C USTOMER BEHAVIOR IN THE CONSUMER MARKETS

Consumer experience in e-commerce environment consists of the interaction with the website.

The whole purchasing transaction is the sum of product delivery, post-sales support and received benefits that the product or service offers. It is also essential to keep clients loyal towards the e-commerce company and identify values which are the most important in customer relations. (Petre et al. 2006)

In the consumer markets consumer purchase behavior can be roughly defined as the two main types of practical purchase and enjoyable purchase. Consumer buying behavior differs clearly between these two types. Utilitarian behavior means that consumer underlines its purchase decisions practicality and utility of the product. It means that the consumer purchases are made purely reason by certain demand. Common example of utilitarian product buying behavior is acquisition of groceries. (Babin 1994)

Hedonistic buying behavior means that consumer aims to buy more enjoyable. It involves a lot of individual preferences and subjective experiences that are satisfying to the customer. The purchasing situation can be fun or entertaining, as well as customers can experience it very pleasant. Sometimes, the product and its features may be secondary factors. Hedonistic and utilitarian purchasing behavior, however, never exclude the other, but rather allows the other activities. (Babin 1994)

When the purchase has been made consumer can feel joy of happiness and pleasure and feelings of satisfaction. Also, a wide range of negative emotions are possible, if the offerings performance was disappointing or it did not meet expectations. Consumer feels functionality as an added value, if the product has solved a specific problem or dilemma. (Prior 2013)

Conditional value means that the consumer chooses a product based on its reputation even if a similar substitute is available. Cognitive value indicates to the consumer almost the same as the conditional value. However, cognitive value focuses more on the product's ability to arouse the curiosity of the consumer. These features are in addition to the novelty value of the product and the ability to satisfy the customer's product knowledge. (Prior 2013) Hollensen (2010, 393) have pointed that product or service is the most important part of the company`s business and that offering should eventually met the customer´s needs.

The more intense the service of the offers is, the harder it is for customers to compare the quality or carrying capacity of the service. Therefor the customer has a greater risk while choosing the services. (Zeithaml 1981) Reporters try to decrease customer’s risk before purchase decision by creating a service image. These service images are harder to measure, because they are intangible value. The customer measures service quality through five different concepts that according to Zeithaml et al. (2009) are confidence for the service, input resolution, reliability, empathy and materiality. On the consumer markets, customer experiences trust and quality during the customer service, if for example the employees manage to appear trustworthy, competent and act according to good operation models. The client may experience the service as pleasant and efficient regardless if the product isn’t top quality. In other words good quality service compensates products quality issues. (Gronroos 1996) Satisfaction is one of the biggest factors between customers and suppliers trade. The supplier must recognize customers’

demands that produce satisfaction through four main points. These main points regarding to Jones (1995) are:

- The products or services main function expected by customer and what the competitors offer

- Basic customer support service that makes service or product more efficient and easier to use

- Repair service that reacts to products or services unexpected problems fast

- Extra services that make the service or product more personal and answers customer’s core needs. The service makes the offers more individual for the customers

Supplier companies must carefully follow customers’ satisfaction. If the customers aren’t satisfied, the company must gather feedback and develop according to the customer needs.

According to research, the clients have a great responsibility for developing better customer relationship. Customers who reported problems achieved greater relationship with the supplier than the customers who settled with the product with defects. (Hutt & Speh 2013)

Company starts service marketing by classification of the service. The company should know the service features, because as noted before, the service is a large concept that includes different factors. Hollensen (2010) Sasser et al. (1978) are with the first who classify the service qualities by immaterial, disappearing, difficult standardization and different production ways.

However, this quite clear classification of the service has blurred due to different viewpoints and great amount of commentary. (Johnstone, Dainty & Wilkinson 2008) The current concept by Hollensen (2010) is to divide service features by IHIP-model in four as following:

1. Intangibility. Service cannot be touched, they can’t be produced in storage. Consumer experiences the service but cannot own it. These kind of services are for example education and airline travelling. (Hollensen 2010, 394)

2. Heterogenity. Services are complicated and they can’t be standardized. They can never be repeated and the variation always depends on the provider. As an example a surgeon, who performs different kinds of operations that can never be repeated fully the same.

(Kotler 2009, 448)

3. Inseparability meaning that the production and consumption happen the same time. For this service it’s impossible to produce returns to scale. The service is produced and consumed at the same time, so that it doesn’t exist before service transaction. (Hollensen 2010, 395)

4. Perishability. The services can’t be restored or saved. For example public transportation has to respond to rush hour, meaning that the cars will be at less use at other times.

(Kotler 2009, 449)

Keh & Pang (2010) processed in their research how offering a service can affect consumer’s point of view and behavior. The IHIP-model helps to understand offering service to consumer.

The consumer is aware of the brands benefits and disadvantages when making a decision. (Keh

& Pang 2010)