Post-Decision Processes Chapter 11 Post-Decision Processes

Learning Objectives Post-decision dissonance and regret. Consumer learning from experience. Ways consumers judge satisfaction and dissatisfaction with decision. Various strategies and levels of complexity for disposal of something.

Chapter Overview: Post-Decision Processes (Exhibit 11.1)

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

A Model of Learning from Experience (Exhibit 11.3)

Factors Affecting Learning from Experience Motivation Prior knowledge/ability Ambiguity of information/Lack of opportunity Processing biases Confirmation Overconfidence Strategies Top-dog Underdog

Consumer Judgments? Satisfaction Dissatisfaction Dimensions Utilitarian Hedonic Levels of Satisfaction/ Dissatisfaction Monitor Costs

The American Consumer Satisfaction Index (Exhibit 11.6)

Disconfirmation Paradigm Satisfaction Based on Expectations Negative (-) Simple (-/+) Positive (+) Other Influences on Satisfaction Independent Post-Decision Feelings

Satisfaction/Dissatisfaction Based on Thoughts Disconfirmation Expectations Performance Objective Subjective Simple confirmation and satisfaction Negative disconfirmation and dissatisfaction

The Disconfirmation Paradigm (Exhibit 11.7)

Attribution Theory Causality/blame/explanations Factors Value-Added Stability Focus Controllability Value-Added

Equity Theory Inputs Versus Outputs Fairness in Exchange Consumer Seller Fairness in Exchange

Satisfaction/Dissatisfaction Based on Feelings Post-decision feelings Coping Misprediction about emotions Affective forecasting

Responses to Dissatisfaction Take no action Discontinue purchasing Complain or return item Negative word-of-mouth

Complainers Tendencies Types Younger Higher Income Less Brand Loyal Cultural Differences Types Passives Voicers Irates Activists

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

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

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

Disposing of Meaningful Objects Physical Detachment Emotional Detachment

Recycling Motivation Ability Opportunity