1. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 10 Post-Decision Processes

2. © 2013 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 Objectives~ Ch. 10 1.Distinguish between the dissonance and the regret that consumers may experience after acquisition, consumption, or disposition. 2.Explain how consumers can learn from experience and why marketers need to understand this post- decision process. 3.Discuss how consumers judge satisfaction or dissatisfaction with their decisions about acquisition, consumption, or disposition. 4.Describe how consumers may dispose of something, why this process is more complex for meaningful objects, and what influences consumer recycling behavior.

3. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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

4. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors Affecting Learning from Experience Motivation Prior knowledge/ability Ambiguity of information/lack of opportunity Processing biases –Confirmation –Overconfidence –Strategies Top-dog Underdog

5. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consumer Judgments Satisfaction Dissatisfaction Dimensions –Utilitarian –Hedonic Levels of satisfaction/dissatisfaction –Monitor –Costs

6. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Disconfirmation Paradigm Satisfaction based on expectations Other influences on satisfaction: −Independent −Post-decision feelings Negative (-) Simple (-/+) Positive (+)

7. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Satisfaction/Dissatisfaction Based on Thoughts Disconfirmation Expectations Performance –Objective –Subjective Simple confirmation & satisfaction Negative disconfirmation & dissatisfaction

8. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attribution Theory Causality/blame/explanations Factors –Stability –Focus –Controllability Value-added

9. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Equity Theory Inputs versus outputs –Consumer –Seller Fairness in exchange

10. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Satisfaction/Dissatisfaction Based on Feelings Post-decision feelings Coping Misprediction about emotions –Affective forecasting (misforcasting)

11. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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?

12. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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?

13. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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