MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 1 POST PURCHASE PROCESSES

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 2 Dissonance and Regret Dissonance: Uncertainty about whether the correct decision was made –Attempts to rationalize decision and find information to support it Regret: Perception of unfavorable performance of chosen option relative to one not chosen

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 3 Learning From Experience Hypothesis testing –Hypothesis generation (based on prior experience) –Exposure to evidence –Encoding of evidence (Evaluation) –Integration of evidence and prior beliefs Updating of beliefs to reflect both prior and new impressions

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 4 Influences on Learning Motivation Prior knowledge or ability Ambiguity of learning environment or lack of opportunity Processing biases

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 5 Firm Strategies to Affect Learning Top Dog (Market Leader) Strategy –Claims to justify the decision by the consumer Underdog Strategies –Comparison of brands –Promotions to induce trial

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 6 Satisfaction and Dissatisfaction Judgments Dimensions –Utilitarian –Hedonic Factors of Influence –Involvement High involvement: High initial satisfaction followed by decline (stinging disappointment) Low involvement: Lower initial satisfaction but increasing over time

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 7

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 8

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 9 Some Influences Assortment size: Choice from larger assortment tends to lead to lower satisfaction –Ideal assortment and number of choices depends on involvement and expertise –Information overload makes it more difficult to make an optimal choice –Less certainty that a good choice was made –Choice experience may or may not be less pleasant (depending on hedonic enjoyment) –Greater opportunity to second guess the choice made Higher expectations can lead to falling short

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 10 Attribution Theory Attribution: Perceived causality of outcome or actions –Who is responsible? –What is the motivation of other parties? Three issues –Stability –Focus –Controllability Generally, there is greater blame for failure when the problem is under the control of the firm

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 11 Responses to Dissatisfaction Complaints –To Firm Others –Person to person –Social media –Four types of complainers Passives—limited spread of negative experiences as opportunities arise Voicers (directly to firm) Irates (more likely to engage in negative WOM; limited effort) Activists—will engage in efforts to involve others in boycotts and/or other activities (e.g., *sucks.com web sites; Twitter and Facebook forums) Negative word of mouth (WOM)

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 12 Recycling in Japan