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Postpurchase process Postpurchase dissonance Why product use is important to marketers Why product disposal is important to consumers Concept of customer satisfaction Concept of consumer loyalty

POSTPURCHASE PROCESSES, CUSTOMER SATISFACTION AND CONSUMER LOYALTY

Postpurchase Processes
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Post purchase dissonance Product use and non use Disposal Purchase Evaluation Customer satisfaction, repeat purchase and loyalty

Post purchase consumer behaviour

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Postpurchase Dissonance
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Some purchases are followed by post purchase dissonance. Probability of post purchase dissonance, and the magnitude of dissonance, is a function of the: degree of commitment or can the decision be revoked? importance of the decision to the consumer difficulty of choosing among the alternatives individuals tendency to experience anxiety

Strategies to reduce the dissonance

Increase the desirability of the brand purchased Decrease the desirability of rejected alternatives Decrease the importance of the purchase decision Reverse the purchase decision Consumer guilt occurs when negative emotions or guilt feelings are aroused by the use of a product.

Product Use and Non-use

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Product use use innovativeness regional variations multiple vs single use Packaging Defective products product recalls

Product Disposal
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Recycling product package Trade-ins to motivate replacement Second hand markets e.g. textbooks, clothes Cash Converters

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Purchase Evaluation

Evaluation of a purchase is influenced by:

post purchase dissonance product use product disposal

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Dissatisfaction

Possible outcomes to a negative purchase evaluation: Taking no action Switching brands, products or stores Warning friends and colleagues

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Marketing Strategy and Dissatisfied Consumers

Marketers need to satisfy consumer expectations by: creating reasonable expectations through promotional efforts maintaining consistent quality so that these reasonable expectations are fulfilled

Repeat Purchase Behaviour

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Note the difference between: Brand loyalty implies a psychological commitment to the brand and Repeat purchase behaviour simply involves the frequent repurchase of the brand

Brand Loyalty is..

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biased a behavioural response expressed over time consumer selects over alternative brands a function of psychological processes

Repeat Purchase Behaviour and Marketing Strategy

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Kodak monitors six groups of consumers/customers: current customers new customers brand switchers trial users customers who upgrade trade-in customers

Repeat Purchase Behaviour and Marketing Strategy

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Once objectives are defined for each group it becomes possible to develop and implement marketing strategies and evaluate the results.

Importance of Customer Satisfaction

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The business of business is getting and keeping customers. (Drucker 1979) Delivering high quality service and high customer satisfaction is closely linked to profits, cost savings, and market share.

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Using technology

Modern information technology makes possible these close, customised relationships that add customer perceived-value to the product/service.

Value of customer loyalty

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Increased purchases of the existing product Cross-purchases of your other products Price premium due to their appreciation of your added-value services Reduced operating cost because of familiarity with your service system

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Loyal customers expect a good price, but they crave value most of all.
(PALMER, 1996)

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Rule No. 1 The customer is always right.

Rule No.2 If the customer is not right, then refer to Rule No. 1!!

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Measuring customer satisfaction

Qualitative measurement techniques

Focus groups
Monitoring surveys

Customer Service Components

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1. Product availability
(Inventory Management- 95% stocked)

2. Order cycle time 3. Response time 4. Error rate 5. Damaged goods 6. Special handling 7. Consistency

Why do customers leave companies?

All other reasons 12% Dissatisfaction with product 13%

Short comings in customer service 75%

Only 4% of dissatisfied customers complain. Over 90% of unhappy customers wont be back. Each dissatisfied customer tells 9 other people.
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Retaining customers costs about one-fifth less. Satisfied customers are willing to pay more. Each happy customer will tell 5 other people about the good service.