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8/6/2019 Marketing Ch06
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6
6-15-16-1
AnalyzingConsumer
Markets
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6-2Copyright 2009 Pearson Education South Asia Pte Ltd
Know how consumer characteristics influencebuying behavior
Know what major psychological processesinfluence consumer responses to themarketing program
Know how consumers make purchasing
decisions Know how marketers analyze consumer
decision making
Learning Objectives:
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A Model of Consumer Behavior(Figure 6.1)
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Consumer Buyer Behavior
The buying behavior of final consumers-
individuals & households who buy goods& services for personal consumption.
Consumer Market: All individuals &households who buy or acquire goods &services for personal consumption.
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Factors influencing consumer
behavior
Cultural
Culture
Subculture
Social Class
Social
ReferenceGroups
Family
Roles &status
Personality
Age & Life-Cycle Stage
Occupation
EconomicSituation
Lifestyle
Personality& self-concept
Psychological
Motivation
Perception
Learning
Beliefs &
attitudes
Buyer
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What InfluencesConsumer Behavior?
Cultural Factors
Social Factors
Personal Factors
Research provide clues to reach & serve consumers more effectively
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Culture:The set of basic values, perceptions, wants &behaviors learned by a member of society from family& other important institutions.
Subculture: A group of people with shared valuesystems based on common life experiences &situations.
Social Class: Relatively permanent & ordered divisionsin a society whose members share similar values,interests & behaviors.
Measured by occupation, income, education, wealth
& other variables.
Cultural Factors
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Cultural Forces
Culture is the fundamental determinant of apersons wants and behaviors.
Each culture consists of smaller subculturesthat provide more specific identification andsocialization for their members. Subcultures include nationalities, religions, racial
groups, and geographic regions.
Multicultural marketing grew out of carefulmarketing research that revealed that different ethicand demographic niches did not always respondfavorable to mass-market advertising.
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Main determinant of wants & behavior
E.g. Asian child exposed to filial piety, hard
workSUBCULTURE
Subset of each culture - more specific
identity for members E.g. religions, nationalities
Cultural Factors
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Subcultures
Nationalities
Religions
Racial groups
Geographic regions
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Multicultural marketing
Ethnic & demographic niches
Dont respond favorably to massmarketing
Where applied? Regional and international marketing
Marketers must recognize and respond todifferences in cultural norms and valuesand adapt products and promotionsaccordingly
Multi- cultural Marketing
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Social Class
Virtually all human societies exhibit socialstratification. Social stratification sometimes takesthe form of a caste system where members of
different castes are reared for certain roles andcannot change their caste membership.
More frequently, it takes the form of social classes,relatively homogeneous and enduring divisions in
a society that are hierarchically ordered andwhose members share similar values, interests,and behavior.
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Social Factors
Reference
groups
Socialroles
Statuses
Family
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Reference Groups
Membership groups
Primary groups
Secondary groups
Aspirational groups
Dissociative groups
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Group:Two or more people who interact toaccomplish individual or mutual goals
Membership Groups: groups that have a direct
influence to which a person belongs to` Reference Groups: Serve as direct or indirect
points of reference in forming a personsattitudes or beliefs
Aspirational Group: Group to which a personaspires to belong to
Opinion Leader: Person within a referencegroup who, because of special skills, knowledge,personality, or other characteristics, exerts social
influence on others.
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Impact of Groups
Groups having a direct influence on aperson are called membership groups.
Some memberships groups are primary
groups such as family, friends,neighbors, and co-workers with whomthe person interacts fairly continuouslyand informally.
Some membership groups are secondarygroups such as religious, professionalgroups that tend to be more formal.
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Reference Groups
Reference groups expose an individual to newbehaviors and lifestyles, influencing attitudes andself-concept.
They create pressures for conformity that mayaffect actual product and brand choices.
People are also influenced by groups to which theydo no belong:
Aspiration groups are those a person hopes to join. Dissociative groups are those whose values or behavior
an individual rejects. The buyer evaluates these elementstogether with the monetary cost to form a total customercost.
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Marketing applications of referencegroups:
Manufacturers of products and brands where groupinfluence is strong must determine how to reach andinfluence opinion leaders in these reference groups.
An opinion leaderis the person in informal, product-related communications who offers advice orinformation about a specific product or productcategory.
Marketers try to reach opinion leaders byidentifying demographic and psychographic
characteristics associated with opinionleadership, identifying the media read by opinionleaders, and directing messages at opinionleaders.
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Social Factors- Family
The family is the most important consumer-buyingorganization in society, and family members constitutethe most influential primary reference group.
We can distinguish between two families in the buyerslife.
The family of orientation consists of parentsand siblings.
A more direct influence on everyday buyingbehavior is the family of procreation namely,ones spouse and children.
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Family
Family members strongly influence buyerbehavior
Marketers in roles & influence of husband, wife &
children on purchase of different products &services.
Men account for 40% food shopping
Women make 85% of purchases
Children ages 3-11 yield $18 bn in disposableincome
Children influence $115 bn in areas like food,clothing, entertainment & personal care items.
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Application in Marketing
Marketers are interested in the roles and relativeinfluence of family members in the purchase of alarge variety of products and services.
With expensive products and services, the vastmajority of husbands and wives engage in more jointdecision-making.
Men and women may respond differently to marketingmessages.
Another shift in buying patterns is an increase in theamount of dollars spent and the direct and indirectinfluence wielded by children and teens.
Marketers of cars, cell phones, restaurants & travelare now placing ads On Cartoon Network, Pogo &Nickelodeon
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Roles and Status
A person participates in many groupsand a persons position in each group
can be defined in terms of role andstatus.
A role consists of the activities aperson is expected to . Each rolecarries a status.
Marketers must be aware of the statussymbol potential of products and
brands
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Roles and Status- MarketingApplication
People choose products that reflect andcommunicate their role and actual or
desired status in society. Company presidents often drive
Mercedes, wear expensive suits.
Marketers must be aware of the statussymbol potential of products and brands.
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Personal Factors
Age
Values
Life cycle
stage
Occupation
Personality
Self-
concept
Wealth
Lifestyle
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Age and Life Cycle Stages
People change goods & services they buy
over lifetimes. Buying is shaped by stage of the family life
cycle- the stages through which familiesmight pass as they mature over time.
Marketers should also consider critical lifeevents or transitions, marriage, child birth,illness, relocation, divorce, career change,widowhood, as giving rise to new needs
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Age and Life Cycle Stages
Psychological life-cycle stages matter
Critical life events/transitions:
Marriage Relocation etc
Give rise to new needs
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Occupation and Economic
Circumstances
Identify occupational groups with above-averageinterest in products
Tailor products for some of them, Blue collared
individuals buy work clothes, shoes, lunch boxes.
Economic conditions also affect product choice,
spendable income, savings, assets, debts,
purchasing power.
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Product choice affected by economic
circumstances: income, savings
Occupation and Economic
Circumstances
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Personality and Self-Concept
Each person has personality characteristics thatinfluence his or her buying behavior.
Personality: A set of distinguishing human
psychological traits that lead to relatively consistentand enduring responses to environmental stimuli.
Defined in terms of traits such as self confidence,dominance, sociability, defensiveness
The idea is that brands have personalities andconsumers are likely to choose brands whose
personalities match their own.
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Brand Personality
Brand personality is defined as the specificmix of human traits that may be attributedto a particular brand.
Consumers also choose and use brandthat have a brand personality consistentwith their own actual self-concept (howone views themselves).
Although in some cases, the match may bebased on the consumers ideal self-concept(how we would like to view ourselves).
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Five Brand Personality Traits:
1. Sincerity (down to earth, honest, cheerful).
2. Excitement (daring, spirited, imaginative).
3. Competence ( reliable, intelligent, successful)
4. Sophistication ( upper class & charming)5. Ruggedness (outdoorsy & tough).
Nike ruggedness
MTV excitementCNN competence
Campbell sincerity
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Lifestyle and Values
People from the same subculture, social class,and occupation may lead quite differentlifestyles.
A lifestyle is a persons pattern of living in theworld as expressed in activities, interests, andopinions.
Lifestyle portrays the whole personinteracting with his or her environment. Marketers search for relationships between their
products and lifestyle groups. Lifestyle is a persons pattern of living in the world
as expressed in activities, interests, and opinions.
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Lifestyles shaped partly by being:
Money-constrained - lower cost products
Time-constrained - multitasking,
convenient products
Lifestyle and Values
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Core Values
Consumer decisions - core values
Core values - choices in long-term
Values
:
Appeal to inner selves
Influence outer selves
Lead to purchase behavior
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Key Psychological Processes
Motivation
MemoryLearning
Perception
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Motivation
Motive (or Drive ) : A need that is
sufficiently pressing to direct the person
to seek satisfaction
Example : An ageing person seeking skin
electrolysis Drive :
1 To look young and feel independent
2 To feel young
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Motivation: Freud, Maslow, Herzberg
A person has many needs at any giventime. Some needs are:
Biogenic (arise from physiological states oftension such as hunger).
Others are psychogenic and arise from aneed for recognition, esteem, or belonging.
A motive is a need that is sufficientlypressing to drive the person to act.
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Motivation
Freuds
Theory
Behavioris guided bysubconsciousmotivations
Maslows
Hierarchy
of Needs
Behavioris driven by
lowest,unmet need
Herzbergs
Two-FactorTheory
Behavior is
guided bymotivating
factors
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Freuds Theory
Psychological forces shape behavior thata person cannot fully understand ( will
react to less conscious cues such assize, shape, weight, material, color)
Laddering
Decide message & appeal
In-depth interviews - deeper motives
Useprojective techniques
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Human needs arranged in a hierarchyaccording to importance
Physiological, safety, social, esteem & self-
actualization
How products fit in plans & lives
If self-actualization apply to Asians
Social needs important for Asians: Affiliation, Admiration, Status
Maslows Theory
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Maslows Hierarchy of Needs
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2-factor theory - dissatisfiers &
satisfiers
Absence of dissatisfiers not enough to
motivate a purchase, satisfiers must be
present
Satisfiers required to motivate purchase
Eg computer without warranty
dissatisfier
Herzbergs Theory
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Marketing implications of Herzbergsmodel of motivation
Herzbergs theory has two implications:
Sellers should do their best to avoid
dissatisfiers Sellers should identify the major satisfiers or
motivators of purchase in the market andsupply them. These satisfiers will make the
major difference as to which brand thecustomer buys
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Perception
How the motivated person actually acts isinfluenced by his or her view or perception of thesituation.
Perception is the process by which an individualselects, organizes, and interprets informationinputs to create a meaningful picture of the world.
Perception depends not only on the physicalstimuli, but also on the stimulis relation to the
surrounding field and on conditions within theindividual.
The key point is that perceptions vary widelyamong individuals exposed to the same reality.
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Key point to note:
In marketing, perceptions are more
important than the reality, as it is
perceptions will affect consumersactual behavior.
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Aspects of Perception
Selective Attention
Subliminal Perception
Selective Retention
Selective Distortion
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Perception
Selective Attention: the tendency for people to screenbut most of the information to which they are exposed-marketers must work hard to attract the consumersattention.
Selective Distortion: the tendency of people to interpretinformation in a way that will support what they willalready believe.
Selective Retention: Consumers are likely to remembergood points made about a brand they favor & to forgetgood points made about competing brands.
Subliminal Advertising: Subconsciously affecting aconsumers mind about a product or brand without theconsumer even knowing it.
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Selective attention: Screening out unnecessary stimuli,marketers have to work hard to attract consumers notice
People are more likely to notice stimuli than relate
to a current need (A person who is motivated tobuy a computer will notice computer ads, he/she
will not notice DVDs)
People are more likely to notice stimuli than they
anticipate. (You
are more likely to noticecomputers than radios in a computer store)
People are more likely to notice stimuli whosedeviations are large in relation to the normal size ofthe stimuli. (You are more likely to notice an ad
offering Rs.100 off rather than Rs.5)
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Drive is a strong internal stimulus that calls foraction.
Drive becomes a motive when it is directedtowards a particular stimulus object.
Cues are minor stimuli that determine when,where & how the person responds.
If an experience is rewarding, the consumer willuse the product more, reinforcinghis response.
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Selective distortion
The tendency to twist information intopersonal meanings & interpret information
in a way that will fit our preconceptions.
Selective retention
We are likely to remember good points
about a product we like & forget goodpoints mentioned about competingproducts. Selective retentions helpsmarketers use drama & repetition in
sending messages to target market.
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Gaining customer attention throughproduct design and presentation
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Selective Distortion
Selective distortion is the tendency to interpretinformation in a way that will fit our preconceptions.Consumers will often distort information to be
consistent with prior brands and product beliefs. Examples of branded differences can be found with
virtually every type of product.
Selective distortion can work to the
advantage of marketers with strongbrands when consumers distort neutral or
ambiguous brand information to make it
more positive.
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Selective Distortion
E.g.: Blind taste tests
Only 1 group knows brand
Opinions different but same product
Earlier brand beliefs changed product
perceptions
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Selective Retention
People will fail to register much information towhich they are exposed in memory, but willtend to retain information that supports their
attitudes and beliefs. Because of selective retention, we are likely to
remember good points about a product we likeand forget good points about competing
products.
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Subliminal Perception
Covert, subliminal messages in ads or
packages
Unconscious of them but affect behavior
No evidence consumers can be
controlled at that level
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Learning
Learning - behavior change withexperience
Drive - strong internal stimulus impelaction
Cues - minor stimuli- when, where, how
person responds Discrimination - recognize differences
in similar stimuli & adjust responses
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Belief: A descriptive thought that aperson has about something.
Attitude: A persons relatively consistentevaluations, feelings & tendencies
toward an object or idea.
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Brand knowledge
Linked associations determineinformation recalled on brand
Brand associations
Brand-related thoughts, feelings,perceptions linked to brand node
Right product experience - right branddata created & maintained in memory
Memory
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Memory
MEMORYPROCESSES: ENCODING
How & where information enters memory
Determinant of strength of association
1. Quantity & quality of processing
2. Organization & strength in memory
3. Its nature: simple, vivid, concrete
4. Repeat exposures -- stronger associations
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MEMORYPROCESSES: RETRIEVAL
How information gets out of memory
Brand association strength - easy access, recall
Successful brand information recall, 3 factors:Successful brand information recall, 3 factors:
1. Other information in memory - interference
2. Time since exposure affects strength3. Information available but not accessible
Memory
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The Buying Decision-Process:
The Five-Stage Model
Basic psychological processes -important - how consumers make buyingdecisions
Stage model of buying decision process 5 stages
Buying process starts long before actualpurchase and consequences long after
May skip or reverse stages
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Figure 6.4
Five-Stage Model
of the Consumer
Buying Process
The Buying Decision-Process:
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The Buying Decision-Process:
The Five-Stage Model Problem
Recognition
Buying starts - recognize problem/need
Need triggered by stimuli
Internal stimulus: normal needs, hunger External stimulus: love new car- triggers buying one
The Buying Decision-Process:
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The Buying Decision-Process:
The Five-Stage Model Information
Search
Information Search
Aroused consumer search
for more Heightened attention:
receptive to information
Active information search:
find ways to learn about
product
4 sources:4 sources:1. Personal
2. Commercial
3. Public
4. Experiential
The Buying Decision-Process:
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The Buying Decision Process:
The Five-Stage Model Information
Search
Total brands available totalset
Know only subset of total awareness set
Meet initial criteria consideration set
More information, few remain choice set
Makes final choice from this set
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Figure 6.5 Successive Sets Involved in Consumer
Decision Making
The Buying Decision-Process:
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The Buying Decision Process:
The Five-Stage Model Information
Search
Marketers need to know:
Consumers other brands in choice set -
competition
Identify sources & importance
Prepare effective communications for target
market
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Evaluation of Alternatives
The stage in which the consumer usesinformation to evaluate alternativebrands in the choice set.
Example:
Cameras (Picture sharpness, camera speeds,camera size, price)
Hotels (Locations, cleanliness, atmosphere,price)
Mouthwash (Color, effectiveness, price,taste)
Tires (Safety, tread life, ride quality, price)
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The Buying Decision-Process: The Five-
Stage Model Evaluation of Alternatives
BELIEFS & ATTITUDES
Influence buying behavior
Belief- descriptive thought on something
Attitude enduring evaluation, feeling &
action tendencies toward something
To fit product into existing attitudes
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A Got Milk ad
from the very successful
campaign features China
star Ziyi Zhang
from film
Crouching Tiger,
Hidden Dragon
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Purchase Decisions:
In the evaluation stage, the consumer formspreferences among the brands in the choice set. Theconsumer may also form an intention to buy the most
preferred brand. In executing a purchase intention, theconsumer may make up to five sub-decisions:
Brand
Dealer
Quantity Timing
Payment-method
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Intervening Factors
Between purchase intention & decision
1.
Attitudes of others:
Intensity of others attitude
Motivation to comply with others wishes
2. Unanticipated situational factors
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Figure 6.6
Steps Between
Evaluation of
Alternatives & a
Purchase
Decision
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Decision influenced by perceived risk:Decision influenced by perceived risk:
1. Functional risk not up to expectations
2. Physical risk threat to well-being/health
3. Financial risk not worth price
4. Social risk embarrassment from others
5. Psychological risk mental well-being
6. Time risk opportunity cost to find another
Perceived Risks:
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After the purchase, the consumer mightexperience dissonance about their purchaseand be alert to information that supports their
decision. Marketing communications shouldsupply beliefs and evaluations that reinforcethe consumers choice and help him or her feelgood about the brand.
Marketers must monitor post-purchase
satisfaction, post-purchase actions, and
post-purchase uses.
Post-purchase Behavior
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POSTPURCHASESATISFACTION
Satisfaction = performance - expectations
(()) disappointed (0)(0) satisfied ((++)) delighted
Expectations - from sellers, friends etc
Larger gap - greater dissatisfaction Product claims must truthfully represent
likely performance
Post-purchase Satisfaction
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Abandon/return product
1. Seek to confirm high value
2.
Public action - complain, go to lawyer3. Private actions - stop buying or warn
friends
Post-purchase communications - fewerproduct returns & cancellations
Post-purchase Actions