CB chapter 18 - PART IV CONSUMER DECISION PROCESS PART 18-1...

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Unformatted text preview: PART IV: CONSUMER DECISION PROCESS PART 18-1 CHAPTER CHAPTER 18 POSTPURCHASE POSTPURCHASE PROCESSES, CUSTOMER SATISFACTION, AND CUSTOMER CUSTOMER COMMITMENT COMMITMENT 18-2 Consumer Behavior In The News… Consumer Which do you think generates higher satisfaction? E-tailers Brick and Mortar Retailers Source: E. Burns, “E-Tailers Beat Offlien Stores in Customer Satisfaction,” ClickZ.com, February 20, 2007. 18-3 Consumer Behavior In The News… Consumer Which do you think generates higher satisfaction? E-tailers – if you said e-tailers you are correct! Brick and Mortar Retailers E-tailers Scored 83 (on 100-point scale) while Brick E-tailers and Mortar (offline) scored 74. and Drivers: Web 2.0 features, such as better Drivers: product images and specs, zoom features, user reviews and so on… reviews Source: E. Burns, “E-Tailers Beat Offlien Stores in Customer Satisfaction,” ClickZ.com, February 20, 2007. 18-4 Postpurchase Consumer Behavior Postpurchase 18-5 Postpurchase Dissonance Postpurchase Postpurchase Dissonance occurs when a consumer has Postpurchase doubts or anxiety regarding the wisdom of a purchase made and is a function of the following: • The degree of commitment or irrevocability of the decision The • The importance of the decision to the consumer The • The difficulty of choosing among the alternatives The • The individual’s tendency to experience anxiety The 18-6 Postpurchase Dissonance Postpurchase 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 Increase Decrease the desirability of rejected alternatives Decrease Decrease the importance of the purchase decision Decrease Reverse the purchase decision (return before use) Reverse 18-7 Postpurchase Dissonance Postpurchase Consumption 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 Indulging cause consumption guilt cause 18-8 Applications in Consumer Behavior Applications The “beyond the The dryer” stories by Bounce shows other uses for Bounce dryer sheets. dryer Courtesy Proctor & Gamble. Reproduced with permission.. 18-9 Product Use and Nonuse Product 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. Retailers can promote such items • jointly jointly • display them together, or display • train sales personnel to make train relevant complementary sales relevant Displaying complementary Displaying products together products 18-10 Product Use and Nonuse Product Product 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. When marketers discover confusion about proper use, they should engage in communications to increase the chances of proper use. 18-11 Disposition Disposition 18-12 Purchase Evaluation and Customer Satisfaction Satisfaction The Evaluation Process Expectations, Performance, and Satisfaction 18-13 Purchase Evaluation and Customer Satisfaction Satisfaction The Evaluation Process Determinants of Satisfaction and Dissatisfaction Instrumental performance relates to the physical functioning of the product. Symbolic performance relates to aesthetic or imageenhancement performance. Affective performance is the emotional response that owning or using the product or outlet provides 18-14 Dissatisfaction Responses Dissatisfaction 18-15 Dissatisfaction Responses Dissatisfaction Marketing Strategy and Dissatisfied Consumers Firms need to satisfy consumer expectations by 1. Creating reasonable expectations through promotional Creating efforts, and efforts, 2. Maintaining consistent quality so the reasonable Maintaining expectations are fulfilled. expectations 18-16 Dissatisfaction Responses Dissatisfaction Marketing 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. 18-17 Customers Satisfaction, Repeat Purchases, and Customer Commitment Purchases, Creating Committed Customers Creating Is Increasingly the Focus of Marketing Strategy Is 18-18 Customers Satisfaction, Repeat Purchases, and Customer Commitment Purchases, Repeat purchasers continue to buy the same brand though they do not have an emotional attachment to it. Switching costs are the costs of finding, evaluating, and adopting another solution. Brand loyalty involves commitment to the brand – it is a biased behavioral response expressed over time. 18-19 Customers Satisfaction, Repeat Purchases, and Customer Commitment Purchases, Repeat Purchasers, Committed Customers, and Profits A churn is a turnover in a firm’s customer base. Reducing churn is a major objective of many firms today. Reducing It typically costs more to obtain a new customer than to retain an existing one, and new customers generally are not as profitable as longer-term customers! not 18-20 Customers Satisfaction, Repeat Purchases, and Customer Commitment Purchases, Sources of Increased Customer Profitability over Time 18-21 Customers Satisfaction, Repeat Purchases, and Customer Commitment Purchases, Repeat Purchasers, Committed Customers, and Repeat Marketing Strategy Marketing Developing a marketing strategy for a particular segment includes identifying specific objectives to be pursued, such as 1. Attracting new users to the product category 2. Capturing competitors’ current customers 3. Encouraging current customers to use more 4. Encouraging current customers to become repeat Encouraging purchasers purchasers 5. Encouraging current customers to become committed Encouraging customers customers 18-22 Customers Satisfaction, Repeat Purchases, and Customer Commitment Purchases, Customer Satisfaction Outcomes 18-23 Customers Satisfaction, Repeat Purchases, and Customer Commitment Purchases, Relationship Marketing Five key elements to Relationship marketing: 1. Developing a core service or product around which to build a Developing customer relationship customer 2. Customizing the relationship to the individual customer 3. Augmenting the core service or product with extra benefits 4. Pricing in a manner to encourage loyalty 5. Marketing to employees so that they will perform well for Marketing customers customers 18-24...
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