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Copyright Atomic Dog Publishing, 2002
Chapter 4
Consumption and Post-Purchase Behavior
Copyright Atomic Dog Publishing, 2002
Chapter Spotlights Product and service consumption Ritual, sacred, profane and compulsive
consumption Customer satisfaction and
dissatisfaction Purchase-associated cognitive
dissonance Post-purchase behavior Product disposition
Copyright Atomic Dog Publishing, 2002
Product and Service Consumption Consumption is the possession and/or use of
goods and services and the benefits they deliver
Consumption situation Physical context: time and place of consumption Social context: the presence of others Consumption episode: the set of items belonging to
the same event and occurring in temporal proximity Consumption system: a bundle of goods and services
that are consumed over time in multiple episodes.
Copyright Atomic Dog Publishing, 2002
Types of Consumption Situations Extensive marketer control
Marketers are present during consumption and can both watch and influence how it plays out (e.g., services).
Limited marketer control Marketers can easily see and may be able to
influence the consumption situation of goods and services that are usually consumed close to the place of purchase (e.g., outdoor vendors).
No marketer control
Copyright Atomic Dog Publishing, 2002
Ritual Consumption Rituals are patterns of behavior tied to
events that we consider important in our lives: They have some special symbolic meaning They occur in a fixed or predictable manner They are repeated with some regularity
Ritual consumption is the consumption of goods and services that are tied to specific rituals.
Copyright Atomic Dog Publishing, 2002
Sacred and Profane Consumption Sacred consumption is related to special
events that are out of the ordinary (e.g., holidays, rites of passage, religious events)
Profane consumption is related to events that are a part of everyday life.
Sacralization occurs when objects, places, people, and events are transformed from the profane to the sacred.
Desacralization refers to the loss of sacred status.
Copyright Atomic Dog Publishing, 2002
Compulsive Consumption It refers to a response to an
uncontrollable drive or desire to obtain, use, or experience a feeling, substance, or activity that leads the individual to repetitively engage in behavior that will ultimately cause harm to the individual and/or others. Possible causes may include family history
of alcohol or other forms of substance abuse, physical violence, divorce, or other types of emotional conflict
Copyright Atomic Dog Publishing, 2002
Satisfaction Versus Dissatisfaction The level of satisfaction or dissatisfaction we
experience depends upon how well the product’s performance meets our expectations
A finite time period of possession is necessary to determine satisfaction
Satisfaction is not easily measured because: It means different things to different people The level of satisfaction can change over time Satisfaction can change when consumer needs and
preferences change Satisfaction includes a social dimension (the
experience of others may add or subtract from our own satisfaction)
Copyright Atomic Dog Publishing, 2002
Expectation and Satisfaction Product experiences can be classified into
three types based on the degree to which consumer expectations are fulfilled (confirmation) or not (expectancy disconfirmation):
Simple confirmation: the purchase performs as expected (satisfaction)
Positive disconfirmation: when performance is better than expected (much higher satisfaction)
Negative disconfirmation: when the purchase falls short of expectations (dissatisfaction)
If the negative disparity is wide it may lead to the contrast effect (poor performance is magnified by the customers)
Copyright Atomic Dog Publishing, 2002
Categories of Satisfactory Performance Ideal: when a purchase performs as or
better than expected Equitable: if it is adequate to the cost
and effort the consumer made to obtain the product
Expected: although the purchase works out as anticipated, it barely qualifies as satisfactory (this is the lowest level of satisfactory performance)
Copyright Atomic Dog Publishing, 2002
Relationship between Performance and Satisfaction Aspects of performance related to
satisfaction: Objective performance is product-related
and depends on whether the product meets all functional expectations (e.g., whether a watch keeps good time, car mpg, game software works).
Affective performance is consumer-related and depends on whether the purchase meets the emotional (benefits) expectations of the buyer (e.g., whether listening to a Pearl Jam CD makes me feel as though I’m at a live concert).
Copyright Atomic Dog Publishing, 2002
Closing the Gap between Expectation and Performance Marketers must understand consumer
expectations and the extent to which purchases satisfy them.
Marketers must match product benefits to consumer needs: Needs of target market and the benefits of
the product must be a good fit. Communication must clearly describe both
the product’s benefits and the way it is to be used
Do not raise consumer expectations beyond the actual benefits that the product offers.
Copyright Atomic Dog Publishing, 2002
Purchase-Associated Cognitive Dissonance
It occurs at “time of commitment”. It is the feeling of uncertainty
about whether the right choice is being made.
There is no finite time of possession or use requirement for it to occur.
Copyright Atomic Dog Publishing, 2002
Factors that Affect Cognitive Dissonance
Importance of the purchase decision
Consumer’s tendency toward anxiety
Finality of the purchase decision Clarity of the final purchase choice
Copyright Atomic Dog Publishing, 2002
Reducing Dissonance What consumers do:
Try to find ways to reinforce the desirability of the choice made
Try to make the “losing” choices look weaker Try to lessen the importance of the choice decision
than they had originally thought What marketers must do:
Match their products with the appropriate target consumers
Offer clear communication, return policies, warranties, in-store demonstrations
Make salespeople available to answer questions
Copyright Atomic Dog Publishing, 2002
Post-Purchase Behavior It’s as important as understanding what
causes consumers to buy. It deals with actual rather than potential
customers It has an impact on future sales. Information learned can be used to
improve products and services, undertake better targeted promotions, and design more effective strategies to keep actual customers and attract new ones.
Copyright Atomic Dog Publishing, 2002
Positive Post-purchase Behavior Customer loyalty: a feeling of
“commitment” on the part of the consumer to a product, brand, marketer, or outlet that results in high levels of repeat purchase or outlet visit
Loyalty develops over time through positive market experiences
Loyalty phases: Cognitive (based on beliefs only) Affective (like, based on repeated satisfying
use) Conative (behavioral intention loyalty) Action (strong readiness to act)
Copyright Atomic Dog Publishing, 2002
Brand Loyalty Fairly high levels of loyalty are evident
with products that are geared to personal tastes (e.g., toothpaste, shampoo, bath soap) or when there are a few dominant brands (e.g., camera film).
Levels of loyalty are lower among products that are purchased infrequently (e.g., athletic shoes, batteries, tires, TV sets)
Copyright Atomic Dog Publishing, 2002
Multiple brand loyalty Product benefits loyalty Product form loyalty Occasion of use loyalty
Copyright Atomic Dog Publishing, 2002
Factors Influencing Brand Loyalty
Number of brands available Frequency of purchase Perceived differences among
brands Level of involvement Level of perceived risk Brand benefits
Copyright Atomic Dog Publishing, 2002
Characteristics of Brand Loyal Consumers
They tend to be self-confident They feel capable of making good
brand choices They tend to perceive quite high
levels of risk involved in product purchase
They tend to be outlet loyal
Copyright Atomic Dog Publishing, 2002
Negative Post-Purchase Behavior Passive: lack of repeat purchase or
recommendations to other consumers Active: potentially damaging to the
reputation and future sales of the product
Types of negative post-purchase behavior: Negative word-of-mouth Rumor Complaint behavior (no action, private
action, public action) See Exhibit 4-8
Copyright Atomic Dog Publishing, 2002
Marketer Actions to Reduce Dissatisfaction
Build realistic expectations Demonstrate or explain product
use Stand behind the product Encourage customer feedback Periodically make contact with
customers
Copyright Atomic Dog Publishing, 2002
Product Disposition It is the process of reselling, recycling,
trashing, repairing, trading and the like associated with the physical product, packaging, and its promotional materials when no longer perceived as useful by the consumer or marketer.
Copyright Atomic Dog Publishing, 2002
Product Disposition
Role of the consumer Recycle, donate, repair, pass on to others, conserve
resources, consider “efficiency ratings” of products including autos, recycle with fee (battery, oil), reuse shopping containers, etc.
Role of the marketer See CBITE 4-3 (pg. 122) Use more (easily) recyclable materials Encourage and support recycling Use resources more efficiently Demarketing Green marketing (www.greenmarketing.com)