Post-Purchase Processes: Consumption and PostConsumption Evaluations

Consumption Behavior

Consumption
Consumers usage of the acquired product

Consumption Behavior
Knowing how many and which consumers fall into the user and nonuser categories

Consumption Behavior
Knowing how many and which consumers fall into the user and nonuser categories Size of user market is one indicator of market attractiveness Size of nonuser group speaks to future growth opportunities

Characterized along many dimensions

Consumption Behavior

Consumption Behavior
When Does Consumption Occur?

Consumption Behavior
When Does Consumption Occur?

How much time passes between purchase and consumption?

Consumption Behavior
When Does Consumption Occur?

How much time passes between purchase and consumption?

What time of day is product used?

Consumption Behavior
When does Consumption Occur?

How much time passes between purchase and consumption?

What time of day is product used? When in the year or during which season is product consumed?

Consumption Behavior
Where Does Consumption Occur?

Consumption Behavior
Where Does Consumption Occur? The situation in which consumption occurs can affect product choice e.g., beers sales for in-home versus on-premise consumption

Consumption Behavior
How Is the Product Consumed?

Consumption Behavior
How Is the Product Consumed?

How is the product prepared?

Is it consumed alone or with other products? Is it used as intended or have consumers invented a new use?

Consumption Behavior
How Much Is Consumed?

Would Consumers Pour the Same Amount into Each Glass?

Consumption Behavior
How Much Is Consumed? Consumers may be similar in what they consume, but different in how much they consume

Usage volume segmentation: dividing consumers into segments based on amount of consumption (heavy, moderate, and light users)
Firms can encourage consumption or change amount consumed

Consumption Behavior
Basic Strategies for Increasing the Amount of Consumption Enhance the frequency of consumption Enhance the amount consumed per consumption occasion

Consumption Behavior
The Influence of Package Size

Consumption Experiences

Consumption Experiences
How Does It Feel?

Consumption Experiences
How Does It Feel? Positive or negative things you feel when using a product

Consumption Experiences
How Does It Feel? Positive or negative things you feel when using a product Firms can position products based on:
- Positive feelings resulting from consumption - Elimination of negative feelings resulting from consumption

Consumption Experiences
How Rewarding or Punishing Was the Experience?

Consumption Experiences
How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage

Purchase Need

Product Purchase

Product Consumption

Receiving Positive Outcomes

Positive Reinforcement

Consumption Experiences
How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome

Purchase Need

Product Purchase

Product Consumption

Receiving Positive Outcomes

Positive Reinforcement Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes

Negative Reinforcement

Consumption Experiences
How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome Punishment: when consumption leads to negative outcome

Purchase Need

Product Purchase

Product Consumption

Receiving Positive Outcomes

Positive Reinforcement Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes

Negative Reinforcement

Purchase Need

Product Purchase

Product Consumption

Receiving Negative Outcomes

Punishment

Consumption Experiences
Did It Confirm or Disconfirm Expectations?

Consumption Experiences
Did It Confirm or Disconfirm Expectations?

Consumption can meet, exceed, or fall short of expectations

Shaping Interpretation of the Consumption Experience

Beyond the consumption experience, consumers interpretation can be affected by their expectations of the experience and their mood at the time of consumption

Consumption Norms and Rituals

Consumption norms: informal rules that govern our consumption behavior Consumption rituals: a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time Holiday rituals (gift giving, parties)

Compulsive Consumption
A response to an uncontrollable drive or desire to obtain, use, or experience a feeling, substance, or activity that leads an individual to repetitively engage in a behavior that will ultimately cause harm to the individual and possibly others
Gambling Addiction (shopping, alcohol, food) Internet (web dependency)

Understanding Consumption
Ethnography involves describing and understanding consumer behavior by interviewing and observing consumers in real-world situations

Post-Consumption Evaluations

Post-Consumption Evaluations
Evaluations also occur following consumption

Post-Consumption Evaluations
Evaluations also occur following consumption Consumers experience satisfaction or dissatisfaction

Importance of Satisfaction
It Influences Repeat Buying Positive post-consumption evaluations are essential for retaining customers The likelihood that customers will remain loyal depends on their level of satisfaction

However, customer satisfaction does not guarantee loyalty

Importance of Satisfaction
It Shapes Word-of-Mouth and Word-of-Mouse Communication Consumers often communicate with others about their consumption experiences

Importance of Satisfaction
Dissatisfaction Can Lead to Complaints and Lawsuits

Importance of Satisfaction
Satisfaction Affects Consumers Price Sensitivity

Customer Satisfaction-Price Sensitivity Relationship

Importance of Satisfaction
Implications for Customer Recruitment Monitor satisfaction levels of competitors customers Formulate strategies to attract dissatisfied customers of competitors

Importance of Satisfaction
It Ultimately Affects Shareholder Value

What Determines Satisfaction?

Product performance

Consumption feelings
Expectations

Expectancy Disconfirmation Model

Satisfaction depends on a comparison of pre-purchase expectations to actual outcomes

Expectancy Disconfirmation Model

Negative disconfirmation: when product delivers less than expected Positive disconfirmation: when product delivers more than expected

Confirmation: product matches expectations

Negative Disconfirmation Can Cause:

Regret: when consumers believe that an alternative course of action other than the once chosen would have produced a better outcome Rage: when consumers are extremely upset

Biggest Threats to Consumers Satisfaction