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Consumer Behaviour

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Consumer Behaviour
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© Copyright 2010 Anupam Kumar 1 Post Purchase Behaviour: Purchase Evaluation, Customer Satisfaction -Authored By: Anupam Kumar Reader, SMS Varanasi Email: [email protected]
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Page 1: Consumer Behaviour

© Copyright 2010 Anupam Kumar 1

Post Purchase Behaviour:Purchase Evaluation, Customer

Satisfaction

-Authored By:Anupam Kumar

Reader,SMS Varanasi

Email: [email protected]

Page 2: Consumer Behaviour

© Copyright 2010 Anupam Kumar 2

Client Decision Making Process

Page 3: Consumer Behaviour

© Copyright 2010 Anupam Kumar 3

Purchase EvaluationEvaluation of AlternativesEvaluation of Alternatives

PurchasePurchase

Product Performance

Product Performance

SatisfactionSatisfaction DissatisfactionDissatisfaction

Product Expectation

Product Expectation

Confirmation or DisconfirmationConfirmation or Disconfirmation

Page 4: Consumer Behaviour

© Copyright 2010 Anupam Kumar 4

Understanding Post Purchase

PurchasePurchase

Product Performance

Product Performance

SatisfactionSatisfaction DissatisfactionDissatisfaction

Confirmation or DisconfirmationConfirmation or Disconfirmation

Page 5: Consumer Behaviour

© Copyright 2010 Anupam Kumar 5

Post Purchase BehaviourPurchasePurchase

UsageUsage Post Purchase Dissonance Non UseNon Use

Product DisposalProduct Disposal

Product Evaluation

Product Evaluation

Customer ComplaintsCustomer

Complaints

Satisfaction Dissatisfaction

Brand Switching

Discontinued Use

Committed Customer

Repeat Customer

Increased Use

Page 6: Consumer Behaviour

© Copyright 2010 Anupam Kumar 6

Product Disposition

RecycleRecycle Give Away Trade inTrade in Throw LoanLoan SellSell

Store Original Usage New Use

DiscardDiscard RetainRetain

ProductProduct PackagePackage

For Sale For UseTo End User

To End User

Through Middlemen

Through Middlemen

To Middle Men

To Middle Men

As Garbage As Litter

Page 7: Consumer Behaviour

© Copyright 2010 Anupam Kumar 7

Customer Map

Page 8: Consumer Behaviour

© Copyright 2010 Anupam Kumar 8

Customer Retention• Repeat purchasersRepeat purchasers continue to buy the same brand though

they do not have an emotional attachment to it.

• Switching costsSwitching costs are the costs of finding, evaluating, and adopting another solution.

• Brand loyaltyBrand loyalty involves commitment to the brand – it is a biased behavioral response expressed over time.

• Churnhurn is a turnover in a firm’s customer base.

– Reducing churn is a major objective of many firms today.Reducing churn is a major objective of many firms today.

WHY?WHY?

Page 9: Consumer Behaviour

© Copyright 2010 Anupam Kumar 9

Repeat Purchase• Switchers

– with no loyalty

• Shifting Loyal– moving from one brand to another.

• Split Loyal– loyal to two or three brands.

• Hard-core Loyal– who buy the brand all the time.

Page 10: Consumer Behaviour

© Copyright 2010 Anupam Kumar 10

Repeat Purchase• Spurious Loyalty: Customers may repurchase a brand

due to – situational constraints (such as vendor lock-in), – a lack of viable alternatives, – out of convenience.

• Brand Loyalty: Customers have a high relative attitude toward the brand– customers are willing to pay higher prices,– they may cost less to serve, – they can bring new customers to the firm

Page 11: Consumer Behaviour

© Copyright 2010 Anupam Kumar 11

Customer Satisfaction & Retention

• Developing a marketing strategy for a particular segment includes identifying specific objectives to be pursued, such as1.1. Attracting new users to the product categoryAttracting new users to the product category

2.2. Capturing competitors’ current customersCapturing competitors’ current customers

3.3. Encouraging current customers to use moreEncouraging current customers to use more

4.4. Encouraging current customers to become repeat Encouraging current customers to become repeat purchaserspurchasers

5.5. Encouraging current customers to become Encouraging current customers to become committed customerscommitted customers

Page 12: Consumer Behaviour

© Copyright 2010 Anupam Kumar 12

Product / Service Evaluation

Evaluation Factors

1. PERFORMANCE2. FEATURES3. SERVICE4. WARRANTY5. PRICE6. REPUTATION

Evaluation Stages Instrumental performanceInstrumental performance

relates to the physical functioning of the product.

Symbolic performanceSymbolic performance relates to aesthetic or image-enhancement performance.

Affective performanceAffective performance is the emotional response that owning or using the product or outlet provides

Page 13: Consumer Behaviour

© Copyright 2010 Anupam Kumar 13

Customer Satisfaction

• Customers Experience of a Product or Service is Multifaceted so hard to Determine

• To get the Total Picture of Customer Satisfaction, it needs to be measured individually

• Customer satisfaction should not be viewed in a vacuum.

• For example, a customer may be satisfied with a product or service and therefore rate the product or service highly in a survey and yet same customer may buy another product.

Page 14: Consumer Behaviour

© Copyright 2010 Anupam Kumar 14

Customer Satisfaction

• Similarly customer’s view about a product or service are useless if customer’s view about competitors products are not understood.

• The value customers places on the product compared to another may be a better indication of customer loyalty.

Page 15: Consumer Behaviour

© Copyright 2010 Anupam Kumar 15

Customer Satisfaction Outcome

Page 16: Consumer Behaviour

© Copyright 2010 Anupam Kumar 16

Customer Requirements• NORMAL REQUIREMENTS

– Are typically what one gets by just asking customers what they want.

• EXPECTED REQUIREMENTS – Are the obvious / compulsory requirements. – Expected requirements must be fulfilled.– For example, if meal is served hot, customers barely

notice it. If it's cold or too hot, dissatisfaction occurs.

• EXCITING REQUIREMENTS– Beyond the customer's expectations. – Provided to excite customer– Their absence do not form complaints

Page 17: Consumer Behaviour

© Copyright 2010 Anupam Kumar 17

Kanos Model

+

+-

-

Satisfaction

Dissatisfaction

Service Dysfunctions

Service Functions

If the requirement is absent it does not cause dissatisfaction, but it will delight clients if present - "camera options in mobile"

Less satisfied when the product or service is less functional, but cannot increase satisfaction substantially if operational - "up-time in mobile"

The more requirements are met the more one is satisfied – “voice clarity, proper network, text messaging in mobile”

Page 18: Consumer Behaviour

© Copyright 2010 Anupam Kumar 18

Bibliography• Lindquist, Jay D. and Sirgy, M Joseph. Consumer Behaviour. New Delhi: Cenage Learning India Private

Limited, 2009.• Hawkins, Del I., Best, Roger J., Coney, Kenneth A. and Mookerjee, Amit. Consumer Behaviour: Building

Marketing Strategy. Ninth Edition New Delhi: Tata McGraw-Hill Publishing Company Limited, 2007.• Schiffman, Leon G. and Kanuk, Leslie L. Consumer Behaviour. Ninth Edition. New Delhi: Dorling Kindersley

(India) Pvt. Ltd. Licenses of Pearson Education in South Asia, 2009.• Loudon, David L. and Della Britta, Albert J. Consumer Behaviour. Fourth Edition. New Delhi: Tata McGraw-

Hill Publishing Company Limited, 2002.• Assael, Henry. Consumer Behaviour: A Strategic Approach. New Delhi: Biztantra, An Imprint of Dreamtech

Press. By arrangement with Houghton Mifflin Co., USA, 2009.• Khan, Martin. Consumer Behaviour. Second Edition. New Delhi: New Age International (P) Limited, 2004.• Nair, Suja R. Consumer Behaviour in Indian Perspective. Mumbai: Himalya Publishing House, 2007.• Kumar, S Ramesh. Consumer Behaviour and Branding: Concepts Reading and Cases. Noida: Dorling

Kindersley (India) Pvt. Ltd. Licenses of Pearson Education in South Asia, 2009.• Gupta, S.L. and Pal Sumitra. Consumer Behaviour: An Indian Perspective. New Delhi: Sultan Chand & Sons,

2001.• Datta, Debraj and Datta Mahua. Consumer Behaviour & Advertising Management. Delhi: Vrinda

Publications (P) Ltd., 2009.• Acknowledgements:

– wayofthewoo.blogspot.com; lung-cancer-blog.com; damncoolpics.blogspot.com;

Page 19: Consumer Behaviour

© Copyright 2010 Anupam Kumar 19

For further details / comments

Contact:Anupam Kumar

Reader,SMS Varanasi

Email: [email protected]


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