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Differences of Consumer behavior

in service encounters based on


the Three Stage Model

MKT 2252: Services Marketing

P.C.H. DE SILVA
MF/2014/4022

TABLE OF CONTENT



INTRODUCTION ...................................................................................................................... 3
Brief introduction to RIU Ahungalla .................................................................................................. 4
Brief introduction to Hemas Hospital ............................................................................................... 5
The THREE STAGE MODDEL Theoretical Background ............................................................ 6
Pre Purchase Stage ........................................................................................................................... 6
Service Encounter Stage ................................................................................................................... 6
Post Encounter Stage ....................................................................................................................... 6
DIFFERENCES OF CONSUMER BEHAVIOR IN SERVICE ENCOUNTER RIU Ahungalla ................. 7
Pre Purchase Stage ................................................................................................................. 7
Service Encounter Stage ......................................................................................................... 8
Post Purchase Stage ............................................................................................................ 10
DIFFERENCES OF CONSUMER BEHAVIOR IN SERVICE ENCOUNTER Hemas Hospital ............. 11
Pre Purchase Stage ................................................................................................................ 11
Service Encounter Stage ........................................................................................................ 12
Post Purchase Stage ............................................................................................................ 13
Conclusion ............................................................................................................................. 14

Differences of Consumer behavior in service encounters based on the Three Stage Model

INTRODUCTION



The three-stage model of service consumption is a customer decision making process of the service
purchasing. There are three stages of the purchase process for service which are as follows:

pre-purchase stage.
service encounter stage.
post-encounter stage.

Throughout this assignment I have tried to express the greater amount of knowledge about the
Three stage mode introduced by the Lovelock & Wirtz.
As a well reputed hotel RIU Ahungalla offers services like accommodation, restaurants,
entertainment, amusement. Hemas Hospital as a well known hospital in the heart of southern
province offers variety of services to its customers.
In this assignment I choose the food and beverage sector in the service consumption which is based
on people processing service. This is a common sector on worldwide. It is the daily routine and
needs for everyone. In this sector, different people have different tastes of food, so it will split into
different food and beverage sector such as Western, Chinese, Japanese, Korean, Thai, and other
foods form different countries. As a customer, we have three-stage model of service consumption
in buying and using a service of our choice, which are pre-purchase stage, service encounter, and
post-purchase stage.
I have selected RIU Hotel Ahungalla and Hemas Hospital Galle as the two competing
organizations to differentiate the consumer behavior in service encounters based on the Three
Stage model. The RIU Ahungalla provides the restaurant service to the guests and also the outsider
customers. The foods of its restaurant are based on western and Sri Lankan foods.

Differences of Consumer behavior in service encounters based on the Three Stage Model

Brief introduction to RIU Ahungalla




The RIU Sri Lanka is located on a magnificent beach set against a stunning backdrop in Ahungalla.
RIU Ahungalla offers all-inclusive 24 hours a day service.
All of the services and amenities offered by Hotel RIU Sri Lanka, such as free Wi-Fi in the hotel's
common areas, pools for the entire family, a kids' club and a diverse entertainment program, have
been especially designed so that all guests can fully enjoy their vacation.
The 500 rooms at the RIU Hotels & Resorts' new hotel also have all of the amenities need to feel
right at home: a balcony or terrace, satellite TV, air conditioning, a safe and minibar.
The hotel's Renova Spa offers a wide variety of massages and treatments to help disconnect on
your vacation. RIU guests also can work out in their fully-equipped gym and then relax in
luxurious hydro massage bath. If the customer prefers, he can also head to the beauty salon where
they will leave you completely rejuvenated.
With all these facilities we can simply say that the Hotel Riu Sri Lanka is an all-inclusive hotel in
Ahungalla with a very diverse entertainment program which provides fun for adults and children.
Children can take part in a wide range of activities at the RiuLand kids' club and play at the
playground while the adults enjoy a RiuArt workshop and live shows. In addition, the facilities
include the Pacha karaoke nightclub where all the guests can enjoy the best evening ambiance.
The all-inclusive hotel's gastronomy stands out because of the wide variety of options available.
You will find Italian and Asian dishes, as well as local Sri Lankan cuisine. In addition, in the
hotel's four bars, you can enjoy the best beverages and snacks at any hour of the day.
It is a common saying that Sri Lanka is an exotic destination where you can enjoy a unique
vacation and discover the wonders it has to offer. RIU customers just need to take excursions to
its most exceptional sites, from incredible beaches, thousand-year-old temples, remains of almost
forgotten civilizations to its untamed wilderness full of lush vegetation.












Differences of Consumer behavior in service encounters based on the Three Stage Model

Brief introduction to Hemas Hospital




As a multi-specialty family hospital chain with full International Accreditation Hemas promise
their customers the very best in health care and ensure that they get value for money.
Hemas hospital has taken the pioneering step of taking quality healthcare closer to the homes of
the communities they serve in the suburbs of Colombo and South of Sri Lanka.
Hemas was built to international standards, their hospitals are manned with well trained and
experienced staff and doctors and state-of-the art technology that make Hemas among the very
best of health care providers in the island. Hemas as a hospital chain have over 300 consultants
visiting their hospitals covering a wide range of specialties and their 24-hour Accident and
Emergency Units are equipped to handle any medical or
surgical
emergency.
At Hemas Hospitals, the safety of their patients is their greatest priority. In forging a resolute path
towards this commitment, Hemas undergo stringent testing by international accrediting agencies
so that they can sustain their promise of Hemas hospitals being safe and efficient.
Hemas has the coveted ACHSI Australian Council for Healthcare Standards International
Accreditation which provides patients with international standards in terms of service, systems,
processes and technology. Furthermore, Hemas Hospitals is backed by the respected conglomerate
Hemas Holdings, PLC. Hemas Holdings PLC is the parent company of the Hemas Group which
has built a reputation of trust and dependability since its inception 65 years ago.

Differences of Consumer behavior in service encounters based on the Three Stage Model

The THREE STAGE MODDEL Theoretical Background


The three-stage model of service consumption is a customer decision making process of the service
purchasing introduced by Lovelock & Wirtz. There are three stages of the purchase process for
service which are as follows: pre-purchase stage, service encounter stage and post-encounter
stage.

Pre Purchase Stage



In the first stage customers seek solutions to aroused needs.

Need arousal Consumer realize that there is a need to use a service, to fulfill the
requirements.
Information searchConsumer will search for further details on the available
solutions and what different companies are there to serve the particular service.
Evaluating alternatives all the different service providers and solutions will be
compared with each other by the consumer.

Service Encounter Stage



This step is the step where consumers are practically get involved in the service itself. In this stage
service is being actually transferred to the customer. According to the contact weight that customer
made with service provider the service can be mainly divided in to categories: High Contact
Service and Low Contact Service.
Customers have very active contacts with the service provider when there is a High Contract
Service. Further the customer will remain through out the service. He will be remaining until
service is full delivered. When it comes to Low Contact Services customer has very low or most
of the cases no physical contact.

Post Encounter Stage



This stage could be described as the final stage of service consumption. Customers evaluate the
service performance. Satisfaction defined as attitude-like judgment following a service purchase
or series of service interactions. Consumers who are satisfied and have high perceptions of service
quality necessarily return to the same service provider or buy their services again.

Differences of Consumer behavior in service encounters based on the Three Stage Model

DIFFERENCES OF CONSUMER BEHAVIOR IN SERVICE


ENCOUNTER RIU Ahungalla
Pre Purchase Stage

The pre-purchase is first stage model of service consumption. According to the Lovelock & Wirtz
Pre-purchase can defined as customer decision on their initial decision making pertaining to their
purchase of a product or service that being reflected by their underlying needs.
At pre-purchase stage, we start to be aware of our needs and wants. Such awareness of our needs
and wants enable further consideration into the decision making process in later stage, service
encounter. It also enables a further implementation of information search and alternative
evaluation in pre purchase stage.
RIU Hotel awareness needs a restaurant for their customer and they want provide the western food,
Local food and beverage services. This tangible service is based on people processing that provide
service directed at the customer. This is the point where need arousal is bloomed to a customer.
For the customers need of hunger triggered and this would work as the Need Arousal.
Under Information Search stage, it plays a relative important role in defining our needs and wants
as discussed earlier. When we decide what to the service needed, we will seek for information
prior our consumption. Such information search can either be active or passive, depending on the
level of involvement and perceived risk associated to the search of information.
Active and passive information search normally provided by family, friends, colleagues,
advertisement, mass media or organization. For our information search, as university students that
is provided by our friends.
In addition, information search can also come from both internal and external sources. For
example, of internal information search are personal preferences and self involvement. Oppositely,
external information search such as internet, catalog, and advertisement. Such purchase of service
is considered limited decision making mainly because consumers unlikely will purchase such
service on the daily basis. This also define the level of low involvement consumer have on
purchasing such service. We information search also come from internet search and Privilege Book
which can provide our restaurant's information and the environment.
Apart from information search and awareness of our needs in consumption service, at pre-purchase
stage, we also Evaluate Alternatives Search. Such alternative search enables us to have more
choices on our consumption. When we from information search, we have several alternative
choices to dine in which are Lighthouse hotel galle, Aman Galla, Hikka Tranz, Shinagawa Beach
Balapitiya. At this stage, we are concern on our choices between different service provided each
competitors. We not only evaluate the service provided, but also similar service provided by other
competing service providers. Aman Galla is situated in unesco heritage area Galle fort and for the

Differences of Consumer behavior in service encounters based on the Three Stage Model

customers who are fond with mysterious Sri Lankan beaches this could not be the greatest place.
However, the RIU Ahungalla has exclusive western, local, Chinese, Italian food restaurants and
they provide much choice of the food and beverage comparing to any other hotel or restaurant in
the area. RIU Ahungalla, it not just a restaurant, it also is a unique Boutique Cottage and it has a
graceful environment provide to customers. It can provide a seat like a peaceful beach, large
swimming pools. For our decision making, we are discussing on Facebook and compare the entire
three restaurants. After discussion, of theses bunch of hotels RIU Ahungalla comes to the first
choice of me due to my arousals price, cost, luxurious, eye catching atmosphere and of course tasty
food. Ultimately RIU Ahungalla becomes the Purchase decision.

Service Encounter Stage


According to the Lovelock service encounter is a period of time during the customer interacts
directly with a service provider.
The service encounters as 'moment of truth' which is metaphor by Richard Normann.
The RIU Ahungalla is my destination of meal desire. Throughout service delivery between
customers and organization that consists of different level of services which is high-contact
services and low-contact services.
Significant characteristics of low and high contacts can be state as follow.
High contact service

Customer will remain

Low contact service

Little or no physical contacts

Contact is much closer as it

throughout the service is


delivered

Active contact

happens via electronic or


technology

Includes most people

Facilitated by new technology

processing services

Differences of Consumer behavior in service encounters based on the Three Stage Model

RIU Ahungalla has 5 main restaurants namely;

"Riti Panna" main restaurant.


"Ceylon" main restaurant.
"Kaori" Asian restaurant.
"La Forchetta" Italian restaurant.
"Saute" beach restaurant/ Barbecue.

These restaurants provide the best food choices not in Ahungalla but in whole southern province.
RIU providing high-contact service on their environment and the facilities to their customers. Yet
we can identify some low- contact services like customer undertake the self service on
beverageetc.
During the service delivery, the customer will start evaluating the quality of service they are
receiving and deciding whether its services meet their expectation. In this case customer evaluate
the food and beverage that they receive from RIU hotel and decide whether its services meet their
expectation.
The concept of theater metaphor in RIU can be described as follow.
Elements of drama

Actor/actress

Costume

Examples from Hemas Hospital


Receptionist, Room Boy, Stewards, Cleaners, Chefs,
Barman, Gardeners
Sarees for receptionist, Shirt and trouser for Stewards
and barman

Dialogues

Formal Polite words

Script

Menu

Stage

Hotel

As a very large hotel RIU Ahungalla provide almost all variety of foods to its customer. The RIU
Ahungalla as a worldwide chain is providing the best facilities to attract customer such as crystal
clear pools, gym, BBQ, and free Wi-Fi access.

Differences of Consumer behavior in service encounters based on the Three Stage Model

Post Purchase Stage


During this stage, we will evaluate the service performance that we have received and compare it
with our prior expectations.
Post purchase produce satisfaction and loyalty, which are aim of most marketing strategies. The
product is evaluated to dissatisfaction or satisfaction. If it is satisfaction, loyalty may perform
and the customer is committed to the service. If it is dissatisfaction, customer may complain. The
complaints must be handling properly to reserve dissatisfaction.
Comparison of the RIU Ahungalla service performance with our received and prior expectations,
it satisfies the expectations. Whatever it is cheaper than Aman Galla and Light House Galle and it
provide the tasty foods service with the best behavior of their employees, comfortable and graceful
environment. Therefore, we are satisfaction its employees' service behavior and the authentic fresh
environment provided.
Customer's satisfaction is a purpose of the proximity between the customer's expectations and the
service's perceived performance.
If the performance is below the customer's expectations, then the customer will be dissatisfied and
will suffer the consequences resulting from the mismatch. Dissatisfied customers tend to find
another supplier. Although the RIU Ahungalla as a world class hotel it satisfies the almost all
customer expectations. Since RIU Ahungalla is the first hotel in Asia content they are doing
massive price hopping these days. Therefore, customers can have 5 Star meal at 3 Star Price.
Dissatisfaction is the feeling experienced by a customer whose expectations have not been met by
a service. However, the purchase has resulted in complete dissatisfaction and goods returning are
not probable, this strategy is to hide the good away in an attempt to forget about the purchase. On
the other hand, word-of-mouth plays an important role in the advertising.
Purchase satisfaction is the ultimate goal of marketing. According to the Lovelock and Wirtz It
results when perceptions of product performance match expectations that are at, or above, the
minimum desired performance level. It happens when the purchase expectations are fulfilled; there
is a tendency for customers to repurchase and loyalty to the services. Repeat purchase is a pattern
of customer behavior that involves the purchase of the same product or services over time.
If the services meet the needs, satisfaction is likely to result. In the other round, if the expectations
are not meet, dissatisfaction is being experiences.
When it comes to RIU Ahungalla I am highly satisfied about the services provided by RIU Hotel.
It provides the delicious food. In addition, it is a great place for a quiet retreat to get away from
busy city life and feel the sea breeze in golden sands in down south. Due to the perfect location
and heavenly food a one who has stepped in to RIU Ahungalla will definitely come again.

Differences of Consumer behavior in service encounters based on the Three Stage Model

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DIFFERENCES OF CONSUMER BEHAVIOR IN SERVICE


ENCOUNTER Hemas Hospital
Pre Purchase Stage

Healthiness of a person is the utmost benefit that any living being can gain. Hemas Hospital is on
the business of providing better health services to its customers. A person could feel heart pain and
doctors may say to him to carry a heart surgery to get cure. This simple example could be explained
as the arousal of need. In other words, under going in the surgery is the need arousal of PrePurchase stage.
Under the Information search stage patient would seek possible hospitals to carry on his
operation. This kind of operation is a struggle between life and death. Therefore, choices should
be made more wisely. To make a wise decision we needed to have information. In this stage
customer seek the information about the hospitals, its standards, qualification of doctors and their
experiences and of course the price of the operation too. When it comes to an operation most of
the time we ask information from a person who has already undergone in same type of operation.
We clarify our messy points from these things.
Apart from information search and awareness of our needs in consumption service, at pre-purchase
stage, we also Evaluate Alternatives Search. We have couple of choices of hospitals to
Undergone in surgery. Lanka Hospital, Durdands Hospital, Asir Hospital are some of hospitals
that came up to mind.
Due the well experience doctor panel, friendly staff and low cost surgery plans Hemas hospital
become the most suitable choice of almost all. Therefore, Hemas would be the Purchase Decision.

Differences of Consumer behavior in service encounters based on the Three Stage Model

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Service Encounter Stage


The next stage is a service encounter stage which happens when the customer uses the service.
Service encounters range from high contact to low contact according to the industry of each
company. It is very important for service providers to observe or notice consumers at this stage in
order to understand and arrange pleasant market offerings to customers during encounters.
Throughout service delivery between customers and organization that consists of different level of
services which is high-contact services and low-contact services. Hemas providing high-contact
service on their environment and the facilities to their customers.
Because to carry out a surgery it is compulsory to patient physically appear in the hospital theater
room. Yet we can identify some low- contact services like customer undertake the reports online,
channel the doctoretc.
During the service delivery, the customer will start evaluating the quality of service they are
receiving and deciding whether its services meet his expectation. In this case customer/patient
decide whether the operation made his pain cured or not and the surgery meet his expectation.
As a very large hospital chain in Sri Lanka Hemas provides extraordinary service to all their
customers in inexpensive manner.
In service Encounter stage we can identify vey special criteria namely Theater as a metaphor for
service delivery. As William Shakespeare sated All the worlds 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. We can extract the same context to the Hemas Hospital like below.
Elements of drama

Actor/actress

Costume

Examples from Hemas Hospital


Doctors, Nurses, Pharmacists,
Receptionists
Cloaks for doctors, Sarees for
receptionists

Dialogues

Formal words

Script

Reports

Stage

Hospital Theater Room

Differences of Consumer behavior in service encounters based on the Three Stage Model

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Post Purchase Stage


This is the stage after consumer use the service. Customer will evaluate the service performance
that we have received and compare it with their expectations. The service is evaluated to
dissatisfaction or satisfaction. If it is satisfaction, customer would be happy and give the satisfied
information to other customers who are willing to undertake same surgery. If it is dissatisfaction,
customer may complain and negative image can be build towards the hospital and also the doctors
who have done the operation.
Hemas Hospital service performance with the received and prior expectations, it satisfies the
expectations. Whatever it is cheaper than Durdands and it has the most qualified doctor panel from
nearby hospitals.
If the performance is below the customer's expectations, then the customer will be dissatisfied and
will suffer the consequences resulting from the mismatch. In this case Dissatisfied customers tend
to find another hospital. Hemas as a well reputed chain Sri Lanka has build up a great name and
connection between its customers throughout decades. All the hospitals in Hemas chain coveted
ACHSI Australian Council for Healthcare Standards International Accreditation which provides
patients with international standards in terms of service, systems, processes and technology.
Dissatisfaction is the feeling experienced by a customer whose expectations have not been met by
a service. However, if the heart surgery failed theres only less than 10% chance to live. If
something bad happen definitely the reputation of the company would be harmed. Patients tend to
seek different hospitals to do their surgeries and they spread the bad word do not to go to that
hospital.
We have to make sure that Purchase satisfaction is the ultimate goal of marketing.
If the services meet the needs, satisfaction is likely to result. In the other round, if the expectations
are not meet, dissatisfaction is being experiences. When it comes to Hemas Hospital all most all
the patients/customers are highly satisfied about the services, surgeries, medical treatments
provided by them.

Differences of Consumer behavior in service encounters based on the Three Stage Model

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Conclusion
Before entering into a final service purchase decision, as an educated consumer we should through
the three-stage model of service consumption before buying or using the service of our choice.
We start to be critically aware of our needs and want. We enable a further implementation of
information search and alternative evaluation in pre-purchase stage. After that, we enable
consideration into decision making process in e next stage namely, service encounter. During the
service encounter stage, we will request service from our chosen supplier and service delivery. In
this assignment I have chosen RIU Ahungalla and Hemas Hospital. After service encounter, the
customers then enter the post-purchase phase. At post-purchase stage, customers evaluate the
service performance they have received and compare it with their prior expectations. Finally, the
customers will make a future intention whether they loyalty or disloyalty on their chosen supplier.
As a conclusion of RIU Ahungalla, it is a 5-star hotel and a spa. It provides the service of their
customers needs and wants. In future intention, almost all customers who step into RIU will be
going there frequently.
Hemas Hospital as a conclusion is well reputed chain in Sri Lanka. They give unique attention to
each and every patient. I have chosen undergoing in a heart surgery to express an idea about three
stage model. Therefore, a customer who has done heart surgery in Hemas would be highly satisfied
about the quality of the treatments and he would definitely spread the good news about Hemas.

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