3 stage model

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Differences of Consumer behavior in service encounters based on the Three Stage Model

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The three-stage model of service consumption con sumption is a customer decision making process of the service purchasing. There are three stages of the purchase process for service which are as follows: • • •

pre-purchase stage. service encounter stage. post-encounter stage.

Throughout this assignment I have tried to express the greater amount of knowledge about the Three stage mode introduced by the Lovelock & Wirtz.

As a well reputed hotel RIU Ahungalla offers services like accommodation, restaurants, entertainment, amusement. Hemas Hospital as a well known hospital in the heart of southern province offers variety of services to its customers. customers. In this assignment I choose the food and beverage be verage sector in the service consumption which is based on people processing service. This is a common sector on worldwide. It is the daily routine and needs for everyone. In this sector, different peop le have different tastes of food, so it will split into different food and beverage sector such as Western, Chinese, Japanese, Korean, Thai, and other foods form different countries. As a customer, we have three-stage model of service consumption in buying and using a service of our choice, which are pre-purchase stage, service encounter, and post-purchase stage. I have selected RIU Hotel Ahungalla Ahungalla and Hemas Hospital Galle Galle as the two competing organizations to differentiate the consumer behavior in service encounters based on the Three Stage model. The RIU Ahungalla provides the restaurant service to the guests and a lso the outsider customers. The foods of its restaurant are based on western and Sri Lankan foods.


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The RIU Sri Lanka is located on a magnificent beach set against a stunning backdrop in Ahu ngalla. RIU Ahungalla offers all-inclusive 24 hours a day service. All of the services and amenities offered by Hotel RIU Sri Lanka, such as free Wi-Fi in the hotel's common areas, pools for the entire family, a kids' club and a diverse entertainment program, have been especially designed so that all guests can fully enjoy their vacation. The 500 rooms at the RIU Hotels & Resorts' new hotel also have all of the amenities need to feel right at home: a balcony or terrace, satellite TV, air conditioning, a safe and minibar. The hotel's Renova Spa offers a wide variety of massages and treatments to help disconnect on your vacation. RIU guests also can work out in their fully-equipped gym and then relax in luxurious hydro massage bath. If the customer prefers, he can also head to the beauty salon where they will leave you completely rejuvenated. With all these facilities we can simply say that the Hotel Riu Sri Lanka is an all-inclusive hotel in Ahungalla with a very diverse entertainment program which provides fun for adults and children. ch ildren. Children can take part in a wide range of activities at the RiuLand kids' club and play at the playground while the adults enjoy e njoy a RiuArt workshop and live shows. In addition, the facilities include the Pacha karaoke nightclub where all the guests can enjoy the best evening ambiance. The all-inclusive hotel's gastronomy stands out because of the wide variety of options available. You will find Italian and Asian dishes, as well as local Sri Lankan cuisine. In addition, in the hotel's four bars, you can enjoy the best beverages and snacks at any hour of the day. It is a common saying that “Sri Lanka is an exotic destination where you can enjoy a unique vacation and discover the wonders it has to offer.” RIU customers just need to take excursions to its most exceptional sites, from incredible beaches, beac hes, thousand-year-old temples, remains of almost forgotten civilizations to its untamed wilderness full of lush vegetation.


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As a multi-specialty family hospital chain with full International Accreditation Hemas promise their customers the very best in health care and ensure that they get value for money. Hemas hospital has taken the pioneering step of taking quality healthcare closer to the homes of the communities they serve in the suburbs of Colombo and South of Sri Lanka. Hemas was built to international standards, their hospitals are manned with well trained and experienced staff and doctors and state-of-the art technology that make Hemas among the very best of health care providers in the island. Hemas as a hospital chain have over 300 consultants visiting their hospitals covering a wide range of specialties and their 24-hour Accident and Emergency Units are equipped to handle any medical or surgical emergency. At Hemas Hospitals, the safety of their patients is their greatest priority. In forging a resolute path towards this commitment, Hemas undergo stringent testing by international accrediting agencies so that they can sustain their promise of Hemas He mas hospitals being safe and efficient. Hemas has the coveted ACHSI – Australian Council for Healthcare Standards International Accreditation which provides patients with international standards in terms of service, systems, processes and technology. Furthermore, Hemas Hospitals is backed by the respected conglomerate Hemas Holdings, PLC. Hemas Holdings PLC is the parent company of the Hemas Group which has built a reputation of trust and dependability de pendability since its inception 65 years ago.


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The three-stage model of service consumption con sumption is a customer decision making process of the service purchasing introduced by Lovelock & Wirtz. There are three stages of the purchase process for service which are as follows: pre-purchase stage , service encounter stage and post-encounter stage ;

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Need arousal – – Consumer realize that there is a need to use a service, to fulfill the

•

requirements. Information search –Consumer will search for further details on the available solutions and what different companies are there to serve the particular service.

•

Evaluating alternatives – all the different service providers and solutions will be compared with each other by the consumer.

This step is the step where consumers are practically get involved in the service itself. In this stage service is being actually transferred to the customer. Acco rding to the contact weight that customer made with service provider the service can be mainly divided in to categories: High Contact Service and Low Contact Service. Customers have very active contacts with the service provider when there is a High Contract Service. Further the customer will remain through out the service. He will be remaining until service is full delivered. When it comes to Low Contact Services customer has very low or most most of the cases no physical contact.

This stage could be described as the final stage of service consumption. Customers evaluate the service performance. Satisfaction defined as attitude-like judgment following a service purchase or series of service interactions. Consumers who are satisfied and have high p erceptions of service quality necessarily return to the same service provider or buy their services again.


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The pre-purchase is first stage model of service consumption. According to the Lovelock & Wirtz Pre-purchase can defined as customer decision on their initial decision making pertaining to their purchase of a product or service that being reflected by their underlying needs. At pre-purchase stage, we start to be aware of our needs and wants. Such awareness of our needs and wants enable further consideration into the decision making process in later stage, service encounter. It also enables a further implementation of information search and alternative evaluation in pre purchase stage. RIU Hotel awareness needs a restaurant for their customer and they want provide the western food, Local food and beverage services. This tangible service is based on people processing that provide service directed at the customer. This is the point where need arousal is bloomed to a customer. For the customers need of hunger hung er triggered and this would work as the Need Arousal . Under Information Search stage, it plays a relative important role in defining our nee ds and wants as discussed earlier. When we decide what to the service needed, we will seek for information prior our consumption. Such information search can either be active or passive, depending on the level of involvement and perceived risk associated to the search of information. Active and passive information search normally provided by family, friends, colleagues, advertisement, mass media or organization. For our information search, as university students that is provided by our friends. In addition, information search can also come from both internal and external sources. For example, of internal information search are personal preferences and self involvement. Oppositely, external information search such as internet, catalog, and advertisement. Such purchase of service is considered limited decision making mainly because consumers unlikely will purchase such service on the daily basis. This also define the level of low involvement consumer have on purchasing such such service. We information information search also also come from internet search and Privilege Book which can provide our restaurant's information and the environment. Apart from information search and awareness of our needs in consumption service, at pre-purchase stage, we also Evaluate Alternatives Search. Such alternative search enables us to have more choices on our consumption. When we from information search, we have several alternative choices to dine in which are Lighthouse hotel galle, Aman Galla, Hikka Tranz, Shinagawa Beach Balapitiya. At this stage, we are concern on our choices between different service provided each competitors. We not only evaluate the service provided, bu t also similar service provided by other competing service providers. Aman Galla is situated in unesco heritage area Galle fort and for the


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customers who are fond with mysterious Sri Lankan beaches this could not be the greatest place. However, the RIU RIU Ahungalla has exclusive western, local, Chinese, Italian food restaurants and they provide much choice of the food and beverage comparing to any other hotel or restaurant in the area. RIU Ahungalla, it not just a restaurant, it also is a unique Boutique Cottage and it has a graceful environment provide to customers. It can provide a seat like a peaceful beach, large swimming pools. For our decision making, we are discussing on Facebook and compare the entire three restaurants. After discussion, of theses bunch of hotels RIU Ahungalla comes to the first choice of me due to my arousals price, cost, luxurious, eye catching atmosphere and of course tasty food. Ultimately RIU Ahungalla becomes the Purchase decision.

According to the Lovelock service encounter is a period of time during the customer interacts directly with a service provider. The service encounters as 'moment of truth' which which is metaphor by Richard Normann. The RIU Ahungalla is my destination of meal desire. Throughout service delivery between customers and organization that consists of different level of services which is high-contact services and low-contact services . Significant characteristics of low and high contacts can be state as follow.

High contact service •

Customer will remain

Low contact service •

Little or no physical contacts

•

Contact is much closer as it

throughout the service is delivered •

Active contact

happens via electronic or technology •

Includes most people

•

Facilitated by new technology

processing services


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RIU Ahungalla has 5 main restaurants namely; • •

•

•

•

"Riti Panna" main restaurant. "Ceylon" main restaurant. "Kaori" Asian restaurant. "La Forchetta" Italian restaurant. "Saute" beach restaurant/ Barbecue.

These restaurants provide the best food choices not in Ahungalla but in whole southern province. RIU providing high-contact service on service on their environment and the facilities to their customers. Yet we can identify some low- contact services services like customer undertake the self – service on beverage…etc. During the service delivery, the customer will start evaluating the quality of service they are receiving and deciding whether its services meet their expectation. In this case customer evaluate the food and beverage that they receive from RIU hotel and decide whether its services meet their expectation. The concept of theater metaphor in RIU can be described as follow.

Elements of drama

Actor/actress

Costume

Examples from Hemas Hospital

Receptionist, Room Boy, Stewards, Cleaners, Chefs, Barman, Gardeners Sarees for receptionist, Shirt and trouser for Stewards and barman

Dialogues

Formal Polite words

Script

Menu

Stage

Hotel

As a very large hotel RIU Ahungalla provide almost all variety of foods to its customer. The RIU Ahungalla as a worldwide chain is providing the best facilities to attract customer such as crystal clear pools, gym, BBQ, and free Wi-Fi access.


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During this stage, we will evaluate the service performance that we have received and compare it with our prior expectations. Post purchase produce satisfaction and loyalty, which are aim of most marketing strategies. The product is evaluated to dissatisfaction or satisfaction . If it is satisfaction, loyalty may perform and the customer is committed to the service. If it is dissatisfaction, customer may complain. The complaints must be handling properly to reserve dissatisfaction. Comparison of the RIU Ahungalla service performance with our received and prior expectations, it satisfies the expectations. Whatever it is cheaper than Aman Galla and Light House Galle and it provide the tasty foods service with the best behavior of their employees, comfortable and graceful environment. Therefore, we are satisfaction its employees' service behavior and the authentic fresh environment provided. Customer's satisfaction is a purpose of the proximity between the customer's expectations and the service's perceived performance. If the performance is below the customer's expec tations, then the customer will be dissatisfied and will suffer the consequences resulting from the mismatch. Dissatisfied customers tend to find another supplier. Although the RIU Ahungalla as a world class hotel it satisfies the almost all customer expectations. Since RIU Ahungalla is the first hotel in Asia content they are doing massive price hopping these days. Therefore, customers can have 5 Star meal at 3 Star Price. Dissatisfaction is the feeling experienced by a customer whose expectations have not been met by a service. However, the purchase has resulted in complete dissatisfaction and goods returning are not probable, this strategy is to hide the good away in an attempt to forget about the purchase. On the other hand, word-of-mouth plays an important role in the advertising. Purchase satisfaction is the ultimate goal of marketing. According to the Lovelock and Wirtz It results when perceptions of product performance match expectations that are at, or above, the minimum desired performance level. It happens when the purchase expectations are fulfilled; there is a tendency for customers to repurchase and loyalty to the services. Repeat purchase is a pattern of customer behavior that involves the purchase pu rchase of the same product or services over ov er time. If the services meet the needs, nee ds, satisfaction is likely to result. In the other round, if the expectations are not meet, dissatisfaction is being experiences. When it comes to RIU Ahungalla I am highly satisfied about the services provided by RIU Hotel. It provides the delicious food. In addition, it is a great place for a quiet retreat to get away from busy city life and feel the sea breeze in golden sands in down south. Due to the perfect location and heavenly food a one who has stepped in to RIU Ahungalla will definitely come again.


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Healthiness of a person is the utmost benefit that any living being can gain. Hemas Hospital is on the business of providing better health services to its customers. A person could feel heart pain and doctors may say to him to carry a heart surgery to get cure. This simple example could be explained as the arousal of need . In other words, under going in the surgery is the need arousal of PrePurchase stage. Under the Information search stage patient would seek possible hospitals to carry on his operation. This kind of operation is a struggle between life and death. Therefore, choices should be made more wisely. To make a wise decision we needed to have information. In this stage customer seek the information about the hospitals, it’s standards, qualification of doctors and their experiences and of course the price of the operation too. When it comes to an operation most of the time we ask information from a person who has already undergone in same type of operation. We clarify our messy points from these things. Apart from information search and awareness of our needs in consumption service, at pre-purchase stage, we also Evaluate Alternatives Search. We have couple of choices of hospitals to Undergone in surgery. Lanka Hospital, Durdands Hospital, Asir Hospital are some of hospitals that came up to mind. Due the well experience doctor panel, friendly staff and low cost surgery plans Hemas hospital become the most suitable suitable choice of almost all. Therefore, Hemas would be the Purchase Decision.


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The next stage is a service encounter stage which happens when the customer uses the service. Service encounters range from high contact to low contact according to the industry of each company. It is very important for service providers to observe or notice consumers at this stage in order to understand and arrange pleasant market offerings to customers during encounters. Throughout service delivery between customers and organization that consists of different level of services which is high-contact services and low-contact services . Hemas providing high-contact service on service on their environment and the facilities to their customers. Because to carry out a surgery it is compulsory to patient physically appear in the hospital theater room. Yet we can identify some low- contact services like services like customer undertake the reports online, channel the doctor…etc. During the service delivery, the customer will start evaluating the quality of service they are receiving and deciding whether its services meet his expectation. In this case customer/patient decide whether the operation made his pain cured or not and the surgery meet his expectation. As a very large hospital chain in Sri Lanka Hemas provides extraordinary service to all their customers in inexpensive manner. In service Encounter stage we can identify vey special criteria namely Theater as a metaphor for service delivery. As William Shakespeare sated “All the world’s a stage and all the men and women merely players. They have their exits and their entrances and each man in his time plays many parts.” We can extract the same context to the Hemas Hospital like below.

Elements of drama

Actor/actress

Costume

Examples from Hemas Hospital

Doctors, Nurses, Pharmacists, Receptionists Cloaks for doctors, Sarees for receptionists

Dialogues

Formal words

Script

Reports

Stage

Hospital Theater Room


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This is the stage after consumer use the service. Customer will evaluate the service performance that we have received and compare it with their expectations. The service is evaluated to dissatisfaction or satisfaction . If it is satisfaction, customer would be happy and give the satisfied information to other customers who are willing to undertake same surgery. If it is dissatisfaction, customer may complain and negative image can be build towards the hospital and a lso the doctors who have done the operation. Hemas Hospital service performance with the received and prior expectations, it satisfies the expectations. Whatever it is cheaper than Durdands a nd it has the most qualified doctor panel from nearby hospitals. If the performance is below the customer's expec tations, then the customer will be dissatisfied and will suffer the consequences resulting from the mismatch. In this case Dissatisfied customers tend to find another hospital. Hemas as a well reputed chain Sri Lanka has build up a great name and connection between it’s customers throughout decades. All the hospitals in Hemas chain coveted ACHSI – Australian Council for Healthcare Standards International Ac creditation which provides patients with international standards in terms of service, service, systems, processes and technology. Dissatisfaction is the feeling experienced by a customer whose expectations have not been met by a service. However, if the heart surgery failed there’s only less than 10% chance to live. If something bad happen definitely the reputation of the company would be harmed. Patients tend to seek different hospitals to do their surgeries and they spread the bad word “do not to go to that hospital.” We have to make sure that Purchase satisfaction is the ultimate goal of marketing. If the services meet the needs, nee ds, satisfaction is likely to result. In the other round, if the expectations are not meet, dissatisfaction is being experiences. When it comes to Hemas Hospital all most all the patients/customers are highly satisfied about the services, surgeries, medical treatments provided by them.


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Before entering into a final service purchase decision, as an educated consumer we should through the three-stage model of service consumption before buying or using the service of our ou r choice. We start to be critically aware of our needs and want. We enable a further implementation of information search and alternative evaluation in pre-purchase stage. After that, we enable consideration into decision making process in e next stage namely, service encounter. During the service encounter stage, we will request service from our chosen supplier and service delivery. In this assignment I have chosen RIU Ahungalla and Hemas Hospital. After service encounter, the customers then enter the post-purchase phase. At post-purchase stage, customers evaluate the service performance they have received and compare it with their prior expectations. Finally, the customers will make a future intention whether they loyalty or disloyalty on their chosen supplier.

As a conclusion of RIU Ahungalla, it is a 5-star hotel and a spa. It provides the service of their customers needs and wants. In future intention, almost all customers who step into RIU will be going there frequently. Hemas Hospital as a conclusion is well reputed chain in Sri Lanka. They give unique attention to each and every patient. I have chosen undergoing in a heart surgery to express an idea about three stage model. Therefore, a customer who has done heart surgery in Hemas would be highly satisfied about the quality of the treatments and he would definitely spread the good news about Hemas.


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3 stage model

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