Post-purchase Processes and Customer Commitment - Notes | MKT 3350, Study notes of Marketing

Chapter 18 Material Type: Notes; Professor: Smith; Class: CONSUMER BEHAVIOR; Subject: Marketing; University: Texas State University - San Marcos; Term: Spring 2013;

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2012/2013

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December 3, 2020
SQ18 - CHAPTER 18
POSTPURCHASE PROCESSES, CUSTOMER
SATISFACTION, AND CUSTOMER COMMITMENT
1) What is postpurchase dissonance? What characteristics of a purchase situation are likely to
contribute to postpurchase dissonance? What actions do consumers take to avoid postpurchase
dissonance before the purchase?
Postpurchase dissonance: occurs when a consumer has doubts or anxiety regarding the
wisdom of a purchase made.
function of:
o1) the degree of commitment or irrevocability of the decision: the easier it is to alter
the decision, the less likely it is that the consumer would experience dissonance.
o2) the importance of the decision to the consumer: the more important the decision,
the more likely dissonance will result
o3) the difficulty of choosing among the alternatives: the more difficult it is to select
from among the alternatives, the more likely the experience and magnitudes of
dissonance. Decision difficulty is a function of the number of alternatives considered,
the number of relevant attributes associated with each alternative, and the extent to
which each alternative offers attributes not available with other alternatives
o4) the individual's tendency to experience anxiety: some individuals have a higher
tendency to experience anxiety than do others. The higher the tendency to experience
anxiety, the more likely the individual will experience postpurchase dissonance.
Actions consumers take to avoid postpurchase dissonance before the purchase: Avoiding
dissonance involves actions taken before the purchase is made by either avoiding/delaying the
decision or using a purchase decision rule that will minimize regret.
2) Describe the 4 tactics consumers use to reduce dissonance after a purchase?
Increase the desirability of the brand purchased: increase confidence; local retailers can place
follow-up calls to make sure the customer is not experiencing any problems with the
purchase.
Decrease the desirability of rejected alternatives
Decrease the importance of the purchase decision
Reverse the purchase decision (return the product before use)
3) What is use innovativeness? How did Arm & Hammer (p 626) and P&G Bounce (CI 18-1) use
innovativeness to engage consumers and increase sales? Can use innovativeness hurt a firm?
How?
Use Innovativeness: a consumer using a product in a new way; (ex: Arm & Hammer's baking
soda)
Arm & Hammer’s baking soda discovered that consumers were using its baking soda for a
variety of non-cooking uses, such as deodorizing refrigerators. It now advertises such uses
and has developed product packaging, such as its Fridge Fresh Air Filers, specific to such
uses.
18-1
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SQ18 - CHAPTER 18

POSTPURCHASE PROCESSES, CUSTOMER

SATISFACTION, AND CUSTOMER COMMITMENT

  1. What is postpurchase dissonance? What characteristics of a purchase situation are likely to contribute to postpurchase dissonance? What actions do consumers take to avoid postpurchase dissonance before the purchase?  Postpurchase dissonance: occurs when a consumer has doubts or anxiety regarding the wisdom of a purchase made.  function of: o 1) the degree of commitment or irrevocability of the decision: the easier it is to alter the decision, the less likely it is that the consumer would experience dissonance. o 2) the importance of the decision to the consumer: the more important the decision, the more likely dissonance will result o 3) the difficulty of choosing among the alternatives: the more difficult it is to select from among the alternatives, the more likely the experience and magnitudes of dissonance. Decision difficulty is a function of the number of alternatives considered, the number of relevant attributes associated with each alternative, and the extent to which each alternative offers attributes not available with other alternatives o 4) the individual's tendency to experience anxiety: some individuals have a higher tendency to experience anxiety than do others. The higher the tendency to experience anxiety, the more likely the individual will experience postpurchase dissonance.  Actions consumers take to avoid postpurchase dissonance before the purchase: Avoiding dissonance involves actions taken before the purchase is made by either avoiding/delaying the decision or using a purchase decision rule that will minimize regret.
  2. Describe the 4 tactics consumers use to reduce dissonance after a purchase?  Increase the desirability of the brand purchased: increase confidence; local retailers can place follow-up calls to make sure the customer is not experiencing any problems with the purchase.  Decrease the desirability of rejected alternatives  Decrease the importance of the purchase decision  Reverse the purchase decision (return the product before use)
  3. What is use innovativeness? How did Arm & Hammer (p 626) and P&G Bounce (CI 18-1) use innovativeness to engage consumers and increase sales? Can use innovativeness hurt a firm? How?  Use Innovativeness: a consumer using a product in a new way; (ex: Arm & Hammer's baking soda)  Arm & Hammer’s baking soda discovered that consumers were using its baking soda for a variety of non-cooking uses, such as deodorizing refrigerators. It now advertises such uses and has developed product packaging, such as its Fridge Fresh Air Filers, specific to such uses.

P&G Bounce took the initiative to broaden the use of dryer sheets. They had decided to capitalize on the buzz and draw on its consumers’ unique usage stories to help foster additional produce sales. The company used an integrated campaign that started with an online contest in which consumers posted their stories, with the best one to feature in a print ad.  Maybe. Stringent product liability laws and aggressive civil suits are forcing marketing managers to examine how consumers use their products. These laws have made firms responsible for harm caused by products not only when the product is used as specified by the manufacturer but in any reasonably foreseeable use of the product. Thus, the manufacturer must design products with both the primary purpose and other potential uses in mind.

  1. What is meant by the disposition of products and product packaging, and why does it interest governmental regulatory agencies and marketers? What is e-waste and why is it a growing concern? Is the US more wasteful than other countries?  Disposition of the products or the product’s container may occur before, during, or after product use.  It interest governmental regulatory agencies and marketers because of the ecological concerns of many consumers, the costs and scarcity of raw materials, and the activities of federal and state legislatures and regulatory agencies. Many components in these products are toxic and do not biodegrade easily if at all. Due to the presence of these chemicals, recycling and disposal of e-waste is likely to elevate the risks of cancer and developmental and neurological disorders as well as filling our landfill and polluting the environment. Additionally, the collection and dumping costs for most urban and suburban areas continue to climb increasingly high.  e-waste: exploding demand and short product life spans for high-tech gadgets such as cell phones, computers, etc. Both instrumental and symbolic considerations can drive e-waste. It is a growing concern because these decisions we make affect the quality of the environment and the lives of current and future generations.  I would say we are one of the top countries who are wasteful as we are not completely a throwaway society. Many Americans continue to be very concerned with waste and how their purchase decisions affect waste. o Disposition Alternatives: (Retain) store, use for original purpose, use for a new purpose; (get rid of) recycle, throw away as garbage or as litter, trade in, sell to end user, to middleman, through middleman, give away to be used or to be sold, loan.
  2. What factors influence consumer satisfaction and how do they influence it? What is the difference between instrumental and symbolic performance? What is affective performance? What courses of action can a consumer take in response to dissatisfaction? Which are used most often?  A particular alternative such as product, brand, or retail outlet is selected because it is thought to be a better overall choice than other alternatives considered in the purchase process. Whether that particular item was selected because of its presumed superior functional performance or because of some other reason, such as a generalized liking of the item, consumers have some level of expected performance that it should provide. When perceptions of product performance match expectations that are at or above the minimum desired performance level, satisfaction generally results. Satisfaction reduces the level of decision making the next time the problem is recognized. Product performance that exceeds expected performance will generally result in satisfaction and sometimes in commitment. Other