3. A MODEL OF COMPLEX
DECISION MAKING
3
Problem
Recognition
Information
Acquisition
Information
Processing
Comparative
Evaluation/
Purchase
Post-Purchase
Evaluations
4. CHAPTER OVERVIEW
Post-Decision Dissonance and Regret
Learning from Consumer Experience
How Do Consumers Make Satisfaction or
Dissatisfaction Judgments?
Responses to Dissatisfaction
Is Customer Satisfaction Enough?
Disposition
4
5. DISSONANCE
Dissonance Theory:
Your different beliefs (about related objects) should be
consistent with one another
Inconsistency = “Dissonance”
What is Post-Purchase Dissonance??
5
6. DISSONANCE
Post-Purchase Dissonance
You purchased one alternative; rejected others
Believe that others also have desirable attributes
Inconsistency!!
And often, regret
Try to reduce dissonance by changing
inconsistent beliefs
How??
6
7. DEALING WITH DISSONANCE
Downgrading other alternatives
Searching for supportive info on chosen
brand
Ignoring dissonant information
Selectively interpreting information
Dissatisfaction
Cancel Purchase
Not Purchase Again
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8. WHEN IS DISSONANCE MOST LIKELY?
High Involvement or Low Involvement Product?
When alternatives are rated about equally, or when
one alternative is clearly better?
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9. MARKETING IMPLICATIONS OF
DISSONANCE
Providing Supportive Information
Product warranty or money back guarantee
Downgrading Alternatives:
Comparative Advertising
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10. LEARNING FROM
CONSUMER EXPERIENCE
After purchase, consumers use the product
Usage provides opportunity to learn about the product
Learning by hypothesis testing
10
11. 11
Exhibit 11.3: A Model of Learning from Experience
What factors affect learning from experience?
MotivationAbility
Opportunity
Processing biases
12. LEARNING FROM
CONSUMER EXPERIENCE
What Affects Learning from Experience?
Motivation
Prior Knowledge or Ability
Ambiguity of the Information Environment or
Lack of Opportunity
Processing Biases
12
13. HOW DO CONSUMERS MAKE
SATISFACTION OR
DISSATISFACTION JUDGMENTS?
Satisfaction/Dissatisfaction
Based on Thoughts
Disconfirmation Theory
Attribution Theory
Equity Theory
13
14. DISCONFIRMATION THEORY:
SATISFACTION / DISSATISFACTION
Better Product Performance = More satisfaction??
Does satisfaction depend on anything else?
14
16. DISCONFIRMATION THEORY
(CONT.)
P > E: Positive disconfirmation; Satisfaction
P = E: Confirmation; Satisfaction
P < E: Negative disconfirmation; Dissatisfaction
So what should you do as a marketer?
16
17. “MANAGING” EXPECTATIONS
Phone response systems: “Your call will
be attended to in the order in which it
was received”
Earnings forecasts
17
MARK242ConsumerBehavior,Elaine
ChanSpring2010
18. ATTRIBUTION THEORY
People try to find reasons for what happens
Find “attributions” for events
Negative outcomes (e.g., bad exam performance, bad product
performance)
Dimensions of Attributions:
Focus: Is the problem due to the consumer or the marketer?
Controllability: Is the event under the consumer’s or the
marketer’s control?
Stability: Is the reason temporary or permanent?
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19. MARKETING APPLICATIONS OF
ATTRIBUTIONS: FOCUS
Focus: Blame Reduction
You buy a chest-of-drawers from IKEA and soon find that a
couple of the drawers don’t slide smoothly and the bases are
falling. Would you feel the problem is caused by poor-quality
materials or by your skills at carpentry?
Internal to Marketer/External to Marketer: Which
one leads to more blame?
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20. MARKETING APPLICATIONS OF
ATTRIBUTIONS:
CONTROLLABILITY
Controllability: Blame Reduction
You are going to Bangkok for a 3-day vacation. However, your
flight is delayed by several hours. Will you blame the airline…
if you learn that the delay was caused by severe weather
conditions?
if you learn that the delay was caused by a mix-up in the
pilot staffing roster?
Marketer controllable/non-controllable: Which
causes more blame?
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21. MARKETING APPLICATIONS OF
ATTRIBUTIONS: STABILITY
Stability: Exchange vs. Refund
You go to IKEA and order a coffee table. A few weeks after
delivery, you find a large crack at the juncture near one of the
legs. Would you be more angry…
If you thought the defect had developed due to poor quality
of the wood?
If you thought the defect might have been caused during
delivery?
When is the consumer more likely to ask for
exchange (vs. refund): when cause is stable or
unstable?
21
22. ATTRIBUTIONS FOR PRODUCT /
SERVICE FAILURE
Focus: Who has the problem been caused by?
Consumer / non-marketer less blame
Controllability: Is the event under the consumer’s or
the marketer’s control?
Marketer-focus + controllable even more blame
Stability: Is the reason temporary or permanent?
Stable attributions more blame, prefer refunds
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23. EQUITY THEORY
Fairness in Exchange
Inputs Versus Outputs
Consumer’s side
Marketer’s side
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24. SATISFACTION BASED ON
FEELINGS
Experienced Emotions and Coping
Post-decision feelings
Mispredictions of feelings
Affective Forecasting
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26. CUSTOMER DISSATISFACTION
Is a major problem…
Dissatisfied customers stop purchasing, complain, and
spread negative WOM.
The average business does not hear from 96% of its
unhappy customers.
The average person with problems tells 9 or 10 people.
But also an opportunity!
95% of complainers will do business with you if
complaint is resolved quickly.
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29. QUIZ 1: SAMPLE QUESTION
Consumers deal with decision dissonance by:
a) Ignoring dissonant information
b) Selectively interpret information
c) Downgrade other options not chosen
d) Search for information that supports chosen option
e) All of the above
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30. QUIZ 1: SAMPLE QUESTION
It was discovered that several children had developed
food poisoning from eating a hamburger at an outlet
of a local restaurant chain. The company put out a
message saying that the problem had been caused due
to a power outage at their refrigeration, and would
not happen again. This message was appealing to:
a) Product evaluations
b) Customer relationship management
c) The perceived stability of the problem
d) The type of disconfirmation
e) Consumers’ perceptions of equity
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31. ANNOUNCEMENTS
No class on March 1, Quiz 1 at 7pm, LTJ.
For class on March 6, read Chapter 3
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