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Post Purchase Processes

Module 7

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Postpurchase Consumer Behavior

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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 decision

The importance of the decision to the consumer

The difficulty of choosing among the alternatives

The individuals tendency to experience anxiety

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The easier it is to alter the decision, the less likelythe consumer is to experience dissonance

The importance of the decision to the consumer:

The more important the decision, the more likely

dissonance will result

The more difficult it is to select from among the

alternatives, the more likely the experience and

magnitude of dissonance

The higher the tendency to experience anxiety,

the more likely the individual will experience

postpurchase dissonance.

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Product Use and Nonuse

Product Use

Retailers can promote such items

jointly

display them together, or

train sales personnel to make

relevant 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 products

together

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Determinants Of Satisfaction and Dissatisfaction: Core service failure (Billing errors)

Service encounter failure (service employees were

uncaring, impolite, unresponsive, or unknowledgeable)

Pricing (High prices, price increases etc) Inconvenience (Inconvenient location, hours of

operation)

Responses to service failures (Failure to respond,

negative responses, etc)

Attraction by competitors: (More reliable, higher quality

and better value)

Ethical problems: (Dishonest behavior, Unsafe or

unhealthy practices)

Involuntary switching: (Service provider or customer

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Dissatisfaction- Causing

IncidentsIncident type Example

Technology Failure The ATM broke down. Kept my card.

I had to have the card reissued

Service design flaw I did not realize that some ATM

machines limit how much you can

get out. The machine did not tell meI went over my limit for the day. It

just spit may card back out so I kept

trying

Process failure After a month passed from placing

my original order, I e-mailed the

customer service center at Disney

with my order confirmation number.

They had lost my order

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Technology design flaw I was trying to order books from a

book club online. The system was

confusing, and I ordered two copies

of the same title without knowing it

Customer failure I was attempting to get money froman ATM and couldnt remember my

number.

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Purchase Evaluation and Customer

SatisfactionThe Evaluation Process

Dimensions of Performance:

Instrumental performance relates to the physical functioning of

the product. Ex: the durability of a sport coat

Symbolic performance relates to aesthetic or image-

enhancement performance. Ex: Styling

Affective performanceis the emotional response that owning

or using the product or outlet provides Ex: A suit that produces

admiring glances or compliments may produce a positive affective

response.

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Dissatisfaction Responses

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Dissatisfaction Responses

Marketing Strategy and Dissatisfied Consumers

Firms need to satisfy consumer expectations by

1. Creating reasonable expectations through promotional efforts, and

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

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Dissatisfaction Responses

Marketing 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.

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Customers Satisfaction, Repeat Purchases,

and Customer Commitment

Creating Committed Customers

Is Increasingly the Focus of Marketing Strategy

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Customers Satisfaction, Repeat Purchases,

and Customer Commitment

Repeat purchasers continue to buy the same brand though they do not have

an emotional attachment to it.

Switching costsare the costs of finding, evaluating, and adopting another

solution. Some dissatisfied customers may also become or remain repeat

purchasers because these individuals perceive the switching costs to be toohigh.

Brand loyalty involves commitment to the brandit is a biased behavioral

response expressed over time.

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Customers Satisfaction, Repeat Purchases,

and Customer Commitment

Repeat Purchasers, Committed Customers, and Profits

A churn is a turnover in a firms customer base.

Reducing churn is a major objective of many firms today.

It typically costs more to obtain a new customer than to retain an existing one,

and new customers generally are not as profitable as longer-term customers!

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Repeat Purchasers, Committed Customers,

and Marketing StrategyRepeat Purchasers, Committed Customers, and Marketing Strategy

1. Attracting new users to the product category

2. Capturing competitors current customers

3. Encouraging current customers to use more

4. Encouraging current customers to become repeatpurchasers

5. Encouraging current customers to become committed

customers

Developing a marketing strategy for a particular segment includes

identifying specific objectives to be pursued, such as

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Relationship Marketing

Five key elements to Relationship marketing:

1. Developing a core service or product around which to build acustomer relationship

2. Customizing the relationship to the individual customer

3. Augmenting the core service or product with extra benefits

4. Pricing in a manner to encourage loyalty

5. Marketing to employees so that they will perform well for

customers

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