Consumption and Post Consumption Behaviour Mod

Copyright Atomic Dog Publishing, 2002

Chapter 4

Consumption and Post-Purchase Behavior


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


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.


Types of Consumption Situations Extensive marketer control

Marketers are present during consumption and can both watch and influence how it plays out (e.g., services).

Limited marketer control 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


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.


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.


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


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)


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)


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)


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).


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.


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.


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


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


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.


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)


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)


Multiple brand loyalty Product benefits loyalty Product form loyalty Occasion of use loyalty


Factors Influencing Brand Loyalty

Number of brands available Frequency of purchase Perceived differences among

brands Level of involvement Level of perceived risk Brand benefits


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


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


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


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.


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)

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Consumption and Post Consumption Behaviour Mod