Buyer Behavior Ch. 11 PDF

Ch. 11 Consumer Post-Choice Experience Consumer Post-Choice Model Process ​ Choice Identification ​ Decision Confirmation: reaffirming wisdom of one’s decision Experience Evaluation ​ There can be certain barriers that delay or derail the actual purchase ​ After the acquisition, the...

Ch. 11 Consumer Post-Choice Experience Consumer Post-Choice Model Process ​ Choice Identification ​ Decision Confirmation: reaffirming wisdom of one’s decision Experience Evaluation ​ There can be certain barriers that delay or derail the actual purchase ​ After the acquisition, the next option is consumption ○​ Sometimes we acquire products we never end up using, such as we acquire a product as a gift, when we make impulse purchases for which we later lose enthusiasm, or when we acquire products in anticipation of future events or conditions that never materialize ​ Mental process called experience evaluation ​ Cognitive Dissonance: doubt about wisdom of choice ○​ Aka buyer’s remorse ​ Experience evaluation: the experience of using the product and the realized benefits feedback into the “decision confirmation” process, further affirming the wisdom of the choice or occasionally, disconfirming it ​ Preference Finality: the certitude vs tentativeness of our judgment that had caused us to prefer and buy this product in the first place (based on our involvement with the product) ○​ We consume low involvement products without conscious evaluation ○​ We consume high involvement products with full consciousness of their performance  ​ Evaluative Mode: consuming with intention of evaluating the product’s performance ○​ High involvement consumers, product performance must meet their requirements and expectations ​ Mindless: Outcome: Satisfaction/ Dissatisfaction ​ In the end, when product has been used or consumed, we are left with a feeling of satisfaction or dissatisfaction ​ Satisfaction/Dissatisfaction: the positive or negative feeling consumers get with the outcome of product/service consumption ○​ Feeling of happiness or unhappiness that sets in motion the consumer’s future action toward the brand and company ​ Getting satisfaction is the ultimate purpose of all consumer behaviors ​ The choice the consumers make in the marketplace must satisfy them or else the whole decision process has been in vain and the money has been wasted ○​ And the problem of finding a solution to be recognized need has remained unsolved ​ When the product performs poorly, then the consumer is dissatisfied ○​ The obvious answer is deceptive ​ Ex. we bought a shirt at the flea market for $5, and after about 5 washes it began to fade ​ We also bough a shirt from the department store for $40, and after 5 washes it began to fade ​ However we are still satisfied with the shirt from the flea market but we are dissatisfied with the department store shirt ​ Satisfaction/dissatisfaction: is caused by the product or services performance relative to our expectations ○​ Expectation Confirmation: When performance meets or exceeds our expectations, and the consumer feels the satisfaction ○​ Expectation confirmation: when the performance falls short of expectations, and the consumer feels dissatisfied Future Response Consumer Satisfaction Performance and Consistency ​ Achieving consumer satisfaction require meeting consumer expectation about the product’s quality ○​ Judged by 2 qualities 1.​ Performance level 2.​ Consistency ​ Performance: is the outcome of the product;s use ○​ Ex. when shampoo cleanses our hair well, our cell phone does not drop calls, and our mascara does not drip onto out cheeks ○​ And these performances must occur every time ○​ Its performance should not differ one day to another (consistency) ​ With mass production and standardization, consistency is not a concern for consumers in most of the advanced economies, however, in underdeveloped economies performance and consistency is an important concern Quality and Satisfaction in Services ​ For services, the concept of quality is more complex ​ Consumer judgments of quality based on 2 judgements ○​ The “what” and the “how” of service ○​ Called respectively, outcome and interaction quality  ​ Outcome quality: refers to the consequences experiences upon using the service ○​ Ex. medical care, disease is diagnosed correctly, and medication is prescribed correctly ​ Interaction Quality: refers to the pleasantness of social interaction experience in the acquisition and use of the service ○​ Ex. doctor explains diagnosis and treatment well 5 Dimensions of Service Quality 1.​ Reliability: the service is performed right the first time 2.​ Responsiveness: the service company responds to customer problems and resolves them effectively 3.​ Assurance: The service company instill confidence in the consumer 4.​ Empathy: Service employees empathize with, understand, and respect consumers 5.​ Tangibles: All tangibles that go with the service are neat in appearance -​ E.g. the physical facility itself, service vehicles, employee uniforms, and even station the company Measuring Satisfaction via Expectations Confirmation Model ​ Satisfaction with online sellers ​ PrePurchase Factors 1.​ Site Navigation: to be satisfied, consumers must find site navigation easy 2.​ Quality of product information: the website should provide quality information. Is the information comprehensive or sketchy, and is it easy to understand and process 3.​ Shopping cart and order ease: ease of item and selection and ordering procedure -​ Ex. to enable multi-session shopping, the website should have feature of saving our shopping cart -​ Also shipping and handling costs should be reasonable, clear, and available before we place the item in the shopping cart 4.​ Privacy and trust features: FInally, since we are going to be giving our credit card information to the online seller, we would want to know that the site offers secure transactions, and that privacy policies are clearly states and reassuring  ​ Post Purchase Factors 1.​ Keeping the consumer informed: first we place the order, we like to be kept informed about the status of our order -​ Good online retailers such as Amazon send an email soon after we place the online order, confirming the details of our order, and follow up email when the order is shipped 2.​ Order fulfillment: after placing the order, we hope and expect the merchandise to arrive on time and we expect it to be exactly what we ordered 3.​ Problem Resolution: a mistake in order fulfillment is bad enough, but if getting that mistake correct required us to jump through hoops, then that is only going to aggravate us more -​ The website should feature clear instruction on what to do if we have any problems with our order -​ We should be able to return it the wrong item, with ease and cost free 4.​ MultiChannel Customer Support: as a consumer, sometimes we just want to speak to a live person to explain our need or problem -​ Good online retailers offer consumers the option of contacting customer service through multiple channels Five Faces of Satisfaction 1.​ Dissatisfaction: negative experience, dissatisfaction is not a mere absence of satisfaction, rather it is a decidedly negative state of unhappiness a.​ Dissatisfaction, it's where the consumer's emotions were clearly negative and expectations were not met at all, which led the consumer to actively search for alternative solutions in the future and not repurchase the brand again, resulting in NO loyalty to the brand. 2.​ Mere Satisfaction: at the lowest level is “mere satisfaction”, defined more by an absence of any dissatisfaction of anything negative, rather than by the presence of anything positive a.​ Mere Satisfaction, it's where the consumer experienced no emotion and their expectations were barely met, but there also was the absence of any dissatisfaction, which led the consumer to potentially search for alternative solutions in the future and possibly be willing to change brands, resulting in low/weak sense of brand loyalty. 3.​ Satisfaction as Contentment: more than mere absence of dissatisfaction, it is a positive feeling of having his need fulfilled and one of life’s problems solved in an admirable way. This is satisfaction as contentment. Prior expectations are met a.​ Contentment, it's where the consumer's emotions were mildly positive with expectations that were fully met, which led the consumer to likely not consider searching for alternatives with a good chance for repurchase, resulting in a moderate level of brand loyalty. 4.​ Satisfaction as Enthusiasm: more than mere satisfaction, more than contentment, requires that expectations be exceeded a.​ Enthusiasm, it's where the consumer's emotions are moderately positive with expectations that were exceeded, which led the consumer to NOT consider searching for alternatives because there's a definite chance for repurchase, resulting in a strong sense of brand loyalty. 5.​ Satisfaction as Delight: is an experience deluged with positive, pleasant emotion, the ultimate in satisfaction. When there is some element of surprise a.​ Delight, it's where the consumer's experience is deluged with highly positive and pleasant emotions with expectations were extremely exceeded to the point of  surprise, which led the consumer to absolutely NOT consider searching for alternatives because they will "at all costs" repurchase again in the future, resulting in fanatical loyalty to the brand. Future Response: Exit, Voice, or Loyalty ​ Exit: as consumers, if we are dissatisfied with our experience with a brand, then there is only one thing to do, dump the brand, and never buy it again, we would exit from the brand ​ Voice: the act of expressing one’s satisfaction or dissatisfaction, not an alternative to exit or loyalty, instead it is an additional response ○​ Word of mouth: consumers’ conversations with other consumers about a product or service 1.​ The consumer complains or occasionally express appreciation to the company 2.​ The consumer complains to a third party such as the Better Business Bureau or local/ federal governmental agencies 3.​ The consumer complains or praises to friends ​ Loyalty: the consumer buys the same brand repeatedly and feels a psychological commitment to it ○​ They spread positive word of mouth Consumer Complaining ​ First, a general model, this mode would apply to all behavior ​ Two factor model, called the motivation and ability/opportunity model  ​ The motivation to model depends on 3 factors 1.​ Dissatisfaction intensity: How much does it hurt? 2.​ Attribution: Who is to blame? 3.​ Personality Trait: Do we have the guts? a.​ Specifically self confidence and aggressiveness ​ Ex. if we feel that a steak was cooked poorly (we feel dissatisfied), then we would feel like telling our waiter. ○​ However, whether we would actually have the courage to tell depends on whether we have the self confidence (Personality trait) Marketer’s Response to Complaints ​ Some companies love it when consumer say “forget it” bc then they don't have to deal with the complaining customer ​ In order to keep customers complaining, they make them jump through hoops, fill out tedious forms, no toll free number, and no person designated to send complaints to ​ Marketers push the consumer to take the exit option Perceived Justice ​ Depends on how the company addresses the complaint ​ If a company turns a deaf ear, that company will even get more bad word of mouth ​ If company resolves the complaint, redressing it to the consumer’s full satisfaction , then the consumer is likely to re patronize that company ​ What determines successful redress?  ​ Perceive Justice: is the consumer’s perception that they were treated fairly during the complaint resolution process ○​ The offered remedy made up fro the harm done by an unsatisfactory product or service ○​ When perceived justice seem not to have been served, consumer dissatisfaction increases ○​ If the redress meets and exceed the perceived justice threshold, the consumer will not only be satisfied but will become a stronger supporter of the company Make Good/ Damage Control ​ A customer who simply exits is lost forever ​ One who complains, give the marketer a chance to recover ​ Customer Recovery: refers to the actions the company undertakes to remove the cause of dissatisfaction and to convert the dissatisfied and unhappy consumer into a satisfied and happy consumer ​ Make Goods: usually done by offering the customer refunds and concession ○​ The make good should be more than the commensurate with consumer costs. If a hotel misplaces your reservation record and denies you a room, merely refunding the deposit would not suffice, as the alternative hotels at a short notice might be more expensive ○​ The make good should be easy to obtain. The customer shouldn't have to jump through hoops to obtain the make good (fill out lengthy forms) ○​ The make good does not make an apology redundant. A mistake is a mistake, and the company should give the the make good with a sincere apology and cheerfully Consumer Disposal Product Disposal The High Price of Consuming ​ Following consumptions, humans must decide how to dispose of whatever is left of the product ​ Product disposal: refers to the dispossession of product remnants after use ○​ Takes two forms 1.​ For consumable products, the remnants are the containers in which the products were acquired from the market, like empty cereal boxes 2.​ For durable products, the remnants are the old products that have become unusable, like old computers, torn leather shoes  ​ Recycling: refers to submitting the used products to institutions that will resume all or part of the product or its constituents in the making of new products suitable for human (or animal use) Choice+ Post Choice Involvement Involvement and Product Purchase ​ For low involvement products, once the evaluation is complete, the purchase is often implemented immediately ○​ To acquire the product, typically, we don't want to drive far and we don't want any hassle ○​ If the item is out of stock at the store, we are most likely to buy another comparable brand (identified with a quick search or drawn from memory, rather than wait or go to another store ​ High involvement purchases chouse is identified, product purchase may have to wait ○​ For high ticket items, until we accumulate enough savings ○​ Or decide on other ancillary services or add on options ○​ Sometimes the entire decision process may have to be reopened, if the preferred brand is not available or not available with the desired options ○​ High involvement purchases, the product acquisition process itself can often become quite a project, with the needs to coordinate several small decisions Post Choice Consumption Experience ​ For low involvement products, the products fits into out ongoing consumption pattern ○​ Once the purchase is made, we put the decision and the product out of our minds, and we consumer the product without conscious thought ​ If dissatisfied, we are unlikely to complain, writing the experience off, instead as a one time mistake ○​ We may initiate some word of mouth communication among friends, but we are not going to take about it with passion ​ For high involvement products, we continue to be actively involved beyond the actual acquisition of the product ○​ If the final choice was not a clear winner, a cognitive dissonance would likely affect us ○​ To resolve it, we would likely continue to pay attention to all product relation information (including watching ads) ○​ And even if there were no dissonance, just to reassure ourselves, we would pay attention to all communications about the product ○​ And we are going to be talking about it with friends simply out of enthusiasm about the very acquisition of the product ​ During use, we are going to be attentive ○​ If the experience is unsatisfactory, we are likely to complain and seek redress ○​ Likely to engage in word of mouth, perhaps passionately ○​ If product met all expectations, we would likely develop strong brand loyalty and commitment ​ At the disposal stage, for high price items,, we are likely to seek maximum salvage value ○​ Stretch the product’s useful life and sometimes keep it forever as a keepsake