Chapter 2

Consumer Behavior in a Service Context

Learning objectives:
After reading this chapter, you should be able to:
 Recognize the service consumption process and customer behavior in services.
 Identify the key concepts in the service consumption process that are essential in
achieving customer satisfaction.
 Understand the importance of consumer behaviour assessment in service
marketing.
 Analyse and devise marketing responses to attain beyond customer satisfaction

Marketers' primary aim is to create and produce products and services that meet
customer needs and desires to achieve organizational objectives. To accomplish this
objectives, managers need to consider how customers make purchase decisions and
what determines their satisfaction. Buyers sometimes find it more difficult to evaluate
services than goods given its characteristics. Decision making in the consumption of
service can be divided into three stages: Pre-purchase stage, Service Encounter Stage
and Post-encounter stage.

Figure 2.1 Three Stage Model of Service Consumption

(Lovelock and Wirtz 2011; Tsiotsou and Wirtz 2012)

Pre-purchase Service Post-encounter

stage Encounter Stage Stage

1. The Pre-purchase stage.

The pre-purchase stage of the decision-making process for services is more
complex in comparison with that for goods as it involves a composite set of factors and
activities. This stage begins with the identification of one’s need and continues through
information search, evaluation of alternatives to purchase decision. The decision to
buy a service is triggered by a person’s need or need arousal. Once a need is
recognized, people usually start to look for information, what helps them better evaluate
possible alternatives. While searching for information, they may rely on their past
experience or use external sources such as advertising, online searches, and
recommendations from service personnel, friends, and family. Then consumers select
among acceptable options and decide whether to buy or not a particular service. When
faced with several alternatives, customers compare different service offerings, basing on
their attributes. (Johann, 2015)

Figure 2.2 Pre-purchase Stage

Evaluation
Need Information Purchase
of
Arousal Search Decision
Alternatives

1.1 Need Awareness

When a person or organization decides to buy or use a service, it is
triggered by an underlying need or need arousal. Needs may be triggered by:
a. Unconscious minds (e.g., personal identity and aspirations)
b. Physical conditions (e.g., hunger, pain )
c. External sources (e.g., a service firm’s marketing activities)
1.2 Information Search
Once a need has been recognized, customers are motivated to search for
solutions to satisfy that need.
 Several alternatives may come to mind, and these alternatives form the
evoked set that can be derived from past experiences or external sources
such as social media and online reviews.
 During the search process, consumers also learn about service attributes
they should consider, and form expectations about how firms in the
consideration set are likely to perform on those attributes
 Evoked set – a set of products and brands that a consumer considers
during the decision-making process – that is derived from past experiences
or external sources.

1.3 Evalua on of Alterna ve Services

1.3 Evaluation of Alternative Services

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.

1.3.a Service Attributes

The multi-attribute model assumes that consumers can evaluate all
important attributes before purchase. There are three types of attributes:
 Search attributes are tangible characteristics that a consumer can
determine before buying a product. Search qualities include style, color,
texture, smell, taste, and other tangible features. These attributes reduce
the level of uncertainty while making a purchase decision. They mostly refer
to goods, such as clothing, furniture, cars and food, which are tangible in
nature, however, some search attributes can be found in services, too. For
example, it is possible to assess many tangible features before visiting
a particular hotel, restaurant, or a fitness club.

 Experience attributes are those that can be evaluated after purchase or

during consumption. Customers must first experience the service and then
they are able to assess such attributes as customer service, reliability, and
atmosphere. Many services like entertainment, restaurant meals and
vacations are high in experience qualities. They are more difficult to
evaluate than the products high in search qualities, because they have to
be purchased and consumed before assessment.

 Credence attributes are characteristics that are hard or even impossible

to evaluate after purchase and consumption. In comparison to products high
in search or experience qualities, services with prevailing credence qualities
are the most difficult to evaluate because customers may not have enough
knowledge to assess the performance and level of quality of a specific
service. Examples of offerings high in credence attributes include surgery,
auto repair and legal services, since few customers possess medical,
mechanical skills or legal knowledge.
(Johann, 2015)
 In the multi-attribute model, many decisions involve complex trade-offs along
several attributes. The multi-attribute model simulates this decision making by
combining customers’ attribute performance expectations for each firm in the
consideration set and the importance weights of each attribute.
Two common consumer decision rules in the multi-attribute model are the linear
compensatory rule and the conjunctive rule. Given the same attribute
ratings, consumers can arrive at different decisions when different decision rules
are applied.
Firms should actively manage key variables in the multi-attribute model to
increase the chances of their service being the one chosen. (Lovelock & Wirtz, 2018)

1.3.b Perceived Risk

Perceived risk is usually greater for services that are high in experience
and credence attributes, and first-time users are likely to face greater uncertainty.
The worse the possible consequences and the more likely they are to actually
occur, the higher the perceived levels of risk. Perceived risk “represents an
uncertain, probabilistic potential future outlay”. In simple terms, perceived risk is
the ambiguity that consumers have before purchasing any product or service.
(Arrow, Humphreys & Kenderdine and Taylor), There are six types of perceived
risk:

 Functional risk: the product does not perform up to expectations

 Physical risk: the product poses a threat to the physical well-being or
health of the user or others
 Financial risk: the product is not worth the price paid
 Social risk: the product results in embarrassment from others
 Psychological risk: the product affects the mental well-being of the
user
 Time risk: the failure of the product results in an opportunity cost of
finding another satisfactory product

People usually feel uncomfortable with perceived risks and use a

variety of methods to reduce them, among of those methods are:

 Seeking information from trusted and respected personal sources

such as family members, friends and peers.
 Using the web to compare service offerings, search for
independent reviews and ratings, and explore discussions on
social media.
 Relying on a firm that has a good reputation.
 Looking for guarantees and warranties.
  Visiting service facilities, trying aspects of the service before
purchase, and examining tangible cues such as the feel and look
of the service setting or awards won by the firm.
 Asking knowledgeable employees about competing services.

Strategic Responses to manage customer perceptions of risk

 Offer free trial for high-contact services

 Use evidence management
 Create appealing advertisements
 Offer guarantees and warranties
 Display credentials (e.g.certificates, licenses, etc.)
 Encourage customers to visit the service facility
 Provide customer access on service order status

1.3.c Service Expectations

Expectations are formed during the search and decision-making process,

and they are heavily shaped by information search and evaluation of alternatives.
Expectations embrace several elements, including desired, adequate and
predicted service, and a zone of tolerance that falls between the desired and
adequate service levels.

Figure 2.3 Factors influencing customer expectation of service

Source: Adapted from Valarie A. Zeithaml, Leonard A. Berry, and A. Parasuraman, “The
Nature and Determinants of Customer Expectations of Service,”Journal of the Academy of
Marketing Science 21, no. 1 (1993): 1-12
 Desired service. This is a wished-for level of service- a combination
of what customers believe can and should be delivered in the context of
their personal needs.

Adequate service. This is the minimum level of service customers

will accept without being dissatisfied with the service that they received.

Predicted service. This is the level of service that customers

actually expect to receive. Predicted service can also be affected by service
provider promises, word of mouth and past experiences.

Zone of Tolerance. It can be difficult for firms to achieve consistent

service delivery at all touch-points across many service delivery channels
and thousands of employees. Even the performance of the same service
employee is likely to vary from time to time. Another way to look at this zone
of tolerance is to think of it as the range or service within which customers
don’t pay explicit attention to service performance. When service falls
outside this range, customers will react, either positively or negatively.

1.4 The Purchase Decision

A consumers have evaluated possible alternatives by comparing the

performances of competing service offerings, assessing the perceived risk
associated with each offering, and developing their desired, adequate, and
predicted service-level expectations, they are ready to select the option they
like the best.
 Purchase decisions for frequently purchased services are usually
quite simple and can be made quickly without too much thought.
 For more complex decisions, trade-offs can involve multiple
attributes.

2. The Service encounter stage

After making a purchase decision, customers move on to the next stage of service
consumption – the service encounter stage. This stage involves a series of contacts
with the service firms which cause certain consumers’ reactions. Service encounters are
what we called “moments of truth”

 The message in a service context is that at the moment of truth, the

relationship between the customer and the firm is at stake.
 The “moments of truth” refers to the customer touch-points that can make
or break a customer relationship.
 Decision to buy a specific service is accompanied by a set of expectations about
the service performance. Consumer’s involvement in the acquisition and consumption of
service may vary depending on how they value and need the service. Service encounters
involve high or low contact level. Marketers should come up with an offering depending
on the level of contact of consumers and must be aware of consumer’s expectations about
the service. Firms should create a service delivery process that would meet consumer
expectations and demands because service delivery can impact customers’ feelings in a
positive or negative way which leads satisfaction or dissatisfaction.
High-contact Services. A high-contact service means that there is direct
contact between customers and the firm throughout the service delivery process. Active
contact occurs. Includes most people-processing services.
Low-contact Services. A low-contact services involves little, if any, physical
contact between customers and service providers. Contact usually at arm’s length
through electronic or physical distribution channels and normally facilitated by new
technologies.

Figure 2.4 Levels of customer contact

The Servuction System

The servuction model encompasses a technical core and a service delivery
system.
 The technical core is backstage and invisible to customers, but what
happens backstage can affect the quality of front stage activities.
 That’s why the backstage activities have to be coordinated with front
stage activities.
 The service delivery system is front stage and visible to the
customer. It encompasses all the interactions that create the service
experience. In a high-contact service, it includes customer
interactions with the service environment, service employees,
and other customers. Each type of interaction can create or destroy
value. Firms have to orchestrate all these interactions to create a
satisfying service experience

Figure 2.5 The Servuction System

Source: Adapted and expanded from an original concept by Eric Langeard and Pierre Eiglier

Theater as a Metaphor for Service Delivery

 Theater can be used as a metaphor for service delivery.

 Firms can view their service as the staging of a performance with props and
actors and manage them accordingly.
 The props are the service facilities and equipment.
 The actors are the service employees and the customers

“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
 3. The Post encounter stage
In the post encounter stage customers evaluate the service performance by
comparing the service they perceive they have received with their expectations.
Expectancy-disconfirmation model of satisfaction holds that satisfaction
judgements are formed by comparing service expectations with performance perceptions.
As satisfaction is a key outcome of the marketing process, marketers need to
understand the sources of customers’ satisfaction or dissatisfaction. Furthermore, there
is an evidence of links between the level of customer satisfaction and the firm’s overall
performance, which means that by creating more value for customers, the firm creates
more value for its owners.
The reasons why customers might be satisfied or not, differ depending on their
expectations based on personal needs and preferences, level of knowledge, previous
experience, word of mouth communications, and promises given by a service firm.
During the decision-making process, customers assess the attributes and risks
related to a service offering and develop their expectations. When it comes to the
experience, customers are generally pleased when service performance perceptions
approach or exceed desired levels. In such situations they are more likely to make repeat
purchases, remain loyal to the service supplier, and express their positive opinions about
their experience.
On the other hand, when customers are disappointed because the perceived
service performance does not meet their expectations, they are more likely to complain
and share their negative opinions with others. (Johann, 2015)

Satisfaction judgments are based on this comparison

 Positive disconfirmation (better)
 Confirmation (same)
 Negative disconfirmation (worse)

Going beyond satisfaction – “Delight”

Research shows that delight is a function of three components
 Unexpectedly high levels of performance
 Arousal (e.g., surprise, excitement)
 Positive affect (e.g., pleasure, joy, or happiness)
Service Quality
 Excellent service quality means that a firm consistently meets or exceeds
customer expectations.
 While customer satisfaction is transaction-specific and refers to a single
service experience, service quality refers to a consumer’s beliefs and
attitudes about the general performance of a firm.
 Consumers have five broad dimensions to evaluate service quality: (1)
tangibles, (2) reliability, (3) responsiveness, (4) assurance, and (5)
empathy.
 In situations where customer satisfaction and service quality deviate,
customers use their relatively stable perception of service quality to
form their performance expectations for the next purchase.
 However, a second or third dissatisfaction evaluation will reduce the overall
service quality perception of the firm more dramatically and jeopardize
repeat visits/ purchase.
Figure 2.6 Key concepts in the Service consumption process
 Pre-purchase

•Key Steps
•Need arousal
•Information search
•Evaluation of alternative solutions
•Purchase decision
•Customers face perceived risks which marketers should reduce with
some strategic responses
•Zone of tolerance: Adequate to desired. Dissatisfaction if service level
falls below adequatelevel

Service Encounter

•Moments of Truth: importance of effectively managing touchpoints

•High/low contact service model – understanding the extent and nature
of contact points
•Servuction model – variations of interactions
•Theater metaphor – “staging” service performances

Post-encounter

•In evaluating service performance, customers can have expectations

positively disconfirmed, confirmed, or negatively disconfirmed
•Unexpectedly high levels of performance, arousal, and positive affect
are likely to lead to delight

Additional information and further readings:

Links:
Consumer Behavior In The New Normal
https://www.forbes.com/sites/michaelrsolomon/2020/04/13/consumer-behavior-
in-the-new-normal/#65296ddb5da3

How Will The Pandemic Change Consumer Behavior

https://www.forbes.com/sites/kianbakhtiari/2020/05/18/how-will-the-pandemic-
change-consumer-behavior/#3c5e030e66f6

Four consumer behavior trends emerge during the COVID-19 pandemic, the first
EY Future Consumer Index finds
 https://www.bloomberg.com/press-releases/2020-04-23/four-consumer-behavior-
trends-emerge-during-the-covid-19-pandemic-the-first-ey-future-consumer-index-
finds

Chapter 2
Consumer Behavior in a Service Context

Learning objectives:
After reading this chapter, you should be able to:
 Recognize the service consumption process and customer behavior in services.
 Identify the key concepts in the service consumption process that are essential in
achieving customer satisfaction.
 Understand the importance of consumer behaviour assessment in service
marketing.
 Analyse and devise marketing responses to attain beyond customer satisfaction

Marketers' primary aim is to create and produce products and services that meet
customer needs and desires to achieve organizational objectives. To accomplish this
objectives, managers need to consider how customers make purchase decisions and
what determines their satisfaction. Buyers sometimes find it more difficult to evaluate
services than goods given its characteristics. Decision making in the consumption of
service can be divided into three stages: Pre-purchase stage, Service Encounter Stage
and Post-encounter stage.

Figure 2.1 Three Stage Model of Service Consumption

(Lovelock and Wirtz 2011; Tsiotsou and Wirtz 2012)

Pre-purchase Service Post-encounter

stage Encounter Stage Stage
 4. The Pre-purchase stage.
The pre-purchase stage of the decision-making process for services is more
complex in comparison with that for goods as it involves a composite set of factors and
activities. This stage begins with the identification of one’s need and continues through
information search, evaluation of alternatives to purchase decision. The decision to
buy a service is triggered by a person’s need or need arousal. Once a need is
recognized, people usually start to look for information, what helps them better evaluate
possible alternatives. While searching for information, they may rely on their past
experience or use external sources such as advertising, online searches, and
recommendations from service personnel, friends, and family. Then consumers select
among acceptable options and decide whether to buy or not a particular service. When
faced with several alternatives, customers compare different service offerings, basing on
their attributes. (Johann, 2015)

Figure 2.2 Pre-purchase Stage

Evaluation
Need Information Purchase
of
Arousal Search Decision
Alternatives

1.1 Need Awareness

When a person or organization decides to buy or use a service, it is
triggered by an underlying need or need arousal. Needs may be triggered by:
d. Unconscious minds (e.g., personal identity and aspirations)
e. Physical conditions (e.g., hunger, pain )
f. External sources (e.g., a service firm’s marketing activities)
1.2 Information Search
Once a need has been recognized, customers are motivated to search for
solutions to satisfy that need.
 Several alternatives may come to mind, and these alternatives form the
evoked set that can be derived from past experiences or external sources
such as social media and online reviews.
  During the search process, consumers also learn about service attributes
they should consider, and form expectations about how firms in the
consideration set are likely to perform on those attributes

Evoked set – a set of products and brands that a consumer considers

during the decision-making process – that is derived from past experiences
or external sources.

1.3 Evalua on of Alterna ve Services

4.3 Evaluation of Alternative Services

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.

1.3.a Service Attributes

The multi-attribute model assumes that consumers can evaluate all
important attributes before purchase. There are three types of attributes:
 Search attributes are tangible characteristics that a consumer can
determine before buying a product. Search qualities include style, color,
texture, smell, taste, and other tangible features. These attributes reduce
the level of uncertainty while making a purchase decision. They mostly refer
to goods, such as clothing, furniture, cars and food, which are tangible in
nature, however, some search attributes can be found in services, too. For
example, it is possible to assess many tangible features before visiting
a particular hotel, restaurant, or a fitness club.

 Experience attributes are those that can be evaluated after purchase or

during consumption. Customers must first experience the service and then
they are able to assess such attributes as customer service, reliability, and
atmosphere. Many services like entertainment, restaurant meals and
vacations are high in experience qualities. They are more difficult to
evaluate than the products high in search qualities, because they have to
be purchased and consumed before assessment.

 Credence attributes are characteristics that are hard or even impossible

to evaluate after purchase and consumption. In comparison to products high
in search or experience qualities, services with prevailing credence qualities
are the most difficult to evaluate because customers may not have enough
knowledge to assess the performance and level of quality of a specific
service. Examples of offerings high in credence attributes include surgery,
 auto repair and legal services, since few customers possess medical,
mechanical skills or legal knowledge.
(Johann, 2015)

In the multi-attribute model, many decisions involve complex trade-offs along

several attributes. The multi-attribute model simulates this decision making by
combining customers’ attribute performance expectations for each firm in the
consideration set and the importance weights of each attribute.
Two common consumer decision rules in the multi-attribute model are the linear
compensatory rule and the conjunctive rule. Given the same attribute
ratings, consumers can arrive at different decisions when different decision rules
are applied.
Firms should actively manage key variables in the multi-attribute model to
increase the chances of their service being the one chosen. (Lovelock & Wirtz, 2018)

1.3.b Perceived Risk

Perceived risk is usually greater for services that are high in experience
and credence attributes, and first-time users are likely to face greater uncertainty.
The worse the possible consequences and the more likely they are to actually
occur, the higher the perceived levels of risk. Perceived risk “represents an
uncertain, probabilistic potential future outlay”. In simple terms, perceived risk is
the ambiguity that consumers have before purchasing any product or service.
(Arrow, Humphreys & Kenderdine and Taylor), There are six types of perceived
risk:

 Functional risk: the product does not perform up to expectations

 Physical risk: the product poses a threat to the physical well-being or
health of the user or others
 Financial risk: the product is not worth the price paid
 Social risk: the product results in embarrassment from others
 Psychological risk: the product affects the mental well-being of the
user
 Time risk: the failure of the product results in an opportunity cost of
finding another satisfactory product

People usually feel uncomfortable with perceived risks and use a

variety of methods to reduce them, among of those methods are:

 Seeking information from trusted and respected personal sources

such as family members, friends and peers.
  Using the web to compare service offerings, search for
independent reviews and ratings, and explore discussions on
social media.
 Relying on a firm that has a good reputation.
 Looking for guarantees and warranties.
 Visiting service facilities, trying aspects of the service before
purchase, and examining tangible cues such as the feel and look
of the service setting or awards won by the firm.
 Asking knowledgeable employees about competing services.

Strategic Responses to manage customer perceptions of risk

 Offer free trial for high-contact services

 Use evidence management
 Create appealing advertisements
 Offer guarantees and warranties
 Display credentials (e.g.certificates, licenses, etc.)
 Encourage customers to visit the service facility
 Provide customer access on service order status

1.3.c Service Expectations

Expectations are formed during the search and decision-making process,

and they are heavily shaped by information search and evaluation of alternatives.
Expectations embrace several elements, including desired, adequate and
predicted service, and a zone of tolerance that falls between the desired and
adequate service levels.

Figure 2.3 Factors influencing customer expectation of service

 Source: Adapted from Valarie A. Zeithaml, Leonard A. Berry, and A. Parasuraman, “The
Nature and Determinants of Customer Expectations of Service,”Journal of the Academy of
Marketing Science 21, no. 1 (1993): 1-12

Desired service. This is a wished-for level of service- a combination

of what customers believe can and should be delivered in the context of
their personal needs.

Adequate service. This is the minimum level of service customers

will accept without being dissatisfied with the service that they received.

Predicted service. This is the level of service that customers

actually expect to receive. Predicted service can also be affected by service
provider promises, word of mouth and past experiences.

Zone of Tolerance. It can be difficult for firms to achieve consistent

service delivery at all touch-points across many service delivery channels
and thousands of employees. Even the performance of the same service
employee is likely to vary from time to time. Another way to look at this zone
of tolerance is to think of it as the range or service within which customers
don’t pay explicit attention to service performance. When service falls
outside this range, customers will react, either positively or negatively.

4.4 The Purchase Decision

A consumers have evaluated possible alternatives by comparing the

performances of competing service offerings, assessing the perceived risk
associated with each offering, and developing their desired, adequate, and
predicted service-level expectations, they are ready to select the option they
like the best.
 Purchase decisions for frequently purchased services are usually
quite simple and can be made quickly without too much thought.
 For more complex decisions, trade-offs can involve multiple
attributes.

5. The Service encounter stage

After making a purchase decision, customers move on to the next stage of service
consumption – the service encounter stage. This stage involves a series of contacts
with the service firms which cause certain consumers’ reactions. Service encounters are
what we called “moments of truth”
 The message in a service context is that at the moment of truth, the
relationship between the customer and the firm is at stake.
  The “moments of truth” refers to the customer touch-points that can make
or break a customer relationship.

Decision to buy a specific service is accompanied by a set of expectations about

the service performance. Consumer’s involvement in the acquisition and consumption of
service may vary depending on how they value and need the service. Service encounters
involve high or low contact level. Marketers should come up with an offering depending
on the level of contact of consumers and must be aware of consumer’s expectations about
the service. Firms should create a service delivery process that would meet consumer
expectations and demands because service delivery can impact customers’ feelings in a
positive or negative way which leads satisfaction or dissatisfaction.
High-contact Services. A high-contact service means that there is direct
contact between customers and the firm throughout the service delivery process. Active
contact occurs. Includes most people-processing services.
Low-contact Services. A low-contact services involves little, if any, physical
contact between customers and service providers. Contact usually at arm’s length
through electronic or physical distribution channels and normally facilitated by new
technologies.

Figure 2.4 Levels of customer contact

The Servuction System

 The servuction model encompasses a technical core and a service delivery
system.
 The technical core is backstage and invisible to customers, but what
happens backstage can affect the quality of front stage activities.
That’s why the backstage activities have to be coordinated with front
stage activities.
 The service delivery system is front stage and visible to the
customer. It encompasses all the interactions that create the service
experience. In a high-contact service, it includes customer
interactions with the service environment, service employees,
and other customers. Each type of interaction can create or destroy
value. Firms have to orchestrate all these interactions to create a
satisfying service experience

Figure 2.5 The Servuction System

Source: Adapted and expanded from an original concept by Eric Langeard and Pierre Eiglier

Theater as a Metaphor for Service Delivery

 Theater can be used as a metaphor for service delivery.

 Firms can view their service as the staging of a performance with props and
actors and manage them accordingly.
 The props are the service facilities and equipment.
 The actors are the service employees and the customers
 “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

6. The Post encounter stage

In the post encounter stage customers evaluate the service performance by
comparing the service they perceive they have received with their expectations.
Expectancy-disconfirmation model of satisfaction holds that satisfaction
judgements are formed by comparing service expectations with performance perceptions.
As satisfaction is a key outcome of the marketing process, marketers need to
understand the sources of customers’ satisfaction or dissatisfaction. Furthermore, there
is an evidence of links between the level of customer satisfaction and the firm’s overall
performance, which means that by creating more value for customers, the firm creates
more value for its owners.
The reasons why customers might be satisfied or not, differ depending on their
expectations based on personal needs and preferences, level of knowledge, previous
experience, word of mouth communications, and promises given by a service firm.
During the decision-making process, customers assess the attributes and risks
related to a service offering and develop their expectations. When it comes to the
experience, customers are generally pleased when service performance perceptions
approach or exceed desired levels. In such situations they are more likely to make repeat
purchases, remain loyal to the service supplier, and express their positive opinions about
their experience.
On the other hand, when customers are disappointed because the perceived
service performance does not meet their expectations, they are more likely to complain
and share their negative opinions with others. (Johann, 2015)

Satisfaction judgments are based on this comparison

 Positive disconfirmation (better)
 Confirmation (same)
 Negative disconfirmation (worse)

Going beyond satisfaction – “Delight”

Research shows that delight is a function of three components
  Unexpectedly high levels of performance
 Arousal (e.g., surprise, excitement)
 Positive affect (e.g., pleasure, joy, or happiness)

Service Quality
 Excellent service quality means that a firm consistently meets or exceeds
customer expectations.
 While customer satisfaction is transaction-specific and refers to a single
service experience, service quality refers to a consumer’s beliefs and
attitudes about the general performance of a firm.
 Consumers have five broad dimensions to evaluate service quality: (1)
tangibles, (2) reliability, (3) responsiveness, (4) assurance, and (5)
empathy.
 In situations where customer satisfaction and service quality deviate,
customers use their relatively stable perception of service quality to
form their performance expectations for the next purchase.
 However, a second or third dissatisfaction evaluation will reduce the overall
service quality perception of the firm more dramatically and jeopardize
repeat visits/ purchase.
Figure 2.6 Key concepts in the Service consumption process
 Pre-purchase

•Key Steps
•Need arousal
•Information search
•Evaluation of alternative solutions
•Purchase decision
•Customers face perceived risks which marketers should reduce with
some strategic responses
•Zone of tolerance: Adequate to desired. Dissatisfaction if service level
falls below adequatelevel

Service Encounter

•Moments of Truth: importance of effectively managing touchpoints

•High/low contact service model – understanding the extent and nature
of contact points
•Servuction model – variations of interactions
•Theater metaphor – “staging” service performances

Post-encounter

•In evaluating service performance, customers can have expectations

positively disconfirmed, confirmed, or negatively disconfirmed
•Unexpectedly high levels of performance, arousal, and positive affect
are likely to lead to delight

Additional information and further readings:

Links:
Consumer Behavior In The New Normal
https://www.forbes.com/sites/michaelrsolomon/2020/04/13/consumer-behavior-
in-the-new-normal/#65296ddb5da3

How Will The Pandemic Change Consumer Behavior

https://www.forbes.com/sites/kianbakhtiari/2020/05/18/how-will-the-pandemic-
change-consumer-behavior/#3c5e030e66f6

Four consumer behavior trends emerge during the COVID-19 pandemic, the first
EY Future Consumer Index finds
https://www.bloomberg.com/press-releases/2020-04-23/four-consumer-behavior-
trends-emerge-during-the-covid-19-pandemic-the-first-ey-future-consumer-index-
finds