1. Copyright Atomic Dog Publishing, 2002 Chapter 4 Consumption and Post-Purchase Behavior

2. Copyright Atomic Dog Publishing, 2002 Chapter Spotlights Product and service consumption Ritual, sacred, profane and compulsive consumption Customer satisfaction and dissatisfaction Purchase-associated cognitive dissonance Post-purchase behavior Product disposition

3. Copyright Atomic Dog Publishing, 2002 Product and Service Consumption Consumption is the possession and/or use of goods and services and the benefits they deliver Consumption situation Physical context: time and place of consumption Social context: the presence of others Consumption episode: the set of items belonging to the same event and occurring in temporal proximity Consumption system: a bundle of goods and services that are consumed over time in multiple episodes.

4. Copyright Atomic Dog Publishing, 2002 Types of Consumption Situations Extensive marketer control Marketers are present during consumption and can both watch and influence how it plays out (e.g., services). Limited marketer control Marketers can easily see and may be able to influence the consumption situation of goods and services that are usually consumed close to the place of purchase (e.g., outdoor vendors). No marketer control

5. Copyright Atomic Dog Publishing, 2002 Ritual Consumption Rituals are patterns of behavior tied to events that we consider important in our lives: They have some special symbolic meaning They occur in a fixed or predictable manner They are repeated with some regularity Ritual consumption is the consumption of goods and services that are tied to specific rituals.

6. Copyright Atomic Dog Publishing, 2002 Sacred and Profane Consumption Sacred consumption is related to special events that are out of the ordinary (e.g., holidays, rites of passage, religious events) Profane consumption is related to events that are a part of everyday life. Sacralization occurs when objects, places, people, and events are transformed from the profane to the sacred. Desacralization refers to the loss of sacred status.

7. Copyright Atomic Dog Publishing, 2002 Compulsive Consumption It refers to a response to an uncontrollable drive or desire to obtain, use, or experience a feeling, substance, or activity that leads the individual to repetitively engage in behavior that will ultimately cause harm to the individual and/or others. Possible causes may include family history of alcohol or other forms of substance abuse, physical violence, divorce, or other types of emotional conflict

8. Copyright Atomic Dog Publishing, 2002 Satisfaction Versus Dissatisfaction The level of satisfaction or dissatisfaction we experience depends upon how well the product’s performance meets our expectations A finite time period of possession is necessary to determine satisfaction Satisfaction is not easily measured because: It means different things to different people The level of satisfaction can change over time Satisfaction can change when consumer needs and preferences change Satisfaction includes a social dimension (the experience of others may add or subtract from our own satisfaction)

9. Copyright Atomic Dog Publishing, 2002 Expectation and Satisfaction Product experiences can be classified into three types based on the degree to which consumer expectations are fulfilled (confirmation) or not (expectancy disconfirmation): Simple confirmation: the purchase performs as expected (satisfaction) Positive disconfirmation: when performance is better than expected (much higher satisfaction) Negative disconfirmation: when the purchase falls short of expectations (dissatisfaction) If the negative disparity is wide it may lead to the contrast effect (poor performance is magnified by the customers)

10. Copyright Atomic Dog Publishing, 2002 Categories of Satisfactory Performance Ideal: when a purchase performs as or better than expected Equitable: if it is adequate to the cost and effort the consumer made to obtain the product Expected: although the purchase works out as anticipated, it barely qualifies as satisfactory (this is the lowest level of satisfactory performance)

11. Copyright Atomic Dog Publishing, 2002 Relationship between Performance and Satisfaction Aspects of performance related to satisfaction: Objective performance is product-related and depends on whether the product meets all functional expectations (e.g., whether a watch keeps good time, car mpg, game software works). Affective performance is consumer-related and depends on whether the purchase meets the emotional (benefits) expectations of the buyer (e.g., whether listening to a Pearl Jam CD makes me feel as though I’m at a live concert).

12. Copyright Atomic Dog Publishing, 2002 Closing the Gap between Expectation and Performance Marketers must understand consumer expectations and the extent to which purchases satisfy them. Marketers must match product benefits to consumer needs: Needs of target market and the benefits of the product must be a good fit. Communication must clearly describe both the product’s benefits and the way it is to be used Do not raise consumer expectations beyond the actual benefits that the product offers.

13. Copyright Atomic Dog Publishing, 2002 Purchase-Associated Cognitive Dissonance It occurs at “time of commitment”. It is the feeling of uncertainty about whether the right choice is being made. There is no finite time of possession or use requirement for it to occur.

14. Copyright Atomic Dog Publishing, 2002 Factors that Affect Cognitive Dissonance Importance of the purchase decision Consumer’s tendency toward anxiety Finality of the purchase decision Clarity of the final purchase choice

15. Copyright Atomic Dog Publishing, 2002 Reducing Dissonance What consumers do: Try to find ways to reinforce the desirability of the choice made Try to make the “losing” choices look weaker Try to lessen the importance of the choice decision than they had originally thought What marketers must do: Match their products with the appropriate target consumers Offer clear communication, return policies, warranties, in- store demonstrations Make salespeople available to answer questions

16. Copyright Atomic Dog Publishing, 2002 Post-Purchase Behavior It’s as important as understanding what causes consumers to buy. It deals with actual rather than potential customers It has an impact on future sales. Information learned can be used to improve products and services, undertake better targeted promotions, and design more effective strategies to keep actual customers and attract new ones.

17. Copyright Atomic Dog Publishing, 2002 Positive Post-purchase Behavior Customer loyalty: a feeling of “commitment” on the part of the consumer to a product, brand, marketer, or outlet that results in high levels of repeat purchase or outlet visit Loyalty develops over time through positive market experiences Loyalty phases: Cognitive (based on beliefs only) Affective (like, based on repeated satisfying use) Conative (behavioral intention loyalty) Action (strong readiness to act)

18. Copyright Atomic Dog Publishing, 2002 Brand Loyalty Fairly high levels of loyalty are evident with products that are geared to personal tastes (e.g., toothpaste, shampoo, bath soap) or when there are a few dominant brands (e.g., camera film). Levels of loyalty are lower among products that are purchased infrequently (e.g., athletic shoes, batteries, tires, TV sets)

19. Copyright Atomic Dog Publishing, 2002 Multiple brand loyalty Product benefits loyalty Product form loyalty Occasion of use loyalty

20. Copyright Atomic Dog Publishing, 2002 Factors Influencing Brand Loyalty Number of brands available Frequency of purchase Perceived differences among brands Level of involvement Level of perceived risk Brand benefits

21. Copyright Atomic Dog Publishing, 2002 Characteristics of Brand Loyal Consumers They tend to be self-confident They feel capable of making good brand choices They tend to perceive quite high levels of risk involved in product purchase They tend to be outlet loyal

22. Copyright Atomic Dog Publishing, 2002 Negative Post-Purchase Behavior Passive: lack of repeat purchase or recommendations to other consumers Active: potentially damaging to the reputation and future sales of the product Types of negative post-purchase behavior: Negative word-of-mouth Rumor Complaint behavior (no action, private action, public action) See Exhibit 4-8

23. Copyright Atomic Dog Publishing, 2002 Marketer Actions to Reduce Dissatisfaction Build realistic expectations Demonstrate or explain product use Stand behind the product Encourage customer feedback Periodically make contact with customers

24. Copyright Atomic Dog Publishing, 2002 Product Disposition It is the process of reselling, recycling, trashing, repairing, trading and the like associated with the physical product, packaging, and its promotional materials when no longer perceived as useful by the consumer or marketer.

25. Copyright Atomic Dog Publishing, 2002 Product Disposition Role of the consumer Recycle, donate, repair, pass on to others, conserve resources, consider “efficiency ratings” of products including autos, recycle with fee (battery, oil), reuse shopping containers, etc. Role of the marketer See CBITE 4-3 (pg. 122) Use more (easily) recyclable materials Encourage and support recycling Use resources more efficiently Demarketing Green marketing (www.greenmarketing.com)