Question-   The Three-Stage Model of Service Consumption

Solution-

Question 1

 

The Three-Stage Model of Service Consumption is a conceptual model that is used for

understanding the consumer decision making process when dealing with service related

decisions.

Pedro, a student, is planning to enroll at a new fitness center for health purposes. In his quest

to find a suitable fitness center, he realizes that there are many alternatives available for him.

When it comes to evaluating alternatives amongst services, there are a few Service Attributes

that may cause consumers to make better decisions.

State the THREE (3) types of service attributes that are present when dealing with service

alternatives. Please include examples.

 

Answer for Question 1

 

The three main types of service attributes are search, experience, and credence. Regarding the search attribute, it revolves around both intrinsic and extrinsic features that cater towards an overall review of the product before the purchase of the product. The customers can inspect the quality and evaluate the product which allows them to gather the needed information before purchase. Customers will have access to both first and secondhand data which will allow for a more efficient evaluation of the product, this opportunity allows for the customer to have a larger range of choices before a decision is implemented as products can be compared to other alternatives. An example of search attribute can be the customer looking for Laptop who will look into various stores such as Lenovo, ASUS, DELL and many more to gather information before the purchase of the product. 

Moving on, the Experience attribute relies on the customer to purchase the product to assess and evaluate the quality of the product. Experience usually revolves around the service type of businesses such as restaurants, salons, and theme parks. Unlike the Search attribute, information concerning the experience goods cannot be easily attained before the purchase of the product. Customers would need to purchase the product to experience the service for the customer to be able to evaluate. An example of this is usually in terms of personal service, a restaurant is evaluated based on the quality of the meal served.

Lastly, in terms of the three Credence attribute is the most difficult to evaluate as the customer are unable to evaluate before and after consumption. Credence services require the need of professionals to be able to evaluate the product due to the complexities involved. Average customers lack the abilities in performing the needed evaluation to determine the quality of the product consumed. The lack of information on the product creates an information asymmetry which leads to a lack of certainty in the evaluation. An example of Credence goods usually revolves around the reliance on professionals. To determine his taxes a customer will seek the help of a tax consultant for his evaluation.

Question 2

 

The Servuction model is a conceptual model used to elaborate the many interactions that

happen during the service encounter stage. Starbucks Corporation is an American coffee

company and coffeehouse chain that is extremely popular in Malaysia.

Assume that you are a consumer patronizing Starbucks and you encounter various

interactions during your experience in the facility.

State with examples, on how the Servuction Model may be utilized at Starbucks. In your

explanation, include the FOUR (4) elements that encapsulate the model.

 

Answer for Question 2

 

The 1st element that will be discussed is the “Servicescape”. This element mainly revolves around all the physical evidence features that have been utilized to create the service environment. To put it into simpler words, it is obviously visible to customers and composed of all ambient surroundings such as music, business equipment, accessories/furnishes such the chairs, tables etc, and the inanimate objects that help the business in getting the job done. In the case of Starbucks making sure the air-conditioner is set at a comfortable setting for the customers, their willingness to adjust to any special request that a customer might make, offering a variety of hot and cold beverages of not only coffee but also tea and fruit drinks, having snack refreshments as they know each customer have a different taste, the coffee makers that make the hot-brewed drinks.

 

Moving onto the 2nd element is contact personnel/service providers. Service providers are the primary provider of the main service, such as instructor in a gym or college or any other form, waiter, physician or even a dentist. Contact personnel are the staff beside the primary providers that get to socialize and communicate with the customer, usually being polite and giving off a nice and friendly personality, they try to remember regular customers, give them info about new item launches and have them try out taste sessions for new products and inquire feedback from customers to make sure that they are enjoying their time. In Starbucks, we can see this as the staff ask for your name to write on the cup, asking customers what else they might want besides the beverages, asking customers if they will be having here or takeaway, asking them if they want the free wifi password, etc.

 

3rd element is other customers. Other customers involve the presence of the people besides individual consumers that have come to experience the service or may have experienced the service in the past. They play a profound role in the individual’s overall service experience. Usually, other customers of Starbucks include the presence of other coffee lovers, friends/collogues, family members who might be frequent Starbucks/coffee consumer who has experienced such services before.

 

The final element is the invisible organization and systems. As we know the Servuction Model is a model that is implemented to highlight factors that will impact the service experience, including things that might visible or invisible to the customer. The invisible parts are comprised of the invisible systems within the organizations such as the processes, the rules and the regulations that are the basis of every organization. They may be not visible to the consumers, but they have a very integral effect on the service experience. The model consists of four components that are combined to produce the experience for the customer and this exact experience generate the bundle of satisfaction for the customer. In the case of Starbucks, staff are expected to come half an hr before they start opening the stores, to clean and organize the place. They need to decide the shifts for each employee, give training to their staff members to improve the overall customer’s experience and satisfaction, making sure the stuff in the checklist is done such as availability of items, hygiene and cleanliness etc.

 

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