1. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

2. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

3. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Purchase Processes: Consumption and Post- Consumption Evaluations CHAPTER 6

4. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior

5. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Consumers’ usage of the acquired product

6. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Knowing how many and which consumers fall into the user and nonuser categories

7. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Knowing how many and which consumers fall into the user and nonuser categories Size of user market is one indicator of market attractiveness Size of nonuser group speaks to future growth opportunities Characterized along many dimensions

8. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior

9. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior When Does Consumption Occur?

10. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior When Does Consumption Occur? How much time passes between purchase and consumption?

11. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior When Does Consumption Occur? How much time passes between purchase and consumption? What time of day is product used?

12. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior When does Consumption Occur? How much time passes between purchase and consumption? What time of day is product used? When in the year or during which season is product consumed?

13. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. An Attempt to Expand Consumption

14. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Where Does Consumption Occur?

15. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Where Does Consumption Occur? The situation in which consumption occurs can affect product choice— e.g., beers sales for in-home versus on-premise consumption

16. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior How Is the Product Consumed?

17. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior How Is the Product Consumed? How is the product prepared? Is it consumed alone or with other products? Is it used as intended or have consumers invented a new use?

18. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior How Much Is Consumed?

19. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Would Consumers Pour the Same Amount into Each Glass?

20. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Consumers may be similar in what they consume, but different in how much they consume Usage volume segmentation: dividing consumers into segments based on amount of consumption ( heavy, moderate, and light users) Firms can encourage consumption or change amount consumed How Much Is Consumed?

21. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Enhance the frequency of consumption Enhance the amount consumed per consumption occasion Basic Strategies for Increasing the Amount of Consumption

22. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Encouraging more frequent consumption

23. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior The Influence of Package Size

24. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences

25. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Does It Feel?

26. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Does It Feel? Positive or negative things you feel when using a product

27. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Does It Feel? Positive or negative things you feel when using a product Firms can position products based on: - Positive feelings resulting from consumption - Elimination of negative feelings resulting from consumption

28. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Rewarding or Punishing Was the Experience?

29. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage

30. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement

31. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome

32. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes Negative Reinforcement Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement

33. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome Punishment: when consumption leads to negative outcome

34. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes Negative Reinforcement Purchase Need Product Purchase Product Consumption Receiving Negative Outcomes Punishment Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement

35. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences Did It Confirm or Disconfirm Expectations?

36. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences Did It Confirm or Disconfirm Expectations? Consumption can meet, exceed, or fall short of expectations

37. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Well Different Brands Are Meeting Consumers’ Expectations

38. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Shaping Interpretation of the Consumption Experience Beyond the consumption experience, consumers’ interpretation can be affected by their expectations of the experience and their mood at the time of consumption

39. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Norms and Rituals Consumption norms: informal rules that govern our consumption behavior Consumption rituals: a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time Holiday rituals (gift giving, parties)

40. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Norms and Rituals

41. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Compulsive Consumption A response to an uncontrollable drive or desire to obtain, use, or experience a feeling, substance, or activity that leads an individual to repetitively engage in a behavior that will ultimately cause harm to the individual and possibly others Gambling Addiction (shopping, alcohol, food) Internet (web dependency)

42. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Understanding Consumption Ethnography involves describing and understanding consumer behavior by interviewing and observing consumers in real-world situations

43. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Consumption Evaluations

44. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Consumption Evaluations Evaluations also occur following consumption

45. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Consumption Evaluations Evaluations also occur following consumption Consumers experience satisfaction or dissatisfaction

46. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Satisfaction Scores by Company

47. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Importance of Satisfaction It Influences Repeat Buying Positive post-consumption evaluations are essential for retaining customers The likelihood that customers will remain loyal depends on their level of satisfaction However, customer satisfaction does not guarantee loyalty

48. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers often communicate with others about their consumption experiences It Shapes Word-of-Mouth and Word-of-Mouse Communication Importance of Satisfaction

49. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Negative Word-of-Mouth

50. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Word-of-Mouse

51. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Dissatisfaction Can Lead to Complaints and Lawsuits Importance of Satisfaction

52. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Complaints

53. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Satisfaction Affects Consumers’ Price Sensitivity Importance of Satisfaction

54. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Customer Satisfaction-Price Sensitivity Relationship

55. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Implications for Customer Recruitment Importance of Satisfaction Monitor satisfaction levels of competitors’ customers Formulate strategies to attract dissatisfied customers of competitors

56. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. It Ultimately Affects Shareholder Value Importance of Satisfaction

57. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Determines Satisfaction? Product performance Consumption feelings Expectations

58. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Expectancy Disconfirmation Model Satisfaction depends on a comparison of pre-purchase expectations to actual outcomes

59. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Expectancy Disconfirmation Model Negative disconfirmation: when product delivers less than expected Positive disconfirmation: when product delivers more than expected Confirmation: product matches expectations

60. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Negative Disconfirmation Can Cause: Regret: when consumers believe that an alternative course of action other than the once chosen would have produced a better outcome Rage: when consumers are extremely upset

61. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Biggest Threats to Consumers’ Satisfaction

62. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Increases Consumers’ Satisfaction