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CHAPTER
18
Postpurchase Processes, Customer Satisfaction, and Customer Commitment
1
18-2
PART IV: CONSUMER DECISION PROCESS
2
| Describe the various postpurchase processes engaged in by consumers |
| Define and discuss postpurchase dissonance |
| Discuss the issues surrounding product use and nonuse and their importance to marketers |
| Summarize disposition options and their relevance to marketers and public policy |
| Explain the determinants and outcomes of satisfaction and dissatisfaction |
| Describe the relationship between satisfaction, repeat purchase, and customer commitment |
Learning Objectives
L02
L05
L06
L04
L03
L01
18-4
Postpurchase Consumer Behavior
4
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 individual’s tendency to experience anxiety
18-5
Postpurchase Dissonance
5
After the purchase is made, the consumer may utilize one or more of the following to reduce dissonance:
Increase the desirability of the brand purchased
Decrease the desirability of rejected alternatives
Decrease the importance of the purchase decision
Reverse the purchase decision (return before use)
18-6
Postpurchase Dissonance
6
Consumption 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 cause consumption guilt
18-7
Postpurchase Dissonance
Lars A. Niki
7
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
18-8
Product Use and Nonuse
8
Product 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.
When marketers discover confusion about proper use, they should engage in communications to increase the chances of proper use.
18-9
Product Use and Nonuse
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18-10
Disposition
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Product Disposition and Marketing Strategy
Marketers must be aware of the disposition factors that ultimately affect consumer purchase decisions.
Helping consumers with the disposition of a used product can help the consumer through this process (e.g., developing products, packages and programs that encourage proper disposition).
18-11
Disposition
YouTube Spotlight
Best Buy’s “Buy Back Program”
Viewer discretion due to language content
11
The Evaluation Process
18-12
Purchase Evaluation and Customer Satisfaction
12
The Evaluation Process
Determinants of Satisfaction and Dissatisfaction
Instrumental performance relates to the physical functioning of the product.
Symbolic performance relates to aesthetic or image-enhancement performance.
Affective performance is the emotional response that owning or using the product or outlet provides
18-13
Purchase Evaluation and Customer Satisfaction
13
18-14
Dissatisfaction Process
14
Marketing Strategy and Dissatisfied Consumers
Firms need to satisfy consumer expectations by
Creating reasonable expectations through promotional efforts, and
Maintaining consistent quality so the reasonable expectations are fulfilled.
18-15
Dissatisfaction Responses
15
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.
18-16
Dissatisfaction Responses
16
Creating Committed Customers
Is Increasingly the Focus of Marketing Strategy
18-17
Customer Satisfaction, Repeat Purchases, and Customer Commitment
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Repeat purchasers continue to buy the same brand though they do not have an emotional attachment to it.
Switching costs are the costs of finding, evaluating, and adopting another solution.
Brand loyalty involves commitment to the brand – it is a biased behavioral response expressed over time.
18-18
Customer Satisfaction, Repeat Purchases, and Customer Commitment
18
Do you know your Net Promoter Score?
Net Promoter Score (NPS) is an indirect word-of-mouth (WOM) measure of true attitudinal loyalty.
There are three categories of consumers:
Promoters
Passively satisfied
Detractors
NPS = Promoters minus Detractors
18-19
Customer Satisfaction, Repeat Purchases, and Customer Commitment
19
Repeat Purchasers, Committed Customers, and Profits
A churn is a turnover in a firm’s 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!
Why?
18-20
Customer Satisfaction, Repeat Purchases, and Customer Commitment
20
Sources of Increased Customer Profitability over Time
18-21
Customer Satisfaction, Repeat Purchases, and Customer Commitment
21
Repeat Purchasers, Committed Customers, and Marketing Strategy
Attracting new users to the product category
Capturing competitors’ current customers
Encouraging current customers to use more
Encouraging current customers to become repeat purchasers
Encouraging current customers to become committed customers
Developing a marketing strategy for a particular segment includes identifying specific objectives to be pursued, such as
18-22
Customer Satisfaction, Repeat Purchases, and Customer Commitment
22
Customer Satisfaction Outcomes
18-23
Customer Satisfaction, Repeat Purchases, and Customer Commitment
23
Relationship Marketing
Five key elements to Relationship marketing:
Developing a core service or product around which to build a customer relationship
Customizing the relationship to the individual customer
Augmenting the core service or product with extra benefits
Pricing in a manner to encourage loyalty
Marketing to employees so that they will perform well for customers
18-24
Customer Satisfaction, Repeat Purchases, and Customer Commitment
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The following Video Clip demonstrates how the Geek Squad provides great customer service!
18-25
Video Application
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18-26
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