Consumer Behavior In A Service Context

Abstract

Services can be described as a process in which customers and production resources
of the company interact. The vital element of the process includes the presence of
customers and their presence. This vital element explains the difference between
the consumption of services and physical goods (Grönroos, 2000, p.15). Although
in recent years an increasing concern for understanding and meeting customer
expectations can be seen, many companies still believe that they know what
customers want, instead of finding out what they really want. As a result companies
offer services that do not meet customer expectations: important features do not take
part in the offerings, and the levels of performance become inadequate (Zeithaml
et.al. 2013, p.114). For effective services marketing, companies should understand
the ways consumers think during the stages of decision process: choosing among the
alternatives in the prepurchase stage, the consumer throughout consumption stage, and
the evaluation of services in the postpurchase stage (Hoffman & Bateson, 2011, p.87).

Full text

DETAY YAYINCILIK
Ankara, 2017
INTERNATIONAL SERVICES MARKETING:
NEW TRENDS AND UPDATED TERMINOLOGY
EDITORS
Prof. Dr. İge Pırnar
Evla Mutlu Kesici
Res. Asst. Melih Tütüncüoğlu
Res. Asst. Metehan İğneci

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FOREWORD
Marketing of services has never been as important and complex as in the milieu
of Industry 4.0. Eectiveness of a new product used to be strategized by innovative
marketing techniques, therefore marketing of industrial products were the utmost
essential function of business enterprises. Radical changes in the markets and
manufacturing systems since the industrial revolution of 18th century have forced
companies for a new creative destruction of fourth industrial revolution. Digital age
as the third wave of Industrial revolution followed the second industrial revolution
began by the manufacturing system of Fordism and Taylorism. Industry 3.0, in other
words the digital age produced a big data of everything, everywhere, and everybody.
Upcoming age of Industry 4.0 is thirsty for new markets and hierarchies through
eective utilization of big data where personalization has discarded globalization.
Considering the main assumptions of Schumpeterian Creative Destruction on the
life cycle of destructive creations, it can be also say that the life time of Industry 4.0
will not be so long as the previous ones. In any case radical changes are observed on
consumer behaviors with the widely use of portable digital devices where all data has
been stored, waiting to be put in order by the novel technologies of Internet of ings
(IoT).
Right at this point while value propositions of established companies or new
ventures target to explore the latent needs or change the current consumption
styles of consumers in Industry 4.0, universities as the other side of the coin are
in the progress of important reforms. Universities were individual and outsider at
rst generation, second generation universities were participative and co-operator,
and third generation universities are stakeholder and partner. At the Industry 4.0,
universities will take roles as actors and pure entrepreneurs at technological markets.
Information Age value to the commercialization of two types of goods and services,
which are hardware and soware. Industry 4.0 will value the commercialization of
data, information, and knowledge where the competitive advantage will likely move
from business enterprises into fourth generation universities. erefore, services will
be more abstract than ever.

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Consequently, this book had become a signicant input for the fourth generation
universities as well as actors of Industry 4.0 by augmenting the advanced topics of
Services Marketing in a reader-friendly format to the nal reader.
I congratulate Prof. Dr. Ige Pirnar for being a frontier of producing an essential
reading on Services Marketing for both worlds of academia and business. I also
congratulate Prof. Dr. İge Pirnar’s valuable PhD students Melih, Metehan, and Evla
for their support on publishing this book. It is almost not possible to witness a huge
list of highly qualied contributors in a single academic output. I congratulate 51
contributors one-by-one also proves the importance of the title.
I am happy to forward advanced topics of “Services Marketing” for your kind
knowledge that will take its place permanently in your digital devices even before
and through Industry 4.0.
Çağrı Bulut,
21-April-2017 / Izmir

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Authors
Ayda Sabuncuoglu, Asst. Prof. Dr.
Aykan Candemir, Assoc. Prof. Dr.
Aylin Araza, PhD
Aylin Çalışkan, Res. Asst., PhD Candidate
Aylin Erboy, PhD Candidate
Bengü Sevil Oaç, Assoc. Prof. Dr.
Can Saygıner, PhD Candidate
Duygu Çelebi, Res. Asst., PhD Candidate
Ebru Gökaliler, Asst. Prof. Dr.
Elif Deniz, Asst. Prof. Dr.
Emel Kurşunluoğlu Yarımoğlu, Asst. Prof.
Emrah Özkul, Assoc. Prof. Dr.
Engin Deniz Eriş, Assoc. Prof. Dr.
Evla Mutlu Kesici, PhD Candidate
Ferah Onat, Assoc. Prof. Dr.
Ferika Özer Sarı, Asst. Prof. Dr.
Gonca Aslan, PhD
Gökçe Sinem Erbuğa, Res. Asst., PhD Candidate
Göker Gülay, PhD Lecturer
Gönenç Dalgıç Turhan, PhD Candidate
Gönül Ayrancı, Res. Asst, PhD Candidate
Görkem Ataman, Asst. Prof. Dr.
Gülmüş Börühan, PhD Lecturer
Gürhan Aktaş, Assoc. Prof. Dr.
Hande Arbak, PhD
Işık Özge Yumurtacı Hüseyinoğlu, Asst. Prof. Dr.
İçten Duygu Çallı, Asst. Prof. Dr.
İge Pırnar, Prof. Dr.

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İlkay Taş Gürsoy, Asst. Prof. Dr.
İsmail Metin, Asst. Prof. Dr.
Kalender Özcan Atılgan, Asst. Prof.
Kutay Çevirgen, PhD Candidate
Melih Tütüncüoğlu, Res. Asst., PhD Candidate
Mert Günerergin, PhD
Metehan İğneci, Res. Asst., PhD Candidate
Murat Nazlı, PhD Lecturer
Mustafa Reha Okur, Res. Asst., PhD Candidate
Neslihan Paker, PhD Candidate & Lecturer
Ozan Güler, Res. Asst., PhD Candidate
Özge Can, Asst. Prof. Dr.
Özlem Alikılıç, Assoc. Prof. Dr.
Pervin Ersoy, PhD Lecturer
Raif Serkan Albayrak, Asst. Prof. Dr.
Seçil Uğur, Lecturer, PhD Candidate
Sinan Şener, PhD Candidate
Sinem Kurtural, General Manager
Ümit Doğrul, Asst. Prof. Dr.
Yasemin Çelik Kamalı, PhD Candidate
Yücel Öztürkoğlu, Assoc. Prof. Dr.
Zafer Öter, Assoc. Prof. Dr.
Zeynep Arslan, PhD Candidate

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CONTENTS
Foreword ............................................................................................................................................ iii
Aesthetc Sde of Innovaton And Marketng ................................................................................. 1
Assessng And Improvng Servce Delvery .................................................................................... 7
B2B n Servces Marketng .............................................................................................................. 15
B2C n Servces Marketng .............................................................................................................. 22
Brandng n Servces Marketng .....................................................................................................29
Broadenng the Concept of Socetal Marketng: Corporate Socal Responsblty ..................36
Challenges for Cultural Issues ........................................................................................................47
Challenges In Servce Marketng .................................................................................................... 54
Cloud Based Servce Oerngs ....................................................................................................... 63
Color Usage In Servces Marketng ................................................................................................75
Consumer Behavor In A Servce Context ....................................................................................81
Customer Experence In Servces Marketng ...............................................................................87
Customer Relatonshp Management ............................................................................................ 96
Customer Satsfacton ....................................................................................................................103
Defnng and Measurng Qualty of Health Care Servces........................................................112
Developng Strateges for Transnatonal Operatons n Servces .............................................122
Dgtal Servces Marketng ............................................................................................................ 131
Eects Of Servcescapes On Consumers’ Buyng Decsons For Servces ..............................141
Epstemc And Non-Epstemc Perspectves On Rsk ...............................................................157
GAP Model ......................................................................................................................................166
Green Supply Chan Solutons and Frms’ Performance...........................................................171
Guerrlla Executons In Internatonal Servces Marketng .......................................................178
Hedonc Buyng n Servces ..........................................................................................................185
Interpersonal Communcaton In Servce Industres ................................................................ 192
Knowledge Management In Servce Sector ................................................................................204

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Logstcs Servce Qualty and Omn Channel Retalng: A Conceptual Overvew ................ 212
Loyalty In Servces Marketng: A Study Of Football Clubs ....................................................... 218
Luxury / Auent Marketng In Servces ...................................................................................... 224
Managng People ............................................................................................................................. 231
Managng Servce Encounters ....................................................................................................... 237
Marketng Mx Elements ................................................................................................................242
Measurng Servce Qualty ............................................................................................................. 255
Moble Marketng n Servces ........................................................................................................ 265
Multcultural Markets And Acculturaton ...................................................................................275
Neuromarketng .............................................................................................................................. 282
Organzatonal Change In Servces Marketng............................................................................288
Prcng Servces................................................................................................................................ 296
Promotng Servces: e Drvers And Servce Industry ............................................................ 304
Reachng Fnancal Servces Customers In 21st Century .......................................................... 312
Servce Falures: Its Scope, Types And Consequences ...............................................................321
Servce Leadershp: Not Only Serve To Your Customer But Also to Your Employee ............331
Servces Lfe-Cycle Model .............................................................................................................. 342
Servces Marketng Audt Under Marketng Audt Roof ........................................................... 350
Servces Marketng In Logstcs .....................................................................................................364
Servce Orentaton ......................................................................................................................... 372
Servce Recovery .............................................................................................................................. 381
Socal Meda Applcatons n Servces Marketng .......................................................................393
Standard Operatng Procedures (Sops) In Servce Industres ................................................... 405
Sustanablty n Servces Marketng ............................................................................................. 412
Targetng and Market Segmentaton n Servces .........................................................................420
Trends n Servces Marketng ........................................................................................................ 428
Value Postonng In Servces Marketng ..................................................................................... 436
Vral DNA of Marketng: Vral Vdeos ......................................................................................... 443
WOM (Word Of Mouth) In Servces Marketng ........................................................................452
7 P’s n Servces Marketng ............................................................................................................. 460

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Consumer Behavior In A Service Context
Aykan Candemir, Assoc. Prof. Dr.
Ege University
aykan.candemir@ege.edu.tr
Keywords
Consumer Behavior, ree Stage Model, Expectations of Service
Introduction
Services can be described as a process in which customers and production resources
of the company interact. e vital element of the process includes the presence of
customers and their presence. is vital element explains the dierence between
the consumption of services and physical goods (Grönroos, 2000, p.15). Although
in recent years an increasing concern for understanding and meeting customer
expectations can be seen, many companies still believe that they know what
customers want, instead of nding out what they really want. As a result companies
oer services that do not meet customer expectations: important features do not take
part in the oerings, and the levels of performance become inadequate (Zeithaml
et.al. 2013, p.114). For eective services marketing, companies should understand
the ways consumers think during the stages of decision process: choosing among the
alternatives in the prepurchase stage, the consumer throughout consumption stage, and
the evaluation of services in the postpurchase stage (Homan & Bateson, 2011, p.87).
e ree-Stage Model of Service Consumption
Customers undergo a complex process before decision to buy a service. ese can
be summarized as (1) problem recognition, (2) information search, (3) evaluation
of alternatives, and (4) product/service choice (Solomon, 2013, p.319). For services
this process may be summarized in three distinct stages: the prepurchase, the service
encounter, and the postpurchase stage (Lovelock & Wirtz, 2011, p.36-37).
Prepurchase Stage
In the prepurchase stage the decision about a service is completed. Compared to the
decisions related with goods, the decision making takes longer time and many times

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it is more complicated due to the participation of consumers in production process.
e prepurchase stage covers all consumer activities taking place before the purchase.
is stage begins when a potential customer receives a stimulus to consider a purchase
(Homan & Bateson, 2011, p. 87). Individual needs and expectations inuence the
alternatives customers will consider. e needs may appear by unconscious minds,
physical conditions and external stimuli (marketing activities). When a need or a
problem has been recognized, the search for solutions starts. e search may be for
specic information (prepurchase search) (Solomon, 2013, p.327). But the consumers
may also continue searching activities without any specic purchase needs (Bloch et.
al., 1986, p.120). Consumers may do internal search through scanning their own
memory banks for various alternatives. Consumers attempt to recognize possible
suppliers, and then calculate the benets and the risks for the options using the weights
of each option before making a nal decision (Lovelock and Wright, 1999, p.60). An
impulse buying or “unplanned behavior” can also be observed, but attributable to
the higher perceived risk and variability, impulse buying is seen less frequently in
services (Sharma, Sivakumaran & Marshall 2009).
Several alternatives may take part in the evoked set which can come from past
experience, marketing communications, service personnel, friends or family
(Lovelock & Wirtz, 2011, p.60). Among the alternatives in the evoked set consumers
in fact considers a subset called the consideration set (Solomon, 2013, p.338). If the
purchase is somehow unchanging also involving moderately low risk, customers
possibly will select a specic (known) company or brand. But when the purchase is
not routine and the perceived risk is higher, the intensive information search may
become necessary (Lovelock and Wirtz, 2011, p.60-61). Generally extensive search
also involve perceived risk. is may appear when the product is expensive or is
complex and dicult to evaluate (Solomon, 2013, p.336). It can be concluded that the
information in the pre-purchase stage aects the purchase decision seriously (Alba
& Hutchinson, 2000). Seven categories of perceived risks can be outlined are the
functional risk (performance outcomes which creates dissatisfaction), economic loss
and unanticipated costs resulting in nancial costs, loosing time and results of delay
creating temporal risk, threats to health and damage to personal belongings meaning
the physical risk, psychological risk (personal worries and feelings), considering
other people’s reactions and thoughts (social risk) and sensory risk that is associated
with undesirable impacts on some of the ve senses (Lovelock & Wirtz, 2011, p.63).
Various risk-reduction strategies before the nal decision may be used. ese may
include (Bosho, 2002; Lovelock & Wirtz 2011, p.41-42; Zeithaml & Bitner, 2003):

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• Information coming from well-known and respected personal sources,
• Company’s reputation
• Assurances (i.e. warranty and guarantee)
• Paying a visit to the building or places or testing some features
• Getting information from well-informed employees related to competitors
• Inspecting tangible cues as well as physical evidences
• Using the internet for the comparison of service oerings
Customer preconceptions aect the perceptions related with the quality of the
services presented by the rms. Preconceptions may be used for segmentation of
the markets and thus lead to the perception of high levels of quality in a service.
erefore service providers/marketers should deeply understand the desired and
adequate service levels, predicted service level, and the zone of tolerance (Zeithaml
et.al, 1993, p.4, Lovelock & Wirtz, 2011, p.66):
• Desired and Adequate Service Levels: It is the kind of service customers
wish to get. Shaped by the personal needs of the customers, this level is a
combination of the service the rm can and should deliver. e rms can
decrease the perceived risk through education; determine the types of
consumers possible to use it, and suggest advice to get the nest outcomes.
• Predicted Service Level: It denes the level that is expected to be received.
It directly aects the denition of “adequate service”. e adequate level will
either be higher or lower depending on the predicted service (prediction of
good or poorer service). Predictions of service may change depending on
the situation.
• Zone of Tolerance: e service provided by the same employee may even
change from one day to another. e zone of tolerance denes the variation
that may be accepted by the customers. is variation may also be dened
as the range of service where customers do not show open consideration to
performance. However, once service is not inside the range, reaction will
either be positive or negative.
Expectations about the service might be explained with ve overall dimensions:
reliability (mainly related with the service outcome), tangibles, responsiveness,
assurance, and empathy (related mainly with the process) (Parasuraman et. al.,
1988, p.23, Parasuraman et. al., 1991, p.445-449). According to the expectancy
disconrmation model, experience with the product in the past shapes the beliefs about
product performance. Also communications indicate a certain level of quality. If the

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performance is in accordance with the thoughts/expectations of the consumers they
may not think much about it. If it does not meet the expectations, negative feelings may
appear. But, if performance exceeds the expectations, it creates happiness and pleasure
(Solomon, 2013, p.379). Consumers use several criteria to evaluate the alternatives
before making the nal decision. If all products rate equally for one attribute consumers
may use supplementary reasons to choose other alternative. Determinant attributes are
used to dierentiate among choices. Marketers frequently educate consumers about
the criteria to be used as determinants. If marketers want to advise a new decision
criterion, three pieces of information are needed (Solomon, 2013, p.343):
• e criterion should emphasize the existence of notable dierences
considering the attribute.
• A decision-making rule should be provided.
• e rule should be consistent with the decision made on past occasions. If
not, the recommendation may be disregarded due to much mental work.
Service Encounter Stage
Aer the purchase decision, customers are involved with several contacts with
the rm. e service encounter can be dened as the the process with an order of
related events at various times (Verhoef, Antonides & de Hoog, 2004; Noone &
Mattila, 2009). e stage frequently starts with an application, a reservation demand
or order. Interactions may be direct between customers and employees, or indirect
with computers or machines. Active participation may be observed in high-contact
services, e.g. restaurants, hospitals and hotels. ey may perhaps experience various
components of service delivery, and these may provide clues about service quality
(Lovelock & Wirtz, 2011, p.67).
Parallel to the increase of customer contact, additional and extended service
encounters may be observed. Depending on the interaction between personnel,
physical components of service or both services can be grouped into three levels
(Lovelock & Wright, 1999, p.54):
• In case of high-contact services visiting the facility is done personally.
Customers dynamically interact with rm and the personnel during the
delivery (e.g., hairdressing or health care).
• Medium-contact services need a lesser amount of interaction with the rms
and employees. Customers visit the facilities or the employees of the rms
visit the customers at home or somewhere else. However they either do not
stay for the delivery or have only lower amount of contact with the personnel.

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• In low-contact services quite low physical contact can be observed. Instead,
electronic or physical distribution channels will act as means for contact e.g.
mental stimulus-processing (e.g., television) and information-processing
services (e.g., insurance).
Postencounter Stage
During this stage, quality and satisfaction/dissatisfaction are evaluated with relation to
the service. e results are going to have eects in upcoming plans, i.e. loyalty to the rm,
recommend the service (positively or negatively) to friends, members of the family etc.
Service quality is evaluated through the comparison of expectations and the received
(perception about what received). If expectations are met or exceeded, high-quality
service is perceived. e customers are probably satised supposing that the price/
quality link is adequate and also additional situational and personal aspects are
armative. us, the consumers may repeat purchases and turn into loyal customers.
But, in the other case if customers’ expectations are not met, customers may complain,
suer in silence, or choose other rms in the future (Lovelock & Wright, 1999, p.90-
91). roughout this stage, variable levels of cognitive dissonance can be seen. e
customers may not be sure whether they made the right decision. To minimize the
cognitive dissonance the customers should be convinced that they made the correct
decision. In order to minimize cognitive dissonance an aer sale contact can be
made a letter covering the product, warranties and guarantees, and strengthening the
decision (Homan & Bateson, 2011, p.91).
If the consumer is not pleased with a product or service three possible strategies can
be followed (sometimes more than one can be implemented) (Singh, 1988, p.101;
Solomon, 2013, p.380):
• Voice response: e customer can demand directly for compensation.
• Private response: e customer may tell his/her dissatisfaction and boycott
the services or the rm.
• ird-party response: Legal action can be taken.
e perceived-control perspective also helps dening the postpurchase stage.
Psychologists argue that in modern society, a major force driving human behavior is the
need for control over situations. us perceived control can be thought as a factor which
summarizes a person’s experience with a service. e basic principle of this perspective
is that in consumers perceive higher level of control during the service experience; it
will result with higher satisfaction level (Homan & Bateson, 2011, p.100).

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