Agenda Search Experience and Credence Properties Consumer Choice Consumer Experience Postexperience evaluation Search Experience and Credence Properties Search Experience Credence Attributes that a consumer can determine before purchase ID: 195445
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Slide1
Consumer Behavior in ServicesSlide2
Agenda
Search, Experience and Credence Properties
Consumer Choice
Consumer Experience
Post-experience evaluationSlide3
Search, Experience and Credence Properties
Search
Experience
Credence
Attributes that a consumer can determine before purchase
Attributes that can be discerned only after purchase
Characteristics that the consumer may find impossible to evaluate even after purchase and consumption
E.g.,
Clothing, furniture, jewelry
E.g.,
Restaurant meals,
vacations
E.g.,
Medical diagnosis,
Auto repairSlide4
Continuum of Evaluation for Different Types of Products
Clothing
Jewelry
Furniture
Houses
Automobiles
Restaurant mealsVacationsHaircutsChild careTelevision repairLegal servicesRoot canalsAuto repairMedical diagnosis
Difficult to evaluate
High in search
qualities
High in experiencequalities
High in credencequalities
Most
Goods
Most
ServicesSlide5
Products that are high in……
Search qualities
: easiest to evaluate
Experience qualities
: more difficult to evaluate
Credence qualities
: most difficult to evaluateSlide6Slide7
Consumer Decision Making and Evaluation of Services
Consumer Choice
Consumer Experience
Post-experience EvaluationSlide8
Consumer Choice
Need Recognition
Information Search
Pre-purchase
Evaluation of Alternatives stage
Purchase
Slide9
Activity (Individual)
Assume that you have a need for a service keeping in mind the consumer choice stages discussed in the previous slide
Make an
exhaustive list of information sources
using which you would obtain information about the service that satisfies your need
How would you evaluate the various alternatives before finally reaching a decision?Slide10
Special Considerations - Services
Prepurchase
stage
Perceived Risk
Importance of personal sources of information
Fewer alternatives to consider
Self-service as a viable alternativeSlide11
Perceived Risk
This element is especially relevant for services that are high in experience or credence attributes
Risk-reducing strategies:
Seeking information from respected personal sources
Relying on a firm that has a good reputationSlide12
Consumer Experience
In services, the experience itself dominates the evaluation process
Creating and managing effective processes and experiences are essential for service organizations
Companies try to create memorable experiences for their consumersSlide13
Post-experience Evaluation
Word-of-mouth communication
Attribution of Dissatisfaction
Positive or negative biases