Lecture 6

Question 1

Post Decision Emotions

Answer 1

• Post decision dissonance: anxiety over whether the correct decision was made
• Post decision regret: should have purchased another option

Question 2

Factors Impacting on Learning

Answer 2

Motivation (high motivation = more hypothesis)

Prior Knowledge (moderate level = highest learning)

Ambiguity of info (uncertainty = getting support from WOM)

Question 3

How Consumers make satisfaction/dissatisfaction judgments

Answer 3

Consumers can evaluate offerings on both:

Utilitarian dimensions: how well the offering functions (attributes)

Hedonic dimensions: how the offering makes you feel (enjoyment)

Question 4

Satisfaction or dissatisfaction judgments theories

Answer 4

Equity Theory

> Fairness of exchange
− Consumer’s inputs and outputs vs. Seller’s inputs and outputs
− Fairness -> satisfaction
− e.g. Tend to be self-centered

Attribution Theory

> Explains how individuals think about causes of effects or behaviour

> Three factors:
− Stability: is the cause of the event temporary or permanent?
− Focus: is the problem consumer or marketer related?
− Controllability: is the event under the customer’s or marketer’s* control?

Question 5

Tactics to retain customers

Answer 5

Care about your customers
− 2/3 of customers defect because they feel company doesn’t care about them

> Remember customers between sales
− e.g. contact on birthdays, etc

> Build trusting relationships
− Expertise, reliability, concern

> Monitor service delivery process
− Emotion transfers!

> Provide extra effort
− Beyond call of duty: one-hour delivery window

> Increase switching costs