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

2. 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

3. 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

4. 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

5. 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

6. 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 Low involvement: Lower initial satisfaction but increasing over time

7. MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 7 http://www.theacsi.org/acsi-results/scores-by-industry

8. MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 8 Satisfaction and Dissatisfaction Based on Thought Expectations and Performance

9. MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 9 Some Influences Assortment size: Choice from larger assortment tends to lead to lower satisfaction Higher expectations can lead to falling short

10. MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 10 Attribution Theory Three issues –Stability –Focus –Controllability Generally, there is greater blame for failure when the problem is under the control of the firm

11. MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 11 Satisfaction/Dissatisfaction Based on Feelings

12. MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 12 Responses to Dissatisfaction Complaints –To Firm Others –Four types of complainers Passives Voicers (directly to firm) Irates (more likely to engage in negative WOM Activists Negative word of mouth (WOM)

13. MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 13 Recycling in Japan