1. © 2009 South-Western, a division of Cengage Learning. Chapter 13 Consumption to Satisfaction Babin/Harris

2. © 2009 South-Western, a division of Cengage Learning.13-2 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.

3. © 2009 South-Western, a division of Cengage Learning.13-3 Consumption Process that converts time and goods, services, or ideas into value. Customer value is directly derived from product consumption.  Utilitarian value  Hedonic value LO 1

4. © 2009 South-Western, a division of Cengage Learning.13-4 Basic Consumption Process Need Want Exchange Costs and benefits Reaction Value LO 1

5. © 2009 South-Western, a division of Cengage Learning.13-5 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. LO 1

6. © 2009 South-Western, a division of Cengage Learning.13-6 Situations and Consumer Reactions Consumption situations and settings have a significant impact on the consumer experience:  Temporal factors  Antecedent conditions  Physical environment LO 1

7. © 2009 South-Western, a division of Cengage Learning.13-7 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. LO 1

8. © 2009 South-Western, a division of Cengage Learning.13-8 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. LO 2

9. © 2009 South-Western, a division of Cengage Learning.13-9 Consumer Dissatisfaction A mild negative affective reaction resulting from an unfavorable appraisal of a consumption outcome. LO 2

10. © 2009 South-Western, a division of Cengage Learning.13-10 Other Postconsumption Reactions Delight Disgust Surprise Exhilaration Anger LO 3

11. © 2009 South-Western, a division of Cengage Learning.13-11 Theories of Postconsumption Reactions Expectancy/disconfirmation Equity theory Attribution theory LO 4

12. © 2009 South-Western, a division of Cengage Learning.13-12 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. LO 4

13. © 2009 South-Western, a division of Cengage Learning.13-13 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 LO 4

14. © 2009 South-Western, a division of Cengage Learning.13-14 Source of Expectations Word-of-mouth Experience Explicit promises in promotional messages Personal factors LO 4

15. © 2009 South-Western, a division of Cengage Learning.13-15 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. LO 4

16. © 2009 South-Western, a division of Cengage Learning.13-16 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. LO 4

17. © 2009 South-Western, a division of Cengage Learning.13-17 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. LO 4

18. © 2009 South-Western, a division of Cengage Learning.13-18 Satisfaction 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. LO 5

19. © 2009 South-Western, a division of Cengage Learning.13-19 Improving Satisfaction Measures Left skewed – the bulk of consumers indicate being satisfied or completely satisfied. Give more choices to respond to. LO 5

20. © 2009 South-Western, a division of Cengage Learning.13-20 Disposing of Refuse Consumer refuse – any packaging that is no longer necessary for consumption to take place or, in some cases, the actual good that is no longer providing value to the consumer. Disposal alternatives:  Trashing  Recycling  Converting  Trading  Donating  Reselling LO 6