Transcript Chapter 7
Chapter 7 Postpurchase Processes, Customer Satisfaction and Consumer Loyalty • Postpurchase process • Postpurchase dissonance • Why product use is important to marketers • Why product disposal is important to consumers • Concept of customer satisfaction • Concept of consumer loyalty Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–1 Postpurchase Processes • Postpurchase dissonance • Product use and non-use • Disposal • Purchase evaluation • Customer satisfaction, repeat purchase behaviour and consumer loyalty Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–2 Postpurchase Consumer Behaviour 7–3 Postpurchase Dissonance • Some purchases are followed by postpurchase dissonance • Probability of postpurchase 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 difficulty of choosing among the alternatives individual’s tendency to experience anxiety Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–4 Product Use and Non-Use • Product use – – – use innovativeness regional variations multiple vs single use • Packaging • Defective products – product recalls Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–5 Product-Usage Index 7–6 Unique Packaging for Competitive Advantage 7–7 The Incidence of Product Recalls 1998–2003 7–8 Product Disposal and Marketing Strategy • Recycling – – product package • Trade-ins – to motivate replacement • Second-hand markets – – e.g. textbooks, clothes ‘Cash Converters’ Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–9 Product-Disposal Alternatives 7–10 Purchase Evaluation • Evaluation of a purchase is influenced by: – – expectations perceived performance Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–11 Expectations, Performance and Satisfaction 7–12 Dissatisfaction Responses • Possible outcomes of a negative purchase evaluation: – – – Taking no action Switching brands, products or stores Warning friends and colleagues Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–13 Actions Taken by Consumers in Response to Product Dissatisfaction 7–14 Marketing Strategy and Dissatisfied Consumers • Marketers need to satisfy consumer expectations by: – – creating reasonable expectations through promotional efforts maintaining consistent quality so that these reasonable expectations are fulfilled Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–15 Repeat Purchase Behaviour Note the difference between: • Brand loyalty – implies a psychological commitment to the brand and • Repeat purchase behaviour – simply involves the frequent repurchase of the brand Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–16 Relationship Marketing The five key elements: 1. Developing a core product/service on which to build 2. Customising the relationship to the individual customer 3. Augmenting the 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 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–17 Brand Loyalty is… • biased • a behavioural response • expressed over time • where a consumer selects a brand over alternative brands • a function of psychological processes Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–18 Repeat Purchase Behaviour and Marketing Strategy • Kodak monitors six groups of consumers/customers: – – – – – – current customers new customers brand switchers trial users customers who upgrade trade-in customers Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–19 Repeat Purchase Behaviour and Marketing Strategy (cont.) • Once objectives are defined for each group it becomes possible to develop and implement marketing strategies and evaluate the results Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–20 Importance of Customer Satisfaction • The business of business is getting and keeping customers. (Drucker, 1979) • Delivering high-quality service and high customer satisfaction is closely linked to profits, cost savings, and market share. (PIMS, Profit Impact of Market Share, 1970s) Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–21 Using Technology • Modern information technology makes possible these close, ‘customised’ relationships that add customer perceived-value to the product/service. Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–22 Value of Customer Loyalty • Increased purchases of the existing product • Cross-purchases of your other products • Price premium due to their appreciation of your added-value services • Reduced operating cost because of familiarity with your service system • Positive word-of-mouth which refers other customers to your firm Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–23 “Loyal customers expect a good price, but they crave value most of all.” (Palmer, 1996) Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–24 • Rule No. 1 The customer is always right. • Rule No.2 If the customer is not right, then refer to Rule No. 1!! Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–25 Measuring Customer Satisfaction • Qualitative measurement techniques • Focus groups • Monitoring surveys Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–26 Next Lecture… Chapter 8: Perception Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 7–27