1. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. BABIN / HARRIS CB Consumer Relationships CHAPTER 15 PART 5 ©IMAGE SOURCE/JUPITERIMAGES 1

2. 2 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes List and define the behavioral outcomes of consumption. Know why consumers complain and the ramifications of complaining behavior for a marketing firm. Use the concept of switching costs to understand why consumers do or do not repeat purchase behavior. Describe each component of true consumer loyalty. Understand the role that value plays in shaping loyalty and building consumer relationships. LO 1 LO 2 LO 3 LO 4 LO 5

3. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 1 List and define the behavioral outcomes of consumption. 3

4. 4 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 15.1: A More Detailed Look at Postconsumption Reactions LO 1

5. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 2 Know why consumers complain and the ramifications of complaining behavior for a marketing firm. 5

6. 6 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Complaining Behavior Occurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption event. LO 2 ©ISTOCKPHOTO.COM/MARCUS CLACKSON

7. 7 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 15.2: The Complainer versus the Noncomplainer and Negative Word-of- Mouth LO 2

8. 8 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Handling Service Complaints Effectively Thank the guest for providing the information. Ask questions to clarify the issue. Apologize sincerely. Show empathy for the customer’s situation. Explain the corrective action that will take place. Act quickly. Follow up with the customer after the corrective action. LO 2

9. 9 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Results of Not Complaining What happens when the consumer doesn’t complain? LO 2 - Remember the incident; be less likely to do business there again - Complain to others Consumers may retaliate with revenge-oriented behaviors. Rancorous revenge—a consumer yells, insults, and makes a public scene in an effort to harm the business in response to an unsatisfactory experience. Retaliatory revenge—a consumer becomes violent with employees and/or tries to vandalize a business in response to an unsatisfactory experience.

10. 10 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Word-of-Mouth (WOM) LO 2 Negative WOM Takes place when consumers pass on negative information about a company from one to another. Negative WOM Takes place when consumers pass on negative information about a company from one to another. Positive WOM Occurs when consumers spread information from one to another about positive consumption experiences with companies. Positive WOM Occurs when consumers spread information from one to another about positive consumption experiences with companies.

11. 11 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Word-of-Mouth (WOM) LO 2 ©ISTOCKPHOTO.COM/GRAFISSIMO Negative public publicity Doing nothing or denying responsibility Taking responsibility Releasing information Participating in negative WOM Implications of negative WOM The media are a vehicle for both spreading negative publicity and for managing the implications of negative publicity.

12. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 3 Use the concept of switching costs to understand why consumers do or do not repeat purchase behavior. 12

13. 13 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Switching Behavior Refers to the times when a consumer chooses a competing choice, rather than the previously purchased choice, on the next purchase occasion. LO 3

14. 14 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Switching Costs LO 3 Procedural Financial Relational ©ISTOCKPHOTO.COM/MURAT BAYSAN

15. 15 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 15.3: Factors Contributing to Switching Costs LO 3

16. 16 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 15.4: Vulnerability to Defections Based on CS/D LO 3 Dissatisfaction does not always mean that the customer is going to switch.

17. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 4 Describe each component of true consumer loyalty. 17

18. 18 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Customer Share The portion of resources allocated to one brand from among the set of competing brands. LO 4

19. 19 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 15.5: Customer Share Information for Two Coffee Shop Customers LO 4

20. 20 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Customer Inertia LO 4 Situation in which a consumer tends to continue a pattern of behavior until some stronger force motivates him or her to change. ©ISTOCKPHOTO.COM/FRANK BOELLMANN

21. 21 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Customer Commitment A strong feeling of attachment, dedication, and sense of identification with a brand. LO 4

22. 22 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 15.6: True Loyalty Requires Customer Commitment LO 4

23. 23 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Antiloyal Consumers Those who will do everything possible to avoid doing business with a particular marketer. LO 4

24. 24 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 15.7 Value and Relationship Outcomes LO 4

25. 25 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 15.8 Value Types and Loyalty LO 4

26. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 5 Understand the role that value plays in shaping loyalty and building consumer relationships. 26

27. 27 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Relationships and the Marketing Firm The exchange between a business and a consumer comprise a relationship. –Customers have a lifetime value to the firm. –True loyalty involves both a continuing series of interactions and feelings of attachment between the customer and the firm. Relationship quality – represents the degree of connectedness between a consumer and a retailer. LO 5

28. 28 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Takes Three to Tango! Loyalty can occur between the customer, the salesperson or service provider, and the firm. LO 5 ©ISTOCKPHOTO.COM/DNY59

29. 29 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 15.9: Characteristics of Relationship Quality LO 5