Consumption to Satisfaction CHAPTER 14 BABIN / HARRIS CB PART 5 1 ©DREAMPICTURES/VSTOCK/BLEND IMAGES/JUPITERIMAGES 1

Learning Outcomes LO1 LO2 LO3 LO4 LO5 LO6 Gain an appreciation of the link from consumption to value to satisfaction. Discuss the relative importance of satisfaction and value in consumer behavior. Know that emotions other than satisfaction can affect postconsumption behavior. Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ postconsumption reactions. Understand problems with commonly applied satisfaction measures. Describe some ways that consumers dispose of products. LO1 LO2 LO3 LO4 LO5 LO6

LO1 Gain an appreciation of the link from consumption to value to satisfaction. 3

Exhibit 14.1 Basic Consumption Process LO1 Consumption The process that converts time and goods, services, or ideas into value.

Consumption and Product Classification LO1 Consumption frequency–the number of times a product or service is consumed in a given time period. Durable goods - Consumed over long periods of time Nondurable Goods - Consumed quickly

Situations and Consumer Reactions LO1 Temporal factors Antecedent conditions Physical environment

Meaning Transference LO1 Process through which cultural meaning is transferred to a product and onto the consumer.

Symbolism of the Diamond LO1 Symbol of love and commitment Product symbolism is important Diamond rings create excitement Even with the recent economic downturn, people still got engaged and married. ©ISTOCKPHOTO.COM/TOMASZ PIETRYSZEK

Exhibit 14.3: Consumption, Value, and Satisfaction LO1

LO2 Discuss the relative importance of satisfaction and value in consumer behavior. 10

Exhibit 14.4 ACSI Scores for U.S. Retailers LO2 Source: online content retrieved at American Consumer Satisfaction Index website, www.theacsi.org, accessed August 12, 2010. ASCI stands for American Consumer Satisfaction Index.

Satisfaction and Dissatisfaction LO2 Dissatisfaction A mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome. Satisfaction A mild, positive emotional state resulting from a favorable appraisal of a consumption outcome.

Consumer Satisfaction LO2 A postconsumption phenomenon Results from a cognitive appraisal Also referred to as satisfaction judgment A relatively mild emotion that does not create strong behavioral reactions

LO3 Know that emotions other than satisfaction can affect postconsumption behavior. 14

Other Postconsumption Reactions LO3 Delight Disgust Surprise Exhilaration Anger ©RADIUS IMAGES/JUPITERIMAGES ©PHOTOS.COM/JUPITERIMAGES

LO4 Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ postconsumption reactions. 16

Theories of Postconsumption Reactions LO4 Expectancy/ disconfirmation theory Equity theory Attribution theory ©BOBBY BANK/GETTY IMAGES

Exhibit 14.5 Basic Disconfirmation Process LO4

Expectations LO4 Consumer expectations have two components: (1) The probability that something will occur and (2) an evaluation of that potential occurrence. There are four types of expectations: Predictive Normative Ideal Equitable

Sources of Expectations LO4 Experience Personal factors Word-of-mouth Advertisements

Equity Theory LO4 Proposes that consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange. If: outcomesA/inputsA ≈ outcomesB/inputsB then satisfaction will be positively affected.

Consumer Satisfaction LO4 Fairness perceptions affect satisfaction. Inequitable treatment - service providers should be aware of how customers are treated in public so that all consumers perceive they are being treated fairly. Inequitable consumers - consumers may be satisfied because the equity balance favors them, but their actions can cause other consumers to perceive they aren’t being treated fairly.

Attribution Theory LO4 Focuses on explaining why a certain event has occurred. Elements: Locus – judgments of who is responsible for an event. Control – the extent to which an outcome was controllable or not. Stability – the likelihood that an event will occur again.

Cognitive Dissonance LO4 Lingering doubts about a decision that has already been made. Sometimes known as buyer’s regret. Conditions: Consumer is aware that there are many attractive alternatives. Decision is difficult to reverse. Decision is important and involves risk. Consumer has low self-confidence.

Understand problems with commonly applied satisfaction measures. LO5 Understand problems with commonly applied satisfaction measures. 25

Satisfaction/Dissatisfaction Measures LO5 Direct, global measure Attribute- specific Disconfirmation

Describe some ways that consumers dispose of products. LO6 Describe some ways that consumers dispose of products. 27

Consumer Refuse LO6 Any packaging that is no longer necessary for consumption to take place or, in some cases, the actual good that is no longer providing value to the consumer.

Disposing of Refuse LO6 Trashing Recycling Converting Trading Donating ©THINKSTOCK IMAGES/JUPITERIMAGES Recycling Trading Reselling Trashing Converting Donating