Session 8 _ Post-Decision_LMES
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Transcript of Session 8 _ Post-Decision_LMES
8/2/2019 Session 8 _ Post-Decision_LMES
http://slidepdf.com/reader/full/session-8-post-decisionlmes 1/32
POST-DECISION PROCESSES
MARK 3420, Spring 2012
Prof. Rongrong Zhou
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Exhibit 11.1:
Chapter Overview:
Post-Decision
Processes
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A MODEL OF COMPLEX DECISION
M AKING
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Problem
Recognition
Information
Acquisition
Information
Processing
Comparative
Evaluation/Purchase
Post-Purchase
Evaluations
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CHAPTER O VERVIEW
Post-Decision Dissonance and Regret
Learning from Consumer Experience
How Do Consumers Make Satisfaction or
Dissatisfaction Judgments? Responses to Dissatisfaction
Is Customer Satisfaction Enough?
Disposition
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DISSONANCE
Dissonance Theory:
y Your different beliefs (about related objects) should be
consistent with one another
y Inconsistency = ³Dissonance´
What is Post-Purchase Dissonance??
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DISSONANCE
Post-Purchase Dissonancey You purchased one alternative; rejected others
y Believe that others also have desirable attributes
y Inconsistency!!
y And often, regret
Try to reduce dissonance by changinginconsistent beliefsy How??
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DEALING W ITH DISSONANCE
Downgrading other alternatives
Searching for supportive info on chosen
brand
Ignoring dissonant information
Selectively interpreting information
Dissatisfaction
y Cancel Purchasey Not Purchase Again
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W HEN IS DISSONANCE MOST LIKELY?
High Involvement or Low Involvement Product?
When alternatives are rated about equally, or whenone alternative is clearly better?
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M ARKETING IMPLICATIONS OF DISSONANCE
Providing Supportive Information
Product warranty or money back guarantee
Downgrading Alternatives:
y Comparative Advertising
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LEARNING FROM
CONSUMER E XPERIENCE
After purchase, consumers use the product
y Usage provides opportunity to learn about the product
y Learning by hypothesis testing
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Exhibit 11.3: A Model of Learning from Experience
What factors affect learning from experience?
MotivationAbility
Opportunity
Processing biases
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HOW DO CONSUMERS M AKE
S ATISFACTION OR DISSATISFACTION
JUDGMENTS?Satisfaction/Dissatisfaction
Based on Thoughts
y Disconfirmation Theory
y Attribution Theory
y Equity Theory
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DISCONFIRMATION THEORY: S ATISFACTION /
DISSATISFACTION
Better Product Performance = More satisfaction??
Does satisfaction depend on anything else?
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Exhibit 12.8: The Disconfirmation Paradigm
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DISCONFIRMATION THEORY (CONT.)
P > E: Positive disconfirmation; Satisf action
P = E: Confirmation; Satisf action
P < E: Negative disconfirmation; Dissatisf action
So what should you do as a marketer?
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´M ANAGINGµ E XPECTATIONS
Phone response systems: ´Your call will
be attended to in the order in which it
was receivedµ
Earnings forecasts
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M ARKETING A PPLICATIONS OF
A TTRIBUTIONS: FOCUS
Focus: Blame Reduction
y You buy a chest-of-drawers from IKEA and soon find that a
couple of the drawers don¶ t slide smoothly and the bases are
falling.Would you feel the problem is caused by poor-quality
materials or by your skills at carpentry?
y Internal to Marketer/External to Marketer:Which
one leads to more blame?
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M ARKETING A PPLICATIONS OF
A TTRIBUTIONS: STABILITY
Stability: Exchange vs. Refundy You go to IKEA and order a coffee table. A few weeks after
delivery, you find a large crack at the juncture near one of thelegs.Would you be more angry«
If you thought the defect had developed due to poor qualityof the wood?
If you thought the defect might have been caused duringdelivery?
y When is the consumer more likely to ask forexchange (vs. refund): when cause is stable orunstable?
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A TTRIBUTIONS FOR PRODUCT / SERVICE
F AILURE
Focus:Who has the problem been caused by?
y Consumer / non-marketer less blame
Controllability: Is the event under the consumer¶ s or
the marketer¶ s control?
y Marketer-focus + controllable even more blame
Stability: Is the reason temporary or permanent?
y Stable attributions more blame, prefer refunds
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SATISFACTION BASED ON
FEELINGS
Experienced Emotions and Coping
y Post-decision feelings
Mispredictions of feelings
y Affective Forecasting
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SUMMARY
Post-Decision Dissonancey Inconsistency in beliefs
y Dealing with post-purchase dissonance
Learning from Consumer Experiencey Hypothesis testing
How Do Consumers Make Satisfaction orDissatisfaction Judgments?y Disconfirmation theory
y Attribution theory
y Equity theory
y Satisfaction based on Feelings25
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RESPONSES TO DISSATISFACTION
Complaints (i.e., talking to the firm)
y When Complaints Are Likely to Occur
MAO
Severity
Attribution
NegativeWOMy i.e., talking to other consumers
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CUSTOMER DISSATISFACTION
Is a major problem«
Dissatisfied customers stop purchasing, complain, and
spread negativeWOM.
The average business does not hear from 96% of itsunhappy customers.
The average person with problems tells 9 or 10 people.
But also an opportunity! 95% of complainers will do business with you if
complaint is resolved quickly.27
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IS CUSTOMER
S ATISFACTION ENOUGH?
Customer Retention
y After-sales
y Relationships
y Extras
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OPTIONS FOR
POST-A CQUISITION DISPOSITION
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Give Away
Trade
Recycle
Sell
Use Up
Throw Away
Abandon
Destroy
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QUIZ 1: S AMPLE QUESTION
C onsumers deal with decision dissonance by:
a) Ignoring dissonant information
b) Selectively interpret information
c) Downgrade other options not chosen
d) Search for information that supports chosen option
e) All of the above
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QUIZ 1: S AMPLE QUESTION
I t was discovered that several children had developed food poisoning from eating a hamburger at an outletof a local restaurant chain. The company put out a messa ge sa ying that the problem had been caused due
to a power outa ge at their refrigeration, and wouldnot ha ppen a g ain. This messa ge was a ppealing to:
a) Product evaluations
b) Customer relationship management
c) The perceived stability of the problem
d) The type of disconfirmation
e) Consumers· perceptions of equity
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