CB - Post Purchase Process
Transcript of CB - Post Purchase Process
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Post Purchase Process
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Introduction
Many businesses have started focusing on
customer relationship and loyalty programmes to
increase:
- Customer satisfaction
- Commitment, and
- Retention of important customers.
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Post Purchase Action
Consumers engage in a constant process of evaluating the
things that they buy.
In case of certain purchases, consumers experience post-
purchase dissonance.
This occurs as a result of the consumer doubting her-his
wisdom of a purchase.
After purchase, most products are put to use by
consumers, even when they experience dissonance.
Other purchases may be followed by non-use because the
consumer returns or keeps the product without using it.
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Post-purchase Dissonance
Cognitive dissonance occurs as a result of somediscrepancy between a consumers prior evaluation andthe purchase decision.
Dissonance theory was derived from 2 basic principles:- Dissonance is unpleasant & will motivate the person to reduce it.
- Individuals experiencing dissonance will avoid situations thatproduce more dissonance.
Post-purchase dissonance is most likely to occur when
more than one alternative was attractive and a relativelypermanent and difficult decision had to be made.
The doubt or anxiety resulting from such a decision istermed as post-purchase dissonance.
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Post-purchase Dissonance
The probability that a consumer will experience
dissonance and the magnitude of such dissonance,
is a function of the following factors:
- The degree of irrevocability of the decision
- The importance of decision to the consumer
- The difficulty of choosing among the alternatives
- The individuals tendency to experience anxiety
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Post-purchase Dissonance
Consumers experience post-purchase dissonance becausemaking a relatively permanent commitment to a selectedalternative requires one to forgo the alternative attributesof the alternative not purchased.
In case of nominal-decisions and most cases of limited-decisions, consumers are unlikely to experience post-
purchase dissonance because in such decisions consumersdo not consider attractive attributes in a brand not
selected. For example, if a consumer purchases the least priced
brand of toilet soap out of three alternatives that she/heviews as equivalent on all relevant attributes except price,
she/he would not experience dissonance.
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Post-purchase Dissonance
The consumers may use one or more of the
following approaches to minimize the dissonance:
- Increase the desirability of the brand purchased
- Decrease the desirability of alternatives not selected
- Decrease the importance of the purchase decision
- Return the product before using it
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Post-purchase Dissonance
Sometimes consumers reduce post-purchase
dissonance by internal re-evaluations.
- In this process, they enhance the value of attributes of
the selected brand and decrease the value of attributes
present in brands not selected.
Consumer search for additional external but
favorable information that serves to confirm thewisdom of a particular purchase choice.
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Post-purchase Dissonance
According to dissonance theory, individuals experiencingdissonance would be expected to actively avoidinformation that would tend to increase their dissonanceand seek information supporting their decision.
Favorable information supports and reinforces theconsumers confidence in the correctness of the purchasedecision.
Consumers search for their receptiveness on reinforcingads is greatly increased.
Follow-up sales efforts too can help reduce post-purchasedissonance in consumers.
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Relationship of Expectations,
Performance and Satisfaction
Level of expectation
Perceived
performance relativeto expectation
Below minimum
desiredperformance
Above minimum
desiredperformance
More than expected Satisfaction Satisfaction /
Commitment
Same as expected Non-satisfaction Satisfaction
Worse than expected Dissatisfaction Dissatisfaction
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The Disconfirmation Paradigm
Expectations
Performance
Disconfirmation
Satisfaction
Dissatisfaction
Feelings
Negative
Positive
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Consumers buy products not only for what they
can do but also for what they mean.
For most products, there are two dimensions to
performance:
- Instrumental performance relates to the physical
functioning of the product.
- Symbolic performance refers to performance thatrelates to aesthetic or image enhancement.
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Dissatisfaction Responses
Disconfirmation is mediated by consumers desire
to understand why products fail.
Considering the large number of purchases that
consumers make, most consumers are generally
satisfied with a majority of their purchases and
dissatisfaction occurs only with some purchases.
Marketers should try their best to reducedissatisfaction and effectively resolve customer
complaints whenever they occur.
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Dissatisfaction Responses
Post-purchase Evaluation
Dissatisfaction
Take Action Take No Action
Negative Attitude
Take Legal
Action
Complain to
Consumer
Protection
Agencies
Negative
Word-of-
Mouth
Stop Buying
The Brand
Or From the
Store
Complain to
Retail Outlet
Or Company
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Product dispositionPRODUCT
Keep itGet rid of it
permanently
Get rid of it
temporarily
Use it to serve
originalpurpose
Convert it to
serve new
purpose
Store it
Loan itRent it
Sell itTrade itGive it awayThrow it
away
To be
(re)sold
To be used
Direct toconsumer
Through
middleman
Tomiddleman
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Marketing Strategies
Marketers need to focus on
(1) Creating reasonable expectations among consumers
through appropriate promotional efforts, and
(2) Ensure consistency in product quality so that
whatever expectations are created among consumers
through marketing communications are fulfilled.
(3) Should develop an efficient system to receive
complaints and encourage consumers to record their
complaints as soon as they occur.
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Marketing Strategies
Marketers need to focus on
(4) Simply receiving complaints efficiently is not enough.Consumers who record their complaints expect
tangible results and failure to effectively deal with theircomplaints can be disastrous for the concernedmarketer.
(5) It is essential for the marketers to not only giveconsumers an opportunity to complain but also toeffectively resolve the cause of their complaints.
(6) Anticipating dissatisfaction and acting promptly toremove the cause before it occurs.