The document outlines the purchase model for services, including the pre-purchase, service encounter, and post-purchase phases. In the pre-purchase phase, factors that influence purchase decisions are discussed, including individual needs, past experience, expectations, and involvement level as internal factors, and competitive options, social context, and word-of-mouth as external factors. The document also discusses the different types of risks in purchase decisions - performance, financial, time loss, opportunity, psychological, social, and physical - and strategies to reduce the uncertainty and consequences of each risk type. Finally, the post-purchase phase and future customer behavior based on service quality evaluation and satisfaction or dissatisfaction are summarized.

1. 8/8/2011
Amity Business School Amity Business School
Purchase Model for Services
Amity Business School
• Pre-Purchase
Phase
Purchase Decisions in Services
Prof. P K Bansal
• Service Encounter
• Post-Purchase
Phase
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Pre-Purchase Phase Internal Pre-Purchase Phase External
Factors Factors
• Individual needs and • Competitive options
wants • Social context
• Past experience • Word-of-mouth
• Expectations communications
• Involvement level
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Pre-Purchase Phase Firm- Pre-Purchase Phase Risk
Produced Factors Types Components of
• Promotions Each type
• Performance
• Pricing • Financial • Uncertainty
• Distribution • Time loss • Consequence
• Opportunity
• Psychological
• Social
• Physical
Prof. P K Bansal 1

2. 8/8/2011
Amity Business School Amity Business School
Strategies to Reduce performance Risk Strategies to Reduce Opportunity Risk
Uncertainty: Certification, branding, communications Uncertainty: Branding
Consequences: Quality control standards & procedures, Consequence: Quality control standards & procedures
warranties
Strategies to Reduce Financial Risk Strategies to Reduce Psychological & Social
Uncertainty: Trial purchases, sampling, promotional Risk
incentive Uncertainty: Branding, communications
Consequences: Guarantees Consequences: Quality control standards & procedures
Strategies to Reduce Time Loss Risk Strategies to Reduce Physical Risk
Uncertainty: Branding Uncertainty: Instruction, communications
Consequence: Compensation offers Consequence: Safety standards
Post-Purchase Phase Future Behavior
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• Evaluation of Service Quality • Satisfied Customers
– Technical quality – Repeat purchases
– Functional quality – Firm loyalty
– Global evaluation of past – Positive word-of-mouth
experiences communications
• Satisfaction or Dissatisfaction • Dissatisfied Customers
– Measure of last service – Only 1 out of 25 complain
experience – Firm-switching behavior
– Based on service quality – Negative word-of-mouth
evaluation communications
– Based on past experiences
Prof. P K Bansal 2