Satisfaction Bias

Confirmation, Misattribution,
Availability
 Confirmation Bias

Hypothesis Black = “Aggressive”

Evidence
Time
100 black people
20 80
aggressive non-aggressive
Importance of First Impressions
 Confirmation Bias

• Post-purchase information search

• “If you find a better price within 30 days, we’ll
give you the difference, plus $50”
 Confirmation Bias

• Post-purchase information search

• Blind taste tests

• New Coke > Coke Classic in blind taste tests

• Coke Classic >> New Coke on supermarket shelves

 The Psychic Effect

• Confirmation bias stronger when

– expectations are open-ended
– “You’ll get a lucky break soon”

– expectations are non-falsifiable

– “I see someone out there who’s perfect for you”

– evidence is perceptual, not quantifiable

– “You will get a lot more attention from women”
 Biases in Satisfaction Judgments

• Confirmation
– post-purchase information search
– blind taste tests

• Error of Attribution
– blame people/firms for bad outcomes, when
these are actually due to external causes
 Biases in Satisfaction Judgments
• Confirmation
– post-purchase information search
– blind taste tests

• Error of Attribution
– blame people/firms for bad outcomes, when these are actually
due to external causes

• Availability
– vivid/recent experiences have greater impact on satisfaction
than complete history of past experiences
Complaints as Opportunity?

• Accept responsibility
• Quick action, e.g.,
– replacement
– repair
– refund
– exchange
• Exceed compensation
expectations
Recovered Complaint
=> Higher Satisfaction + Positive Word-of-Mouth
Customer Satisfaction

Repeat Purchase
(Loyalty)