cb - post purchase process

7/29/2019 CB - Post Purchase Process

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Post Purchase Process


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Introduction

Many businesses have started focusing on

customer relationship and loyalty programmes to

increase:

- Customer satisfaction

- Commitment, and

- Retention of important customers.


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Post Purchase Action

Consumers engage in a constant process of evaluating the

things that they buy.

In case of certain purchases, consumers experience post-

purchase dissonance.

This occurs as a result of the consumer doubting her-his

wisdom of a purchase.

After purchase, most products are put to use by

consumers, even when they experience dissonance.

Other purchases may be followed by non-use because the

consumer returns or keeps the product without using it.


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Post-purchase Dissonance

Cognitive dissonance occurs as a result of somediscrepancy between a consumers prior evaluation andthe purchase decision.

Dissonance theory was derived from 2 basic principles:- Dissonance is unpleasant & will motivate the person to reduce it.

- Individuals experiencing dissonance will avoid situations thatproduce more dissonance.

Post-purchase dissonance is most likely to occur when

more than one alternative was attractive and a relativelypermanent and difficult decision had to be made.

The doubt or anxiety resulting from such a decision istermed as post-purchase dissonance.


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The probability that a consumer will experience

dissonance and the magnitude of such dissonance,

is a function of the following factors:

- The degree of irrevocability of the decision

- The importance of decision to the consumer

- The difficulty of choosing among the alternatives

- The individuals tendency to experience anxiety


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Consumers experience post-purchase dissonance becausemaking a relatively permanent commitment to a selectedalternative requires one to forgo the alternative attributesof the alternative not purchased.

In case of nominal-decisions and most cases of limited-decisions, consumers are unlikely to experience post-

purchase dissonance because in such decisions consumersdo not consider attractive attributes in a brand not

selected. For example, if a consumer purchases the least priced

brand of toilet soap out of three alternatives that she/heviews as equivalent on all relevant attributes except price,

she/he would not experience dissonance.


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The consumers may use one or more of the

following approaches to minimize the dissonance:

- Increase the desirability of the brand purchased

- Decrease the desirability of alternatives not selected

- Decrease the importance of the purchase decision

- Return the product before using it


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Sometimes consumers reduce post-purchase

dissonance by internal re-evaluations.

- In this process, they enhance the value of attributes of

the selected brand and decrease the value of attributes

present in brands not selected.

Consumer search for additional external but

favorable information that serves to confirm thewisdom of a particular purchase choice.


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According to dissonance theory, individuals experiencingdissonance would be expected to actively avoidinformation that would tend to increase their dissonanceand seek information supporting their decision.

Favorable information supports and reinforces theconsumers confidence in the correctness of the purchasedecision.

Consumers search for their receptiveness on reinforcingads is greatly increased.

Follow-up sales efforts too can help reduce post-purchasedissonance in consumers.


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Relationship of Expectations,

Performance and Satisfaction

Level of expectation

Perceived

performance relativeto expectation

Below minimum

desiredperformance

Above minimum

desiredperformance

More than expected Satisfaction Satisfaction /

Commitment

Same as expected Non-satisfaction Satisfaction

Worse than expected Dissatisfaction Dissatisfaction


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The Disconfirmation Paradigm

Expectations

Performance

Disconfirmation

Satisfaction

Dissatisfaction

Feelings

Negative

Positive


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Consumers buy products not only for what they

can do but also for what they mean.

For most products, there are two dimensions to

performance:

- Instrumental performance relates to the physical

functioning of the product.

- Symbolic performance refers to performance thatrelates to aesthetic or image enhancement.


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Dissatisfaction Responses

Disconfirmation is mediated by consumers desire

to understand why products fail.

Considering the large number of purchases that

consumers make, most consumers are generally

satisfied with a majority of their purchases and

dissatisfaction occurs only with some purchases.

Marketers should try their best to reducedissatisfaction and effectively resolve customer

complaints whenever they occur.


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Dissatisfaction Responses

Post-purchase Evaluation

Dissatisfaction

Take Action Take No Action

Negative Attitude

Take Legal

Action

Complain to

Consumer

Protection

Agencies

Negative

Word-of-

Mouth

Stop Buying

The Brand

Or From the

Store

Complain to

Retail Outlet

Or Company


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Product dispositionPRODUCT

Keep itGet rid of it

permanently

Get rid of it

temporarily

Use it to serve

originalpurpose

Convert it to

serve new

purpose

Store it

Loan itRent it

Sell itTrade itGive it awayThrow it

away

To be

(re)sold

To be used

Direct toconsumer

Through

middleman

Tomiddleman


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Marketing Strategies

Marketers need to focus on

(1) Creating reasonable expectations among consumers

through appropriate promotional efforts, and

(2) Ensure consistency in product quality so that

whatever expectations are created among consumers

through marketing communications are fulfilled.

(3) Should develop an efficient system to receive

complaints and encourage consumers to record their

complaints as soon as they occur.


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Marketing Strategies

Marketers need to focus on

(4) Simply receiving complaints efficiently is not enough.Consumers who record their complaints expect

tangible results and failure to effectively deal with theircomplaints can be disastrous for the concernedmarketer.

(5) It is essential for the marketers to not only giveconsumers an opportunity to complain but also toeffectively resolve the cause of their complaints.

(6) Anticipating dissatisfaction and acting promptly toremove the cause before it occurs.

cb - post purchase process

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