Customer Behavior in Service Encounters: Lovelock

Customer Behavior in Chapter 2:
Service Encounters Lovelock

Effective Service Marketing
Strategies
Three-Stage Model of Service Consumption
Prepurchase Stage: Service Encounter Stage:

Search, evaluation of Role in high-contact vs.
alternatives, decision low-contact delivery
Post-Encounter Stage:
Evaluation against
expectations, future
intentions
The Purchase Process for
Services
Prepurchase Stage
Service Encounter
Stage
Post-Encounter Stage
Pre Purchase Stage
 Need Awareness
Unconscious Mind
Physical Conditions
External Sources
 Information Search
Evoked Set
○ Examples?
Evaluating a Service May Be
Difficult
 Search attributes:
 Physical Evidence
 Sampling
 Experience attributes
 Must “experience” product to know it
 Vacations, movies, medical procedures
 Credence attributes
 Quality of repair and maintenance work of elevator
 Dental Surgery
 Legal matters
Perceived Risks in Purchasing
and Using Services
 Functional—unsatisfactory performance outcomes
 Financial—monetary loss, unexpected extra costs
 Temporal—wasted time, delays leading to problems
 Physical—personal injury, damage to possessions
 Psychological—fears and negative emotions
 Social—how others may think and react
 Sensory—unwanted impact on any of five senses
Refer to Table 2.1

How Product Attributes Affect
Ease of Evaluation
Most Goods Most Services
Easy Difficult
to evaluate to evaluate*
Clothing Restaurant meals Computer repair
Chair Lawn fertilizer Education
Motor vehicle Haircut Legal services
Foods Entertainment Complex surgery
High in search High in experience High in credence

attributes attributes attributes
*NOTE: Difficulty of evaluation tends to decrease with broad exposure Source:
to a service category and frequency of use of a specific supplier Adapted from Zeithaml
Service Encounter Stage
 The moment of Truth….
“'A service business's performance is made
up of the sum of its countless
interactions with its clients”
 A moment of truth is when an interaction

occurs between a customer and the service
provider that can leave a lasting positive
or negative impression on a customer.
Distinctions between High-Contact and
Low-Contact Services
High Contact Low Contact Medium
Contact
•Customers visit service • Little or no physical
• remain throughout contact with service
•Contact is physical personnel
• Contact is tangible • Trend of Self Service
Active contact between Contact usually at arm’s Medium-Contact

customers and service length through electronic Services Lie in between
personnel or physical distribution These Two
channels
Includes most people- New technologies (e.g. the

processing services Web) help reduce contact
levels
The Servuction System:
Service Production and Delivery
Service Operations Service Delivery Service Marketing
(front stage and (front stage) (front stage)
backstage)
Where inputs are Where “final assembly” Includes service

processed and service of service elements delivery (as above) and
elements created takes place and service all other contacts
is delivered to between service firm
customers and customers
Includes facilities, Includes customer

equipment, and interactions with
personnel operations and other
customers
Service Marketing System for a
High-Contact Service
SERVICE MARKETING SYSTEM
Service Delivery System Other Contact Points
Advertising
Service Operations System Other
Customers Sales Calls
Interior & Exterior
Market Research Surveys
Facilities
Billing/Statements
Technical The
Equipment Misc. Mail, Phone Calls,
Core Customer E-mails, Faxes, etc.
Website
Service People Random Exposure to
Facilities/Vehicles
Backstage Front Stage Other Chance Encounters with

Service Personnel
(invisible) (visible) Customers
Word of Mouth
Service Marketing System for a
Low-Contact Service
Service Operations SERVICE MARKETING SYSTEM
System
Service Delivery System Other Contact Points
Mail Advertising
Market Research
Surveys
Technical Self The
Core Service Billing/Statements
Equipment Customer
Random Exposure
Phone, to Facilities/Vehicles
Fax, Web-
site, etc. Word of Mouth
Front Stage
Backstage (visible)
(invisible)
Theater as a Metaphor for
Service Delivery
“All the world’s a stage and

all the men and women
merely players. They have
their exits and their
entrances and each man in
his time plays many parts”
William
Shakespeare
As You Like
It
Theater as a Metaphor for
Service Delivery
 Audition
 Cast
 Rehearsals
 Stage/Production
 Script
 Role & Performers
 Audience
 Tickets

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Customer Behavior in Chapter 2:

Service Encounters Lovelock

Prepurchase Stage: Service Encounter Stage:

Refer to Table 2.1

High in search High in experience High in credence

 A moment of truth is when an interaction

Active contact between Contact usually at arm’s Medium-Contact

Includes most people- New technologies (e.g. the

Where inputs are Where “final assembly” Includes service

Includes facilities, Includes customer

Backstage Front Stage Other Chance Encounters with

“All the world’s a stage and

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