post purchase processes class bmm
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Post Purchase Processes
Module 7
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Postpurchase Consumer Behavior
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Postpurchase Dissonance
Postpurchase Dissonance occurs when a consumer has doubts or anxiety
regarding the wisdom of a purchase made and is a function of the following:
The degree of commitment or irrevocability of the decision
The importance of the decision to the consumer
The difficulty of choosing among the alternatives
The individuals tendency to experience anxiety
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The easier it is to alter the decision, the less likelythe consumer is to experience dissonance
The importance of the decision to the consumer:
The more important the decision, the more likely
dissonance will result
The more difficult it is to select from among the
alternatives, the more likely the experience and
magnitude of dissonance
The higher the tendency to experience anxiety,
the more likely the individual will experience
postpurchase dissonance.
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Product Use and Nonuse
Product Use
Retailers can promote such items
jointly
display them together, or
train sales personnel to make
relevant complementary sales
Retailers can frequently take advantage of the fact that the use of one
product may require or suggest the use of other products, e.g., dresses and
shoes.
Displaying complementary products
together
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Determinants Of Satisfaction and Dissatisfaction: Core service failure (Billing errors)
Service encounter failure (service employees were
uncaring, impolite, unresponsive, or unknowledgeable)
Pricing (High prices, price increases etc) Inconvenience (Inconvenient location, hours of
operation)
Responses to service failures (Failure to respond,
negative responses, etc)
Attraction by competitors: (More reliable, higher quality
and better value)
Ethical problems: (Dishonest behavior, Unsafe or
unhealthy practices)
Involuntary switching: (Service provider or customer
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Dissatisfaction- Causing
IncidentsIncident type Example
Technology Failure The ATM broke down. Kept my card.
I had to have the card reissued
Service design flaw I did not realize that some ATM
machines limit how much you can
get out. The machine did not tell meI went over my limit for the day. It
just spit may card back out so I kept
trying
Process failure After a month passed from placing
my original order, I e-mailed the
customer service center at Disney
with my order confirmation number.
They had lost my order
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Technology design flaw I was trying to order books from a
book club online. The system was
confusing, and I ordered two copies
of the same title without knowing it
Customer failure I was attempting to get money froman ATM and couldnt remember my
number.
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Purchase Evaluation and Customer
SatisfactionThe Evaluation Process
Dimensions of Performance:
Instrumental performance relates to the physical functioning of
the product. Ex: the durability of a sport coat
Symbolic performance relates to aesthetic or image-
enhancement performance. Ex: Styling
Affective performanceis the emotional response that owning
or using the product or outlet provides Ex: A suit that produces
admiring glances or compliments may produce a positive affective
response.
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Dissatisfaction Responses
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Dissatisfaction Responses
Marketing Strategy and Dissatisfied Consumers
Firms need to satisfy consumer expectations by
1. Creating reasonable expectations through promotional efforts, and
2. Maintaining consistent quality so the reasonable expectations are fulfilled.
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Dissatisfaction Responses
Marketing Strategy and Dissatisfied Consumers
When a consumer is dissatisfied, the most favorable consequence is for the
person to communicate this dissatisfaction to the firm but to no one else.
Unfortunately, many individuals do not communicate their dissatisfaction to the
firm involved.
Companies often make it difficult to complain or are unresponsive to complaints.
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Customers Satisfaction, Repeat Purchases,
and Customer Commitment
Creating Committed Customers
Is Increasingly the Focus of Marketing Strategy
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Customers Satisfaction, Repeat Purchases,
and Customer Commitment
Repeat purchasers continue to buy the same brand though they do not have
an emotional attachment to it.
Switching costsare the costs of finding, evaluating, and adopting another
solution. Some dissatisfied customers may also become or remain repeat
purchasers because these individuals perceive the switching costs to be toohigh.
Brand loyalty involves commitment to the brandit is a biased behavioral
response expressed over time.
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Customers Satisfaction, Repeat Purchases,
and Customer Commitment
Repeat Purchasers, Committed Customers, and Profits
A churn is a turnover in a firms customer base.
Reducing churn is a major objective of many firms today.
It typically costs more to obtain a new customer than to retain an existing one,
and new customers generally are not as profitable as longer-term customers!
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Repeat Purchasers, Committed Customers,
and Marketing StrategyRepeat Purchasers, Committed Customers, and Marketing Strategy
1. Attracting new users to the product category
2. Capturing competitors current customers
3. Encouraging current customers to use more
4. Encouraging current customers to become repeatpurchasers
5. Encouraging current customers to become committed
customers
Developing a marketing strategy for a particular segment includes
identifying specific objectives to be pursued, such as
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Relationship Marketing
Five key elements to Relationship marketing:
1. Developing a core service or product around which to build acustomer relationship
2. Customizing the relationship to the individual customer
3. Augmenting the core service or product with extra benefits
4. Pricing in a manner to encourage loyalty
5. Marketing to employees so that they will perform well for
customers
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