How Consumer choose and evaluate services

Services possess high levels of experience and credence properties,which in turn make them challenging to evaluate, particularly prior to purchase. There are three stages of consumer behavior for services, and it looked at how experience and credence properties result in challenges and opportunities in all three stages.
The three stages are:
(1) Consumer choice ( including need recognition, information search, evaluation of alternatives, and service purchase)
(2) Consumer experience.
(3) Consumer post experience evaluation.

HP Gas - "Promise Yahi Weight Sahi"

Hindustan Petroleum Corporation Limited (HPCL) is the second largest LPG marketing company with over 16 million  consumers serviced through a network of 1823 distributors across the India. In view of fast changing market dynamics and shift from seller's market to buyer's market, HP Gas has taken new initiative to build brand image by increasing focus on customers needs and expectations.
Consumer expectations are not only to receiving refills on time, but also cover value added services.
HP Gas now offers distinct set of value added services to its customers. Delivery of cylinders is assured within 24 hours and delivery timing have been extended from 8 am to 8 pm on all seven days in a week. Installation of a new connection is done within 24 hours.
HP Gas has computerized the entire distribution network making it convenient for consumer to book refills through internet etc.
Customer not only look for timely delivery of refilled cylinders but expect the cylinder to contain the right quality of gas. HP Gas first time in India , provided the option of checking the weight of gas cylinder right at the doorstep of the customers. Every delivery man carries a weighting scale for this purpose.
They are building a strong market share through greater customer satisfaction.

Service Quality Gaps...

Customer Gap:difference between customer expectations and perceptions

Provider Gap 1:not knowing what customers expect.

Provider Gap 2:not having the right service designs and standards.

Provider Gap 3: not delivering to service standards.

Provider Gap 4: not matching performance to promises. 

IKEA has done an excellent job of closing all four provider gaps. The company's supplier network is carefully chosen and managed to ensure quality and consistency. Despite the fact  that the company has stores in more than 20 countries, it keeps standards, designs, and approaches very consistent everywhere, thereby reducing gap2.  
Indoor and outdoor physical environment are unique and customer focused further closing gap2.
IKEA is also well known for its strong employee culture and careful hiring and training, factor that help reduce gap3.
Its innovative service concept that involves customers in the delivery,assembly and creation of its products. To accomplish this service,the company educates its customers thoroughly with its script like catalogs, thereby helping to close gap4.

LIC bets on customer service to stay ahead..

With almost two dozen players fighting for new customers, life insurance market in India has become extremely competitive. Yet, Life Insurance Corporation (LIC), the market leader, has been able to increase its market share from 61 per cent to 65 per cent last fiscal.

According to Mr D.K. Mehrotra, Managing Director, LIC, providing the best of products and services to customers is the key to maintaining market share.

In India, insurance is still a push product. LIC have not reached that level of financial literacy where customers will buy policies on their own. Policies still have to be sold. And the intermediary needs some remuneration for selling the product.

They started the ‘direct channel' last August. This online service was aimed at tech-savvy people who have little time to visit branches.

The first step is ‘lead generation'. When the customer shows interest, it is captured by the server and is passed on to the direct sales executive who approaches the customer. It is a virtual office for the customer.

The Changing Face of Customer Service

Excellent customer service - the daily, ongoing support of a company's offerings- is critical in creating brand identity and ultimate success. It includes answering questions, taking orders, dealing with billing issues, handling complaints, scheduling appointments, and similar activities. These essential function can make or break an organization's relationships with its customers.
The quality of customer care can significantly impact brand identity for service, manufacturing, and consumer products companies. Because of  its importance in creating impression and sustaining customer relationship, customer service has sometimes been called the "front door" of the organization or its "face."

Service Marketing.....

The fact that services dominate the modern economies of the world; the focus on service as a competitive business imperative; specific needs of the deregulated and professional service industries; the role of new service concepts growing from technological advance and the realization that the characteristics of service result in unique challenges and opportunities.

A broad definition of services as deeds, processes, and performance.

The basic characteristics are the services are intangible, heterogeneous, produced and consumed simultaneously, and perishable(cannot be return or resold). Because of these characteristics, service managers face a number of challenges in marketing, including the complex problem of how to deliver quality services consistently.

Service Marketing.....

"Service includes all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced & provide added value".

Categories of Services

Service Industries & Companies: All those companies whose core product is service. For example- Hotels, Airways, LIC etc.

Services as Products: Those intangible product offerings that customers value and pay for in the marketplace. For example- IT consultancy services, departmental store services.

Customer Service: The support services provided with the core product by the company is termed as customer service. For example- Services provided on phone, Internet or in person at no extra charge. (BPOs)

Derived service: Charged support service like maintenance and repairs.