Marketing 334Consumer Behavior

Chapter 18Post Purchase Evaluation and

Customer SatisfactionFrom: Consumer Behavior, 10th ed. By Hawkins, Mothersbaugh and Best

Postpurchase Consumer BehaviorPostpurchase Consumer Behavior

Postpurchase DissonancePostpurchase Dissonance

Postpurchase Dissonance Postpurchase Dissonance occurs when a consumer has doubts or anxiety regarding the wisdom of a purchase made and is a function of the following:

• The degree of commitment or irrevocability of the The degree of commitment or irrevocability of the decisiondecision

• The importance of the decision to the consumerThe importance of the decision to the consumer

• The difficulty of choosing among the alternativesThe difficulty of choosing among the alternatives

• The individual’s tendency to experience anxietyThe individual’s tendency to experience anxiety

Postpurchase DissonancePostpurchase Dissonance

After the purchase is made, the consumer may utilize one or more of the following to reduce dissonance:

Increase the desirability of the brand purchasedIncrease the desirability of the brand purchased

Decrease the desirability of rejected alternativesDecrease the desirability of rejected alternatives

Decrease the importance of the purchase decisionDecrease the importance of the purchase decision

Reverse the purchase decision (return before use)Reverse the purchase decision (return before use)

Postpurchase DissonancePostpurchase Dissonance

Consumption guiltConsumption guilt - when guilt feelings are aroused by the product/service use.

Marketers need to focus on validating the consumption for “high guilt” products.

Indulging in chocolate for some can Indulging in chocolate for some can cause consumption guiltcause consumption guilt

Postpurchase DissonancePostpurchase Dissonance

What If?What If?

Marketers often encourage counterfactual and pre-factual thinking.

Counterfactual thinkingCounterfactual thinking refers to imaging the outcome if a different decision had been made in the past.

Prefactual thinkingPrefactual thinking is the same as counterfactual except it occurs before a decision is made.

Product Use and NonuseProduct Use and Nonuse

Product UseProduct Use

Retailers can promote such items

• jointlyjointly

• display them together, ordisplay them together, or

• train sales personnel to maketrain sales personnel to make relevant complementary salesrelevant complementary sales

Retailers can frequently take advantage of the fact that the use of one product may require or suggest the use of other products, e.g., dresses and shoes.

Displaying complementary Displaying complementary products togetherproducts together

Product Use and NonuseProduct Use and Nonuse

Product UseProduct Use

Stringent product liability laws have made firms responsible for harm caused by products not only

when the product is used as specified by the manufacturer, but

in any reasonably foreseeable use of the products.

DispositionDisposition

Purchase Evaluation and Customer Purchase Evaluation and Customer SatisfactionSatisfaction

The Evaluation ProcessThe Evaluation Process

Expectations, Performance, and SatisfactionExpectations, Performance, and Satisfaction

Purchase Evaluation and Customer Purchase Evaluation and Customer SatisfactionSatisfaction

The Evaluation ProcessThe Evaluation Process

Determinants of Satisfaction and DissatisfactionDeterminants of Satisfaction and Dissatisfaction

Instrumental performanceInstrumental performance

Symbolic performanceSymbolic performance

Affective performanceAffective performance

Dissatisfaction ResponsesDissatisfaction Responses

Dissatisfaction ResponsesDissatisfaction Responses

Marketing Strategy and Dissatisfied ConsumersMarketing Strategy and Dissatisfied Consumers

Firms need to satisfy consumer expectations by

1.1. Creating reasonable expectations through promotional efforts, andCreating reasonable expectations through promotional efforts, and

2.2. Maintaining consistent quality so the reasonable expectations are Maintaining consistent quality so the reasonable expectations are fulfilled.fulfilled.

Dissatisfaction ResponsesDissatisfaction Responses

Marketing Strategy and Dissatisfied ConsumersMarketing Strategy and Dissatisfied Consumers

When a consumer is dissatisfied, the most favorable consequence is for the person to communicate this dissatisfaction to the firm but to no one else.

Unfortunately, many individuals do not communicate their dissatisfaction to the firm involved.

Companies often make it difficult to complain or are unresponsive to complaints.

Customers Satisfaction, Repeat Customers Satisfaction, Repeat Purchases, and Customer Purchases, and Customer CommitmentCommitment

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.

Customers Satisfaction, Repeat Customers Satisfaction, Repeat Purchases, and Customer Purchases, and Customer CommitmentCommitment

Repeat Purchasers, Committed Customers, and ProfitsRepeat Purchasers, Committed Customers, and Profits

A churn churn 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.

It typically costs more to obtain a new customer than to retain an It typically costs more to obtain a new customer than to retain an existing one, and new customers generally are not as profitable as existing one, and new customers generally are not as profitable as longer-term customers!longer-term customers!

Customers Satisfaction, Repeat Customers Satisfaction, Repeat Purchases, and Customer Purchases, and Customer CommitmentCommitment

Sources of Increased Customer Profitability over TimeSources of Increased Customer Profitability over Time

Customers Satisfaction, Repeat Customers Satisfaction, Repeat Purchases, and Customer Purchases, and Customer CommitmentCommitmentRepeat Purchasers, Committed Customers, and Marketing StrategyRepeat Purchasers, Committed Customers, and Marketing Strategy

1.1. 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

Developing a marketing strategy for a particular segment includes identifying specific objectives to be pursued, such as

Customers Satisfaction, Repeat Customers Satisfaction, Repeat Purchases, and Customer Purchases, and Customer CommitmentCommitment

Customer Satisfaction OutcomesCustomer Satisfaction Outcomes

Customers Satisfaction, Repeat Customers Satisfaction, Repeat Purchases, and Customer Purchases, and Customer CommitmentCommitmentRelationship MarketingRelationship Marketing

Five key elements to Relationship marketing:Five key elements to Relationship marketing:

1.1. Developing a core service or product around which to Developing a core service or product around which to build a customer relationshipbuild a customer relationship

2.2. Customizing the relationship to the individual Customizing the relationship to the individual customercustomer

3.3. Augmenting the core service or product with extra Augmenting the core service or product with extra benefitsbenefits

4.4. Pricing in a manner to encourage loyaltyPricing in a manner to encourage loyalty

5.5. Marketing to employees so that they will perform Marketing to employees so that they will perform well for customerswell for customers