Services are often difficult to evaluate because they tend to have a low proportion of search attributes and a high proportion of experience and credence attributes. Let's break down these concepts to understand why this is the case:
Search Attributes: These are characteristics of a product or service that can be easily evaluated before purchase. For physical products, search attributes are tangible and visible, allowing consumers to assess them directly. For example, when buying a smartphone, you can look at its specifications, design, and features before making a decision. In services, search attributes are limited, as the actual experience of the service is intangible and cannot be fully assessed in advance.
Experience Attributes: These attributes are only observable and evaluated after the service is consumed. Since services are intangible, customers can only experience them during or after the delivery. For example, if you go to a restaurant, you can only evaluate the quality of the food and service once you've dined there. The experience attributes in services make it challenging to judge the quality beforehand, unlike products where many attributes can be evaluated upfront.
Credence Attributes: These are attributes that are difficult for consumers to evaluate even after experiencing the service. Credence attributes are those where the consumer relies on trust, belief, or expert opinion rather than personal experience. For instance, in healthcare services, patients may not fully understand the medical procedures or treatment's effectiveness, relying on the expertise and reputation of the healthcare provider.
The combination of high experience and credence attributes in services contributes to their evaluation complexity. Consumers have limited information to assess the service's quality before experiencing it, and even after the service is provided, there might be uncertainties about its effectiveness or whether it met their expectations.
To overcome these challenges, consumers often rely on factors such as:
Word-of-mouth and reviews: Feedback from other customers who have experienced the service can provide insights into the service's quality and credibility.
Brand reputation: A well-established and reputable service provider can instill confidence in consumers, as it implies a history of delivering satisfactory experiences.
Service guarantees and warranties: Some service providers offer guarantees or warranties to reduce consumers' perceived risk when trying out their services.
Trial periods or samples: In certain cases, service providers might offer trial periods or free samples to allow consumers to experience part of the service before committing fully.
In summary, the intangible nature of services, coupled with a higher proportion of experience and credence attributes, makes their evaluation more challenging. Consumers often rely on indirect cues and external information to make decisions about service quality.