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CONSUMPTION TO SATISFACTION
Christopher Garcia, Lauren Burges, Janelle Hora, Jonies Byrd-Webb, & Mary Hendryx
CONSUMPTION FREQUENCY
Consumption frequency refers to the number of times a produce to service is consumed in a given time period.
• For nondurable goods, marketers try to increase consumption frequency as much as possible
CONSUMPTION PROCESS
Consumption Process: Process by which consumers use the product, service, or experience that has been selected.
Two types goods:Nondurable & Durable
TYPES OF GOODSDurable: Goods that are usually consumed over long periods of time.
Dishwashers, appliances, etc,.
Nondurable: Goods that are usually consumed quickly.
Soft drinks & snack foods.
CONSUMPTION LEADS TO VALUE
Without consumption there is no value.
• The consumption process produces either hedonic or utilitarian value.
Need
Want
Exchange
Costs and Benefits
Reaction
Value
Consumption, post-choice, evaluation, loyalty, repeat,
purchase behavior, disposal.
AMERICAN CONSUMER SATISFACTION INDEX (BENCHMARKS)Base
- line
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Previous Year %
Change
First Year % Change
Nordstrom 84 83 82 80 79 76 76 76 80 80 83 82 84 84 83 -1.2 -1.2
Dillard's 75 74 74 73 71 68 72 75 75 75 77 76 75 76 75 78 78 80 79 81 2.5 8.0
Kohl's 84 79 79 80 80 79 80 79 81 81 81 81 0.0 -3.6
J.C. Penney 79 77 78 75 75 75 74 75 74 77 76 78 78 77 78 79 80 82 81 79 -2.5 0.0
Target 75 78 77 77 77 80 78 80 81 77 -4.9 2.7
Sears 72 72 74 75 76 75 77 2.7 6.9
Macy's 74 71 75 74 71 76 77 78 76 -2.6 2.7
Wal-Mart 80 81 74 76 75 72 73 75 74 75 73 72 72 68 70 71 73 70 71 71 0.0 -11.3
Amazon 84 84 88 88 84 87 87 88 86 86 87 86 85 88 3.5 4.8
eBay 80 82 82 84 80 81 80 81 78 79 81 81 83 80 -3.6 0.0
AMERICAN CONSUMER SATISFACTION INDEX (BENCHMARKS)Base
- line
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Previous Year %
Change
First Year % Change
Amazon 84 84 88 88 84 87 87 88 86 86 87 86 85 88 3.5 4.8
eBay 80 82 82 84 80 81 80 81 78 79 81 81 83 80 -3.6 0.0
eBay traffic is down 4.57% in the last month while Amazon is UP 3%. Year over year Amazon is up 29.82% and eBay is up only 9.61%, that means Amazon is growing 31% faster than eBay!
IS VALUE MORE IMPORTANT THAT CUSTOMER SERVICE?
• Explain that Satisfaction of Walmart’s scores are extremely low compared to most retail
• “Wal-Mart is #1 because it continues to prioritize value over satisfaction (utilitarian > hedonic), lowest prices, only option for some country people.
“If firms do not provide value (hedonic or utilitarian value) in some form they cannot succeed for long.”
• The value online provides is customer service.
• Necessary due to lack of face to face interaction
CONSUMER SATISFACTION Consumer Satisfaction
Is a mild, positive emotional state resulting from a favorable appraisal of a consumption outcome
Points that distinguish consumer satisfaction
1. Consumer satisfaction is a post consumption phenomenon because it is a reaction to an outcome
2. Like other emotions, satisfaction results from a cognitive appraisal. Some refer to the appraisal as the satisfaction judgment; however the appraisal and the reaction are distinct.
3. Satisfaction as an emotion is relatively midland does not create strong behavioral motivation.
CONSUMER DISSATISFACTION
Mild, negative affective reaction
Results from an unfavorable appraisal of a consumption outcome.
HOPE’S ROLE IN CREATING CONSUMER SATISFACTION
Expectation is the cognitive component of anticipation, and involves the emotions
The consumer anticipates to have a positive outcome therefore experiences “hope”
Hope: A fundamental emotion evoked by positive, anticipatory appraisals that signal uncertainty about a potentially positive outcome
There are 4 types expectations:
Predictive Expectations
Normative Expectations
Ideal Expectations
Equitable Expectations
HOPE’S ROLE IN CREATING CONSUMER SATISFACTION
Predictive: What you think will actually occur
Normative: What you think will happen given past experiences
Ideal: What you really want to happen, the experience will improve your current state
Equitable: What you expect to get, given how much
work you put into the experience
HOPE’S ROLE IN CREATING CONSUMER SATISFACTION
Sources of expectations
• Word of mouth
• Past experiences
• Personal factors; some people have set expectations
Performance Perception
• Purchasing a low quality product, the expectation is to be disappointed in it and vice versa
• Companies try to not set expectations too high to minimize disappointment
HOPE’S ROLE IN CREATING CONSUMER SATISFACTION
When there is strong confidence in expectations, disconfirmation and performance perception change the degree of satisfaction
When there is a lack of confidence in expectation, then perceived performance strongly influences satisfaction
Ties into to confirmatory bias, where the consumer looks for supporting evidence to support expectations
WHAT WAS YOUR SATISFACTION AFTER YOU RECEIVED /CONSUMED THE CANDY?
No Feelings Low Satisfaction High Satisfaction