DB compensatory decision making bias
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MKTG4120_PPT_Ch10S19.pptxChapter 10
Post-Decision Processes
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Consumption
Consumption process – process in which consumers use the product, service, or experience
Consumption is quick for nondurable goods (goods that last less the 12 months.)
Consumption is slow for durable goods (goods that last longer than 12 months.)
Thus, consumption frequency is higher for nondurable goods than for durable goods.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Consumption and Value
Consumption is how the consumer derives value from a purchase.
A Wendy’s hamburger is not worth $.99 if you can’t eat it.
We don’t know if we are satisfied with a product until after consumption.
If a person collects Bobble-heads do they consume them?
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The Transference of Meaning in Consumption
Meaning Transference – When culturally defined meanings associated with a product, service, or experience are transferred to the consumer during consumption.
If we buy a motorcycle do we just buy a motorcycle?
If we buy beverages for a party, what do we want?
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What is Value?
Value is created when the benefits of a purchase are greater than the costs.
Benefits – when product features perform expected functions and/or when meanings are transferred.
Costs – monetary, time, and psychological expenditures made to purchase and consume product.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Satisfaction
Satisfaction – a positive emotional state resulting from favorable appraisal of a consumption.
Satisfaction is derived from perceived value.
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Expectancy / Disconfirmation Theory
Consumer compare perceptions of actual performance to predetermined expectations.
Performance>Expectations= Positive Disconfirmation (satisfaction)
Expectations > Performance = Negative Disconfirmation (dissatisfaction)
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The Disconfirmation Paradigm
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Disconfirmation Paradigm
Satisfaction based on expectations
Other influences on satisfaction:
Independent
Post-decision feelings
Negative
(-)
Simple
(-/+)
Positive
(+)
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Types of Expectations
Predictive Expectations – what a consumer thinks will actually occur
Normative Expectations – what a consumer thinks will occur based on past experience
Ideal Expectations – what is the best experience that could happen
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Sources of Expectations
Word of Mouth – information from family, friends, or opinion leaders
Explicit promises – promises made in company produced communications, such as advertisements.
Individual influence – our own judgment as to what an expectation should be.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Importance of Customer Satisfaction
Satisfied customers come back
Leads to profitability- Examples:
Consumer in supermarket spends $60,000+ in lifetime
Satisfied customer can provide $175,000 of business to car dealer over lifetime
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Customer Dissatisfaction
Dissatisfied customers stop purchasing, complain, spread negative word-of-mouth
Average business does not hear from 96% of its unhappy customers
Average person with problems tells 9 or 10 people
95% of complainers will continue to do business with you if complaint is resolved quickly
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Post-Decision Dissonance and Regret
Loss of confidence in decision of:
Acquisition
Consumption
Disposition
Dissonance- Anxiety when MAO high
Regret
Unfavorable comparison
Consumer anticipation
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Attribution Theory
Finding Explanation
Factors
Stability
Focus
Controllability
Value-Added
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Equity Theory
Inputs Versus Outputs
Consumer
Seller
Fairness in Exchange
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Responses to Dissatisfaction
Take no action
Negative Word-of-Mouth and e-WOM
Complain and/or take product back or exchange
Place brand in Inept set when product is considered for future purchase
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Complainers
Tendencies
Younger
Higher Income
Less Brand Loyal
Cultural Differences
Types
Passives
Voicers
Irates
Activists
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Effective Handling off Complaints
Listen to squeaky wheel
Look for complaints- Make complaining easy
Anticipate needs for recovery
Accept responsibility
Quick action- Replace, repair, refund, exchange
Empower/Train employees
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Satisfaction Is Not Enough
65% - 85% of customers who defect to competitors say they were “satisfied” or “very satisfied”
Customer retention is key- Develop long-term relationships
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Customer Retention Tactics
Care about your customers- 2/3 of customers defect because they feel company doesn’t care about them
Remember customers between sales- Contact on birthdays, etc.
Build trusting relationships-expertise, reliability, concern
Monitor service delivery process
Be there when needed- Service and repair
Provide extra effort- Beyond call of duty
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Options for Post-Acquisition Disposition
Give Away
Trade
Recycle
Sell
Use Up
Throw Away
Abandon
Destroy
“…action taken toward possessions.” Temporary or Involuntary
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Garage Sales (Disposition)
Never me – Gifts or purchases that consumer was never satisfied with or never wanted
Not me now – Gifts or purchases that consumer was satisfied with but has served purpose and now no longer uses
Me to You – Gifts or purchases that consumer used and felt a connection with. They will only sell or pass on these products to people they think will hold similar feelings.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recycling
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