Chapter 12 POST-DECISION PROCESSES

1. Chapter 12POST-DECISION PROCESSES

2. Model of Consumer Problem Solving Problem Recognition Search for Information Evaluation of Alternatives Choice Decision Purchase Postpurchase Use and Reevaluation

3. Chapter Overview • Dissonance • Satisfaction/Dissatisfaction • disconfirmation paradigm • attribution theory • equity theory • Complaining/negative WOM

4. Post-Decision Dissonance Was buying a “previously loved vehicle” at Honest Abe’s the right choice? Should I have gone elsewhere?? • Doubts/Anxiety about product choice • many times we attempt to justify our choices • confirming evidence • denial or minimization of downsides (e.g., the repair bills really aren’t that high) • support from others • modification of beliefs (e.g., I really didn’t want a roomy car!)

5. Satisfaction/Dissatisfaction Judgements • Disconfirmation Paradigm • ___________ Theory • ________ Theory

6. The Disconfirmation Paradigm • Expectations: beliefs we have before usage • Performance: evaluation of what happened • Disconfirmation: occurs when these two are not equal • positive leads to satisfaction • negative leads to dissatisfaction • Example: New movie release • Beware of “overpromising”

7. Attribution Theory • Stability • temporary or frequent? • F • is it my fault or their fault? • Controllability • could it be prevented?

8. Equity Theory • Fairness of exchange • perceived relationship of cost of production to price charged • relative bargaining power of the two sides • opportunism

9. Individual Application Exercise • Think about the three ways consumers can conclude they are dissatisfied (disconfirmation paradigm, attribution theory & equity theory). • Explain how each of these approaches could apply to a night at a hotel. • Provide a specific example for each approach.

10. Dissatisfaction Outcomes I hate your vulgarity and violent films! I’m going to tell all my friends that your newest release stinks! • Complaining • How common is complaining? • Other ways of getting back at the firm • brand switching • active boycotts • Negative WOM

11. Effective Handling of Complaints • Acceptance of responsibility • Quick action, e.g., • replacement • repair • refund • exchange

12. Chapter 12 Review • Dissonance • Satisfaction/Dissatisfaction • disconfirmation paradigm • attribution theory • equity theory • Complaining/negative WOM

13. Model of Consumer Problem Solving Problem Recognition Search for Information Evaluation of Alternatives Choice Decision Purchase Postpurchase Use and Reevaluation