Copyright © Cengage Learning. All rights reserved.11 | 1 Chapter 11 Post-Decision Processes

11 | 2 Copyright © Cengage Learning. All rights reserved. Learning Objectives 1.Post-decision dissonance and regret. 2.Consumer learning from experience. 3.Ways consumers judge satisfaction and dissatisfaction with decision. 4.Various strategies and levels of complexity for disposal of something.

11 | 3 Copyright © Cengage Learning. All rights reserved. Chapter Overview: Post-Decision Processes (Exhibit 11.1)

11 | 4 Copyright © Cengage Learning. All rights reserved. Post-Decision Dissonance and Regret Loss of confidence in decision of –Acquisition –Consumption –Disposition Dissonance—Anxiety when MAO high and more than one alternative is attractive Regret –Unfavorable comparison –Consumer anticipation

11 | 5 Copyright © Cengage Learning. All rights reserved. A Model of Learning from Experience (Exhibit 11.3)

11 | 6 Copyright © Cengage Learning. All rights reserved. Factors Affecting Learning from Experience Motivation Prior knowledge/ability Ambiguity of information/Lack of opportunity Processing biases –Confirmation –Overconfidence –Strategies Top-dog Underdog

11 | 7 Copyright © Cengage Learning. All rights reserved. Consumer Judgments? Satisfaction Dissatisfaction Dimensions –Utilitarian –Hedonic Levels of Satisfaction/ Dissatisfaction –Monitor –Costs

11 | 8 Copyright © Cengage Learning. All rights reserved. The American Consumer Satisfaction Index (Exhibit 11.6)

11 | 9 Copyright © Cengage Learning. All rights reserved. Disconfirmation Paradigm Satisfaction Based on Expectations Other Influences on Satisfaction Independent Post-Decision Feelings Negative (-) Simple (-/+) Positive (+)

11 | 10 Copyright © Cengage Learning. All rights reserved. Satisfaction/Dissatisfaction Based on Thoughts Disconfirmation Expectations Performance –Objective –Subjective Simple confirmation and satisfaction Negative disconfirmation and dissatisfaction

11 | 11 Copyright © Cengage Learning. All rights reserved. The Disconfirmation Paradigm (Exhibit 11.7)

11 | 12 Copyright © Cengage Learning. All rights reserved. Attribution Theory Causality/blame/explanations Factors –Stability –Focus –Controllability Value-Added

11 | 13 Copyright © Cengage Learning. All rights reserved. Equity Theory Inputs Versus Outputs –Consumer –Seller Fairness in Exchange

11 | 14 Copyright © Cengage Learning. All rights reserved. Satisfaction/Dissatisfaction Based on Feelings Post-decision feelings Coping Misprediction about emotions –Affective forecasting

11 | 15 Copyright © Cengage Learning. All rights reserved. Responses to Dissatisfaction Take no action Discontinue purchasing Complain or return item Negative word-of-mouth

11 | 16 Copyright © Cengage Learning. All rights reserved. Complainers Tendencies –Younger –Higher Income –Less Brand Loyal –Cultural Differences Types –Passives –Voicers –Irates –Activists

11 | 17 Copyright © Cengage Learning. All rights reserved. Satisfaction Is Not Enough 65% to 85% of customers who defect to competitors say they were “satisfied” or “very satisfied” Customer retention is key—Develop long-term relationships

11 | 18 Copyright © Cengage Learning. All rights reserved. Customer Retention Tactics Care about your customers—2/3 of customers defect because they feel company doesn’t care about them Remember customers between sales— Contact on birthdays, etc. Build trusting relationships—expertise, reliability, concern Monitor service delivery process Be there when needed—Service and repair Provide extra effort—Beyond call of duty

11 | 19 Copyright © Cengage Learning. All rights reserved. Options for Post-Acquisition Disposition Give Away Trade Recycle Sell Use Up Throw Away Abandon Destroy “…action taken toward possessions.” Temporary or Involuntary Temporary or Permanent

11 | 20 Copyright © Cengage Learning. All rights reserved. Disposing of Meaningful Objects Physical Detachment Emotional Detachment

11 | 21 Copyright © Cengage Learning. All rights reserved. Recycling Motivation Ability Opportunity