TEACHER: TRƯƠNG QUANG CẨM

GROUP 1:
Nguyễn Viết Hiếu -2161693
Bạch Thị Như Quỳnh -2161553
Lê Trương Phương Nam- 2161507
1 Explain the three-stage model of service consumption

Three stage
model of service
consumption

Service -
Pre-purchase
encounter
Post – encounter
 How can customer choice between services in their consideration set
2 be modeled?

Search Evaluate
Need
informatio alternative
Arousal
n s
Example:
Evoked set Consideration set
Bánh mỳ 110
Bánh mỳ 110

Bánh mỳ Đức Phát

Bánh mỳ Huỳnh Hoa Bánh mỳ Như Lan

Bánh mỳ như Lan

Once the consideration set and key attributes are understood, the consumer
typically makes a purchase decision. In marketing, we often use multi-attribute
models to simulate consumer decision-making.
 What is the difference between the linear compensatory rule and the
3 conjunctive rule?
Atributes Bánh mỳ 110 Bánh mỳ Như Lan Importance weight
(%)

Quality 7 9 40

Convenience of 10 7 25
location

Price 8 6 20

Opening hours 8 9 5

Staff attitude 5 9 10

Total score 8.05 8.35 100

Linear compensatory vs Conjunctive rule

 Linear Conjunctive rule
compensatory
 Consumer consider all the relevant  Consumers don’t set any minimum
factors and multiply it with their acceptable point for one or more
importance weight percent. attributes.

 They will pick a choice with highest  If the choice does not meet the
score. requirement it will be eliminated
from consumer’s choice.
 Consumers don’t set any minimum
acceptable point for one or more
attributes.
 Describe search, experience, and credence attributes. Give the example
4
Attributes Search Experience Credence

Meaning help customers evaluate a product before cannot be evaluated before customers find
purchase purchase impossible to
evaluate
confidently even
after purchase and
consumption

Example type of food, location, type of restaurant and The consumer will not know how hygiene conditions
price much they will enjoy the food, the of the kitchen and
service, and the atmosphere until the healthiness of
the actual experience the cooking
ingredients
 Explain why service tend to be harder for customer to evaluate than
5 goods?

What’s the difference between goods and services?

Basis for comparison Goods Services

Meaning Goods are the material items that can be Services are amenities, facilities, benefits
seen, touched or felt and are ready for
sale to the customers. or help provided by other people.

Nature Tangible Intangible

Transfer of ownership Yes No

Evaluation Very simple and easy Complexity

Return Can be returned Services cannot be returned back once

they are provided.

Separable can be separated from the seller. services cannot be separated from the
service provider.

Storage Goods can be stored for use in future or Services cannot be stored.
multiple use.

Production and Consumption There is a time lag between production Production and Consumption of services
and consumption of goods. occurs simultaneously.
 • Why do consumer’s perceptions of risk play an important
role in choosing between alternative service offers?
6 • How can firms reduce consumer risk perceptions?

• 3 Service Attributes
- Search attributes
- Experience attributes
- Credence attributes
• Firms reduce consumer risk perceptions
- Preview the service through their company websites and videos
- Visit the service facilities before purchase
- Offering free trials
- Display credentials
- Use evidence management
- Visible safety procedures
- Status of an order to procedure
- Service guarantees
 • How are customers’ expectations formed?

7 • Explain the difference between desired service and adequate service

with reference to a service experience you’ve had recently.

• Factor influencing customer’s

expectations
• Example: go to drink milk tea
 What are “moments of truth”?
8
We could say that the perceived quality is realized at the moment of truth,
when the service provider and the service customer confront one another
in the arena. At that moment they are very much on their own… It is the
skill, the motivation, and the tools employed by the firm’s representative
and the expectations and behavior of the client which together will create
the service delivery process.

Richard Normann
 •Describe the difference between high-contact and low-contact services.

9 •Explain how the nature of a customer’s experience may differ between

the two.

High-Contact Services
- Customers visit service facility and
remain throughout service delivery
- Active contact
- Includes most people-processing
services

Low-Contact Services
- Little or no physical contact
- Contact usually at arm’s length through
electronic or physical distribution
channels
- Facilitated by new technologies
 Choose a service you are familiar with, and create a
10 diagram that represents the servuction system.
Define the “front-stage” and “back-stage” activities.

Front Stage:
light,
decoration, air Contact
conditions, personel
Customer
scissors..... e
B IIt’s m er
om
Cust
A

Back Stage
(invisuable):
Prepare scissor, dye,
technique system...
 How do the concepts of theater, role theory, and script theory help to provide
11 insights into consumer behavior during the service encounter?

As service delivery consists of a series of events that customers experience as a performance, the theater is a good
metaphor for services and the creation of service experiences through the servuction system.This metaphor is a
particularly useful approach for high-contact service providers, such as physicians and hotels, and for businesses
that serve many people simultaneously

Service facilities. Imagine service Personnel. The front-stage personnel

facilities as containing the stage on are like the members of a cast playing
which the roles as actors in a drama supported by
drama unfolds. Sometimes, the a back-stage production team.
setting changes from one act to
another

When service facilities and personnel are all in place, the stage is set for a memorable service performance for the customer
 How do the concepts of theater, role theory, and script theory help to provide
11 insights into consumer behavior during the service encounter?

Role and Script Theory

Professor Student

• Deliver a well-structured lecture • Come to class prepared and on

• Focusing on the key topics time
assigned for that day • Listen attentively
• Making them interesting, and • Participate in discussions, and
engaging students in discussion not disrupt the class

Students should arrive at the lecture hall before class starts, select a seat, sit down, and open their
laptops; the professor enters, puts notes on the table, turns on the notebook and LCD projector,
greets the class, makes any preliminary announcements needed, and starts the class on time.
12 Describe the relationship between customer expectations and customer satisfaction.

During and after consumption, consumers experience the service performance and compare it to their
expectations. Satisfaction judgments are then formed based on this comparison. If performance
perceptions are worse than expected, it is called negative disconfirmation. Susan Munro’s
expectations were negatively disconfirmed when her suit was not ready for pick up at the dry cleaner,
leading to her dissatisfaction and her intention to give another dry cleaner a try in the future. If
performance is better than expected, it is called positive disconfirmation, and if it is as expected, then
it is simply called confirmation of expectations.
13 What is service quality? How is it different from customer satisfaction?

Service quality is an assessment of how well a delivered service conforms to the client's expectations.
Service business operators often assess the service quality provided to their customers in order to
improve their service, to quickly identify problems, and to better assess client satisfaction.

Both customer satisfaction and service quality are defined as contrasting customers’ expectations with their
performance perceptions. Yet, satisfaction and service quality are very different constructs.
- Satisfaction is an evaluation of a single consumption experience, a fleeting judgment, and a direct and
immediate response to that experience.
- Service quality refers to relatively stable attitudes and beliefs about a firm, which can differ significantly from
satisfaction.
To illustrate, you may have been dissatisfied with a particular visit to your favorite Starbucks outlet, but you still
think this café is fantastic with great service. Of course, satisfaction and quality are linked. While the
perceptions of a firm’s overall service quality is relatively stable, it will change over time in the same direction
as transaction-specific satisfaction ratings. And it is service quality that in turn influences behavioral intentions
(e.g., positive word-of-mouth, and repurchase intentions).
14 What are the five dimensions of service quality?

Dimensions of Service Quality. Valarie Zeithaml, Leonard Berry, and A. Parasuraman have conducted
intensive research on service quality and identified 10 dimensions used by consumers in evaluating
service quality .In subsequent research, they found a high degree of correlation between several of
these variables and consolidated them into five broad dimensions:
1.Tangibles (appearance of physical elements)
2. Reliability (dependable and accurate performance)
3. Responsiveness (promptness and helpfulness)
4. Assurance (credibility, security, competence, and courtesy)
5. Empathy (easy access, good communications, and customer understanding)
15 How can you measure service quality?

Measuring Service Quality. To measure service quality, Valarie Zeithaml and her colleagues developed
a survey instrument called SERVQUAL40. It is based on the premise that customers evaluate a firm’s
service quality by comparing their perceptions of its service with their own expectations. SERVQUAL is
seen as a generic measurement tool that can be applied across a broad spectrum of service industries.
In its basic form, respondents answer 21 questions measuring their expectations of companies in a
particular industry on a wide array of specific service characteristics (Table 2.4). Subsequently, they are
asked a matching set of questions on their perceptions of a specific company whose services quality
they assess. When perceived performance ratings are lower than expectations, service quality is poor,
while the reverse indicates good quality.
15 How can you measure service quality?

The SERVQUAL Scale