Directory UMM :Data Elmu:ppt:
Chapter 4
Consumption and PostPurchase 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
Limited marketer control
Marketers are present during consumption
and can both watch and influence how it plays
out (e.g., services).
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)
Copyright Atomic Dog Publishing, 2002
Consumption and PostPurchase 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
Limited marketer control
Marketers are present during consumption
and can both watch and influence how it plays
out (e.g., services).
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)
Copyright Atomic Dog Publishing, 2002