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Chapter 10 After We Buy:

Satisfaction and Loyalty

 Consumer Behavior: A
Framework
John C. Mowen & Michael S.
Minor
Key Concepts
 Satisfaction and  How consumers
dissatisfaction complain
 Brand  Factors that
expectations influence
 Equity and complaining
satisfaction  Product disposal
 Expectation
confirmation  Ensuring
 Why consumers satisfaction
complain  Brand loyalty
A Consumption
Experience. . .

. . . is the
cognitions and
feelings the
consumer
experiences
during the use of
a product or
service
Product use . . .
. . . involves the
actions and
experiences that
take place in the
time period in
which a consumer
is directly
experiencing a
good or service
Assessing Product Usage -
Three Methods
 Consumption Frequency measures if
the product used continuously or
discontinuously.
 Consumption Amount refers to the
average usage of a product.
 Consumption Purpose assesses
whether there is one purpose or
multiple purposes for the product.
The Consumption of
Performance
A consumer performance is an event in
which a consumer and marketer act as
performers and/or audience in a
situation in which obligations and
standards exist.
 A Contracted Performance
 An Enacted Performance
 A Dramatistic Performance
Mood States and the
Consumption Experience
 Moods are temporary positive or
negative affective states that may
affect the consumption experience.
 Moods have a strong impact on what we
remember and choose
 The mood state may impact the evaluation
of the product independent of the actual
quality of the product
Developing Postacquisition
Satisfaction or
Dissatisfaction

Consumer satisfaction is the overall


attitude consumers have toward a good
or service after they have acquired and
used it.
Evaluating Product
Performance and Quality

Product quality is customers’ overall


evaluation of the excellence of the
performance of the good or service.
Table 10-2
 5 Dimensions of SERVQUAL +
 8 Dimensions of Product Quality =
 Keller‘s (1993) “7 basic dimensions of quality”
 Performance
 Employee Interactions
 Reliability
 Durability
 Timeliness and convenience
 Aesthetics
 Brand Equity
5 Approaches to CS/D-
 Expectancy Disconfirmation
 Equity Theory
 Attribution Theory
 Experientially Based Affective Feelings
 Actual Performance
Expectancy Disconfirmation

 Performance expectations are


compared to actual product
performance.
 If quality falls below expectations,

emotional dissatisfaction results


 If performance is above expectations,

emotional satisfaction occurs


 If performance is not perceived as

different from expectations,


expectancy confirmation occurs
Equity Theory

 Equity theory holds that people will analyze the


ratio of their outcomes and inputs to the
outcomes and inputs of the other party in the
exchange

Outcomes of A Outcomes of B

Inputs of A Inputs of B
Equity Theory vs.
Expectancy
Disconfirmation

 Equity Theory: comparing inputs and


outcomes relative to those of others.
 Expectancy Disconfirmation: comparing
actual vs. expected performance.
Attribution Theory
 If consumers attribute failure to meet
expectations as the “fault” of the
product, they will be more dissatisfied
than if they attribute the failure to
chance factors or their own behavior.
Actual Product. . .

. . . performance influences consumer


satisfaction independently of
expectations, equity, and attributions.

 Even if a consumer expected the


product to perform badly, they still
feel dissatisfied when it does
Affective Feelings. . .

. . . refers to the concept that the level


of consumer satisfaction may be
influenced by the positive/negative
feelings that consumers associate with
the product/ service after its purchase
and use.
Measuring Satisfaction
 About 65% of all customers report high
levels of satisfaction.
 But 65-85% of satisfied customers will
defect.
Consumer Complaint
Behavior
 Five common complaint behaviors:
 Do nothing or deal with the retailer in
some manner
 Avoid using the retailer again and
persuade friends and family to do the
same
 Take overt action with third parties (e.g.,
legal action)
 Boycott the firm or organization.
 Create an alternative organization to
provide the good or service
Major Reasons
Consumers Complain:

 To recover an
economic loss by
getting an
exchange or
refund

 To rebuild a
consumer's self-
image
Complaint Behavior Is
Likely to Increase When:
 The level of consumer dissatisfaction
increases
 The attitude of the consumer toward
complaining becomes more positive
 The amount of benefit to be gained
from complaining increases
 The firm is blamed for the problem
 The product is important to the
consumer
 The resources available to the
consumer for complaining increases
Product Disposition . . .
. . . refers to what consumers do with a
product after they have completed their
use of it.

 Three Dispositional Strategies:


 Keep It

 Get Rid of It Permanently

 Get Rid of It Temporarily


Brand loyalty . . .

. . . is the degree to which a customer


holds a positive attitude towards a
brand, has a commitment to it, and
intends to continue purchasing it in the
future.
Brand-Loyal Behaviors...
 Proportion of purchases method
 Undivided Loyalty
 Occasional switch
 Switch loyalty
 Divided loyalty
 Brand indifference
Brand Loyalty Continuum

Undivided Brand

Loyalty Indifference

Occasional Switch Divided


Switch Loyalty Loyalty
Attitudes Toward Brand
Loyalty
 Repeat Purchase Behavior, vs.
 Brand Loyalty
 The Difference is -
 Brand Commitment
Identifying Brand-Loyal
Consumers
 Brand loyalty is product-specific.
 There are no demographic or
psychological characteristics of the
brand-loyal.
 Sales promotions can inhibit brand
loyalty.
 Quality of the product and use of
advertising are key to building brand
loyalty.
Comparing Satisfaction
and Loyalty
 Satisfaction is an unreliable indicator of
loyalty.
 Variety seeking, loyalty to multiple
brands, and switching incentives are
obstacles to loyalty.
Managerial Implications
 Positioning. Loyalty programs are useful
positioning tools.
 Environmental Analysis. Scanning for
consumer complaints may suggest
corrective action.
 Market Research. Information is needed
on how the firm should deal with
customer complaints.
Implications continued
 Marketing Mix. Marketing mix elements
can soften the impact of competitor
enticements for loyal customers.
 Segmentation. Loyal customers are an
important segment: reasons for their
loyalty are difficult to determine.