Consumer Behavior: A Framework John C' Mowen

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Chapter 10 After We Buy Satisfaction and
Loyalty

• Consumer Behavior A FrameworkJohn C. Mowen
  Michael S. Minor

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Key Concepts

• Satisfaction and dissatisfaction
• Brand expectations
• Equity and satisfaction
• Expectation confirmation
• Why consumers complain

• How consumers complain
• Factors that influence complaining
• Product disposal
• Ensuring satisfaction
• Brand loyalty

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Consumer Postacquisition Process
Product Acquisition
Product Usage/Consumption
Product Satisfaction/Dissatisfaction
Consumer Complaint Behavior
Brand Loyalty
Product Disposition
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A Consumption Experience. . .

• . . . is the cognitions and feelings the
  consumer experiences during the use of a product
  or service

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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

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Assessing Product Usage - Three Methods

• Consumption Frequency
• Consumption Amount
• Consumption Purpose

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Mood States and the Consumption Experience

• Moods are temporary positive or negative
  affective states that may affect the consumption
  experience.

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Developing Postacquisition Satisfaction or
Dissatisfaction

• I. Consumer satisfaction is the overall attitude
  consumers have toward a good or service after
  they have acquired and used it.

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Consumer Satisfaction/Dissatisfaction
Product Usage/ Consumption
II. Product Performance/ Quality Evaluations
III. Expectancy Confirmation/ Disconfirmation
Expectations Of Product Performance/ Quality
V. Attributions Of Cause
VI. Emotional Response
IV. Evaluations Of Exchange Equity
I. Consumer Satisfaction/ Dissatisfaction
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II. Evaluating Product Performance and Quality

• Product quality is customers overall evaluation
  of the excellence of the performance of the good
  or service.

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Seven Basic Dimensions of Quality

• Performance
• Employee Interactions
• Reliability
• Durability
• Timeliness and convenience
• Aesthetics
• Brand Equity

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Five Approaches to Customer Satisfaction/Dissatisf
action

• Expectancy Disconfirmation
• Equity Theory
• Attribution Theory
• Actual Performance
• Experientially Based Affective Feelings

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III. Expectancy Disconfirmation

• Performance expectations are compared to actual
  product performance.
• Performance below expectations
• Emotional dissatisfaction
• Performance above expectations
• Emotional satisfaction
• Performance matches expectations
• Expectancy confirmation

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IV. Equity Theory

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

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V. Attribution Theory

• Attribute blame for product failure to
• Product, service, or supplier
• Chance factors
• Own behavior.

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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

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VI. Affective Feelings. . .

• Level of consumer satisfaction may be influenced
  by the positive/negative feelings that consumers
  associate with the product/ service after its
  purchase and use.

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Measuring Satisfaction

• Likert agree/disagree scales 1-5
• Rating different aspects of the service 1-5
• Bias toward higher satisfaction
• Satisfaction often does not mean loyalty

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Consumer Complaint Behavior

• Common complaint behaviors
• Do nothing
• Deal with the retailer in some manner
• Avoid the retailer or brand
• Persuade friends and family to avoid the retailer
  or brand.
• Take overt action with third party
• Boycott the firm or organization.
• Create an alternative organization to provide the
  good or service

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Major Reasons Consumers Complain

• To recover an economic loss by getting an
  exchange or refund
• To rebuild a consumer's self-image

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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

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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

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Brand loyalty

• Positive attitude towards a brand
• Commitment to it
• Intention to continue purchasing

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Behavioral Measures of Loyalty

• Proportion of purchases method
• Undivided Loyalty AAAAAAAA
• Occasional switch AABAAACAADA
• Switch loyalty AAAAABBBBB
• Divided loyalty AAABBAABBB
• Brand indifference ABDCBACD

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Attitudinal Measures of Brand Loyalty

• Repeat Purchase Behavior, vs.
• Brand Loyalty
• The Difference is -
• Brand Commitment

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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.

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Comparing Satisfactionand Loyalty

• Satisfaction is an unreliable indicator of
  loyalty.
• Variety seeking, loyalty to multiple brands, and
  switching incentives are obstacles to loyalty.
• Expect greater emphasis on loyalty over
  satisfaction

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Managerial Implications

• Positioning
• Environmental
• Market Research
• Marketing Mix
• Segmentation