In: Economics
Chapter 14 |
Define consumer satisfaction. How does it differ from other important consumer behavior concepts? |
List out some possible postconsumption reactions |
Explain the expectancy/disconfirmation theory. Describe how it explains your satisfaction or dissatisfaction from a recent consumption experience. |
Define expectations. Describe the four types of consumer expectations with an example for each |
Define attribution theory. Explain how the three elements in the attribution theory help in explaining consumer satisfaction. Using this theory, explain why you were satisfied or dissatisfied with a recent consumption experience. |
Identify the conditions when a consumer is more likely to experience true dissonance following a purchase. |
Chapter 15 |
What are the cognitive and affective components that help shape postconsumption behavior? |
Define the term critical incident in a consumer behavior context. How might an equity cognition involving procedural justice contribute to a critical incident for some business? |
List and define the behavioral outcomes of consumption. |
What are the different ways in which a firm can react to negative public publicity? Which way is almost always a bad response? |
What are two types of revenge that customers may undertake to try to harm a business? What is your opinion on the ethics of such action? |
List types of WOM and/or Publicity that are not necessarily negative. |
What are the different types of switching costs that a consumer faces? Provide examples of each from your own consumer experiences. |
Chapter 16 |
How does misbehavior violate norms and disrupt consumption activities? |
What are the various motivations of consumer misbehavior? |
What is the key difference between consumer problem behavior and consumer misbehavior? |
What are some examples of consumer problem behavior and consumer misbehavior? |
Chapter 14:
1) Consumer Satisfaction: Customer satisfaction is a marketing term that measures how products or services supplied by a company meet or surpass a customer's expectation.Customer satisfaction is important because it provides marketers and business owners with a metric that they can use to manage and improve their businesses.
Difference:
Customer satisfaction and value are both fundamental concepts in the understanding of marketing. It is important to note that while they are highly interrelated, they also operate independently.
Essentially, value is when a consumer perceives that they will get a good deal from the company, brand, product or service. To put this in more marketing terms, the consumer will see value when the benefits they expect to receive exceed the expected costs and effort involved in acquiring the product.
Therefore, as potential customers (that is, the target market) will be attracted to the offering if they perceive that the benefits exceed the cost (which equals value), the ability of a firm to be able to offer good value is paramount to its success in generating ongoing new customers.
This means that value is a pre-purchase assessment of the product by the consumer. If a consumer perceives that the product brand or service offers very little value based on their pre purchase assessment OR if they perceive that it offers less value than a competitive offering, then the consumer will not buy that particular item.
In terms of the buyer decision process, this pre-purchase assessment occurs in the evaluation phase.
Customer satisfaction, on the other hand, occurs after the consumer has become a customer. That means they have purchased the product or have had dealings with a service firm with. Customer satisfaction is their assessment of how well that value was delivered – that is, did they get the value that they expected to receive? In terms of the buyer decision process, this customer satisfaction assessment occurs in the post-purchase phase.
2) Post consumption reaction:
3) Expectation confirmation theory
The most commonly accepted theory of consumer satisfaction is the expectancy/disconfirmation theory or model. The basic disconfirmation model proposes that consumers enter into a consumption experience with predetermined cognitive expectations of a product’s performance.
When performance perceptions are more positive than what was expected, positive disconfirmation occurs. Positive disconfirmation leads to consumer satisfaction. When performance perceptions do not meet expectations, meaning performance is less than expected, negative disconfirmation occurs. Negative disconfirmation leads to dissatisfaction. If performance perceptions exactly match what was expected, confirmation (sometimes simply referred to as neutral disconfirmation) is said to occur.
4) Expectations:
Expectations may be thought of as preconsumption beliefs of what will occur during an exchange and/or consumption of a product. Consumer expectations have two components:
1. The probability that something will occur
2. An evaluation of that potential occurrence.
Types of expectations:
Sensory Perception: A customer who tastes a confection such as a macaron is expecting a smell, taste and texture.
Quality: A customer of a luxury hotel may be expecting interior designs finished with high quality materials. A customer of a budget hotel may be expecting a clean, comfortable and quiet room.
Fee Structure: A customer of an airline may expect meals and drinks to be free on an international flight.
Security & Privacy: A customer of a messaging app may expect that their messages to friends and family are private.?
5) Attribution theory focuses on explaining why a certain event has occurred and proposes that consumers look for the cause of particular consumption experiences when arriving at satisfaction judgments. Three key elements constitute the attribution theory:
6)
Cognitive Dissonance
Cognitive dissonance refers to lingering doubts about a decision that has already been made. Dissonance is sometimes known as “buyers’ regret” or “buyers’ remorse.” A consumer is more likely to experience true dissonance following a purchase when the following conditions exist:
Chapter 15:
1) Some of the cognitive and effective component the shape post consumption behavior by consumers are advertisement, owners reassurance and creation of create positive brand image. This will ensure that consumers still have a positive attitude towards the product even after purchasing the same product. Positive organizational image is important as it restores consumers’ confidence on the organizations’ product services.
Cognitive and affective components are intertwined in the relationship of postconsumerbehavior. The cognitive components work on more of the understanding side of the product or service. Many of the cognitive components come into play even before the product is consumed.These can be in areas of perception of the product, reasoning between why the consumer bought the product or even past experiences with the company or products. The affective components are more focused the emotional side of postconsumption. The affective components shape how the consumer feels about the products or service after consumption. These can be positive feelings, such as they are happy they bought it, or negative sentiment, such as wishing they did not purchase the item. Both, cognitive and affective components can carry much weight when customers decide if they want to use a particular brand or not.
2) Critical Incident: Exchanges between consumers and business that the consumes views as unusually negative (consumers who believe a firm has responded to some negative critical incident are likely to become more loyal and loyalty is the positive outcome relationship oriented firms seek)
An equity based cognition representing the extent that consumers believe the processes involved in processing a transaction performing a service, or handling any complaint are fair. (ex: How well the overall outcome is perceived).
3) Complaining behavior occurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption event.
WOM behavior occurs when a consumer decides to complain or state an opinion publicly to other consumers about something that happened during a consumption experience with a specific company. When negative WOM reaches a large scale, such as when public media get involved, negative WOM becomes negative publicity.
Switching behavior refers to times when a consumer chooses a competing choice, rather than repeating the previous purchase behavior in a given product category.
Consumers can also exhibit loyalty-related behaviors. Loyal consumers tend to repeat consumption behavior over and over again.
4) Different ways:
Most bad Response: Deny responsibility.
5) In consumer behaviour, the desire for revenge stems from a service failure that violates the norms of the relationship. This violation prompts the customer to seek justice and creates the need to equalise the damage caused by the firm using punishment.
Types of revenge:
Ethics of such actions:
6) Types of WOM:
7) Switching costs:
There are three common types of switching costs:
Examples:
These costs exist to various degrees when an organization switches suppliers. For example, when the organization switches from using an existing computer equipment provider to a new one, the change can introduce many time-consuming and costly activities, as well as personal stress.
CHAPTER 16:
1) Consumer misbehavior may be viewed as a subset of the human deviance topic. Topic has long history of research. Consumer misbehavior - behaviors that arein some way unethical and that potentially harm the self or others. Violates normsand also disrupts flow of consumption activities. Called the dark side of Consumer Behaviour. Examples can be:
2) Motivations of consumer misbehavior:
3) Consumer Misbehaviour: Behaviors that are in some way unethical and that potentially harm the self or others. Examples:
Shoplifting (can also be problem behavior; kleptomania)
Illicit sharing of software
Fraud
Abusive consumer behavior
Dysfunctional sports behaviors
Illegitimate complaining
Product misuse
Consumer Problem Behaviour: Consumer behavior that is deemed to be unacceptable but that is seemingly beyond the control of the consumer. Examples: