Postpurchase processes,

customer
satisfaction and consumer
loyalty
Postpurchase process
Postpurchase dissonance

is
Why
Whyproduct
productuse
disposal
is

important to marketers
important
consumers
Concept of customer
satisfaction
Concept of consumer loyalty

to

Post purchase processes

1. Postpurchase dissonance
2. Product use and non-use
3. Disposal
4. Purchase evaluation & repeat
purchase

The post purchase outcome and reactions contains two stages;

Stage I comprises Post purchase Cognitive Dissonance,
Stage II comprises Product usage and reaction.
Stage 1 : Post purchase Cognitive Dissonance:
This is a feeling of tension and anxiety that a consumer experiences after the
purchase of a product. The consumer begins to have a feeling of uncertainty
with respect the performance of the product and begins to doubt his
purchase decision whether the decision was the right one?. He begins to
ask himself the following questions:
a) Have I made the right choice?
b) Have I purchased the right brand?
c) Have I got value for money?

Cognitive dissonance generally occurs in cases where:

(i) the decision making and purchase relates to a high involvement product;
(ii) the purchase activity is irrevocable;
(iii) the consumer cannot return the product;
(iv) the various alternatives have desirable features and are all comparable;
(v) the alternatives are also unique in some way or the other.

 Consumers try to reduce this dissonance by:

gaining more product information;

discussing with other satisfied customers who have bought the same
product/brand;
(igoing back to the dealer and asking for reassurances.

Other methods that consumers employ to reduce cognitive

dissonance are by:
rationalizing that the choice that they have made is the right one.
refer to data (printed/audio visual) that supports and recommends the
chosen product/brand.
make others buy the same product/brand to reassure their
choice
Marketers also employ strategies to reduce this dissonance by
providing guarantees and warranties, membership to company
consumer forums and communication and follow up with the customers.

Stage II: Product usage and reaction:

After the purchase, the consumer uses the product and re evaluates
the chosen alternative in light of its performance viz. a viz. the
expectations.
This phase is significant as it
(i) acts as an experience and gets stored in the memory;
(ii) (ii) affects future purchase decisions;
(iii)(iii) acts as a feedback.
()There could be three situations that can arise:
() -Performance meets expectations:

This leads to a neutral feeling;

Customer may think of more suitable alternatives next time.

() -Performance exceeds expectations: The customer is satisfied and this
leads to a positive feeling. He would tend to repeat purchase and it
would lead to brand loyalty. He would also spread positive word of
mouth.
() -Performance falls short of expectations: Here, the customer is

Post purchase dissonance

Some purchases are followed by post purchase
dissonance
Probability of post purchase dissonance and the
magnitude of dissonance is a function of the:
degree of commitment and/or whether the
decision can be revoked
importance of the decision to the consumer
diffculty of choosing among the alternatives
individuals tendency to experience anxiety
Consumption guilt when guilt feelings are aroused by
the product/service use. Marketers need to focus on
validating the consumption for high guilt products

Post-purchase consumer behavior

After the purchase is made, the consumer may

or
moreoneof the following to reduce
utilize
dissonance:
Increase the desirability of the brand
purchased
Decrease the desirability of rejected
alternatives
Decrease the importance of the purchase
decision
Reverse the purchase decision (return
before use)

What If?
Marketers often encourage
counterfactual thinking (e.g., in
state lottery ads).
Counterfactual thinking
refers to imaging the
outcome if a different
decision had been
made in the past.

an prefactu
d al

Prefactual thinking is
the same as
counterfactual except
it occurs before a
decision is made.

What ethical issues, if any are with

lotterie
encouraging
counterfactual and state
prefactual
there
s
thinking about
winning the lottery?

Product use and non-use

Product use

use innovativeness
regional variations
multiple vs single use
Packaging
Defective products
product recalls

Product-usage index for

VCR,
microwave and PC

Product
Use
ho consumer use thei
w s
r

Marketers need to
understand
products.
Use innovativeness
refers to a consumer
using a product in a new
way.
Marketers who discover
new
for their products can
greatly expand sales.

Classic example of how

use
innovativeness helped
A&M
increase sales!
7-12

The Arm &

Hammer
web site
provides another
communica
avenue for ne
te
marketers tow
uses!

Courtesy Church & Dwight Co.,

Inc.

713

Unique packaging for competitive

advantage

Product
Use
Many firms attempt to obtain
relevant information on product
Surveys
can
provide
useful
usage via
surveys
using
information,
standard questionnaires.
insights can be produced via
observati
on
depth interviews,
and
case
studies

bu ofte deepe
t n
r

715

Product Use
Retailers can frequently take advantage of the
fact
thatof one product may require or
the use
th us
suggest
of other products, e.g.,
shoes
e e
dresses and
.
Retailers can promote such
items
jointly
display them together, or
train sales personnel to
make relevant
complementary sales

Displaying complementary
products
together

Product Nonuse
Product nonuse occurs when a consumer
actively acquires a product that is not used or
used only sparingly relative to its potential use.
The division between the initial purchase decision
and
decision
the to
is particular stron wit catalo an
consume
ly
g
h g
d
online purchases.

Disposal :
Disposition of product or product container may occur
before, during, or after use. Or, for products that are
completely consumed, no disposition may involved
A physical product often continues to exist even
though it may no longer meet a consumers needs.
Exploding demand and short product spans for hightech items is creating a growing concern over ewaste.

7-20

Product-disposal
alternatives

Product disposal
and
marketi strate
ng
gy
Recycling
product
package
to motivate
Trade-ins
replacement

Second-hand

markets

E.g. textbooks,
clothes
Cash converters

Product Disposition and Marketing

Strategy

Five major ways disposition decisions that

can1. affect
firms
marketing
Reluctance
to purchase
a new itemstrategy:
until they have gotten their
moneys worth from the old one.
2. Requiring disposition to occur before acquiring a replacement due to
space or financial limitations
3. Consumer selling, trading, or giving away used products may result in
a large used-product market.
4. Many consumers are concerned with waste and how their purchase
decisions affect waste.
5. Environmentally sound disposition decisions benefit society as a whole,
including the firms that are part of that society.

Purchase
Evaluation

Evaluation of a purchase
is

influenced by:

Expectations
Perceived
performance

The Evaluation
Process
Expectation Performanc and
s,
e,
Satisfaction

Expectations, performance and

satisfaction

The Evaluation Process

Determinants of Satisfaction and
Dissatisfaction
Instrumental performance relates to the physical
functioning of
the product.
Symbolic performance relates to aesthetic or
imageenhancement performance.
Affective performance is the emotional
owning
response that
or
using the product or outlet provides

728

Responses
Dissatisfacti
on

negative
Possible outcomes purchase
of a evaluation:

Taking no action
2. Switching brands, products or
stores
3. Warning friends and colleagues
1.

Dissatisfaction Responses

Actions taken by
consumers in
response to product
dissatisfaction

Four types of response styles associated with

dissatisfaction have been identified:
Passives (14%)
Seldom take action, younger group, dont see a
benefit from complaining
Voices (37%)
Seldom take private or public action, usually
complain directly to the firm, older group, believe
they are providing a social benefit
Irates (21%)
Take above average levels of private response and
average levels of direct action, but low levels of
public action
Activists (28%)
Likely to get involved in private, direct and public
action, believe they are providing social benefits by
complaining

Marketing strategy and dissatisfed

consumers
Marketers need to satisfy consumer
expectations by:
1. creating reasonable
expectations through
promotional efforts
2. maintaining consistent quality so
that these reasonable expectations
are fulflled

Customers Satisfaction, Repeat

Purchases, and Customer
Commitment
Custome Satisfactio Outcome
r
n
s

738

Customers Satisfaction, Repeat

Purchases, and Customer
Commitment
Creating Committed
Is Increasingl
Customers
th Focus of Marketin Strateg
y
e
g
y

739

Customers Satisfaction, Repeat

Purchases, and Customer
Commitment

Repeat purchasers continue to buy

the same
brand though they do not have an
emotional attachment to it.
Switching costs are the costs of
finding,
evaluating, and adopting another
solution.
Brand loyalty involves commitment to
the
it
is brand
a biased behavioral response
expressed over
time.

740

Customers Satisfaction, Repeat

Purchases, and Customer
Commitment
Repeat
Purchasers, Committed Customers,
and Profts
A churn is a turnover in a firms customer
base.
Reducing churn is a major objective of many firms
today.
It typically costs more to obtain a new
customer than
to retain an existing one, and new customers
generally are not as profitable as longer-term
customers!
741

Customers Satisfaction, Repeat

Purchases, and Customer
Commitment
Source of Increase Custome Profitabili ove Tim
s

ty

742

Customers Satisfaction, Repeat

Purchases, and Customer
Repeat Purchasers, Committed Customers, and
Commitment
Marketing
Strategy

Developing a marketing strategy for a particular segment

includes identifying specific objectives to be pursued,
1. Attracting new users to the product
such as
2. category
current
3. Capturing
Encouragincompetitors
curren customer
to use more
customers
t
s
4. g
to become
Encouragin curren customer repeat
t
s
5. g
curren customer to become
purchasers t
s
committed
Encouragin
g
customers

743

Repeat purchase
behaviour
Note the difference between:
Brand loyalty
Implies a psychological
commitment

to
the

bran
d

an
d

Repeat purchase behaviour

simply involves the frequent
repurchase of brand

th
e

 Biased

Brand loyalty
is

A behavioural response
Expressed over time
A consumer selects a

ove
brand alternative
r
brands
A function of psychological
processes

Value of customer
loyalty
1. Increased purchases of the

existing
3. Price product
premium due to their
2.
Cross-purchases of your other
appreciation
products
your added-value services
4. Reduced operating cost
because of familiarity with your
service system
5. Positive word-of-mouth that
refers other customers to your
firm

of

 Rule No. 1

The customer is always right.

Rule No.2

If the customer is not right, then refer to

Rule No. 1!

Relationship Marketing
Relationship marketing is an attempt to develop
an ongoing, expanding exchange relationship
with a firms customers.
Relationship marketing involves:
databases
customized mass communications,
and advanced employee training and
motivation

749

Relationship
marketing
Five key elements:
whic
h
1. Developing a core
product/service on to build
2. Customising the relationship
the individual
3. to
Augmenting
the customer
core product/service
with
extra benefits
4. Pricing in a manner that encourages
loyalty
5. Marketing to employees so that
they perform well for customers

Using technology
Modern information technology

makes possible these close,

customised relationships that add
customer perceived- value to the
product/service
E.g. preferred seats on a airline,
Type of hotel suite
Car servicing details

Measuring customer
satisfaction
1. Qualitative
technique
measurement
s
2. Focus

groups
3. Monitoring

surveys