After We Buy:

Satisfaction & Loyalty

Vaibhav
Key Concepts
 Satisfaction and  How consumers
dissatisfaction complain
 Brand expectations  Factors that
 Equity and influence
satisfaction complaining
 Expectation  Product disposal
confirmation
 Why consumers
 Ensuring satisfaction
complain  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 self-
image
 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 Divided

Switch Loyalty 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.