Lecture Consumer behaviour: Chapter 7 - Cathy Neal, Pascale Quester, Del Hawkins

Chapter 7 Postpurchase Processes,
Customer Satisfaction
and Consumer Loyalty
• Postpurchase process
• Postpurchase dissonance
• Why product use is important to marketers
• Why product disposal is important to consumers
• Concept of customer satisfaction
• Concept of consumer loyalty

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Postpurchase Processes
• Postpurchase dissonance
• Product use and non-use
• Disposal
• Purchase evaluation
• Customer satisfaction, repeat purchase behaviour

and consumer loyalty

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Postpurchase Consumer Behaviour

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Postpurchase Dissonance
• Some purchases are followed by postpurchase

dissonance
• Probability of postpurchase dissonance, and the
magnitude of dissonance, is a function of the:
–
–
–
–

degree of commitment and/or whether the decision can
be revoked
importance of the decision to the consumer
difficulty of choosing among the alternatives
individual’s tendency to experience anxiety

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Product Use and Non-Use
• Product use
–
–
–

use innovativeness
regional variations
multiple vs single use

• Packaging
• Defective products
–

product recalls

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Product-Usage Index

7–6


Unique Packaging for Competitive Advantage

7–7


The Incidence of Product Recalls 1998–2003

7–8

Product Disposal and
Marketing Strategy
• Recycling
–
–

product
package

• Trade-ins
–

to motivate replacement

• Second-hand markets
–
–

e.g. textbooks, clothes
‘Cash Converters’

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Product-Disposal Alternatives

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Purchase Evaluation
• Evaluation of a purchase is influenced by:
–
–

expectations
perceived performance

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Expectations, Performance
and Satisfaction

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Dissatisfaction Responses
• Possible outcomes of a negative purchase

evaluation:
–
–
–

Taking no action

Switching brands, products or stores
Warning friends and colleagues

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Actions Taken by Consumers in Response to
Product Dissatisfaction

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Marketing Strategy and
Dissatisfied Consumers
• Marketers need to satisfy consumer expectations

by:
–
–

creating reasonable expectations through promotional
efforts
maintaining consistent quality so that these reasonable
expectations are fulfilled

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Repeat Purchase Behaviour
Note the difference between:
• Brand loyalty
–

implies a psychological commitment to the brand

and

• Repeat purchase behaviour
–

simply involves the frequent repurchase of the brand

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Relationship Marketing
The five key elements:
1. Developing a core product/service on which to
build
2. Customising the relationship to the individual
customer
3. Augmenting the core product/service with extra
benefits
4. Pricing in a manner that encourages loyalty

5. Marketing to employees so that they perform well
for customers
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Brand Loyalty is…
• biased
• a behavioural response
• expressed over time
• where a consumer selects a brand over alternative

brands
• a function of psychological processes

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Repeat Purchase Behaviour and
Marketing Strategy
• Kodak monitors six groups of

consumers/customers:
–
–
–
–

–
–

current customers
new customers
brand switchers
trial users
customers who upgrade
trade-in customers

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Repeat Purchase Behaviour and
Marketing Strategy (cont.)
• Once objectives are defined for each group it

becomes possible to develop and implement
marketing strategies and evaluate the results

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Importance of Customer Satisfaction
• The business of business is getting and keeping

customers.
(Drucker, 1979)
• Delivering high-quality service and high customer

satisfaction is closely linked to profits, cost savings,
and market share.
(PIMS, Profit Impact of Market Share, 1970s)

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Using Technology
• Modern information technology makes possible

these close, ‘customised’ relationships that add
customer perceived-value to the product/service.

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Value of Customer Loyalty
• Increased purchases of the existing product
• Cross-purchases of your other products
• Price premium due to their appreciation of your

added-value services

• Reduced operating cost because of familiarity with
your service system
• Positive word-of-mouth which refers other
customers to your firm

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“Loyal customers expect a good price, but
they crave value most of all.”
(Palmer, 1996)

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• Rule No. 1

The customer is always right.
• Rule No.2

If the customer is not right, then refer to
Rule No. 1!!

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