Session 8 _ Post-Decision_LMES

8/2/2019 Session 8 _ Post-Decision_LMES

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POST-DECISION PROCESSES

MARK 3420, Spring 2012

Prof. Rongrong Zhou



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Exhibit 11.1:

Chapter Overview:

Post-Decision

Processes



A MODEL OF COMPLEX DECISION

M AKING

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Problem

Recognition

Information

Acquisition

Information

Processing

Comparative

Evaluation/Purchase

Post-Purchase

Evaluations



CHAPTER O VERVIEW

Post-Decision Dissonance and Regret

Learning from Consumer Experience

How Do Consumers Make Satisfaction or

Dissatisfaction Judgments? Responses to Dissatisfaction

Is Customer Satisfaction Enough?

Disposition

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DISSONANCE

Dissonance Theory:

y Your different beliefs (about related objects) should be

consistent with one another

y Inconsistency = ³Dissonance´

What is Post-Purchase Dissonance??

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DISSONANCE

Post-Purchase Dissonancey You purchased one alternative; rejected others

y Believe that others also have desirable attributes

y Inconsistency!!

y And often, regret

Try to reduce dissonance by changinginconsistent beliefsy How??

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DEALING W ITH DISSONANCE

Downgrading other alternatives

Searching for supportive info on chosen

brand

Ignoring dissonant information

Selectively interpreting information

Dissatisfaction

y Cancel Purchasey Not Purchase Again

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W HEN IS DISSONANCE MOST LIKELY?

High Involvement or Low Involvement Product?

When alternatives are rated about equally, or whenone alternative is clearly better?

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M ARKETING IMPLICATIONS OF DISSONANCE

Providing Supportive Information

Product warranty or money back guarantee

Downgrading Alternatives:

y Comparative Advertising

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LEARNING FROM

CONSUMER E XPERIENCE

After purchase, consumers use the product

y Usage provides opportunity to learn about the product

y Learning by hypothesis testing

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Exhibit 11.3: A Model of Learning from Experience

What factors affect learning from experience?

MotivationAbility

Opportunity

Processing biases





HOW DO CONSUMERS M AKE

S ATISFACTION OR DISSATISFACTION

JUDGMENTS?Satisfaction/Dissatisfaction

Based on Thoughts

y Disconfirmation Theory

y Attribution Theory

y Equity Theory

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DISCONFIRMATION THEORY: S ATISFACTION /

DISSATISFACTION

Better Product Performance = More satisfaction??

Does satisfaction depend on anything else?

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Exhibit 12.8: The Disconfirmation Paradigm



DISCONFIRMATION THEORY (CONT.)

P > E: Positive disconfirmation; Satisf action

P = E: Confirmation; Satisf action

P < E: Negative disconfirmation; Dissatisf action

So what should you do as a marketer?

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´M ANAGINGµ E XPECTATIONS

Phone response systems: ´Your call will

be attended to in the order in which it

was receivedµ

Earnings forecasts

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M ARKETING A PPLICATIONS OF

A TTRIBUTIONS: FOCUS

Focus: Blame Reduction

y You buy a chest-of-drawers from IKEA and soon find that a

couple of the drawers don¶ t slide smoothly and the bases are

falling.Would you feel the problem is caused by poor-quality

materials or by your skills at carpentry?

y Internal to Marketer/External to Marketer:Which

one leads to more blame?

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M ARKETING A PPLICATIONS OF

A TTRIBUTIONS: STABILITY

Stability: Exchange vs. Refundy You go to IKEA and order a coffee table. A few weeks after

delivery, you find a large crack at the juncture near one of thelegs.Would you be more angry«

If you thought the defect had developed due to poor qualityof the wood?

If you thought the defect might have been caused duringdelivery?

y When is the consumer more likely to ask forexchange (vs. refund): when cause is stable orunstable?

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A TTRIBUTIONS FOR PRODUCT / SERVICE

F AILURE

Focus:Who has the problem been caused by?

y Consumer / non-marketer less blame

Controllability: Is the event under the consumer¶ s or

the marketer¶ s control?

y Marketer-focus + controllable even more blame

Stability: Is the reason temporary or permanent?

y Stable attributions more blame, prefer refunds

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SATISFACTION BASED ON

FEELINGS

Experienced Emotions and Coping

y Post-decision feelings

Mispredictions of feelings

y Affective Forecasting

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SUMMARY

Post-Decision Dissonancey Inconsistency in beliefs

y Dealing with post-purchase dissonance

Learning from Consumer Experiencey Hypothesis testing

How Do Consumers Make Satisfaction orDissatisfaction Judgments?y Disconfirmation theory

y Attribution theory

y Equity theory

y Satisfaction based on Feelings25



RESPONSES TO DISSATISFACTION

Complaints (i.e., talking to the firm)

y When Complaints Are Likely to Occur

MAO

Severity

Attribution

NegativeWOMy i.e., talking to other consumers

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CUSTOMER DISSATISFACTION

Is a major problem«

Dissatisfied customers stop purchasing, complain, and

spread negativeWOM.

The average business does not hear from 96% of itsunhappy customers.

The average person with problems tells 9 or 10 people.

But also an opportunity! 95% of complainers will do business with you if

complaint is resolved quickly.27



IS CUSTOMER

S ATISFACTION ENOUGH?

Customer Retention

y After-sales

y Relationships

y Extras

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OPTIONS FOR

POST-A CQUISITION DISPOSITION

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Give Away

Trade

Recycle

Sell

Use Up

Throw Away

Abandon

Destroy



QUIZ 1: S AMPLE QUESTION

C onsumers deal with decision dissonance by:

a) Ignoring dissonant information

b) Selectively interpret information

c) Downgrade other options not chosen

d) Search for information that supports chosen option

e) All of the above

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QUIZ 1: S AMPLE QUESTION

I t was discovered that several children had developed food poisoning from eating a hamburger at an outletof a local restaurant chain. The company put out a messa ge sa ying that the problem had been caused due

to a power outa ge at their refrigeration, and wouldnot ha ppen a g ain. This messa ge was a ppealing to:

a) Product evaluations

b) Customer relationship management

c) The perceived stability of the problem

d) The type of disconfirmation

e) Consumers· perceptions of equity

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A NNOUNCEMENTS

No class on March 1, quiz 1 at 7pm

For class on March 6, read Chapter 3

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Session 8 _ Post-Decision_LMES