783cf08 buying behaviour
The document outlines the purchase model for services, including the pre-purchase, service encounter, and post-purchase phases. In the pre-purchase phase, factors that influence purchase decisions are discussed, including individual needs, past experience, expectations, and involvement level as internal factors, and competitive options, social context, and word-of-mouth as external factors. The document also discusses the different types of risks in purchase decisions - performance, financial, time loss, opportunity, psychological, social, and physical - and strategies to reduce the uncertainty and consequences of each risk type. Finally, the post-purchase phase and future customer behavior based on service quality evaluation and satisfaction or dissatisfaction are summarized.
783cf08 buying behaviour
- 1. 8/8/2011 Amity Business School Amity Business School Purchase Model for Services Amity Business School • Pre-Purchase Phase Purchase Decisions in Services Prof. P K Bansal • Service Encounter • Post-Purchase Phase Amity Business School Amity Business School Pre-Purchase Phase Internal Pre-Purchase Phase External Factors Factors • Individual needs and • Competitive options wants • Social context • Past experience • Word-of-mouth • Expectations communications • Involvement level Amity Business School Amity Business School Pre-Purchase Phase Firm- Pre-Purchase Phase Risk Produced Factors Types Components of • Promotions Each type • Performance • Pricing • Financial • Uncertainty • Distribution • Time loss • Consequence • Opportunity • Psychological • Social • Physical Prof. P K Bansal 1
- 2. 8/8/2011 Amity Business School Amity Business School Strategies to Reduce performance Risk Strategies to Reduce Opportunity Risk Uncertainty: Certification, branding, communications Uncertainty: Branding Consequences: Quality control standards & procedures, Consequence: Quality control standards & procedures warranties Strategies to Reduce Financial Risk Strategies to Reduce Psychological & Social Uncertainty: Trial purchases, sampling, promotional Risk incentive Uncertainty: Branding, communications Consequences: Guarantees Consequences: Quality control standards & procedures Strategies to Reduce Time Loss Risk Strategies to Reduce Physical Risk Uncertainty: Branding Uncertainty: Instruction, communications Consequence: Compensation offers Consequence: Safety standards Post-Purchase Phase Future Behavior Amity Business School Amity Business School • Evaluation of Service Quality • Satisfied Customers – Technical quality – Repeat purchases – Functional quality – Firm loyalty – Global evaluation of past – Positive word-of-mouth experiences communications • Satisfaction or Dissatisfaction • Dissatisfied Customers – Measure of last service – Only 1 out of 25 complain experience – Firm-switching behavior – Based on service quality – Negative word-of-mouth evaluation communications – Based on past experiences Prof. P K Bansal 2