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Chapter 14 Define consumer satisfaction. How does it differ from other important consumer behavior concepts? List...

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?

Solutions

Expert Solution

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:

  • Delight
  • Disgust
  • Surprise
  • Exhilaration
  • Anger

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:

  • Locus - Refers to judgments of who is responsible for an event. Consumers can assign the locus to themselves or to an external entity, such as a service provider. A self-ascribed event occurs when a consumer blames him or herself for a bad event. For example, a consumer might say to herself, “I knew putting the TV outside so we could watch the game was a bad idea when it started to rain.”
  • Control - Refers to the extent to which an outcome was controllable. For example, consumers could ask themselves, “Should this company have been able to control this event?” Two parties at a restaurant are experiencing a long wait to get seated even though they have reservations. The restaurant didn’t count on it being so cold that they couldn’t seat guests on the patio. One party is irate (beyond dissatisfaction) with the restaurant because they believe the restaurant should have planned better. The other party is not happy about the situation but does not blame the restaurant because weather events are uncontrollable. Therefore, the situation does not significantly affect the satisfaction process for this customer.
  • Stability – Refers to the likelihood that an event will occur again in the future. For example, consumers could ask themselves, “If I buy this product again, is another bad outcome likely to happen?” Returning to the restaurant example, if a customer wasn’t seated quickly and had to wait for a table more than once at this same restaurant, he or she naturally comes to believe that this is a stable situation, and satisfaction with the restaurant will be diminished.

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:

  • An awareness of many attractive alternatives that may offer comparable value relative to the product/brand purchased.
  • The decision is difficult to reverse.
  • The decision is important and involves risk.
  • The consumer has low self-confidence.

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:

  • Do nothing
  • Deny responsibility for any negative events
  • Take responsibility for any negative events and be visible to public eye.
  • Release information allowing the public to draw its own conclusion.

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:

  • Indirect Revenge: Indirect revenge behaviours are actions taken by a customer ‘behind the scenes’, meaning there is no direct contact between the firm and the customer.  The harm is generally intended for the firm rather than its employees or representatives. Indirect revenge behaviours can take the form of negative word of mouth, public complaining, negative contributions and patronage reduction. Negative word of mouth is utilised in the hope of ruining the status of the firm, as well as, to warn others against the firm. Patronage reduction, in turn, refers to the action taken by a customer to switch to a competing firm.  Public complaining and negative contributions occur through social networks and third party websites, and are engaged in to alert the public to the misbehaviours of a firm, as well as, to avenge the failure.
  • Direct Revenge: Direct revenge behaviours take place face to face between a customer and a firm after a service failure. Direct revenge can take the form of non-verbal communication, vindictive complaining or aggression. Non-verbal communication occurs when customers show their dissatisfaction by using facial expressions and body language such as sneering, glaring and rolling of the eyes. Vindictive complaining occurs when a customer uses verbal attacks on employees to voice frustration and to distract firm operations. Aggression can take the form of slamming doors, vandalising or destroying property and physical confrontations with employees.

Ethics of such actions:

  • Direct acts of revenge, although harmful, are likely to have short lived effects for a firm, due to the firm being able to take immediate actions to manage the situation and prevent further damage.
  • On the other hand, Ward and Ostrom (2006) have identified that indirect methods of revenge can have lengthy, damaging effects on the company’s reputation.
  • A key determinant of whether or not a customer will elect to utilise revenge behaviours and harm the firm is the amount of perceived power possessed by that customer.

6) Types of WOM:

  • Positive WOM: occurs when consumers spread information from one to another about positive consumption experiences with companies
  • Negatice WOM: takes place when consumers pass on negative information about one company to another
    -can be positive, but not always
    ex. Married with Children
    -negative wom, targeted men, more people watched the show.

7) Switching costs:

There are three common types of switching costs:

  • Procedural — the loss of time and effort resulting from training, service interruptions, troubleshooting, transportation, etc.
  • Financial — the loss of money, such as replacement.
  • Relational — discomfort experienced by customers of a new supplier when adapting to the change (this is an unquantifiable cost that requires the estimator’s best judgment).

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.

  • Procedural — the new system requires users to learn new routines, to reconfigure hardware and software to be compatible, and to reestablish communication networks with other users.
  • Financial — there is the cost of moving parts or changing tooling from the incumbent supplier to the new supplier.
  • Relational — because people tend to resist change, there will also be reluctance against adapting to the new routine.

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:

  • Retail borrowing costs the retail sector billions of dollars annually.
  • Buying product, using it, and returning it.
  • In order for exchanges to occur in orderly fashion, expectations of consumer, marketer, and even other consumers must coincide with one another.

2) Motivations of consumer misbehavior:

  • Unfulfilled aspirations: Not all members of society have the necessary resources to acquire and enjoy the things society deems important.
  • Thrill seeking: The thrill of the action might lead consumers to misbehave
  • Lack of moral constraints: Some consumers don't have a set of moral beliefs that in agreement with society's expectations
  • Differential associations (role conflict!): Groups of people replace one set of acceptable norms with another set that others view as unnacceptable
  • Pathological socialization (they deserve it): Misbehavior is a way of getting revenge against companies
  • Provocative situational factors: Crowding, wait times, excessive heat, and noise can contribute to consumer misbehavior
  • Opportunism: Deliberate decision-making process that weighs the risks ans rewards of the behavior

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:

  • Compulsive buying
  • Compulsive shopping
  • Eating disorders
  • Binge drinking
  • Problem gambling
  • Drug abuse

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