Chapter 2: Consumer behavior in services and customer expectations

Question 1

Discuss the different stages of the consumer decision process ! What are the typical criteria that play an important role within a services context ?

Answer 1

The customer decision process consists of 5 different stages:
1. Need recognition = Maslow’s hierarchy
2. Information search = find information and past experiences of users bundeled online to find information and evaluate alternatives.
3. Evaluation of alternatives = find information and past experiences of users bundeled online to find information and evaluate alternatives.
4. Purchase & consumption = service is a process  Evaluate it over time
5. Postpurchase evaluation = customer assessing their satisfaction (if high  loyalty and positive WOM)
Since a service is a process, there are many factors that can influence it over time:
- Moods & emotions
- Service provision itself
- Service roles and scripts (employees are an important part and should play their role and follow certain scripts)
- Compatibility of service and customers
- Customer co-production

Question 2

What different types of services expectations exist. Demonstrate with (an) example(s)!

Answer 2

There are 5 different types of service expectations (example: restaurant):
1. Ideal expectations or desires = highest level of expectation
2. Normative expectations = how the service should be
3. Experienced based norms = very good service, but there are some flaws
4. Acceptable expectations = good service, nothing more, nothing less
5. Minimum tolerable expectations = lowest service level that you are willing to accept.
 Between the highest and lowest expectation levels is the zone of tolerance of service quality that you accept. Anything below this zone of tolerance is inadequate.

Question 3

What variables influence expectations patterns within a services context ? Clearly distinguish between the different expectations levels that exist for services!

Answer 3

There are factors that are uncontrollable for the company:

1. Those that influence the desired service level:
   - Lasting service intensifiers = stable factors that won’t change (ex. Personality, values, character, …)
   - Personal needs
2. Those that influence the adequate service level:
   - Perceived service alternatives = How many alternatives are available
   - Self-perceived service role = if a customer perceives their role as important in the process, their adequate service level will be higher as well.
   - Situational factors = your adequate service level changes based on the situation (ex. Behavior of insurer when you are in an accident).
   - Temporary service intensifiers = occurrences that make people focus more on a certain type of service.

There are also factors that are controllable for the company that influence the desired and adequate service:

• Explicit service promises = communication through advertising
• Implicit service promises = tangibles surrounding a service (ex. high price = expected high quality).
• Online and offline WoM = not fully controllable, but good quality = good WoM.
• Past experiences = company can control this by consistently providing high quality services and providing good past experiences that way.