service encounter
• Employees must perform their roles with customer expectations or else
dissatisfy/lose customers
• Customers must also play by rules or risk problems to
firm/employees and other customers

Script for a dental exam (CO2)
Patient Receptionist Dentist
• 1. Phone for • 2. Confirms needs and sets • 5. Review note on patient

appointment date • 7. Greet patient, direct to
• 3. Arrive at dental office • 4. Greet patient, verify treatment room
• 6. Sit in waiting room purpose, direct to waiting • 9. Get history and issues
• 8. Enter room, sit in chair room, notify dentist of • 11. Place covers
arrival • 12. Lower chair, put
• 10. Respond to questions
• 23. Greet patient, confirm
• 15. Rinse mouth protective gear
treatment • 13. Inspect teeth,
• 20. Rise from chair received, present bill
• 22. Leave room ask
• 25. Give receipt
• 24. Pay bill question
• 26.Thank patient and say • 14. Complete cleaning
• 27 . Leave dental office goodbye process
• 16. Dispose protective
gear
• 17. Complete notes write
Rx and return file to
receptionist
• 18. Remove cover
• 19. offer advice on dental
care
• 21. Thanks and goodbye

Customer participation in service delivery (CO2)
• More work customer does as a co producer in service delivery-

greater info he requires to perform the task correctly
• Advertisement for new services, brochures,websites all provide
info. Eg phone besides an ATM
• Customers look towards employees and other asisstants for help and
are frustrated if they cant find it
• Some service providers give a realistic service preview- video
experience

The post encounter stage (CO2)
• Customers have certain service standards in mind before consumption

(their expectations), observe service performance, compare it to
standards, and then form satisfaction judgments based on this
comparison
• Negative disconfirmation- if service is worse than expected,
positive disconfirmation- if it is better than expected and simple
confirmation if it is as expected
• If substantial positive disconfirmation, plus an element of pleasure
and surprise- customer is likely to be delighted

Feedback during service delivery (CO2)
• Service personnel can be trained to be more observant so that they can

identify customers who appear having difficulties ,look frustrated or ill at
ease if they need assistance .
• If experience shows that customers are perpetually discomforted by
a particular aspect of service encounter- indicates a need for redesign
and improvement

Demand & Capacity management (CO2)
 Since the services can’t be stored as an inventory for future use, and since
services are perishable, hence the demand becomes critical.
 Once the demand is not catered, it’s lost for ever.
 The best a marketer can do is to minimize to some extent by careful planning
and adopting some strategies.
 The following are the factors which affect demand fluctuation
Expansion or Boom
Contraction and Recession
Technological Developments
Demographics
Natural and Other Disasters

DEMAND / CAPACITY VARIATIONS (CO2)
At any given moment, a fixed-capacity service may face one of four

conditions : 1. Excess demand—the level of demand exceeds maximum
available capacity, with the result that some customers are denied
service and business is lost.
2. Demand exceeds optimum capacity—no one is actually turned away,
but conditions are crowded and all customers are likely to perceive a
decline in service quality.
3. Demand and supply are well balanced at the level of optimum
capacity—staff and facilities are busy without being overtaxed, and
customers receive good service without delays.
4. Excess capacity—demand is below optimum capacity and productive
resources are underutilized, resulting in low productivity. In some
instances, this poses a risk that customers may find the experience
disappointing or have doubts about the viability of the service.

Demand & Capacity management (CO2)

Random Demand Variations(CO2)
 Some other service demands are not easily predictable, or they occur
randomly, even if the cause can be ascertained.
 Say health care or insurance when a flood or earthquake occurs.
Demand Patterns by Market Segments
 Another more specialized database keeping is done for different
demand pattern of customers of different segments. E.g., for a group
of family the bonus time is holiday time, whereas for another group
this is insurance premium pay time.

STRATEGIES TO MATCH DEMAND AND CAPACITY (CO2)
• The most important job of the service marketer is balancing / matching

the demand and capacity. In a particular demand cycle there should be
minimum occasions for demand being more, or the idle capacity, with
the least extra cost. This can be done as already given and by shifting
demand :Demand Shift :
• There are some services where the demand can be shifted, that means
the timings can be changed without much discomfort, like use of
telephone or internet etc. The prices are more during the peak period
and less in slack period. But there is a limitation, it is not practical in a
restaurant, if there is no additional capacity, then the firm looses
customer who go to another.
Demand Shift :

Demand Shift (CO2)
There are some other methods :
(1) - Communicating with the customers : By the effective communication, the

service marketer can explain the practical situation to the potential customers,
so that they can shift their requirement timings. Again this is applicable to a
small portion of cases, where choices are available. Some customers are by
nature rush avoiders, so to some extent the nature takes care of the shifting.

Demand Shift (CO2)
(2)- Varying the original services offer : Bigger service providers offering
smaller services during low demand period. Like marriage caterers offering
smaller parties of birthday, business gatherings etc.
(3) - Altering the service delivery timings : Earlier banks used to work from 10
am to 2 pm. Now the scheduled banks have working hours 10 to 3.30, and
the new generation private banks have 9.30 to 4.30 timings, and some even
are open on Sundays. This is apart from the 24-hr ATMs.
(4) - Price differentiation : This concept works on the basis of the economy of
supply and demand. Having a differential pricing as mentioned earlier, say for
bars daytime is low priced. But here there is a limitation – it doesn’t apply to
many services or many customers. Also there is a danger of attracting another
segment or dissatisfying the target segment. The marketer has to be very
particular about the price sensitivity of the customers.

Align Capacity with Demand Fluctuations (CO2)
Another set of options involves tailoring the overall level of capacity to

match variations in demand.
• This strategy is known as ―Chase Demand Strategy‖.
Align Capacity with Demand Fluctuations :
1. Schedule downtime during periods of low demand. To ensure that
100 percent of capacity is available during peak periods, repairs
and renovations should be conducted when demand is expected
to be low. Employee holidays should also be taken during such
periods.
2. Use part-time employees. Many organizations hire extra workers
during their busiest periods. Examples include postal workers and
retail store clerks during the pre-Christmas season, extra staff in
tax preparation firms at the end of the financial year, and
additional hotel employees during holiday periods and major
conventions.

Align Capacity with Demand Fluctuations (CO2)
3. Rent or share extra facilities and equipment. To limit investment in fixed

assets, a service business may be able to rent extra space or machines at
peak times. Firms with complementary demand patterns may enter into
formal sharing agreements.
4. Cross-train employees. Even when the service delivery system appears to
be operating at full capacity, certain physical elements—and their
attendant employees - may be underutilized. If employees can be cross-
trained to perform a variety of tasks, they can be shifted to bottleneck
points as needed to help increase total system capacity.
5. Modify or move Facilities and Equipment. Sometimes it is possible to
adjust, move, or creatively modify existing capacity to meet demand
fluctuations. Like Hotel conference halls may be partitioned into two or
three halls when demand is more.

Strategies for Shifting Demand to Match Capacity (CO2)

Strategies for Flexing Capacities to Match Demand (CO2)

Daily Quiz
1. Describe strategies to manage demand and supply.

2. Describe demand shift.
3. Discuss post counter service stage.
4. Discuss the concept of Capacity management in Services.
5. Explain the concept of Role and Script in Service marketing.

Youtube & NPTEL Video Links and Online Courses Details
• https://www.youtube.com/watch?v=afMuu1ZpMKM
• https://www.youtube.com/watch?v=sbXVaMpaSi4
• https://www.youtube.com/watch?v=-glgJ9U_Fsk
• https://nptel.ac.in/courses/110/105/110105038/
• https://www.youtube.com/watch?v=T456sxZ0EIo
• https://www.youtube.com/watch?v=VxYrLYBt2yQ
• https://www.youtube.com/watch?v=3U5o2PT8qlU&t=36s
• https://nptel.ac.in/courses/110/105/110105038/
• https://www.youtube.com/watch?v=UaKtVtTahCQ
• https://www.youtube.com/watch?v=DV8NnBBmYso
• https://www.youtube.com/watch?v=68M7Dm25ZDA&list=RDCMUC
ch9-kudvO87zJhFewOUzdQ&index=5
• https://www.youtube.com/watch?v=tAjfH2qgAyg
Daily Quiz
1. Define Consumer behavior.

2. Discuss the concept of Capacity management in Services.
3. Discuss the Three stage model of service consumption
4. Differentiate between Low Contact and high Contact services.
5. Explain the concept of Role and Script in Service marketing.
6. Describe moments of truth.
7. Describe predicted service.
8. Define adequate service.
9. Describe explicit and implicit services.
10. Explain Script of a restaurant service.

MCQs
1. The attributes a consumer can determine after purchase (or during

consumption) of a product or Service is referred to as:
(a) Search qualities
(b) External qualities
(c) Experience qualities
(d) Credence qualities
2. Most of the goods are high in search attributes.
(a) True
(b) False
3. Minimum level of service which customers will accept without being
dissatisfied.
(a) Adequate Service
(b) Desired Service
(c) Expected Service
(d) “Wished for” Level

MCQs Contd.
4. Telemarketing services and Net banking are examples of Low Contact

Services.
(a) True
(b) False
5_______are highest in case of Professional Services.
(a) Search qualities
(b) External qualities
(c) Experience qualities
(d) Credence qualities
6. In case of ______, demand is below optimum capacity and productive resources
are underutilized,
(a) Excess demand
(b) Excess Capacity
(c) Optimum Demand
(d) Optimum Capacity

MCQs Contd.
7. ________ Specifies the sequences of behaviour that employees and

customers are expected to learn and follow during service delivery
(a) Role
(b) Program
(c) Service delivery
(d) Script Product
8. The extent to which customers are willing to accept the variation
between actual and delivered service is called as ____________.
(a) Adequate Service
(b) Optimum Service
(c) Zone of Tolerance
(d) None of these

Weekly Assignment
1. Discuss the Traditional Marketing Mix.

2. Explain Service Marketing Mix.
3. State the difference between Products and Services.
4. Explain strategies of demand and supply management.
5. Design script of a hospital.

Old Question Papers links
• www.aktuonline.com/papers/mba-4-sem-marketing-of-servic
es-rmb-mk04-2019.pdf
Note: This code is recently introduced so only one question paper is available.

Expected Questions for University Exam
• Explain Consumer Behavior of Services vis-à-vis goods .

• Discuss Customer Expectations and Perceptions of Services.
• Elaborate the steps in New Service Development Process.
• State the different Customer Defined Service Standards.
• Discuss Demand and Capacity Management.

References
1. Services Marketing Text and Cases, Vinnie Jauhari & Kirti Dutta, Oxford
Uniersity Press.
2. Services Marketing, Zeithaml Valerie and Mary Jo Bitner, Gremler &
Pandit, Tata McGraw Hill.
3. Services Marketing, Lovelock, Christopher. Prentice Hall.
4. Services Marketing, Nargundkar, Rajendra. Tata McGraw Hill
5. The Essence of Services Marketing, Adrian Payne. PHI.
Services Marketing, Ravi Shankar. Excel Publishing

Recap
• Understanding Consumer Behavior: Services vis-à-vis goods

• Consumer Behavior in Services
• Customer Expectations and Perceptions of Services – Evaluation of services
• Service Development Design & Standards: New Service Development
Process – Basic service to potential service
• Customer Defined Service Standards

Thank you

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Noida Institute of Engineering and Technology, Greater Noida

Understanding Consumer Behavior and Service Design

Ajay Gangele AMBAMK0413 Unit-2

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Faculty Name: Dr. Ajay Gangele

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1. Learning how to capture someone’s attention, nudge them towards

2. Services marketing is most commonly used by companies that sell to

3. They research consumer behavior to create advertisements that appeal to

certain demographics, allowing companies to narrow the marketing focus

4. Use of customer data for achieving customer delight

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• To develop an understanding of the basic concepts and issues in

Ajay Gangele AMBAMK0413 Unit-2

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Mapping of Course Outcomes and Program Outcomes

Sr. Course PO1 PO2 PO3 PO4 PO PO

Mapping of Program Specific Outcomes and Course

*H= High*M= Medium

PEO1: Conceptual Knowledge to adapt in rapidly changing environment

PEO3: Exhibit Integrity, social responsibility and teamwork

PEO4: Exhibit ethics, communication skills, leadership qualities and

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Will be display soon …….

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Pre requisite of the Unit

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The subject of marketing of services gives students a thorough understanding of

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• Understanding Consumer Behavior: Services vis-à-vis goods

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– To learn about consumer behavior and service design

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Unit 2 : Consumer Behavior & Service Design

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• Introduction: Definition, Characteristics and Classification of

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• To understand consumer behavior and factors affecting it

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• Consumer behavior Consumer behavior can be defined as “the decision

Ajay Gangele AMBAMK0413 Unit-2

 The study of Consumer Behavior helps in understanding how

Ajay Gangele AMBAMK0413 Unit-2

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Easy to evaluate Difficult to evaluate

High in search High in experience High in credence

1. List products of search qualities.

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Unit 2 : Consumer Behavior & Service Design

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• Meaning of consumer behavior

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 To know Perceived risk of customers

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H= HighM= Medium