Postpurchase and Custome Rsatisfaction and Loyalty

7/24/2019 Postpurchase and Custome Rsatisfaction and Loyalty

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Postpurchase processes,

customersatisfaction and consumer

loyalty

Postpurchase process Postpurchase dissonance

Why product use isimportant to marketers

Why product disposal is

importantconsumers

Concept of customersatisfaction

Concept of consumer loyalty

to


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Post purchase processes

1. Postpurchase dissonance

2. Product use and non-use3. Disposal

4. Purchase evaluation repeat

purchase


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The post purchase outcome and reactions contains two stages;

!ta"e # comprises Post purchase Co"nitive Dissonance$

!ta"e ## comprises Product usa"e and reaction.

Stage 1 : Post purchase Cognitive Dissonance:

%his is a feelin" of tension and an&iety that a consumer e&periences after thepurchase of a product. %he consumer 'e"ins to have a feelin" of uncertainty(ith respect the performance of the product and 'e"ins to dou't hispurchase decision )(hether the decision (as the ri"ht one*+. ,e 'e"ins to

ask himself the follo(in" uestionsa/ ,ave # made the ri"ht choice*'/ ,ave # purchased the ri"ht 'rand*c/ ,ave # "ot value for money*Cognitive dissonance generally occurs in cases where:

i/ the decision makin" and purchase relates to a hi"h involvement productii/ the purchase activity is irrevoca'leiii/ the consumer cannot return the productiv/ the various alternatives have desira'le features and are all compara'lev/ the alternatives are also uniue in some (ay or the other.


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Consumers try to reduce this dissonance by:

"ainin" more product information

discussin" (ith other satised customers (ho have 'ou"ht the sameproduct'rand

i"oin" 'ack to the dealer and askin" for reassurances.

ther methods that consumers employ to reduce cognitivedissonance are by:

rationali5in" that the choice that they have made is the ri"ht one. refer to data printedaudio visual/ that supports and recommends the

chosen product'rand. make others 'uy the same product'rand to reassure their

choice

6arketers also employ strate"ies to reduce this dissonance 'yprovidin" "uarantees and (arranties$ mem'ership to companyconsumer forums and communication and follo( up (ith the customers.


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Stage "": Product usage and reaction:

7fter the purchase$ the consumer uses the product and re evaluates

the chosen alternative in li"ht of its performance vi5. a vi5. the

e&pectations.

%his phase is si"nificant as it

i/ acts as an e&perience and "ets stored in the memory

ii/ ii/ a8ects future purchase decisions

iii/iii/ acts as a feed'ack.

()There could be three situations that can arise:

()-Performance meets e&pectations %his leads to a neutral feelin"

Customer may think of more suita'le alternatives ne&t time.

()-Performance e&ceeds e&pectations %he customer is satised and this

leads to a positive feelin". ,e (ould tend to repeat purchase and it

(ould lead to 'rand loyalty. ,e (ould also spread positive (ord of

mouth.

()-Performance falls short of e&pectations ,ere$ the customer is


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Post purchase dissonance

!ome purchases are follo(ed 'y post purchasedissonance

Pro'a'ility of post purchase dissonance and thema"nitude of dissonance is a function of the

9 degree of commitment and#or whether thedecision can be revo$ed

9 importance of the decision to the consumer

9 dif%culty of choosing among the alternatives

9 individual&s tendency to e'perience an'iety

Consumption guilt 9 (hen "uilt feelin"s are aroused 'ythe productservice use. 6arketers need to focus onvalidatin" the consumption for )hi"h "uilt+ products


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Post-purchase consumer behavior


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7fter the purchase is made$ the consumer mayutili5e oneormore of the follo(in" to reduce

dissonance

"ncrease the desirability of the brandpurchased

Decrease the desirability of re(ectedalternativesDecrease the importance of the purchase

decision)everse the purchase decision *returnbefore use+


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hat "f-

6arketers often encoura"ecounterfactual thinkin" e.".$ instate lottery ads/.

and

prefactual

What ethical issues$ if any arethere

(ithstate

lotteriesencoura"in" counterfactual and prefactual

thinkin" a'out

(innin" the lottery*

Counterfactual thinkin"refers to ima"in" theoutcome if a di8erentdecision had 'een

made in the past.

Prefactual thinkin" isthe same ascounterfactual e&ceptit occurs 'efore a

decision is made.


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Product use and non.use Product use

9 use innovativeness

9 re"ional variations9 multiple vs sin"le use

Packa"in"

Defective products9 product recalls


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Product.usage inde' for/C),

microwave and PC


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Product:se

6arketers need tounderstand

products.

ho(

consumers

usetheir

0se innovativenessrefers to a consumerusin" a product in a ne((ay.

6arketers (ho discoverne(for their products can"reatly e&pand sales.

Classic e&ample of ho(useinnovativeness helped

76increase sales;

.12


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%he 7rm

,ammer(e' siteprovides anotheravenue formarketers tocommunicate

uses;

ne(

Courtesy Church D(i"ht Co.$#nc.

.13


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0ni4ue pac$aging for competitive

advantage


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Product:se

6any firms attempt to o'tain

relevant information on productusa"e via surveys usin"standard uestionnaires.

!urveys can provide usefulinformation$insi"hts can 'e produced via

'ut

often

deeper

observati

ondepth interviews,and

casestudies

.15


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Product :se


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Product >onuse

Product nonuse occurs (hen a consumeractively acuires a product that is not used or

used only sparin"ly relative to its potential use.

%he division 'et(een the initial purchase decisionand thedecision toconsume

online purchases.

is particularly

stron"

(ith

catalo"

and


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Disposal

Disposition of product or product container may occur'efore$ durin"$ or after use. ?r$ for products that arecompletely consumed$ no disposition may involved

7 physical product often continues to e&ist eventhou"h it may no lon"er meet a consumer@s needs.

A&plodin" demand and short product spans for hi"h-tech items is creatin" a "ro(in" concern over e-(aste.

7-20


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Product.disposalalternatives


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Product disposal

andmar$eting

)ecycling

9 product

9 packa"e

Trade.ins

strategy

9 to motivatereplacement

Second.handmar$ets

9 A.". te&t'ooks$clothes

9 BCash converters@


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Product Disposition and 6arketin"!trate"y

6ive ma(or ways disposition decisions that

can a8ect firm@s marketin" strate"y

a

1.


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Purchase7valuation Avaluation of a purchase

influenced 'yis

9 7'pectations

9 Perceivedperformance


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%he AvaluationProcess

A&pectations$

Performance$

and!atisfaction


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7'pectations, performance andsatisfaction


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%he Avaluation Process

Determinants of !atisfaction andDissatisfaction

#nstrumental performance relates to the physicalfunctionin" ofthe product.!ym'olic performance relates to aesthetic orima"e-enhancement performance.

78ective performance is the emotionalresponse thatusin" the product or outlet provides

o(nin"or

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Dissatisfaction

Possi'le outcomesof a evaluation

)esponsesne"ativepurchase

1. %akin" no action

2. !(itchin" 'rands$ products orstores

3. Warnin" friends and collea"ues


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Dissatisfaction Responses


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9ctions ta$en byconsumers in

response to productdissatisfaction


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6our types of response styles associatedwith

dissatisfaction have been identified:

Passives 14/9 !eldom take action$ youn"er "roup$ don@t see a

'enefit from complainin"

Eoices 3F/

9 !eldom take private or pu'lic action$ usuallycomplain directly to the firm$ older "roup$ 'elievethey are providin" a social 'enefit

#rates 21/

9 %ake a'ove avera"e levels of private response and

avera"e levels of direct action$ 'ut lo( levels ofpu'lic action

7ctivists 2G/

9 Hikely to "et involved in private$ direct and pu'lic

action$ 'elieve they are providin" social 'enefits 'ycomplainin"


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ar$eting strategy and dissatis%ed

consumers

6arketers need to satisfy consumere&pectations 'y

1 creating reasonable

e'pectations throughpromotional efforts

2 maintaining consistent 4uality sothat these reasonable e'pectationsare ful%lled


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Customer

!atisfaction

?utcomes

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Customers !atisfaction$


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Creating CommittedCustomers#s #ncreasin"l

ythe

Iocusof6arketin"

!trate"y

.3

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Postpurchase and Custome Rsatisfaction and Loyalty