MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 2

Dissonance and Regret

• Dissonance: Uncertainty about whether the correct decision was made– Attempts to rationalize decision

and find information to support it

• Regret: Perception of unfavorable performance of chosen option relative to one not chosen

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 3

Learning From Experience

• Hypothesis testing– Hypothesis generation

(based on prior experience)

– Exposure to evidence– Encoding of evidence

(Evaluation)– Integration of evidence

and prior beliefs• Updating of beliefs to

reflect both prior and new impressions

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 4

Influences on Learning

• Motivation• Prior knowledge or

ability• Ambiguity of learning

environment or lack of opportunity

• Processing biases

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 5

Firm Strategies to Affect Learning

• Top Dog (Market Leader) Strategy– Claims to justify the

decision by the consumer

• Underdog Strategies– Comparison of brands– Promotions to induce

trial

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 6

Satisfaction and Dissatisfaction Judgments

• Dimensions– Utilitarian– Hedonic

• Factors of Influence– Involvement

• High involvement: High initial satisfaction followed by decline

• Low involvement: Lower initial satisfaction but increasing over time

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 7

http://www.theacsi.org/acsi-results/scores-by-industry

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 8

Satisfaction and Dissatisfaction Based on Thought

• Expectations and Performance

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 9

Some Influences

• Assortment size: Choice from larger assortment tends to lead to lower satisfaction

• Higher expectations can lead to falling short

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 10

Attribution Theory

• Three issues– Stability– Focus– Controllability

• Generally, there is greater blame for failure when the problem is under the control of the firm

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 11

Satisfaction/Dissatisfaction Based on Feelings

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 12

Responses to Dissatisfaction

• Complaints– To

• Firm

• Others

– Four types of complainers• Passives

• Voicers (directly to firm)

• Irates (more likely to engage in negative WOM

• Activists

• Negative word of mouth (WOM)

MKT 450 POST-PURCHASE PROCESSES Lars Perner, Instructor 13

Recycling in Japan