consumer behavior ch 18

the relationship between customer satisfaction, repeat purchases, and committed customers

Customer satisfaction with a brand or store is generally necessary for repeat purchases to occur. If other alternatives are readily available, consumers not satisfied with a brand/store's performance will generally try them in the future.

post purchase dissonance

an after-purchase psychological condition in which the purchaser experiences some doubt or worry about the wisdom of the purchase just made.

loyalty programs

are intended to encourage repeat purchases. Many are designed to generate repeat purchases rather than committed customers.

relationship marketing

attempts to develop an ongoing, expanding exchange relationship with a firm's customers.

reasonable foreseeable use of a product

companies need to anticipate these reasonably foreseeable uses by consumers, which may take the form of use innovations

switching costs

These are the costs involved in finding, evaluating and adopting another solution (product).

sources of increased profits from long-term customers

Price premiums since repeat and particularly committed customers tend to buy the brand consistently rather than waiting for a sale or continually negotiating price. Referrals generate profits by new customers acquired due to recommendations from existing customers. Lower costs occur because both the firm and the customer learn how to interact more efficiently over time. Finally, customers tend to use a wider array of a firms products and services over time.

factors that influence e-loyalty

Research has identified customization/personalization, interactivity, convenience, and online community as factors that drive e-loyalty.

churn

a term used to refer to turnover in a firm's customer base

ways a consumer can reduce post purchase dissonance

by increasing the desirability of the brand purchased, one can reduce post purchase dissonance, decreasing the desirability of rejected alternatives, decreasing the perceived importance of the purchase, or reverse the purchase decision

courses of action a consumer can take in response to dissatisfaction

complain to the store or manufacturer stop buying that brand or at that store engage in negative WOM complain to private or government agencies initiate legal action

e-waste

consists of cell phones, personal computers, and various other person electronics devices. (concerns: Rapid innovation and product obsolescence are combining to create a huge volume of e-waste.)

relationship marketing five strategy elements

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.

product position

important to marketing strategy because (a) sometimes disposition must precede product use due to financial or space limitations, (b) certain disposition strategies may give rise to a used or rebuilt market, and (c) difficult or unsatisfactory disposition alternatives may cause some consumers to withdraw from the market for a particular item.

the types of decision processes that affect the post purchase processes

involve product use, disposition, and very limited evaluation, and generally maintain a high level of repeat purchase motivation.

the major post purchase processes engaged in by consumers

likely to experience some post purchase dissonance product use and package disposition generally occurs Evaluation of the purchase experience, the product, and disposition of the product and package occurs simultaneously with and following each of these events

net promotor score

measures the percentage of a firm's promoter customer base left after subtracting out the firm's detractors.

product nonuse

occurs when a consumer actively acquires a product that is not used at all or used only sparingly relative to its potential use

consumption guilt

occurs when some negative emotions or guilt feelings are aroused by the use of a product or service.

factors that influence consumer satisfaction

purchase itself, post purchase dissonance, product use, and product disposition

use innovativeness

refers to a consumer using a product in a new way. Marketers who discover new uses for their products can greatly expand sales.

disposition of products and product packaging

refers to how the product and/or packaging is disposed of before, during, or after product use.

instrumental performance

relates to the physical functioning of a product while symbolic performance of a product relates to the aesthetic or image-enhancement performance of a product.

effective ways for a company to get innovative product uses by customers

the Internet can be used to track innovative product uses. Online observation and measurement are offering substantial insight in real-time ways that traditional methods may not

characteristics of a purchase situations that are likely to contribute to post purchase dissonance

the degree of commitment or irrevocability of the decision the importance of the decision to the consumer the difficulty of choosing among alternatives

affective performance

the emotional response that owning or using the product provides. It may arise from the instrumental and/or symbolic performance or the product.

what determines satisfaction for online retailers

website design and interaction security and privacy fulfillment and reliability customer service