Marketing 547 Post-Purchase Processes (and Consumer Satisfaction)

Customer Satisfaction The Post-Acquisition Process (Involves)  Usage/Consumption -- Is it always as was expected?  Consumer (Dis)satisfaction  Product Disposition -- keep, get rid of it permanently, get rid of temporarily Marketing Issues - e.g., resale value Societal Issues - e.g., solid waste problem

Customer Satisfaction Consumer (Dis)satisfaction  Definition -- post-consumption evaluation that a chosen alternative at least meets or exceeds expectations Alternative -- the attitude formed to a good or service as a result of its purchase (and usage)

Customer Satisfaction Consumer (Dis)satisfaction (Cont.)  The Traditional View -- Expectancy (Dis)confirmation Exposure to and/or usage of Product over time yields a belief-- Expectations of How a Brand Should Perform Usage or trial of a particular brand yields a belief -- Evaluation of Brand Performance Comparison of brand performance to expectations - Evaluation of Discrepancy Between Expectations and Performance

Customer Satisfaction If Expectations > Perceived Brand Performance -- Dissatisfaction If Expectations = Perceived Brand Performance -- Cognitive Satisfaction If Expectations < Perceived Brand Performance -- Cognitive & Emotional Satisfaction

Customer Satisfaction Factors influencing the (Dis)satisfaction process  Factors influencing expectations Brand Factors (e.g., physical characteristics, price) Promotional Factors (e.g., ad promises) Other brands (e.g., product norms) Consumer characteristics (involvement, i.e., latitudes of acceptance)

Customer Satisfaction Factors influencing the (dis)satisfaction process (Cont.)  Factors influencing perceptions of performance Prior attitudes toward brand Expectations  Managerial Implications Listen to consumers (what are expectations) Don’t over promise with promotions Stay in contact with consumers after purchase

Consumer Satisfaction Other Views:  Equity Theory (i.e., “Consumer Ripoff Theory) Consumers will analyze the ratio of their outcomes and inputs to the ratio of outcomes and inputs of the firm Thus, they compare  Outcomes of C/ Input of C to  Outcomes of Firm/ Input of Firm Where  Outcome of C -- performance of brand  Input of C -- money paid by C  Outcome of Firm -- revenue  Input of Firm -- cost of goods ~ =

Consumer Satisfaction  Attribution Theory Concerned with how people identify causes ( such as product performance) If a brand fails to meet expectations, to whom (or what ) does the consumer attribute this to?  Situation Factors?  The consumer herself/himself?  The brand quality?

Consumer Satisfaction Summary of Factors Influencing Consumer Satisfaction/Dissatisfaction  Expectation disconfirmation Factors influencing expectations  Characteristics of the product  Promotional factors  Characteristics of the consumer Factors influencing perception of actual performance  Equity Perceptions  Attributions of causality  Actual product performance  Consumer’s affective state

Consumer Satisfaction Implications  Most important factor -- brand performance  Quality control is important at every phase  Service after sale may allow attributions to alter dissatisfied C’s  Consumer contact (research) -- are you being treated equitably

Consumer Satisfaction Dissatisfied Consumer Responses  Private Action --mental note, “Never Again!”  Public Action -- Engage in Negative WOMC  Governmental Action