Customer behaviour expectations

Description
Managing customer behaviour,service encounter,customer evaluation and customer service

Customer Behavior Expectation

SERVICES MARKETING FRAMEWORK

CUSTOMER EVALUATION PRICE DIST
• PRODUCT • PROCESS • TECHNOLOGY& EQUIPEMENTS • AMBIENCE • PEOPLE

•RELIABILITY
CUSTOMER SERVICE STANDARDS •RESPONSIVENESS . •ASSURANCE •EMPATHY •TANGIBILITY CUSTOMER SATISFACTION/ DISSATISFACTION

CRM

PROMO

Que uing

• Service guarantee • Complaint management.

Scenario
Household –consisting of husband and wife and 2 children aged 15 and 18. ? Family Income – Rs 2.00 lakhs per month ? Business s man (aged 52) owning a petrol pump
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Decision : Availed a car loan for Rs. 15 lakhs from Corporation bank.

Prepurchase Stage ? Awareness of need ? Information search ? Evaluation of alternative service suppliers
Service Encounter Stage ? Request service from chosen supplier ? Service delivery

Post purchase Stage ? Evaluation of service performance ? Future intentions

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Service encounter: A period of time during which customers interact directly with a service. Moments of truth: Defining points in service delivery where customers interact with employees or equipment Critical incidents: specific encounters that result in especially satisfying/dissatisfying outcomes for either customers or service employees

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(EVALUATIVE) DIMENSIONS OF SERVICE
1.

2.

3.

Reliability – The ability to perform the promised service dependably and accurately. Responsiveness The willingness to help customers and provide prompt and quick service. Assurance The knowledge and courtesy of employees and their ability to convey trust and confidence.

4. Tangibility - The appearance of physical facilities ,equipment,personnel and communication materials. 5. Empathy The caring , individualized attention provided to the customer.

Personal Needs Desired Service Beliefs about What Is Possible

Explicit & Implicit Service Promises Word-of-Mouth Past Experience

ZONE OF TOLERANCE

Perceived Service Alterations Adequate Service Situational Factors Predicted Service

CHARACTERISTICS

SERVICES

GOODS

NEED SATISFIED
TITLE DEMAND PRODUCT EVALUATION

MORE EMOTIONAL
NO OWNERSHIP FLUCTUATING EVALUATION BASED ON EXPERIENCE AND CREDENCE QUALITIES

MORE PHYSICAL
OWNERSHIP POSSIBLE STABILIZED BASED ON EXPERIENCE AND SEARCH QUALITIES

CUSTOMER

INVOLVEMENT

HIGH
ESSENTIAL

LOW,HIGH ORABSENT
NOT ESSENTIAL

PHYSICAL PRESENCE OF CUSTOMERS IN PRODUCTION

SEGMENTATION

VARIABLES

MORE EFFECTIVE WITH PSYCHOGRAPHIC VARIABLES

MORE WITH DEMOGRAPHIC, BEHAVIOURAL VARIABLES

CONSUMER FOCUS OF RESEARCH

REACTION CONSUMER

SPONTANEOUS EMPHASIS ON ASSESSING EXPECTATION LEVELS

DELAYED EMPHASIS ON ASSESSING NEEDS AND WANTS

Customer Evaluation Some hypothesis
1.

Consumers seek and rely more information from personal sources than from non personal sources when evaluating services prior to purchase.

2 . Consumers engage in more post purchase evaluation than pre purchase evaluation when selecting and consuming services.

3.Consumer engage in greater post purchase evaluation and information seeking with services than with products.

4.Consumers use price and physical facilities as the major cues to service quality. 5.The consumers’ evoked set of alternatives is smaller with services than with products.

6. For many non professional services,the consumer’s evoked set frequently includes self provision of the services.
7. Consumers adopt innovations in service more slowly than they adopt innovations in goods. 8. Consumer’s perceive greater risks when buying services than when buying products.

9. Brand switching is less frequent with services than with products. 10. Consumers attribute some of their dissatisfaction with services to their own inability to specify or perform their part of the service. 11. Consumers may complain less frequently about services than about products due to their belief that they themselves are partly responsible for their dissatisfaction.

CUSTOMER SERVICE
Customer Service function consists of all functions involved in the effective delivery of the service product. This consists of : ? handling enquiry ? establishing standards of delivery ? Handling complaints

It is neither a Marketing function nor an operation function. But it is designed, performed and communicated with two goals in mind- operational efficiency and customer satisfaction .

A customer Service standard/ manual contains standards of delivery regarding ? Process ? Technology and Equipments ? Ambience ? People in terms of :

Reliability ? Responsiveness ? Assurance ? Tangibility ? Empathy
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