Purchase Process for Services

The purchase process is defined as the procedure for buying goods and services. The purchase process varies from one business to another business, goods to services, but the main objectives and stages remain the same for all types of purchases. When a purchase intention is developed to an unfilled need, the purchase process begins. The purchase process goes through three main stages; the pre-purchase stage, the encounter stage and the post-purchase stage.

Pre Purchase Stage of Service

After realizing the needs to be filled, the customer enters the pre-purchase stage, where the customer tries to find alternatives to meet needs and expectations, measures benefits and risks, and makes a purchase decision. The customer makes quick decisions in purchasing routine and relatively low-risk services. However, an intensive information search is conducted in the case of a first-time buyer and risky purchase of services.

The pre-purchase stage includes the following activities:

1. Awareness of the need
2. Information search; includes defining needs, exploring solutions, and identifying alternative service suppliers.
3. Evaluation of alternative service suppliers; includes reviewing documentation, consulting with experts, and visiting service suppliers.

Perceived Risk Reduction Strategies by the Customers:

• Collecting information from personal networks
• Finding companies with a good reputation
• Knowing about guarantee and warranty details
• Conforming service facilities and understanding conditions and costs related to service.
• Examining the expertise of employees in service delivery.
• Conforming the tangible cues or other physical evidence
• Gathering information from online platforms to compare service offerings.

Service Encounter Stage

The service encounter stage is where customers experience contact from service providers and collect clues about service quality. The service encounter stage includes two main activities; request service from a chosen supplier and service delivery.

The factors influencing the success of service encounters are:

1. Service environments:  tangible characteristics, the appearance of the building, physical evidence, and the behavior of other customers influence expectations and perceptions of service quality.
2. Service personnel: The employees who deliver the service have a crucial role in service encounters. The knowledge, communication skills, personality, and competencies of the service personnel influence the success of service encounters.
3. Support services: The facility to provide support services is essential to make the service encounter successful. Materials, equipment, and backstage processes to support front-stage employees are vital in ensuring support services.
4. Other Customers: Customers often find themselves near other customers during service delivery. The behavior and lifestyle of other customers influence the decision-making of a customer.  

Post-purchase Stage

The post-purchase stage is the phase where customers evaluate the service quality by analyzing the gap between the expected value and perceived value. The lesser gap causes satisfaction, and the higher gap causes dissatisfaction. Customers become loyal when the perceived value is higher than the expected value. Based upon the post-purchase analysis, the customer decides on future intentions and positive public mouth. 

The post-purchase stage includes two main activities; 

1. Evaluation of service performance.
2. Future intentions to buy. 

Key Terms:

Consumer Decision Process: The series of steps or stages that individuals go through when making a purchase decision, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.

Commercial Cue: Stimuli related to marketing efforts, such as advertisements, promotions, or sales messages, designed to influence consumer behavior and decision-making.

Social Cue: External cues derived from social interactions, peer influence, or cultural norms that shape consumer preferences and choices.

Physical Cue: Tangible or visible cues present in the environment, such as product packaging, store layout, or product displays, that influence consumer perceptions and behavior.

Information Search: The process by which consumers gather information about products or services to inform their purchase decisions, which can involve both internal (memory) and external (research) sources.

Problem Awareness: The recognition by a consumer that there is a gap between their current state and a desired state, prompting the need for a solution or product.

Unfulfilled Desire: A feeling of lacking or wanting something that motivates consumers to seek out products or services that can satisfy their desires.

Internal Search: The process of retrieving information from memory or personal experiences to evaluate options and make a decision.

External Search: The process of seeking information from external sources, such as friends, family, reviews, or advertisements, to gather information about products or services.

Evaluation of Alternatives: The stage in the decision-making process where consumers assess the attributes and benefits of different options to determine which best meets their needs or preferences.

Linear Compensatory Approach: A decision-making model where alternatives are evaluated based on multiple attributes, and a high rating on one attribute can compensate for a low rating on another.

Lexicographic Approach: A decision-making model where alternatives are ranked based on the most important attribute, with the option scoring highest on that attribute chosen, regardless of performance on other attributes.

Cognitive Dissonance: The discomfort or psychological tension experienced by consumers after making a purchase decision, particularly when they perceive a gap between their expectations and the actual product or service performance.

Financial Risk: The potential loss or financial impact associated with a purchase decision, including the cost of the product or service and any potential future expenses.

Performance Risk: The risk that a product or service may not perform as expected or fail to meet the consumer's needs or standards.

Physical Risk: The risk of personal harm or injury associated with using a product or service, such as safety concerns or health risks.

Social Risk: The risk of social consequences or negative judgments from others associated with a purchase decision, such as embarrassment or loss of status.

Psychological Risk: The risk of experiencing negative emotions or psychological discomfort as a result of a purchase decision, such as regret or guilt.

Experience Attributes: Product or service attributes that can only be evaluated after purchase and use, based on the consumer's firsthand experience, such as taste, performance, or reliability.

Credence Attributes: Product or service attributes that are difficult for consumers to evaluate even after purchase and use, often requiring trust in the expertise or reputation of the provider, such as medical services or legal advice.

Switching Costs: The costs, both financial and non-financial, associated with switching from one product or service provider to another, which can include time, effort, and inconvenience.

Expectancy Disconfirmation Theory: A theory that suggests satisfaction or dissatisfaction with a product or service is determined by the discrepancy between expectations and perceived performance.

Perceived-Control Perspective: A perspective that emphasizes the importance of perceived control in consumer decision-making, suggesting that individuals are more likely to choose options that they believe they can control or influence.

Script Perspective: A theoretical framework that views consumer behavior as guided by pre-existing mental scripts or schemas, which shape expectations, preferences, and decision-making processes.

Script Congruence: The degree to which a consumer's experience aligns with their pre-existing mental scripts or expectations, influencing satisfaction, and future behavior.

References:

1. Hoffman, K. D., & Bateson, J. E. (2016). Services marketing: concepts, strategies, & cases. Cengage learning.

2. Lovelock, C., & Patterson, P. (2015). Services marketing. Pearson Australia.

3. Hamza, V. K., & Saidalavi, K. (2014). A study on online shopping experience and customer satisfaction. Advances In Management, 7(5), 38-44. 

4. k saidalavi, pt misab, & k rasheed. (2020). Effect of E-Servicescape Aesthetics on Pleasure, Arousal and Purchase Intentions; an Empirical Analysis. Journal of Critical Reviews, 7(16), 3606–3615. https://doi.org/10.31838/jcr.07.16.460