Chapter 10 Consumer Loyalty

7/25/2019 Chapter 10 Consumer Loyalty

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Chapter 10 After We Buy:

Satisfaction and Loyalty

Consumer Behavior: A

Framework

John C. Mowen & Michael S.Minor


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ey Concepts Satisfaction and

dissatisfaction

Brand e!pectations "#uity and

satisfaction "!pectation

con$r%ation Why consu%ers

co%plain

ow consu%ersco%plain

'actors thatin(uenceco%plainin)

*roduct disposal

"nsurin)satisfaction

Brand loyalty


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A Consu%ption

"!perience. . .

. . . is theco)nitions andfeelin)s theconsu%er

e!periencesdurin) the use of aproduct or ser+ice


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*roduct use . . .. . . in+ol+es theactions and

e!periences thatta,e place in theti%e period inwhich a consu%er

is directlye!periencin) a)ood or ser+ice


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Assessin) *roduct -sa)e

/hree Methods Consumption Frequency%easures if

the product used continuously or

discontinuously. Consumption Amountrefers to the

a+era)e usa)e of a product.

Consumption Purposeassesseswhether there is one purpose or%ultiple purposes for the product.


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/he Consu%ption of

*erfor%anceA consu%er perfor%ance is an e+ent inwhich a consu%er and %ar,eter act as

perfor%ers andor audience in asituation in which oli)ations andstandards e!ist.

A Contracted *erfor%ance An "nacted *erfor%ance

A 2ra%atistic *erfor%ance


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Mood States and the

Consu%ption "!perience Moods are te%porary positi+e or

ne)ati+e a3ecti+e states that %aya3ect the consu%ption e!perience. Moods ha+e a stron) i%pact on what we

re%e%er and choose

/he %ood state %ay i%pact the e+aluationof the product independent of the actual#uality of the product


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2e+elopin) *ostac#uisition

Satisfaction or2issatisfaction

Consu%er satisfaction is the o+erall

attitude consu%ers ha+e toward a )oodor ser+ice after they ha+e ac#uired andused it.


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"+aluatin) *roduct

*erfor%ance and 4uality

*roduct #uality is custo%ers5 o+eralle+aluation of the e!cellence of the

perfor%ance of the )ood or ser+ice.


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/ale 106

7 2i%ensions of S"894-AL

; 2i%ensions of *roduct 4uality 1??@ asic di%ensions of #ualityD *erfor%ance

"%ployee Enteractions

8eliaility 2uraility

/i%eliness and con+enience

Aesthetics Brand "#uity


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7 Approaches to CS2 "!pectancy 2iscon$r%ation

"#uity /heory Attriution /heory

"!perientially Based A3ecti+e 'eelin)s

Actual *erfor%ance


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"!pectancy 2iscon$r%ation

*erfor%ance e!pectations are co%paredto actual product perfor%ance.

Ef #uality falls elow e!pectationsFe%otional dissatisfaction results Ef perfor%ance is ao+e e!pectationsF

e%otional satisfaction occurs

Ef perfor%ance is not percei+ed asdi3erent fro% e!pectationsFe!pectancy con$r%ation occurs


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"#uity /heory

"#uity theory holds that people will analyGe theratio of their outco%es and inputs to the

outco%es and inputs of the other party in thee!chan)e

Outcomes of A

Inputs of A

Outcomes of B

Inputs of B


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"#uity /heory +s.

"!pectancy2iscon$r%ation

"#uity /heory: co%parin) inputs and

outco%es relati+e to those of others. "!pectancy 2iscon$r%ation: co%parin)

actual +s. e!pected perfor%ance.


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Attriution /heory Ef consu%ers attriute failure to %eet

e!pectations as the faultD of the

productF they will e %ore dissatis$edthan if they attriute the failure tochance factors or their own eha+ior.


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Actual *roduct. . .

. . . perfor%ance in(uences consu%er

satisfaction independently ofe!pectationsF e#uityF and attriutions.

"+en if a consu%er e!pected theproduct to perfor% adlyF they stillfeel dissatis$ed when it does


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A3ecti+e 'eelin)s. . .

. . . refers to the concept that the le+el

of consu%er satisfaction %ay ein(uenced y the positi+ene)ati+efeelin)s that consu%ers associate with

the product ser+ice after its purchaseand use.


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Measurin) Satisfaction Aout H7I of all custo%ers report hi)h

le+els of satisfaction.

But H7;7I of satis$ed custo%ers willdefect.


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Consu%er Co%plaint

Beha+ior 'i+e co%%on co%plaint eha+iors:

2o nothin) or deal with the retailer in so%e

%anner A+oid usin) the retailer a)ain and persuade

friends and fa%ily to do the sa%e/a,e o+ert action with third parties >e.).F

le)al action Boycott the $r% or or)aniGation. Create an alternati+e or)aniGation to

pro+ide the )ood or ser+ice


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Maor 8easons

Consu%ers Co%plain:

/o reco+er an

econo%ic loss y)ettin) ane!chan)e or refund

/o reuild aconsu%erKs selfi%a)e


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Co%plaint Beha+ior Es

Li,ely to Encrease When: /he le+el of consu%er dissatisfaction

increases

/he attitude of the consu%er towardco%plainin) eco%es %ore positi+e /he a%ount of ene$t to e )ained fro%

co%plainin) increases /he $r% is la%ed for the prole% /he product is i%portant to the consu%er /he resources a+ailale to the consu%er for

co%plainin) increases


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*roduct 2isposition . . .. . . refers to what consu%ers do with aproduct after they ha+e co%pleted their

use of it.

/hree 2ispositional Strate)ies:

eep Et et 8id of Et *er%anently

et 8id of Et /e%porarily


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Brand loyalty . . .

. . . is the de)ree to which a custo%erholds a positi+e attitude towards arandF has a co%%it%ent to itF andintends to continue purchasin) it in the

future.


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BrandLoyal Beha+iors... *roportion of purchases %ethod

-ndi+ided Loyalty

ccasional switch Switch loyalty

2i+ided loyalty

Brand indi3erence


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Brand Loyalty Continuu%

Undivided

Loyalty

Brand

Indifference

Occasional

Switch

Switch

Loyalty

Divided

Loyalty


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Attitudes /oward Brand

Loyalty 8epeat *urchase Beha+iorF +s.

Brand Loyalty

/he 2i3erence is Brand Co%%it%ent


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Edentifyin) BrandLoyal

Consu%ers Brand loyalty is productspeci$c.

/here are no de%o)raphic or

psycholo)ical characteristics of therandloyal.

Sales pro%otions can inhiit randloyalty.

4uality of the product and use ofad+ertisin) are ,ey to uildin) randloyalty.


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Co%parin) Satisfaction

and Loyalty Satisfaction is an unreliale indicator of

loyalty.

9ariety see,in)F loyalty to %ultiplerandsF and switchin) incenti+es areostacles to loyalty.


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Mana)erial E%plications *ositionin). Loyalty pro)ra%s are useful

positionin) tools.

"n+iron%ental Analysis. Scannin) forconsu%er co%plaints %ay su))estcorrecti+e action.

Mar,et 8esearch. Enfor%ation is neededon how the $r% should deal withcusto%er co%plaints.


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E%plications continued Mar,etin) Mi!. Mar,etin) %i! ele%ents

can soften the i%pact of co%petitor

entice%ents for loyal custo%ers. Se)%entation. Loyal custo%ers are an

i%portant se)%ent: reasons for their

loyalty are diNcult to deter%ine.

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Chapter 10 Consumer Loyalty

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