Lecture 5 - Evaluation, Action & Post-purchase Dissonance PDF

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Summary

Taught by Andrew Corcoran, Teaching fellow at Aston Business School (Marketing & Strategy Department). Covers impulsive buying, evaluation of alternatives and developing choice criteria. Reflect on consumption and consumption patterns. Post-purchase behaviour including satisfaction, disconfirmation ...

Description

Impulse buying         

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Occurs when a consumer experiences a sudden but powerful and persistent urge to buy a product offering (Rook, 1987) Unplanned decision - may happen in less than 1 second More emotional than rational - perceived bad rather than good o Leads to myopic behaviour Cash rich or time poor scenarios o Affected by consumer affluence - more tolerated Can act as a freedom to feel in control of their lives Linked to hedonistic shopping experiences People who score more highly on 'impulsiveness trait' People who score higher levels of materialism Linked to hedonistic shopping experiences o Servicescapes and store atmospherics can help to increase impulsive behaviours (reducing stress levels, inducing browsing, reducing normative traits)  Normative judgement - relating to an evaluative standard. Suggested that impulse behavior can be perceived by some consumers to help them get closer to their ideal self-concept Can be encouraged by POS products and display material, sales promotions, eye-level positioning, in-store atmospherics. 1-click ordering from Amazon, personalized vouchers novelty of the method.

Styles of Impulsive Behaviour    

Accelerator impulse - buying is driven by a desire to stock up for a future need Compensatory impulse - buyer feels down and low in self-esteem, uses impulse purchase as a prop, or as a reward for achieving something. Breakthrough impulse - purchase seen as a step change in their lives to resolve underlying emotional conflict Blind impulse - no underlying purpose or regard for the fulfilment of any need.

Evaluation of alternatives Compensatory and Non-Compensatory Rules  

Non-compensatory rules: Good performance on one criterion, does not offset bad performance on another. Essential criteria - must have it. Compensatory rules: Favourable ratings offset unfavourable ones - each is evaluated in terms of importance and prioritised.

Developing Choice Criteria   

Normally between 6 and 0 Criteria change over time and with experience Higher level of involvement = more criteria needed

Why do consumers reject brands?

Consumption 

The process of using the product/service purchased

WHEN it is consumed? 

Proximity to purchase- the closer you are to the purchase, the more satisfied you will be.

WHERE it is consumed?  

Different situations evoke different satisfaction levels. Specifications make the consumer think about what contexts you're going to use the product in - "good for gaming", "good for home-cooking".

HOW it is consumed? 

More consumption = more satisfaction

HOW MUCH is consumed?  

Alcohol has differing consumption levels based on attitude (alcohol has an deleterious effect) Perception of product will differ depending on how you use it.

Consumption Patterns    

Consumer decision making process is circular. Positive reinforcement gaining Negative reinforcement saving Punishment - "Never again"

Post purchase behaviour: Customer Satisfaction 

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Post purchase advertising and product information on packages are important for consumers to structure their product experience. o Wine distributors adding country of origin on the wine label provide this 'added value' to help develop relationships. There is great potential in selling related products and services - businesses want loyalty of some kind. Satisfaction can be determined by subjective (customer needs, emotions) and objective (product & service features) factors.

Disconfirmation Paradigm    

The difference between pre-purchase expectations and post-purchase beliefs. Expectations increase when knowledge and familiarity of the product/service increase Pre-purchase criteria - the expectations are set through a process of negotiation: recent communications, branding, WOM advertising, media coverage, previous experiences. The extent to post-purchase evaluation will depend on the level of involvement: Examples Level of Purchase Involvement

Likely Extent of Evaluation

Low

Coffee shop, movie, bus travel

Quick, reflex thought, but not overly concerned

Medium

New clothes, home Some consideration given, possibly will loan, doctor visit, comment to other people airline travel, hotel, restaurant

High

Own wedding, important legal advice, choice of university

Significant thought and analysis, may refer back to initial information, likely to review the product and experience aspects in detail, likely to discuss with other people

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Positive disconfirmation - when perceived performance exceeds customer satisfaction o Spreading of goodwill through WOM advertising o Repeat purchasing

Negative disconfirmation - when perceived performance falls short of customer satisfaction o Likely to switch brands Complain - negative WOM advertising.

Attribution Theory  

Consumers seek explanations for the causes of outcomes Consumers feel more satisfied when they attribute favourable outcomes to themselves, and negative to others (Oliver, 1993)

Equity Theory  

The evaluation of what a consumer considers as fair on a comparison of outcomes relative to inputs. Consumers feel satisfied when they perceive fair (equitable) treatment

Cognitive dissonance    

Psychological tension resulting from perceived inconsistencies in cognitions. o Cognitions - any idea, belief, knowledge or emotion The level of dissonance is a function of the importance of the cognitions to the individual pre-purchase criteria. Dissonance is a motivator that an individual tries to reduce We experience dissonance whenever we are faced with alternatives - importance of providing target information to help overcome dissonance.

Dissonance Reducing Strategies 

Marketers - emphasize how many satisfied customers there are, use of online reviews, targeting specific opinion leaders and formers - provides reassurance and reduces dissonance.

1. 2. 3. 4.

Change one's behaviour Distort the dissonant information Minimise the importance of the issue Ignore dissonant information and seek consonant information

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Two-sided arguments (individuals money vs. the cause) for more educated audiences - they think more rationally. Using positive cognitions Use of comparative advertising - comparing specific measureable product attributes, especially applicable for products primarily brought for utility. The position of the comparedto-brand are important as it affects the consumers' frame of reference (relates to the evolution of the brand) - use of generic products. Use of negative advertising - very risky, can look desperate if you slag off the opposition.

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Word of mouth communications   

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'Informal, person-to-person communication regarding a brand, product/service or organisation) Creates conformity and diversity Positive WOM - Results from positive disconfirmation, opinion leaders are likely to engage in positive WOM. Offer monetary (gift vouchers) and non-monetary (free product) incentives for making positive referrals. Negative WOM - Allows consumers to release their negative attitude and regain control over the situation and gain sympathy from others. Negative WOM travels faster than positive WOM.

Disposal Behaviour    

Throwing away, recycling, selling, swapping, giving away or keeping it for an extended period of time. Consumers throw away products due to the convenience factor or to make room for new products. Technological advancements have led to shortened product life cycles along with a desire to buy the latest models puts extra pressures on consumers to dispose of their old products. Items are kept for nostalgic or sentimental value, or in the hope of using them in the future.

Level of Involvement 

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A relationship reflecting the degree of uncertainty (risk) experienced by a consumer but personal characteristics of the consumer. o Higher risk - higher involvement Level of involvement depends on personal relevance and the inherent interests, needs and values of the individual. If we perceive our self-image to be enhanced by a purchase, the level of involvement increases - can lead to enduring involvement. Involvement with the same product can change time to time - consumed socially or privately? Consumed by another in the family or as a gift to another? Situation influence helps activate self-relevant consequences, goals and values. Consumers can be involved with an event (situational involvement), product category, brand, advertisement or medium. High involvement contexts - print media can be more effective as the consumer who has to be animate, when the medium in inanimate....