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This document summarizes key concepts around post-purchase evaluation and customer satisfaction from a marketing textbook. It discusses post-purchase dissonance that can occur after a purchase decision. It also outlines factors that determine customer satisfaction or dissatisfaction, such as expectations about product performance. The document then covers how repeat purchases and customer commitment can increase customer profitability over time if companies focus on customer retention through relationship marketing.
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- 1. Marketing 334 Consumer Behavior Chapter 18 Post Purchase Evaluation and Customer Satisfaction From: Consumer Behavior, 10th ed. By Hawkins, Mothersbaugh and Best
- 2. Postpurchase Consumer BehaviorPostpurchase Consumer Behavior
- 3. Postpurchase DissonancePostpurchase Dissonance Postpurchase DissonancePostpurchase 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 theThe 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
- 4. 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)
- 5. 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 causeIndulging in chocolate for some can cause consumption guiltconsumption guilt
- 6. 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.
- 7. 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 complementaryDisplaying complementary products togetherproducts together
- 8. 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.
- 10. Purchase Evaluation and CustomerPurchase Evaluation and Customer SatisfactionSatisfaction The Evaluation ProcessThe Evaluation Process Expectations, Performance, and SatisfactionExpectations, Performance, and Satisfaction
- 11. Purchase Evaluation and CustomerPurchase 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
- 13. 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 areMaintaining consistent quality so the reasonable expectations are fulfilled.fulfilled.
- 14. 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.
- 15. Customers Satisfaction, RepeatCustomers Satisfaction, Repeat Purchases, and Customer CommitmentPurchases, and Customer Commitment 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.
- 16. Customers Satisfaction, RepeatCustomers Satisfaction, Repeat Purchases, and Customer CommitmentPurchases, and Customer Commitment Repeat Purchasers, Committed Customers, and ProfitsRepeat Purchasers, Committed Customers, and Profits A churnchurn 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 existingIt typically costs more to obtain a new customer than to retain an existing one, and new customers generally are not as profitable as longer-termone, and new customers generally are not as profitable as longer-term customers!customers!
- 17. Customers Satisfaction, RepeatCustomers Satisfaction, Repeat Purchases, and Customer CommitmentPurchases, and Customer Commitment Sources of Increased Customer Profitability over TimeSources of Increased Customer Profitability over Time
- 18. Customers Satisfaction, RepeatCustomers Satisfaction, Repeat Purchases, and Customer CommitmentPurchases, and Customer Commitment Repeat 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 repeatEncouraging current customers to become repeat purchaserspurchasers 5.5. Encouraging current customers to become committedEncouraging current customers to become committed customerscustomers Developing a marketing strategy for a particular segment includes identifying specific objectives to be pursued, such as
- 19. Customers Satisfaction, RepeatCustomers Satisfaction, Repeat Purchases, and Customer CommitmentPurchases, and Customer Commitment Customer Satisfaction OutcomesCustomer Satisfaction Outcomes
- 20. Customers Satisfaction, RepeatCustomers Satisfaction, Repeat Purchases, and Customer CommitmentPurchases, and Customer Commitment Relationship MarketingRelationship Marketing Five key elements to Relationship marketing:Five key elements to Relationship marketing: 1.1. Developing a core service or product around which toDeveloping a core service or product around which to build a customer relationshipbuild a customer relationship 2.2. Customizing the relationship to the individual customerCustomizing the relationship to the individual customer 3.3. Augmenting the core service or product with extraAugmenting 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 wellMarketing to employees so that they will perform well for customersfor customers