Consumer behaviour and services: A review

This article reviews the current literature in the fields of consumer behaviour and the marketing of services in order to examine the main issues facing the consumer in purchasing services, as opposed to goods. Five distinguishing characteristics of services are discussed and the implications of these for the consumers are placed within the information processing model of consumer behaviour theory. The article suggests that there are particular problems for consumers in acquiring effective information regarding services, making comparisons on the basis of that information and subsequently evaluating the service encounter. It is our contention that unless consumer responses to the particular problems associated with services are clarified, service marketing may be in danger of pursuing provider‐orientated solutions rather than understanding the actual nature of the consumer decision process when purchasing services.     

Key Account Management in information-intensive services

Key Account Management (KAM) is surprisingly little known marketing approach in retailing and consumer services context, however it has much to offer to companies in these industries. It provides an effective, practical and rather simple method for companies interested in increasing their profits by right customer and relationship management. Indeed, KAM is a business-to-business marketing approach, however most retailers and service companies can greatly benefit from it. A large number of retailers and service companies operate both in the consumer and business-to-business market. Few retailers or service providers have never invoiced another company. Moreover, most consumer goods and services are influenced by business-to-business services. The availability and quality of consumer goods and services often essentially depends on various business-to-business services in the earlier phases of marketing channels. Furthermore, by understanding the logic of KAM, retailers and consumer service providers can develop their own key supplier management. Information is one of the most important resources of goods and services in post-industrial economy. Information-intensive services are based on knowledge and refining of information. Increasing number of information-intensive services emerge both in the consumer and business-to-business market. This paper describes the nature of KAM and information-intensive services, and suggests a framework for KAM practices in information-intensive services.     

Competing Online: Studying Consumer Choice Drivers for Online Financial Services

ABSTRACT

Given the rapid increase in the consumer use of online services and the increase in competition between firms that compete online, firms are faced with a crucial challenge. Having invested significant resources in transitioning consumers from using offline services to using online services, they now need to understand what drives consumers to choose between competing online services. Our study seeks an exploratory answer to the above challenge. Specifically, we consider, “what role do factors that drive consumers into using online services play in assisting firms better compete in the online space?” This paper explores the above question by quantifying the value that consumers of an online financial service place on having access to in-depth product information, an affordable online service, an easy to use online service, access to offline capabilities, and available marketing promotions. The results reported in this paper are based on a web-based discrete choice experiment in which 2,209 consumers were asked to compare various online financial service offerings, differing from each other in terms of the relative availability of our critical factors. The results demonstrate that consumer preferences (relative utilities) for various factors of an online financial service are different. Our results enable practicing managers to understand the factors that drive consumer choice when faced with competing online services. We believe that these results have both managerial and research implications for design, management and operations strategy formulation for online services.     

Academy of Marketing Conference "2001: A Marketing Odyssey"

This study examines the mediating influence of consumer expertise on the antecedents and consequences of Affect within a professional services market context. Whilst there is increasing evidence to suggest an empirical link between Affect evoked and satisfaction within such contexts, previous research has largely ignored the role of consumer expertise as a mediating influence. Using a scenario based approach, the objective of the study was to test for multigroup invariance among competing structural models based on the ability of the respondents to form expectation and performance assessments about the service they are receiving. The results indicate that it is important to examine different levels of consumer expertise in detail to better understand how certain characteristics such as experience and qualifications influence the priority and functionality attached to service attributes when making satisfaction judgments within a professional service context. This may in turn have broader implications for our contextual understanding of services.     

Pick Any Preference Mapping

This article describes a new marketine research tech- nique for consumer mapping that is particularly useful in highly competitive professional servlces markets such as health care, finan- cial 'services; and legal services. The technique is introduced and compared with its predecessors, and a case study of the financial services market is described. Strategic marketing implications of the results are discussed.     

Consumer Interests and the Ethical Implications of Marketing: A Contingency Framework

The increasing efforts by marketers to target diverse groups of consumers call for a closer examination of the ethical implications of market segmentation and differentiated marketing. Previous research suggests that marketers and consumers often differ in their perceptions of marketing ethics. Based on contingency theory, this research proposes an integrated framework—which includes the nature of the product, consumer characteristics, and market selection—to analyze the ethical complexities of the marketing exchange. Interactions among these factors lead to various contingencies with different ethical implications for marketing managers and public policy makers. Marketers should assess consumer interests and the ethics of marketing programs before their implementation     

The application of "integrated marketing communications" to social marketing and health communication: organizational challenges and implications

Influencing consumer behavior is a difficult and often resource-intensive undertaking, with success usually requiring identifying, describing, and understanding target audiences; solid product and/or service positioning relative to competitors; and significant media and communication resources. Integrated marketing communication (IMC) is a new way of organizing and managing persuasive communication tools and functions which involves realigning communications to consider the flow of information from an organization from the viewpoint of end consumers. Although the application of IMC to social marketing remains relatively unexplored, the IMC literature and recent efforts by the US Centers for Disease Prevention and Control suggest that integrated communication approaches have much to offer social marketing and health communication efforts. IMC, IMC and social marketing, and implications of IMC for public and private sector social marketing programs are discussed.     

If the Supplier's Human Capital Walks Away,Where Would the Customer Go?

Purpose: Professional service firms' clients often develop stronger attachments to their key contact employee than to the service firm. Since professionals are highly mobile, buyers of professional business services constantly have to decide whether to follow their key contact employee or remain with their incumbent firm, while service firms face the threat of losing customers if the employee leaves. This study examines how the key contact employee's human capital, the social capital between the contact employee and the client, and the service company's structural capital affect the decision whether to follow the key contact employee to another professional service firm.

Methodology/approach: The model is tested on a sample of 120 organizational buyers of advertising services by using partial last squares, a structural equation modelling technique.

Findings: Professional service firms' investments in company-specific structural capital create a deterrent for clients to follow the contact employee, because remaining with the service firm will increase clients' return on the service providers' structural capital. Furthermore, higher levels of structural capital reduce the value of the contact employee's investments in human capital should the employee leave. Conversely, human capital creates motivation to follow the contact employee, while social capital only provides value in combination with human capital.

Research implications: This study employs concepts developed in economics and economic sociology rather than relationship marketing variables to examine attachments to individual professional service providers and to professional service firms.

Practical implications: The findings underline the importance of competence, both at the company and individual level, for retaining clients of professional services. These results contrast previous studies emphasizing close interpersonal relationships and service firms' relationship-building activities.

Originality/value/contribution: Human, social, and structural capital provide value to clients and therefore apply well to professional services. Hence, these variables provide alternative explanations to service firms' client retention or desertion than traditional relationship marketing variables do. The findings add to our understanding of service provider–client relationships in professional services and knowledge intensive firms.     

On the Role of Experience in Developing Service Satisfaction in Consumer Financial Planning Services

ABSTRACT

This study of consumer professional services examines the role of experience in the development of service satisfaction with the personal financial planning services firm. Product experience possessed by the client moderates the interlinkages between service satisfaction and its two antecedents-performance and relational behaviour. The results of sub group analysis indicate that effects of the performance and relational behaviour vary considerably under different product experience conditions. The findings therefore add new insight to the understanding of satisfaction formation under different experience conditions, especially in the context of consumer personal financial planning services.     

The Role of the Surrogate Consumer in Service Delivery

This article considers the overlooked role of consumer surrogates in the marketing process. While it is commonly assumed that consumers are actively involved in important purchase decisions, it is proposed that in fact they often relinquish control to external surrogate services, which may collect market data, evaluate competitive alternatives, and even conduct transactions on their behalf. Some distinguishing characteristics of surrogate services are identified and discussed. Two types of consumer surrogates, interior decorators and wardrobe consultants, are highlighted as illustrations of surrogate activity, and survey data obtained from wardrobe consultants are presented regarding the perceived importance of a variety of both functional and intangible surrogate service benefits.     

Exploring cadaveric organ donation: a 'mortal embodiment' perspective

The concept of the service encounter represents the process of interaction between the consumer and the service provider, which, results in the actual delivery of the service. In this it is the point at which the consumer can evaluate the service offering (John 1996). It is thus as much concerned with marketing as it is with the actual delivery of the service. Central to such marketing activity are those technical staff responsible for the delivery of the service, the so-called part-time marketers (Grönroos 1994). Focusing on the health sector in the United Kingdom, this paper examines the attitudes and behaviours of those professional staff responsible for service delivery towards embracing such a marketing role. The data suggests that although the majority of such staff has considerable reservations about embracing marketing responsibilities, these reservations reflect concerns over professional autonomy and language rather than any deep-seated antipathy towards the core concepts of marketing.     

Convenience,Satisfaction, and Post-Purchase Behavior in India's Health Insurance Market

ABSTRACT

Understanding the antecedents and implications of “service convenience” has acquired added importance with consumers' growing desire for ease during product or service exchange. Although the effects of service convenience, as a first-order construct, on post-purchase behavior have been studied in different business contexts, not much has been done in the case of a second-order construct which has been attempted here. The present study seeks to examine the mediating role of consumers' satisfaction as well as the moderating role of organizational and consumer personal factors that have not been sufficiently explored in the marketing literature. Structural equation analysis is adopted to test the hypothesized relationships using responses from 424 consumers who have purchased health insurance from six leading insurers in India. The findings validated that the service convenience affects consumer satisfaction, which, in turn, plays both a direct and mediating role in influencing consumers' repurchase intention. However, the role of organizational and consumer personal factors as moderators between service convenience and consumers' satisfaction could only be established indirectly through post-hoc analysis, which calls for further research. The results have important implications for planning, designing, and managing the health insurance business.     

A Commentary on the Strategic Application of Service to Product and Consumer Flaws

An ever-changing consumer and the evolving role of service have contributed to the increasing difficulty faced by mar- keters to create a perfect match between products and consumers. The outcome has been an increase in mismatches or flaws. This paper considers the consumer and the product from a critical view- point, emphasizing the concept of flaws as a basis from which to apply service strategies. A new dynamic model is presented which suggests a definition for product and consumer flaws in several con- texts. Moreover, service strategies for responding to product and consumer flaws are presented. Finally, the future of service as a long-term marketing strategy is discussed and its impact on business is examined.     

Client Selection of a Residential Real Estate Agency or Agent

Research relating to professional services marketing remains somewhat sparse, despite the increased attention the topic is receiving in the business and academic press. This article reports the findings of a study relating to client selection of a particular type of professional service provider: a residential real estate agent/agency, a virtually unresearched topic. The results clearly indicate that cli- ents tend to select a particular agent rather than an agency, which leads to a number of implications for the marketing of residential real estate-for both agents and agencies. Not only do the results provide insights into one particular decision context, but also many of the implications appear to be generalizable to other professional service providers.     

Consumer Law and Policy in Ghana

This paper presents a picture of the landscape of consumer law and policy in Ghana and reviews the scope of protection of consumer interests with specific regard to product safety and liability, consumer sales, and telecommunication services. It assesses the legislative and policy framework on consumer contracts, product safety, and unfair commercial practices; discusses the role of national agencies in enforcing safety standards; and highlights some critical consumer issues in telecommunications service delivery. The paper examines the regulatory framework on other consumer issues such as advertising, labelling, and marketing of consumer products; terms and conditions of consumer contracts; and after sales services including the enforcement of guarantees, warranties, refund, and return policies. The paper also discusses the extent of external influence on the development of consumer law and policy in Ghana and reviews the level of interaction with other legal systems and supranational bodies in the three focal areas. The contribution also explores areas of Ghana’s consumer protection framework which could benefit from guidance from the EU transnational model on consumer protection and makes recommendations for the enhancement of the emerging legislative and policy regime on consumer protection in Ghana.     

Towards an understanding of the role of trade fairs as facilitators of consumer creativity

Trade fairs are an integral part of the marketing strategy for many products and services. The aim of this article is to investigate how trade fairs as a means of marketing communication bring about new ideas, desires and wants in consumers and by so doing facilitate everyday consumer creativity. The results imply that trade fairs play an important role in setting the stage for consumer creativity. Based on an empirical study of trade fair visitors carried out using an ethnographic method, the study demonstrates how consumers communicate their visit to a trade fair. The findings indicate that trade fairs have an influence on consumer creativity in the different phases of the process. As an outcome, two metaphors describing the role of trade fairs as facilitators of everyday consumer creativity are proposed. These are trade fairs as a tool and a vantage point. The implications for effective trade fair management and postmodern marketing are explored.     

Sex-Typed Service Images: An Empirical Investigation of Self-Service Variables

This article presents a study of sex-typed service images based on gender research in marketing and service encounter theory. The purpose is to address the issues of how and why services as distinct from products acquire a sex-typed image. Two streams of research provide the variables hypothesized to influence sex- image determination: gender research provides individual variables related to the consumer him/herself, and service encounter research provides variables related to the service itself. Consumer variables include an individual's biological and psychological sex image and personal use, while service variables deal with the sex image of the firm's characteristic provider and typical customer. A study conducted to test the hypotheses that both sets of variables influence a service's sex-typed image is presented. Marketing implications for development and promotion of new services and re-positioning of extant ones are discussed.     

Managing customer experiences in online product communities

Many companies have established online product communities or forums as a vehicle to extend product support services to their customers. Customers' interactions in such online forums with peer customers and vendor representatives resolve their product-related queries as well as inform on their product purchase decisions. Despite the significance of such interactions, there has been limited theoretical attention so far on how companies can manage customer experiences in online product communities. Drawing on theories and concepts from diverse areas including computer-mediated communication, consumer psychology, and online communities, this study proposes a four dimensional construct - Online Community Experience (OCE) - to capture customer experiences in such online product communities, and examines its impact on customer attitudes regarding the product, the company, and the quality of service. Data collected from customers in online product forums offered by four companies is used to test the study hypotheses. Implications for research on online consumer behavior and marketing are discussed.     

我国医院营销行为中存在的问题及对策分析

本文认为,我国医院营销行为中存在的主要问题有:营销意识淡薄,营销观念滞后;营销组织不健全,营销人才缺乏;市场调研不科学,信息反馈不到位;医疗服务同质化,市场开拓能力较弱;医药费用虚高,医疗服务定价不合理;营销手段单一,宣传力度不够;医疗诚信缺失,过度推销严重等等。文章提出,提高医院营销管理水平,一要树立营销意识,更新营销观念;二要建立健全专职营销组织,积极培养和引进营销专业人才;三要充分发挥营销部门的主导作用,实现医院营销手段和营销主体的有效整合;四要加强诚信教育,完善管理机制,遏制过度推销行为。     

The Impact of the Internet on Professional Relationships: The Case of Health Care

This paper considers the impact of the internet on professional services, specifically healthcare services which have been characterised as asymmetrical in information and power distribution. For complex professional services the internet is primarily an information resource offering perceived parity with professionals. Based on interviews with healthcare professionals and website managers, this paper considers how professionals perceive the internet to be changing patterns of professional–consumer interaction and the nature of professional–consumer relationships. Manifest at service encounter level and health policy level, professionals perceived the evolving parameters of the consumer role to be generating a requirement for a fundamental revision of models of service delivery and professional roles.