Irwin/McGraw-Hill Chapter 18 Postpurchase Processes, Customer Satisfaction, and Customer Commitment

Irwin/McGraw-Hill Postpurchase Dissonance Postpurchase (cognitive) dissonance is anxiety or doubts about the wisdom of a purchase. Usually for higher involvement products Difficult to alter or reverse the decision Important to the consumer Close choices Individual characteristics

Irwin/McGraw-Hill Dissonance Responses Increase the desirability of the brand purchased Focus on positive attributes and increase their importance, seek additional information Decrease the desirability of the rejected alternatives Ignore or distort positive information, minimize the importance, discredit the source Decrease the importance of the purchase decision it does not matter, next time... Reverse the purchase decision

Irwin/McGraw-Hill Watching the Product Accomplishes New Uses Product Modifications Advertising Themes Ideas for Products

Irwin/McGraw-Hill Product Disposition Alternatives Product Get rid of it permanently Get rid of it temporarily Keep it Convert it to serve new purpose Use it to serve original purpose Store itLoan itRent it Recycle it Throw it away Give it away Trade itSell it To be (re)sold To be used To middleman Through middleman Direct to consumer Source: Adapted from J. Jacoby, C. K. Berning, and T. F. Dietvorst, “What about Disposition?” Journal of Marketing, April 1977, p. 23.

Irwin/McGraw-Hill Dissatisfaction Responses © The McGraw-Hill Companies, Inc., 1998 Take actionTake no action Less favorable attitude Dissatisfaction Complain to private or government agencies Initiate legal action Warn friends Stop buying that brand or store Complain to manufactur- er or store

Irwin/McGraw-Hill DissatisfactionDissatisfaction Marketing strategies to reduce dissatisfaction Create realistic expectations Maintain product quality After sales service and promotions assuring customers of quality and emphasizing important attributes Consumer hot lines Constant product improvement based on feedback

Irwin/McGraw-Hill Relationship Marketing Research has revealed that it costs five times as much or more to obtain a new customer than it does to keep an existing one and that profits can be doubled by simply retaining 5% more of a firm’s current customers. Relationship marketing is defined as “all marketing activities directed toward establishing, developing, and maintaining successful relational exchanges.” (Morgan and Hunt 1994)

Irwin/McGraw-Hill Committed Customers © The McGraw-Hill Companies, Inc., 1998 Committed Customers

Irwin/McGraw-Hill Customer Satisfaction Outcomes © The McGraw-Hill Companies, Inc., 1998 Our total product Competitors’ total products Superior value expected Perceived value delivered Brand switching Brand loyalty Repeat purchases Increased use CdpoerncosicusemiseosrnCdpoerncosicusemiseosrn SalesSales CsuasttiosmfearctionCsuasttiosmfearction

Irwin/McGraw-Hill Cheryl went to a new restaurant on the recom- mendation of a friend. Based on that conversation, Cheryl expected great food and reasonable service (“reasonable” is the minimum she was willing to tolerate). She actually received great food and reasonable service. Cheryl was likely ___ with this retail experience. satisfied nonsatisfied dissatisfied committed