The effect of perceived service quality and name familiarity on the service selection decision

Abstract

Traditional promotional programs have, in the main, concentrated on building brands. This is true whether the brand is a product or a company and the advertising expenditure involved is seen as an investment rather than a cost. Does this familiar construct hold true in service industries? Arora & Stoner's findings, albeit from a limited study, seem to support the assertion that branding is equally important for service companies and in some ways the intangibility of the service product would suggest that familiarity with the brand is important to the success of any marketing mix. Yet, as we know many service marketers focus far more on product qualities and benefits than the brand itself. A perusal of the personal finance pages of a typical Sunday newspaper will show a bewildering variety of advertisements for mutual funds and investment opportunities of one sort or another. With few exceptions they talk about the fund itself ("exiting growth prospects in the Indian market" or whatever), the quality of the fund management and the size of the company. Remembering the names of the companies offering these products may prove a little more difficult. The same seems true in other service areas and from Arora & Stoner's findings these marketers are missing a trick. The emphasis should be on a consistent promotion of the corporate brand and the less tangible the service the greater the importance of this brand emphasis. Elsewhere in this issue of JSM various authors speak of the differences between "search", "experience" and "credence" services. Plainly, a "credence" service depends much on the placing of the consumer's trust in the service provider since the individual user cannot properly evaluate the outcome (at least in the short term). A familiar and trustworthy name seems therefore essential to success in these types of market. The success of Marks & Spencer and Virgin in entering the market for life insurance and other investment products depends, not on their financial services experience or the inherent superiority of their product offerings, but on the fact that their names are trusted by the ordinary consumer and are associated with particular qualities and ethics. Moreover, at least in the UK, the mainstream insurance and investment product market is dominated by organizations with remarkably similar names. They seem to select their names from a limited pool of words -mutual, friendly, assurance, trust, alliance, amicable, prudential, and professional seem to crop up time and time again often it seems in combination with "Scottish". When consumers are faced with a different brand it stands out. Direct Line Insurance came to dominate the UK motor insurance market through strong branding and a distinct message (and, let it be said, cheaper prices). The creators of the company realized that motor insurance was, in most cases, a commodity and as such people would buy on price but such a strategy could only work with an aggressive and well branded advertising approach. Not being an established insurer

A Conceptual Framework to Measure Brand Equity in Indian Banking & Financial Services Firms

“…While commenting on brand aroused feelings, Ghazizadeh et al strongly supported the previous research conducted by Richins, Boles et al, Arora et al ( [15], [22], [23], [24]). Richins believes that emotional variables like feelings is important in purchase decision making and plays an important role in effecting customers" reactions [22].…”

Analyzing customer satisfaction with service quality in life insurance services

“…37 Perceived service quality has a signifi cant effect on the attitude towards obtaining insurance. 38 Moreover, the degree of success in the implementation of enterprise mobilization in the life insurance industry is positively correlated to the management performance of external aspects like providing increased customer satisfaction. 39 It has been observed that insurance agents should constantly monitor the level of satisfaction among his / her customers to keep themselves close to the customers for fulfi lling their needs.…”

Perceived Quality and Corporate Image in Mobile Services: The Role of Technical and Functional Quality

“…Functional quality could be explicated as a perception of the way in which a service was provided; it defines a customer's perception of interaction that takes place during the service provision process and relates to the satisfaction that the service recipient feels toward the process or experience of receiving the service (Arora and Stoner, 1996). On the other hand, technical quality reflects the result of the service action, service output or what the customer received after the service encounter.…”