L2: Service Consumption

• refers to the utilization of services by consumers or businesses to fulfill specific needs or desired outcomes.

  service consumption
• it involves actively engaging and making use of the services offered by service providers.

  service consumption
• 3 Stage Model of Service Consumption

  1. Pre-purchase Stage
  2. Service Encounter Stage
  3. Post-encounter Stage
• Pre-Purchase Stage

  1. Need awareness
  2. Information search
  3. Evaluation of alternative services
  4. Making a purchase decision
• t refers to recognizing a consumer's need for a particular product or service. It involves the consumer becoming aware of a gap between their current situation and their desired situation, which leads to identifying a need.

  need awareness
• 3 factors that triggers the need

  1. people unconscious mind
  2. physical condition
  3. external sources
• after a need has been recognized, customers are motivated to search for solutions to satisfy their needs, seeking product features, prices, reviews, and other relevant details to make informed choices.

  information search
• can be derived from past experience or external sources such as social media, online reviews and searches, advertising, retail displays, new stories and recommendations

  evoked set
• during the search process, consumers learn about the service attributes they should consider and form expectations about how firms are likely perform on those attributes


  consideration set
• once the consideration set and key attributes are understood, the consumer typically makes a purchase decision

  evaluation of alternative services
• this model holds that consumers use service attributes that are important to them to evaluate and compare the alternative offerings in their consideration set

  multi-attribute model
• 3 Service Attributes

  1. Search Attributes
  2. Experience Attributes
  3. Credence Attributes
• these attributes help customers to better understand and evaluate a service, and reduce the sense of uncertainty or risk associated with the purchase.

  • these are tangible characteristics customers can evaluate before purchasing.

  search attributes
• re those that cannot be evaluated before purchase. Customers must "experience" the service before they can assess attributes such as reliability, ease of use, and customer support.


  experience attributes
• are characteristics that customers find hard to evaluate even after consumption. Here, the customer is forced to believe or trust that certain tasks have been performed at the promised level of quality.

  credence attributes
• Perceived risk

  1. Functional
  2. Financial
  3. Temporal
  4. Physical
  5. Psychological
  6. Social
  7. Sensory
• a risk that occurs when unsatisfactory performance outcomes

  functional
• this risk occurs when monetary loss and unexpected costs

  financial
• this risk occurs when wasting time, consequences of delays

  temporal
• this risk occurs when personal injury or damage to possessions

  physical
• this risk occurs when personal fears and emotions

  psychological
• this risk occurs when how others think and react

  social
• this risk occurs when there's unwanted effects or any of the 5 senses

  sensory
• this type of service expectation is a "wished for" level of service-a combination of what customers believe can and should be delivered in the context of their

  desired service
• this type of service expectation is the minimum level of service customers will accept without being dissatisfied.

  adequate service
• type of service expectation that is the level of service that customers actually expect to receive.

  predicted service
• It can be difficult for firms to achieve consistent service delivery. Here, even though the performance of the same service employee is likely to vary from time to time, customers are willing to accept this variation

  zone of tolerance
• this stage involves the direct interaction of the customer with the service firm.

  service-encounter stage
• service encounter stage also called

  the moment of truth
• means that there is direct contact between customers and the firm throughout service delivery.

  high contact service
• involve little, if any, physical contact between customers and service providers.

  low contact services
• this system conceptualizes service businesses as systems that integrate marketing, operations, and customers, and it shows what is experience by customers.

  SERVUCTION SYSTEM
• 2 parts of SERVUCTION SYSTEM

  1. Technical Core
  2. Service Delivery System
• is “backstage” or “back office” and invisible to the customers, but what happens backstage can affect the quality of “frontstage”

  technical core
• is the front-stage and visible to the customer. It encompasses all the interactions that create the service experience.

  service delivery system
• this means that customers feel a need for control during the service encounter. The higher the level of perceived control during the service situation, the higher the level of satisfaction will be.

  perceived control theory
• types of perceived control theory

  1. behavioral
  2. decisional
  3. cognitive
• this is when the customers can change the service encounter according to their individual preferences

  behavioral
• this is when the customers can choose between fixed options

  decisional
• this is when the customers understand what is happening and why, and they know what will happen next; the latter is also called predictive control.


  cognitive