The Consumer Purchase Process For Services

The Consumer Purchase Process for Services
Dr. Karim Kobeissi Lebanese University- 2013
The Consumer Purchase Process for Services
How do consumers of services make purchase decisions? The CPPS represents a road map of consumers minds that marketers and managers can use to help guide marketing mix and sales strategies.
COPYRIGHT 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
The Consumer Purchase Process for Services The CPPS consists of three separate stages the prepurchase stage, the service encounter stage, and the postpurchase stage, each containing two or more steps.
The Consumer Purchase Process for Services Model

Need Recognition Information Search
Define needs Explore solutions Identify alternatives service suppliers Prepurchase Stage
Evaluation of Alternative Service Suppliers

Review documentation (e.g., advertising, brochures, Web sites, etc.) Consult with other people (e.g., friends, family, other customers, etc) Visit possible service suppliers; speak to personnel.
Request Service from Chosen Supplier (or initiate self service)
Service Encounter Stage
Service Delivery Evaluation of Service Performance

Postpurchase Stage COPYRIGHT 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are
trademarks used herein under license.
Future Intentions
Need Recognition
Need Recognition
A need may be noticeable in response to either an internal (e.g., hunger, thirst, pain) or external stimulus (e.g., sale promotion). In general, individuals have learned to fulfill their needs.
CPPS Model
Situational Stimuli - Purchase task - Antecedent state - Social surrounding - Physical surrounding - Temporal effects
Sociocultural Stimuli - Culture - Social Class - Family - Friends
Need Recognition
Marketing Mix Stimuli - Place - Promotion - Price & other user costs - Product elements - People - Process - Physical evidences - productivity & Quality
Psychological Stimuli - Motivation - Knowledge - Perception (Hunger, thirst, pain..) - Personality, Values, and Lifestyle
Need Recognition
The customers need is linked to the perception of a gap between a desired state and the current state. It is not an absolute and objective standard but a perceived gap where subjectivity plays an important role. If the perceived gap is low, below a certain threshold, the need will be inactive.
Need Recognition Information Search
Information Search
Internal search: It is she who is first activated, just after the recognition of the need. This research is performed in the client own memory where he tends to identify all relevant information to the subject. External search: It's called prior research to purchasing. The first motivation is the desire to make the best choices of consumption. The customer might seek information from personal (friends, family, peers, etc.) or impersonal sources (e.g. brochures, ads, web sites, etc.).
CPPS Model Need Recognition
Situational Stimuli Internal Search Information Search Psychological Stimuli
Sociocultural COPYRIGHT 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are Stimuli trademarks used herein under license.
M E M O R Y
External Search
Marketing Mix Stimuli
Information Search
If the purchase is routine (e.g., buying a pizza) and relatively low risk, customers may move quickly to selecting and using specific service provider. But when the purchase is complex or the service is about to be used for the first time (e.g., applying to graduate school), customers may conduct an intensive information search.
The Consumer Purchase Process for Services Model Need Recognition Information Search Evaluation of Alternatives Service Suppliers
Evaluation of Alternative Service Suppliers The process of evaluating alternative service suppliers identified from the search. It leads to choose a specific supplier to fulfill the customers need.
CPPS Model
Need Recognition Internal Search External Search Evaluation of Alternative Service Suppliers
M E M O R Y
Information Search
Socio-cultural Stimuli
Psychological Stimuli
Situational Stimuli

In this step: 1) Selection of the customers criteria Among the many possible choosing criterion or standard, the client retains only a few that he considers as important (e.g. price, quality). Defining the set of possible offerings Based on the preselected customers criteria, a set of possible offerings is defined. Selection of a decision rule Performed in a compensatory logic or not, and only according to the expectations and priorities of the client.
2)
3)

After concluding the information search, the purchase intention may change during this step. In fact, the purchase can be influenced by factors such as failure to find the service, lack of financial resources, or risks. The element of perceived risk is especially relevant for services that are high in experience or credence attributes and thus difficult to evaluate prior to purchase and consumption. Risk perceptions reflect customers judgments of the probability of a negative outcome. Different types of perceived risks can be enumerated : - Functional Risk (unsatisfactory performance outcomes) - Financial Risk (monetary loss, unexpected costs) - Temporal Risk (wasting time, consequences of delays) - Physical Risk (personal injury or damage to possessions) - Psychological Risk (personal fears and emotions) - Social Risk (how others think and react) - Sensory Risk (unwanted impacts on any of the five senses)

Need Recognition Information Search Evaluation of Alternative Service Suppliers Request Service from Chosen Supplier (or initiate self service)
Request Service from Chosen Supplier Service demand from a specific supplier.
CPPS Model
M E M O R Y
Information Search
Situational Stimuli
Request Service from Chosen Supplier After deciding to purchase a specific service, customers experience one or more contacts with their chosen service provider. These moments of truth in the service encounter often begin with submitting an application, requesting a reservation, or placing an order. Contacts may take the form of personal exchanges between customers and service employees or impersonal interactions with machines or computers.

Need Recognition Information Search Evaluation of Alternative Service Suppliers Request Service from Chosen Supplier (or initiate self service) Service Delivery
Service Delivery
Deliverance of the service by the chosen supplier.
CPPS Model
M E M O R Y
Information Search

Service Delivery
Situational Stimuli
Service Delivery In high contact service, such as restaurants, healthcare, hotels, and public transportation, customers may experience a variety of elements (service environments, service personnel, service processes) during service delivery, each of which has the potential to provide clues to service quality. Service personnel are the most important factor in most high contact service encounters, where they have direct, face to face interactions with customers, but they can also affect service delivery in low contact situations, as in telephone based service delivery.

Evaluation of Service Performance
Evaluation of Service Performance The consumer assess the service functioning and quality.
CPPS Model
Need Recognition Internal Search External Search
M E M O R Y
Information Search Evaluation of Alternative Service Suppliers

Satisfaction
Service Delivery Evaluation of Service Performance Situational Stimuli
Dissatisfaction
Evaluation of Service Performance During the postpurchase stage, customers continue a process they began in the service encounter stage evaluating service quality and their satisfaction or dissatisfaction with the service experience. Customers evaluate service quality by comparing what they expected with what they received. If their positive expectations were met or exceeded, then these customers are satisfied. In contrast, if the customers positive expectations were not met, then they are dissatisfied. Cognitive dissonance: questioning the purchase decision (post-purchase regret). Usually, the higher the price, the higher the level of cognitive dissonance

Evaluation of Service Performance Future Intentions

Future Intentions The outcomes of the evaluation of the service performance affect the consumers future intentions, such as whether to remain loyal to the provider that delivered the service and whether to pass on positive or negative recommendations to family members and friends.
CPPS Model
Need Recognition Internal Search External Search
M E M O R Y
Information Search Evaluation of Alternative Service Suppliers

Satisfaction
Service Delivery Evaluation of Service Performance Situational Stimuli
Dissatisfaction
Future Intentions
Future Intentions Satisfied customers are more likely to make repeat purchases and become loyal customers. However, dissatisfied customers may complain about poor service quality, suffer in silence, or switch provider in the future.

The Consumer Purchase Process For Services

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The Consumer Purchase Process For Services

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The Consumer Purchase Process for Services

Dr. Karim Kobeissi Lebanese University- 2013

The Consumer Purchase Process for Services

The Consumer Purchase Process for Services Model

Evaluation of Alternative Service Suppliers

Request Service from Chosen Supplier (or initiate self service)

Service Encounter Stage

Service Delivery Evaluation of Service Performance

The Consumer Purchase Process for Services Model

Sociocultural Stimuli - Culture - Social Class - Family - Friends

The Consumer Purchase Process for Services Model

Need Recognition Information Search

CPPS Model Need Recognition

Situational Stimuli Internal Search Information Search Psychological Stimuli

Marketing Mix Stimuli

Marketing Mix Stimuli

Evaluation of Alternative Service Suppliers

Evaluation of Alternative Service Suppliers

The Consumer Purchase Process for Services Model

Request Service from Chosen Supplier (or initiate self service)

Marketing Mix Stimuli

The Consumer Purchase Process for Services Model

Request Service from Chosen Supplier (or initiate self service)

Marketing Mix Stimuli

The Consumer Purchase Process for Services Model

Evaluation of Service Performance

Need Recognition Internal Search External Search

Information Search Evaluation of Alternative Service Suppliers

Marketing Mix Stimuli

Service Delivery Evaluation of Service Performance Situational Stimuli

The Consumer Purchase Process for Services Model

Evaluation of Service Performance Future Intentions

Need Recognition Internal Search External Search

Information Search Evaluation of Alternative Service Suppliers

Marketing Mix Stimuli

Service Delivery Evaluation of Service Performance Situational Stimuli

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