Marketing Final (Post purchase, Customer satisfaction, customer commitment)
Occurs when negative emotions or guilt feelings are aroused by the use of a product or a service
Consumption Guilt
Rebecca is a single woman in her 40s. She sold her Honda Civic and bought an Acura CSX, which is considerably more expensive, but she really liked it. She was going to her brother's house with her mother, and she asked that her mother drive. She didn't want her brother to see that she had purchased an expensive car for herself. Rebecca was experiencing _____.
Consumption guilt
Repeat purchasers
Continue to buy the same brand though they do not have an emotional attachment to it. They may do so out of habit, or because they don't see viable options to their current choice.
Firms need to satisfy consumer expectations by
Creating reasonable expectations through promotional efforts, and Maintaining consistent quality so the reasonable expectations are fulfilled.
Product Use
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
Purchase is followed by which processes?
Use, evaluation, and sometimes satisfaction
Brand identification
When a consumer believes the brand reflects and reinforces some aspect of his or her self-concept. This type of commitment is most common for symbolic products such as beer and automobiles. It is also likely in service situations that involve extended interpersonal encounters.
The longer a customer is with a firm...
the more profits the firm derives from that customer. Thus, a stable customer base tends to be highly profitable per customer
Expectation and Performance chart
STUDY
Switching costs
Some dissatisfied customers may also become or remain repeat purchasers. They find the costs of finding, evaluating, and adopting another solution too high.
1st step of dissatisfied customer
Take or don't take external action
The easier it is to alter the decision...
the less likely the consumer is to experience dissonance
Committed customer
A consumer loyal to a brand (store or service) who has an emotional attachment to the brand or firm. Customer likes the brand in a manner similar to friendship..."I trust this brand." or "I like this outlet."
Brand comfort
A psychological state wherein a customer's anxiety concerning a service has been eased, and he or she enjoys peace of mind and is calm and worry free concerning service encounters with [a specific] provider.
Example of "Use Innovativeness"
Arm & Hammer's "countless uses for under $1 campaign"
Brand delight
Brand loyalty may also arise through performance so far above expected that it delights the customer.
Product disposition
Can occur before, during, or after product use Proper product disposition is important to consumers, and therefore many firms and industries e-Waste concerns
Dissatisfaction leads to
Complaining, as well as erosion of loyalty, brand switching, and negative word of mouth
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)
Brand loyalty
Involves commitment to the brand - it is a biased behavioral response expressed over time.
For product use, retailers can promote such items Ex) Bertolli ad with pasta and pasta sauce (complementary items)
Jointly, display them together, and train sales personnel to make relevant complementary sales ex) suit and ties
NPS
Net Promoter Score Indirect word-of-mouth (WOM) measure of true attitudinal loyalty =Promoters-Detractors Form: "How likely is it that you would recommend (Company X) to a colleague or friend?"
For many products and most services, the decisions to purchase and to consume are made simultaneously Example:
Ordering in a restaurant= also deciding to eat the food there Buying groceries= second decision to prepare and eat the food (second decision occurs at a different time)
Connie just purchased her first new car, and she's actually feeling a little bad about it. She's concerned about how much money she spent and how long she will be making car payments. She's not sure she made the right choice, either. She liked another car a little better, but ended up purchasing another model. Connie is experiencing _____.
Post purchase Dissonance
Post purchase Dissonance
Post purchase Dissonance occurs when a consumer has doubts or anxiety regarding the wisdom of a purchase made
Which of the following occurs when a consumer actively acquires a product that is not used or used only sparingly relative to its potential use?
Product nonuse
3 categories of consumers based on NPS
Promoters (Score 9 or 10) Passively satisfied (Score 7 or 8) Detractors ( Score 0 to 6)
Use innovativeness
Refers to a consumer using a product in a new way
Symbolic Performance
Relates to aesthetic or image-enhancement performance
Instrumental Performance
Relates to the physical functioning of the product
Satisfaction leads to
Repurchase, positive word of mouth, and loyalty
Post purchase Dissonance is a function of:
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
Affective Performance
The emotional response that owning or using the product or outlet provides
A consumer's evaluation of a purchase can be influenced by
The purchase process itself, post purchase dissonance, product use, and product/package disposition
Even if a dissatisfied consumer takes no external action, which of the following is likely?
Will have a less favorable attitude toward the store or brand
When a customer doesn't take external action they usually have
a less favorable attitude
Even when post purchase dissonance occurs, it is still generally followed by product use. This is shown in the Range Rover ad where
the ad serves to confirm the wisdom of a purchase as well as influence new purchasers
When a customer does take external action, the most favorable standpoint from a company is that
the customer complains to them, instead of negative WOM or switching brands
Satisfaction with a purchase is primarily a function of
the initial performance expectations and perceived performance relative to those expectations