Chapter 10 Flashcards
Post decision dissonance
Is a feeling of discomfort about whether or not the correct decision was made. Post-decision dissonance can influence consumer behavior because consumers would like to reduce the discomfort, especially when motivation, ability and opportunity (MAO) are high
MAO
Motivation ability and opportunity
Post-decision regret
Occurs when consumers perceive an unfavorable comparison between the performance of the chosen option and the performance of the options not chosen
Consumers may experience immediate and later regret, and this regret may be transitory or more permenent.
(learning from consumer experience)
hypothesis testing
consumers can learn from experience by engaging in a process of hypothesis testing,
Much the way scientists test hypotheses.
Hypothesis
A belief or expectation about some future event or state.
Consumers go through four stages in testing hypotheses for learning
Hypothesis generation (forming expectations about the brand, product or service)
Exposure to evidence (actually experiencing the brand, product or sevice)
Encoding of evidence (processing the information that one experiences)
Integration of evidence and prior beliefs (combining new information with stored knowledge)
Four factors affect consumers learning from experience
motivation
Prior knowledge or ability
Ambiguity of the information environment or lack of opportunity
Processing biases
Ambiguity of information
When not enough information exists from the consumption experience to confirm or disporve ones hypotheses. Ambiguous consumption information reduces consumers ability to learn from experiences
How do consumers make satisfaction or dissatisfaciton judgements
After consumers have made acquisition, consupmtion or disposition decisions, they can evaluate the outcomes of their decisioons. If their expectations are disconfirmed (needs are not met) consumers experience dissatisfaction
Feelings of satisfaction and dissatisfaction can concern offerings that consumers are able to evaluate on
Utilitarian dimensions (how well the product or service functions)
Hedonic dimensions (how does the product make someone feel)
Expectation discofirmation
Occurs when there is a discrepancy, positive or negative, between our prior expectations and the products actual performance. In this case expectations are desired or anticipated products/service outcomes and include “pre-consumption beliefs about overall performance, or the levels or attributes possessed by a product (service)
Performance
Indicates whether or not the expected outcomes have been achieved. Performance can either be objective, based on the actual performance, which is fairly constant across consumers - or subjective - based on individual feelings, which can vary across consumers
Attribution theory (how do consumers make satisfaction or dissatisfaciton judgements)
Describes how individuals thing about explanations for or cause of effects or behavior. I
When a product or sevice does not fulfil consumers needs, they will attempt to find an explanation based on three factors
Locus: is the problem consumer or marketer related
Controllability: is the event under the consumers or marketers control
Stability: is the cause of the event temporary or permanent
Equity theory
Equity theory is based in the idea that individuals are motivated by fairness, and if they identify inequities in the input or output ratios of themselves and their referent group, they will seek to adjust their input to reach their perceived equity
Post-decision emotions
Are positive or negative emotions experienced while using or disposing of the acquired brands, products, or services
Responses to dissatisfaction
The majority of dissatisfied consumers do not complain to the company. because of this, even a few consumer complaints can already indicate marketing related problems that need attention, because these few may be the tip of the iceberg.
Companies should pay close attention to four customer characteristics when preparing complaint-resolution policies and practices
Customers perceptions of the problem
Customer - company relationship
Customer psychographics
Personal characteristics
When consumers are dissatisfied with a product or sevice, they are often motivated to
tell others in order to relieve their frustration and to convince others not to purchase the product or to do business with the company
Negative word of mouth communication
Is more likely to occur when consumers perceive that the company is at fault, the problem is severe, and when they are unhappy with the commpanys responsiveness
Is customer satisfaction enough?
Customer retention
The practice of working to satisfy customers with the intention of developing long-term relationships with them. A customer-retention strategy attempts to build customer commitment and loyalty by continually paying close attention to all aspects of customer interaction, especially after-sales service
Disposition or disposal
Is the getting rid of meaningless or used up items or what is left of them (e.g. packaging)
Can be temporary (loaning or renting the item) or involuntary (losing or destroying the item)
We most ofteh think of disposition in terms of physical detachement e.g.
When an item is physically transferred to another person or location
Emotional detachment
a more detailed, lengthy and sometimes painful process. Often consumers remian emotionally attached to possessions long after the have become physically detatched
