CONSUMPTION TO SATISFACTION

Christopher Garcia, Lauren Burges, Janelle Hora, Jonies Byrd-Webb, & Mary Hendryx

CONSUMPTION FREQUENCY

Consumption frequency refers to the number of times a produce to service is consumed in a given time period.

• For nondurable goods, marketers try to increase consumption frequency as much as possible

CONSUMPTION PROCESS

Consumption Process: Process by which consumers use the product, service, or experience that has been selected.

Two types goods:Nondurable & Durable

TYPES OF GOODSDurable: Goods that are usually consumed over long periods of time.

Dishwashers, appliances, etc,.

Nondurable: Goods that are usually consumed quickly.

Soft drinks & snack foods.

CONSUMPTION LEADS TO VALUE

Without consumption there is no value.

• The consumption process produces either hedonic or utilitarian value.

Need

Want

Exchange

Costs and Benefits

Reaction

Value

Consumption, post-choice, evaluation, loyalty, repeat,

purchase behavior, disposal.

EFFECTING MARKETING STRATEGY FOR A NONDURABLE GOOD

AMERICAN CONSUMER SATISFACTION INDEX (BENCHMARKS)Base

- line

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Previous Year %

Change

First Year % Change

Nordstrom 84 83 82 80 79 76 76 76 80 80 83 82 84 84 83 -1.2 -1.2

Dillard's 75 74 74 73 71 68 72 75 75 75 77 76 75 76 75 78 78 80 79 81 2.5 8.0

Kohl's 84 79 79 80 80 79 80 79 81 81 81 81 0.0 -3.6

J.C. Penney 79 77 78 75 75 75 74 75 74 77 76 78 78 77 78 79 80 82 81 79 -2.5 0.0

Target                     75 78 77 77 77 80 78 80 81 77 -4.9 2.7

Sears                           72 72 74 75 76 75 77 2.7 6.9

Macy's                       74 71 75 74 71 76 77 78 76 -2.6 2.7

Wal-Mart 80 81 74 76 75 72 73 75 74 75 73 72 72 68 70 71 73 70 71 71 0.0 -11.3

Amazon             84 84 88 88 84 87 87 88 86 86 87 86 85 88 3.5 4.8

eBay             80 82 82 84 80 81 80 81 78 79 81 81 83 80 -3.6 0.0

AMERICAN CONSUMER SATISFACTION INDEX (BENCHMARKS)Base

- line

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Previous Year %

Change

First Year % Change

Amazon             84 84 88 88 84 87 87 88 86 86 87 86 85 88 3.5 4.8

eBay             80 82 82 84 80 81 80 81 78 79 81 81 83 80 -3.6 0.0

eBay traffic is down 4.57% in the last month while Amazon is UP 3%. Year over year Amazon is up 29.82% and eBay is up only 9.61%, that means Amazon is growing 31% faster than eBay!

Why do you think Amazon has surpassed eBay in unique visitors?

IS VALUE MORE IMPORTANT THAT CUSTOMER SERVICE?

• Explain that Satisfaction of Walmart’s scores are extremely low compared to most retail

• “Wal-Mart is #1 because it continues to prioritize value over satisfaction (utilitarian > hedonic), lowest prices, only option for some country people.

“If firms do not provide value (hedonic or utilitarian value) in some form they cannot succeed for long.”

• The value online provides is customer service.

• Necessary due to lack of face to face interaction

CONSUMER SATISFACTION Consumer Satisfaction

      Is a mild, positive emotional state resulting from a favorable appraisal of a consumption outcome

Points that distinguish consumer satisfaction

1. Consumer satisfaction is a post consumption phenomenon because it is a reaction to an outcome

2. Like other emotions, satisfaction results from a cognitive appraisal. Some refer to the appraisal as the satisfaction judgment; however the appraisal and the reaction are distinct.

3. Satisfaction as an emotion is relatively midland does not create strong behavioral motivation.

CONSUMER DISSATISFACTION

Mild, negative affective reaction

Results from an unfavorable appraisal of a consumption outcome.

HOPE’S ROLE IN CREATING CONSUMER SATISFACTION

Expectation is the cognitive component of anticipation, and involves the emotions

The consumer anticipates to have a positive outcome therefore experiences “hope”

Hope: A fundamental emotion evoked by positive, anticipatory appraisals that signal uncertainty about a potentially positive outcome

There are 4 types expectations:

Predictive Expectations

Normative Expectations

Ideal Expectations

Equitable Expectations

HOPE’S ROLE IN CREATING CONSUMER SATISFACTION

Predictive: What you think will actually occur

Normative: What you think will happen given past experiences

Ideal: What you really want to happen, the experience will improve your current state

Equitable: What you expect to get, given how much

work you put into the experience

HOPE’S ROLE IN CREATING CONSUMER SATISFACTION

Sources of expectations

• Word of mouth

• Past experiences

• Personal factors; some people have set expectations

Performance Perception

• Purchasing a low quality product, the expectation is to be disappointed in it and vice versa

• Companies try to not set expectations too high to minimize disappointment

HOPE’S ROLE IN CREATING CONSUMER SATISFACTION

When there is strong confidence in expectations, disconfirmation and performance perception change the degree of satisfaction

When there is a lack of confidence in expectation, then perceived performance strongly influences satisfaction

Ties into to confirmatory bias, where the consumer looks for supporting evidence to support expectations

SURVEY

DID WHAT YOU RECEIVE FALL SHORT OF YOUR EXPECTATIONS?

WAS YOUR EXPECTATION HIGH OR LOW BEFORE THE CANDY WAS PASSED OUT?

WHAT WAS YOUR SATISFACTION AFTER YOU RECEIVED /CONSUMED THE CANDY?

No Feelings Low Satisfaction High Satisfaction

WILL YOUR EXPECTATION BE HIGH OR LOW NEXT TIME SOMEONE OFFERS YOU CANDY?