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