Consumer Satisfaction And Loyalty
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Chapter 10 After We Buy: Satisfaction and Loyalty
Consumer Behavior: A Framework John C. Mowen & Michael S. Minor
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
A Consumption Experience. . . . . . is the cognitions and feelings the consumer experiences during the use of a product or service
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
Assessing Product Usage Three Methods
Consumption Frequency measures if the product used continuously or discontinuously. Consumption Amount refers to the average usage of a product. Consumption Purpose assesses whether there is one purpose or multiple purposes for the product.
The Consumption of Performance A consumer performance is an event in which a consumer and marketer act as performers and/or audience in a situation in which obligations and standards exist.
A Contracted Performance An Enacted Performance A Dramatistic Performance
Mood States and the Consumption Experience
Moods are temporary positive or negative affective states that may affect the consumption experience.
Moods have a strong impact on what we remember and choose The mood state may impact the evaluation of the product independent of the actual quality of the product
Developing Postacquisition Satisfaction or Dissatisfaction Consumer satisfaction is the overall attitude consumers have toward a good or service after they have acquired and used it.
Evaluating Product Performance and Quality Product quality is customers’ overall evaluation of the excellence of the performance of the good or service.
Table 10-2
5 Dimensions of SERVQUAL + 8 Dimensions of Product Quality = Keller‘s (1993) “7 basic dimensions of quality”
Performance Employee Interactions Reliability Durability Timeliness and convenience Aesthetics Brand Equity
5 Approaches to CS/D
Expectancy Disconfirmation Equity Theory Attribution Theory Experientially Based Affective Feelings Actual Performance
Expectancy Disconfirmation
Performance expectations are compared to actual product performance. If quality falls below expectations, emotional dissatisfaction results If performance is above expectations, emotional satisfaction occurs If performance is not perceived as different from expectations, expectancy confirmation occurs
Equity Theory
Equity theory holds that people will analyze the ratio of their outcomes and inputs to the outcomes and inputs of the other party in the exchange
Outcomes of A Outcomes of B ≈ Inputs of A Inputs of B
Equity Theory vs. Expectancy Disconfirmation
Equity Theory: comparing inputs and outcomes relative to those of others. Expectancy Disconfirmation: comparing actual vs. expected performance.
Attribution Theory
If consumers attribute failure to meet expectations as the “fault” of the product, they will be more dissatisfied than if they attribute the failure to chance factors or their own behavior.
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
Affective Feelings. . . . . . refers to the concept that the level of consumer satisfaction may be influenced by the positive/negative feelings that consumers associate with the product/ service after its purchase and use.
Measuring Satisfaction
About 65% of all customers report high levels of satisfaction. But 65-85% of satisfied customers will defect.
Consumer Complaint Behavior
Five common complaint behaviors:
Do nothing or deal with the retailer in some manner Avoid using the retailer again and persuade friends and family to do the same Take overt action with third parties (e.g., legal action) Boycott the firm or organization. Create an alternative organization to provide the good or service
Major Reasons Consumers Complain:
To recover an economic loss by getting an exchange or refund
To rebuild a consumer's selfimage
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
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
Brand loyalty . . . . . . is the degree to which a customer holds a positive attitude towards a brand, has a commitment to it, and intends to continue purchasing it in the future.
Brand-Loyal Behaviors...
Proportion of purchases method Undivided Loyalty Occasional switch Switch loyalty Divided loyalty Brand indifference
Brand Loyalty Continuum Undivided
Brand
Loyalty
Indifference Occasional Switch
Switch Loyalty
Divided Loyalty
Attitudes Toward Brand Loyalty
Repeat Purchase Behavior, vs. Brand Loyalty The Difference is Brand Commitment
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.
Comparing Satisfaction and Loyalty
Satisfaction is an unreliable indicator of loyalty. Variety seeking, loyalty to multiple brands, and switching incentives are obstacles to loyalty.
Managerial Implications
Positioning. Loyalty programs are useful positioning tools. Environmental Analysis. Scanning for consumer complaints may suggest corrective action. Market Research. Information is needed on how the firm should deal with customer complaints.
Implications continued
Marketing Mix. Marketing mix elements can soften the impact of competitor enticements for loyal customers. Segmentation. Loyal customers are an important segment: reasons for their loyalty are difficult to determine.
Consumer Behavior: A Framework John C. Mowen & Michael S. Minor
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
A Consumption Experience. . . . . . is the cognitions and feelings the consumer experiences during the use of a product or service
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
Assessing Product Usage Three Methods
Consumption Frequency measures if the product used continuously or discontinuously. Consumption Amount refers to the average usage of a product. Consumption Purpose assesses whether there is one purpose or multiple purposes for the product.
The Consumption of Performance A consumer performance is an event in which a consumer and marketer act as performers and/or audience in a situation in which obligations and standards exist.
A Contracted Performance An Enacted Performance A Dramatistic Performance
Mood States and the Consumption Experience
Moods are temporary positive or negative affective states that may affect the consumption experience.
Moods have a strong impact on what we remember and choose The mood state may impact the evaluation of the product independent of the actual quality of the product
Developing Postacquisition Satisfaction or Dissatisfaction Consumer satisfaction is the overall attitude consumers have toward a good or service after they have acquired and used it.
Evaluating Product Performance and Quality Product quality is customers’ overall evaluation of the excellence of the performance of the good or service.
Table 10-2
5 Dimensions of SERVQUAL + 8 Dimensions of Product Quality = Keller‘s (1993) “7 basic dimensions of quality”
Performance Employee Interactions Reliability Durability Timeliness and convenience Aesthetics Brand Equity
5 Approaches to CS/D
Expectancy Disconfirmation Equity Theory Attribution Theory Experientially Based Affective Feelings Actual Performance
Expectancy Disconfirmation
Performance expectations are compared to actual product performance. If quality falls below expectations, emotional dissatisfaction results If performance is above expectations, emotional satisfaction occurs If performance is not perceived as different from expectations, expectancy confirmation occurs
Equity Theory
Equity theory holds that people will analyze the ratio of their outcomes and inputs to the outcomes and inputs of the other party in the exchange
Outcomes of A Outcomes of B ≈ Inputs of A Inputs of B
Equity Theory vs. Expectancy Disconfirmation
Equity Theory: comparing inputs and outcomes relative to those of others. Expectancy Disconfirmation: comparing actual vs. expected performance.
Attribution Theory
If consumers attribute failure to meet expectations as the “fault” of the product, they will be more dissatisfied than if they attribute the failure to chance factors or their own behavior.
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
Affective Feelings. . . . . . refers to the concept that the level of consumer satisfaction may be influenced by the positive/negative feelings that consumers associate with the product/ service after its purchase and use.
Measuring Satisfaction
About 65% of all customers report high levels of satisfaction. But 65-85% of satisfied customers will defect.
Consumer Complaint Behavior
Five common complaint behaviors:
Do nothing or deal with the retailer in some manner Avoid using the retailer again and persuade friends and family to do the same Take overt action with third parties (e.g., legal action) Boycott the firm or organization. Create an alternative organization to provide the good or service
Major Reasons Consumers Complain:
To recover an economic loss by getting an exchange or refund
To rebuild a consumer's selfimage
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
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
Brand loyalty . . . . . . is the degree to which a customer holds a positive attitude towards a brand, has a commitment to it, and intends to continue purchasing it in the future.
Brand-Loyal Behaviors...
Proportion of purchases method Undivided Loyalty Occasional switch Switch loyalty Divided loyalty Brand indifference
Brand Loyalty Continuum Undivided
Brand
Loyalty
Indifference Occasional Switch
Switch Loyalty
Divided Loyalty
Attitudes Toward Brand Loyalty
Repeat Purchase Behavior, vs. Brand Loyalty The Difference is Brand Commitment
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.
Comparing Satisfaction and Loyalty
Satisfaction is an unreliable indicator of loyalty. Variety seeking, loyalty to multiple brands, and switching incentives are obstacles to loyalty.
Managerial Implications
Positioning. Loyalty programs are useful positioning tools. Environmental Analysis. Scanning for consumer complaints may suggest corrective action. Market Research. Information is needed on how the firm should deal with customer complaints.
Implications continued
Marketing Mix. Marketing mix elements can soften the impact of competitor enticements for loyal customers. Segmentation. Loyal customers are an important segment: reasons for their loyalty are difficult to determine.
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