Post Purchase Processes Module 7

Postpurchase Consumer Behavior

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Postpurchase Dissonance
Postpurchase Dissonance occurs when a consumer has doubts or anxiety regarding the wisdom of a purchase made and is a function of the following: The

degree of commitment or irrevocability of the decision

The importance of the decision to the consumer The difficulty of choosing among the alternatives The individuals tendency to experience anxiety

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 The easier it is to alter the decision, the less likely

the consumer is to experience dissonance The importance of the decision to the consumer: The more important the decision, the more likely dissonance will result The more difficult it is to select from among the alternatives, the more likely the experience and magnitude of dissonance The higher the tendency to experience anxiety, the more likely the individual will experience postpurchase dissonance.

Product Use and Nonuse

Product Use

Retailers can frequently take advantage of the fact that the use of one product may require or suggest the use of other products, e.g., dresses and shoes.

Retailers can promote such items

jointly

display them together, or

train sales personnel to make relevant complementary sales Displaying complementary products
together
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 Product Nonuse
Not all purchases are followed by product use.

Product nonuse occurs when a consumer actively acquires a product that is not used or used only sparingly relative to its potential use.

 Determinants Of Satisfaction and Dissatisfaction:

Core service failure (Billing errors) Service encounter failure (service employees were

uncaring, impolite, unresponsive, or unknowledgeable) Pricing (High prices, price increases etc) Inconvenience (Inconvenient location, hours of operation) Responses to service failures (Failure to respond, negative responses, etc) Attraction by competitors: (More reliable, higher quality and better value) Ethical problems: (Dishonest behavior, Unsafe or unhealthy practices) Involuntary switching: (Service provider or customer

Dissatisfaction- Causing Incidents

Incident type
Technology Failure Service design flaw

Example
The ATM broke down. Kept my card. I had to have the card reissued I did not realize that some ATM machines limit how much you can get out. The machine did not tell me I went over my limit for the day. It just spit may card back out so I kept trying After a month passed from placing my original order, I e-mailed the customer service center at Disney with my order confirmation number. They had lost my order

Process failure

Technology design flaw

I was trying to order books from a book club online. The system was confusing, and I ordered two copies of the same title without knowing it I was attempting to get money from an ATM and couldnt remember my number.

Customer failure

Purchase Evaluation and Customer Satisfaction

The Evaluation Process

Dimensions of Performance: Instrumental performance relates to the physical functioning of the product. Ex: the durability of a sport coat Symbolic performance relates to aesthetic or imageenhancement performance. Ex: Styling Affective performance is the emotional response that owning or using the product or outlet provides Ex: A suit that produces admiring glances or compliments may produce a positive affective response.
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Dissatisfaction Responses

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Dissatisfaction Responses
Marketing Strategy and Dissatisfied Consumers Firms need to satisfy consumer expectations by 1. Creating reasonable expectations through promotional efforts, and

2.

Maintaining consistent quality so the reasonable expectations are fulfilled.

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Dissatisfaction Responses
Marketing Strategy and Dissatisfied Consumers

When a consumer is dissatisfied, the most favorable consequence is for the person to communicate this dissatisfaction to the firm but to no one else. Unfortunately, many individuals do not communicate their dissatisfaction to the firm involved. Companies often make it difficult to complain or are unresponsive to complaints.

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Customers Satisfaction, Repeat Purchases, and Customer Commitment

Creating Committed Customers Is Increasingly the Focus of Marketing Strategy

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Customers Satisfaction, Repeat Purchases, and Customer Commitment

Repeat purchasers continue to buy the same brand though they do not have an emotional attachment to it. Switching costs are the costs of finding, evaluating, and adopting another solution. Some dissatisfied customers may also become or remain repeat purchasers because these individuals perceive the switching costs to be too high. Brand loyalty involves commitment to the brand it is a biased behavioral response expressed over time.

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Customers Satisfaction, Repeat Purchases, and Customer Commitment

Repeat Purchasers, Committed Customers, and Profits

A churn is a turnover in a firms customer base.

Reducing churn is a major objective of many firms today.

It typically costs more to obtain a new customer than to retain an existing one, and new customers generally are not as profitable as longer-term customers!

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Repeat Purchasers, Committed Customers, and Marketing Strategy

Repeat Purchasers, Committed Customers, and Marketing Strategy

Developing a marketing strategy for a particular segment includes identifying specific objectives to be pursued, such as

1. Attracting new users to the product category

2. Capturing competitors current customers 3. Encouraging current customers to use more 4. Encouraging current customers to become repeat purchasers 5. Encouraging current customers to become committed customers
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Relationship Marketing
Five key elements to Relationship marketing:
1. Developing a core service or product around which to build a customer relationship 2. Customizing the relationship to the individual customer 3. Augmenting the core service or product with extra benefits

4. Pricing in a manner to encourage loyalty

5. Marketing to employees so that they will perform well for customers
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