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Consumer Behavior in Service Industries
25
Flashcards
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Intangibility
Customers can't evaluate services before purchase, leading to increased reliance on reputation and reviews.
Inseparability
Consumers are often involved in the production process, affecting their expectations of personalization and involvement.
Heterogeneity (Variability)
Service inconsistency can lead consumers to seek assurances of quality, like guarantees and brand reputation.
Perishability
Inability to store services heightens the importance of timely usage, possibly changing peak times demand.
Lack of Ownership
Consumers don't own services, leading to expectations of access over ownership and potential subscription models.
Customer Service
Quality of customer service strongly influences brand loyalty and willingness to recommend a service to others.
Customization
Consumers expect services to be adaptable to their needs, influencing the desire for bespoke experiences.
Transparency
Clear information about services fosters trust and confidence, potentially reducing perceived risk.
E-Service Quality
Online service standards influence consumer expectations for convenience and flexibility in digital transactions.
Experience Economy
Consumers prioritize experiences leading to expectations for memorable and shareable service interactions.
Price Sensitivity
The cost of services can significantly impact consumer choice, loyalty, and perceptions of value.
Time Sensitivity
Consumers expect quick service delivery, affecting time-based competition among service providers.
Social Proof
Consumer reliance on reviews and testimonials affects their service expectations and choice.
Risk Perception
Consumers perceive higher risk in services, leading to more deliberate decision-making and demand for assurances.
Accessibility
Ease of accessing service influences consumer preferences and can dictate market dominance.
Sustainability Concerns
Increasing consumer awareness about sustainability influences expectations of eco-friendly practices in service provision.
Service Failures and Recovery
Consumers expect competent recovery strategies, affecting loyalty and post-purchase behavior.
Empathy
Consumer expectations are shaped by the level of empathy demonstrated by service providers, affecting perceived quality.
Technological Integration
The use of technology in service delivery affects consumer expectations for convenience and modernization.
Ethical Practices
Consumer behavior is increasingly influenced by the ethical standing of companies, affecting loyalty and advocacy.
Word of Mouth
Referrals and recommendations from others have a significant impact on consumer attitudes and service selection.
Loyalty Programs
Reward schemes influence consumer behavior towards repeat purchases and can generate a sense of belonging.
Service Guarantees
Providing service guarantees can reduce uncertainty and enhance consumer confidence in service selection.
Responsiveness
The speed and quality of responses to consumer inquiries shape expectations and perceptions of efficiency.
Service Personalization
Consumers increasingly expect services to reflect their individual preferences, affecting customization demands.
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