Lecture Unit 9: Pre-purchase, purchase and post-ppurchase proces (3/3)

Question 1

What are cognitive resources, capacity, attention?

Answer 1

Cognitive resources: mental capacity available for undertaking various information-processing activities

Capacity: cognitive resources that an individual has available at any given time for processing information

Question 2

What is attention? (cognitive resouce)?

Answer 2

Attention: allocation of cognitive resources; attention consists of two dimensions

• Direction: focus of attention
• Intensity: the amount of capacity focused in a particular direction

–>Gaining attention represents one of the most formidable challengers a marketer may face

Question 3

What is shallow attention?

Answer 3

= Many products are not important enough to warrant consumers investing a large amount of cognitive resources

Question 4

What is meant with information oveload?

Answer 4

• capacity is limited, therefore it is posssible to provide too much information and exceed capacity –>information overload
• C can become confused and make poor choices or they stop processing information before they are overloaded

Question 5

What influences the amount oof attention given to a product or a specific purchase decision?

Answer 5

• involvement
• Personality
• Situation
• Other variables

Question 6

Why is analysing consumption behavior important for marketers?

Answer 6

• Knowing how many / which consumers fall into user and nonuser categories
• Size of user market is one indicator of market attractiveness
• Size of nonuser groupspeaks to future growth opportunities
• Characterized along many dimensions

Question 7

What are the important questions to ask for consumption behavior?

Answer 7

• When does consumption occur?
• Where does consumption occur?

Question 8

What are the 3 questions regardin the Question: When does consumption occur?

Answer 8

• How much time passes between purchase and
  consumption?
• What time of day is the product used?
• When in the year or during which season is the product consumed?

Question 9

What is “usage volume segmentation”?

Answer 9

= dividing consumers into segments based on the amount of consumption (heavy, moderate, and light users)

–>Firms can encourage consumption or change the amount consumed

Question 10

What are basic strategies for altering the amount of consumptioN?

Answer 10

• Enhance the frequency of consumption
• Encouraging less frequent consumption
• Enhance the amount consumed per consumption occasion

Question 11

What can firms do regarding the consumption experience?

Answer 11

Firms can position products based on:

• Positive feelings resulting from consumption
• Elimination of negative feelings resulting from consumption

Question 12

What is posiitive and negative reinforcement?

Answer 12

Positive reinforcement: when the consumer receives a positive outcome from product usage

Negative reinforcement: when consumption helps the person avoid negative outcomes

Question 13

How can firms shape the interpretation of the consumption experience?

Answer 13

Shaping the interpretation of the consumption experience:
- consumers’ interpretation can be affected by their expectations of the experience and
- their mood at the time of consumption

Question 14

What are consumption norms?

Answer 14

Consumption norms: informal rules that govern our consumption behavior

Question 15

What are consumption rituals?

Answer 15

Consumption rituals:
- a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time

Question 16

What is compulsive consumption?

Answer 16

• A response to an uncontrollable drive or desire to obtain, use or experience a feeling, substance or activity
• that leads an individual to repetitively engage in a behavior that will ultimately cause harm to the individual and possibly others

Examples: Gamblinng, Internet, addiction

Question 17

Why is satisfaction after the purchase important?

Answer 17

= Consumer experience satisfaction or dissatisfaction:

–>Important because it influences repeat buying:

• Positive post-consumption evaluations are essential for retaining customers
• The likelihood that customers will remain loyal depends on their level of satisfaction
• However, customer satisfaction does not guarantee loyalty

–>It shapes word-of-mouth and wordof-mouse communication

• Consumers often communicate with others about their consumption experiences

Question 18

What is the relationship between satisfaction and consumer price sensitivity?

Answer 18

• the higher the satisfaction, the lower the price sensitivity

Question 19

Importance of Satisfaction: What are the implications for customer recruitment?

Answer 19

• Monitor satisfaction levels of competitors’ customers
• Formulate strategies to attract dissatisfied customers of competitors

It ultimately affects shareholder value:
- Product performance
- Consumption feelings
- expectations

–>lead to satisfaction

Question 20

What is the Expectany disconfirmation model?

Answer 20

= satisfaction depends on a comparison of pre-purchase expectations to actual outcomes

• Negative disconfirmation: when product delivers less than expected
• Positive disconfirmation: when product delivers more than expected
• Confirmation: product matches expectations

Question 21

Expectancy disconfirmation model: What can negative disconfirmation cause?

Answer 21

Can cause:
- Regret: when consumers believe that an alternative course of action other than the one chosen would have produced a better outcome

• Rage: when consumers are extremely upset

Question 22

What are the biggest threats to satisfaction?

Answer 22

• inability to speak to a live person about a problem or need
• Poorly trained employees/staff
• Poor quality and services
• Certain products and services not always available
• Lack of individual attention

Question 23

What increases satisfaction?

Answer 23

• participating in customer surveys
• Getting rewards and discounts in exchange for participating inc ustoemr loyalty or preferred customer programs
• being able to communicate with companies online
• online shopping
• having a more personalized experience with companies you do business with