1 Chapter 12 POST-DECISION PROCESSES

2 Model of Consumer Problem Solving Problem Recognition Search for Information Evaluation of Alternatives Choice Decision Purchase Postpurchase Use and Reevaluation

3 Chapter Overview H Dissonance H Satisfaction/Dissatisfaction –disconfirmation paradigm –attribution theory –equity theory H Complaining/negative WOM

4 Post-Decision Dissonance H Doubts/Anxiety about product choice –many times we attempt to justify our choices u confirming evidence u denial or minimization of downsides (e.g., the repair bills really aren’t that high) u support from others u modification of beliefs (e.g., I really didn’t want a roomy car!) Was buying a “previously loved vehicle” at Honest Abe’s the right choice? Should I have gone elsewhere??

5 Satisfaction/Dissatisfaction Judgements H Disconfirmation Paradigm H ___________ Theory H ________ Theory

6 The Disconfirmation Paradigm H Expectations: beliefs we have before usage H Performance: evaluation of what happened H Disconfirmation: occurs when these two are not equal –positive leads to satisfaction –negative leads to dissatisfaction H Example: New movie release H Beware of “overpromising”

7 Attribution Theory H Stability –temporary or frequent? H F –is it my fault or their fault? H Controllability –could it be prevented?

8 Equity Theory H Fairness of exchange –perceived relationship of cost of production to price charged –relative bargaining power of the two sides –opportunism

9 Individual Application Exercise H Think about the three ways consumers can conclude they are dissatisfied (disconfirmation paradigm, attribution theory & equity theory). H Explain how each of these approaches could apply to a night at a hotel. H Provide a specific example for each approach.

10 Dissatisfaction Outcomes H Complaining –How common is complaining? –Other ways of getting back at the firm u brand switching u active boycotts H Negative WOM I hate your vulgarity and violent films! I’m going to tell all my friends that your newest release stinks!

11 Effective Handling of Complaints H Acceptance of responsibility H Quick action, e.g., –replacement –repair –refund –exchange

12 Chapter 12 Review H Dissonance H Satisfaction/Dissatisfaction –disconfirmation paradigm –attribution theory –equity theory H Complaining/negative WOM

13 Model of Consumer Problem Solving Problem Recognition Search for Information Evaluation of Alternatives Choice Decision Purchase Postpurchase Use and Reevaluation