1. BABIN / HARRIS CB Consumption to Satisfaction CHAPTER 14 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PART 5

2. Learning Outcomes 1.Gain an appreciation of the link from consumption to value to satisfaction. 2.Discuss the relative importance of satisfaction and value in consumer behavior. 3.Know that emotions other than satisfaction can affect postconsumption behavior. 4.Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ postconsumption reactions. 5.Understand problems with commonly applied satisfaction measures. 6.Describe some ways that consumers dispose of products. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-2

3. Consumption Process that converts time and goods, services, or ideas into value. Customer value is directly derived from product consumption. Utilitarian value Hedonic value ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-3 LO 1

4. Consumption and Product Classification Durable goods—consumed over long periods of time. Nondurable goods—consumed quickly. Consumption frequency—the number of times a product or service is consumed in a given time period. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-4 LO 1

5. Situations and Consumer Reactions Consumption situations and settings have a significant impact on the consumer experience: Temporal factors Antecedent conditions Physical environment ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-5 LO 1

6. Consumption, Meaning, and Transference Meaning transference—process through which cultural meaning is transferred to a product and onto the consumer. Begins with culture Value is affected largely by the meaning of goods, services, and experiences. Important cultural ideals or values are transferred onto products by marketing efforts. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-6 LO 1

7. Consumer Satisfaction A mild, positive emotional state resulting from a favorable appraisal of a consumption outcome. A postconsumption phenomenon. Results from a cognitive appraisal—also referred to as satisfaction judgment. A relatively mild emotion that does not create strong behavioral reactions. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-7 LO 2

8. Consumer Dissatisfaction A mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-8 LO 2

9. Other Postconsumption Reactions Delight Disgust Surprise Exhilaration Anger ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-9 LO 3

10. Theories of Postconsumption Reactions Expectancy/disconfirmation Equity theory Attribution theory ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-10 LO 4

11. Expectancy/Disconfirmation Theory Proposes that consumers enter into a consumption experience with predetermined cognitive expectations of a product’s performance. Positive disconfirmation—performance perceptions are more positive than what was expected—leads to satisfaction. Negative disconfirmation—performance perceptions do not meet expectations—leads to dissatisfaction. Confirmation—performance perceptions exactly match what was expected. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-11 LO 4

12. Expectations Preconsumption beliefs of what will occur during an exchange and/or consumption of a product. Components: Probability that something will occur Evaluation of that potential occurrence Types: Predictive Normative Ideal Equitable ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-12 LO 4

13. Sources of Expectations Word-of-mouth Experience Advertisements Personal factors Other terminology: Confirmation bias Self-perception theory Service quality—SERVQUAL scale Desires ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-13 LO 4

14. Equity Theory Proposes that consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange. If: outcomes A /inputs A ≈ outcomes B /inputs B then satisfaction will be positively affected. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-14 LO 4

15. Attribution Theory Focuses on explaining why a certain event has occurred. Elements: Locus—judgments of who is responsible for an event. Control—the extent to which an outcome was controllable or not. Stability—the likelihood that an event will occur again. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-15 LO 4

16. Cognitive Dissonance Lingering doubts about a decision that has already been made. Sometimes known as buyer’s regret. Conditions: Consumer is aware that there are many attractive alternatives. Decision is difficult to reverse. Decision is important and involves risk. Consumer has low self-confidence. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-16 LO 4

17. Satisfaction / Dissatisfaction Measures Direct global measure—simply asks consumers to assess their satisfaction on a scale. Attribute specific measures—assesses a consumer’s satisfaction with various components, or attributes. Disconfirmation—compares the difference between expectations and performance perceptions. Improving satisfaction measures: Left skewed—the bulk of consumers indicate being satisfied or completely satisfied. To improve these measures, give more choices to respond to. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-17 LO 5

18. Disposing of Refuse Consumer refuse— any packaging that is no longer necessary for consumption to take place, or in some cases, the actual good is no longer providing value to the consumer. Disposal alternatives: Trashing Recycling Converting Trading Donating Reselling ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14-18 LO 6