Presentation on theme: "Chapter 10 Post-Decision Process es. Learning Objectives~ Ch. 10 To understand: 1.Post-decision dissonance & regret 2.Consumer learning from experience."— Presentation transcript:
Chapter 10 Post-Decision Process es
Learning Objectives~ Ch. 10 To understand: 1.Post-decision dissonance & regret 2.Consumer learning from experience 3.Ways consumers judge satisfaction & dissatisfaction with decision 4.Various strategies & levels of complexity for disposal of something
Post-Decision Dissonance & Regret Loss of confidence in decision of –Acquisition –Consumption –Disposition Dissonance—Anxiety when MAO high & more than one alternative is attractive Regret –Unfavorable comparison –Consumer anticipation
A Model of Learning from Experience
Factors Affecting Learning from Experience Motivation Prior knowledge/ability Ambiguity of information/Lack of opportunity Processing biases –Confirmation –Overconfidence –Strategies Top-dog Underdog
Disconfirmation Paradigm Satisfaction Based on Expectations Other Influences on Satisfaction Independent Post-Decision Feelings Negative (-) Simple (-/+) Positive (+)
The Disconfirmation Paradigm
Satisfaction/Dissatisfaction Based on Thoughts Disconfirmation Expectations Performance –Objective –Subjective Simple confirmation & satisfaction Negative disconfirmation & dissatisfaction
Attribution Theory Causality/blame/explanations Factors –Stability –Focus –Controllability Value-Added
Equity Theory Inputs Versus Outputs –Consumer –Seller Fairness in Exchange
Satisfaction/Dissatisfaction Based on Feelings Post-decision feelings Coping Misprediction about emotions –Affective forecasting (misforcasting)
Responses to Dissatisfaction Take no action Discontinue purchasing Complain or return item Negative WOM Negative e-WOM What was the last negative e- WOM you left for a business and what motivated that?
Satisfaction & Consumer Relationships 65% to 85% of customers who defect to competitors say they were “satisfied” or “very satisfied” Customer retention is key—Develop long- term relationships For instance USAA is a leader in customer satisfaction, and in turn, retention
How to Retain Customers Care about your customers—2/3 of customers defect because they feel company does not care about them Have empathy Remember customers between sales—send promo on birthdays, etc. Build trusting relationships—expertise, reliability, concern Monitor service delivery process Be there when needed—Service & repair Provide extra effort—Beyond call of duty What is something special a company did for you lately?
Options for Post-Acquisition Disposition Give Away Trade Recycle Sell Use Up Throw Away Abandon Destroy “ …action taken toward possessions.” Temporary or Involuntary Temporary or Permanent
Disposing of Meaningful Objects Think of something meaningful that you disposed of (sold, gave away, recycled, etc.) Physical Detachment Emotional Detachment
Recycling Behavior It is interesting to wonder why some consumers recycle, and others do not This is a context where attitudes & behaviors may misalign Recycling behaviors depend on: Motivation Ability Opportunity
Sidi offers a money-back guarantee if the consumer is not satisfied with the bicycling shoes. A warranty or money-back guarantee can reduce consumers’ feelings of dissonance after a purchase. Sara Ecclesine, Veltec Sports, Inc.