This Document Contains Chapters 13 to 14 CHAPTER 13 DECISION MAKING II: ALTERNATIVE EVALUATION AND CHOICE WHAT DO YOU THINK? POLLING QUESTION Getting a haircut for under $10 is a very good thing. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.icancb.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with those of other students taking consumer behaviour courses across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behaviour students have answered this polling question thus far. LEARNING OUTCOMES After studying this chapter, the student should be able to: LO1 Understand the difference between evaluative criteria and determinant criteria. LO2 Comprehend how value affects the evaluation of alternatives. LO3 Explain the importance of product categorization in the evaluation of alternatives process. LO4 Distinguish between compensatory and non-compensatory rules that guide consumer choice. SUGGESTED LECTURE OPENER Product categorization and criteria selection play an important role in consumer behaviour. If a consumer perceives benefits beyond his or her own life, a “feel-good” effect can come into play. This can happen when proceeds from a purchase go to support charities, the local economy, or, particularly hot now, environmental or “green” causes. Despite the economic downturn, consumers remain willing to spend money on environmentally friendly products, particularly those, like updates to their homes, that will ultimately save them money once the initial investment is paid off. For smaller purchases, consumers now demand a clear and compelling reason to buy “green.” “People need to be sure that the purchase will have a positive impact on the planet.” Increasingly skeptical consumers worry about “greenwashing” in the use of “eco” labels which have no apparent standards or criteria, demanding more accountability. However, unlike the 1980s recession which effectively derailed the eco movement, this time around “a reduction in income does not necessarily mean a drop in eco-consciousness as people continue to consider the true cost—environmental and monetary—of their purchases.” [Source: “Despite the Recession, Many are Still Spending Green to be Green.” By Rona Luciw. The Globe and Mail, August 23, 2012. www.theglobeandmail.com.] KEY CONCEPTS WITH POWERPOINT® SLIDES Slide 1 Slide 2 Slide 3 The decision-making model is shown in Exhibit 13.1. LO1. Understand the difference between evaluative criteria and determinant criteria. Evaluation of Alternatives: Criteria Slide 4 A very important part of decision making is evaluating alternative solutions to problems. Evaluative Criteria After a need is recognized and a search process has taken place, consumers begin to examine the criteria that will be used for making a choice. Evaluative criteria are the attributes, features, or potential benefits that consumers consider when evaluating possible solutions to a problem. A feature is a performance characteristic of an object. A timer on a coffee maker is a feature. A benefit is a perceived favourable outcome that results from the presence of a particular feature. A benefit of the timer is that it allows you to have hot coffee waiting for you when you wake up. These concepts are illustrated in Exhibit 13.2. Benefits play an important role in the value equation. The consumer doesn’t want a coffee maker because of the timer button; he or she wants hot coffee as soon as possible in the morning. Slide 5 Slide 6 Slide 7 What can I do in class? Q: Have students select a product that the majority of the class would be familiar with, such as a cellphone. Have students discuss the differences between the features and benefits concept. A: Answers will vary. Features should include email, text messaging, camera, and so forth. The benefits listed must be perceived as favourable results, such as keeping in touch with family and friends. Determinant Criteria Determinant criteria (sometimes called determinant attributes) are the evaluative criteria that are most carefully considered and are directly related to the actual choice that is made. Which criteria are determinant can depend largely on the situation in which a product is consumed. When the MacBook Air was introduced, it was promoted on thinness and portability. Marketers position products on the determinant criteria that apply to a specific situation. Slide 8 Slide 9 LO2. Comprehend how value affects the evaluation of alternatives. Value and Alternative Evaluation Slide 10 Remember that benefits are at the heart of the value equation, and value is a function of both benefits and costs. Hedonic and Utilitarian Value Hedonic criteria are emotional, symbolic, and subjective attributes or benefits that are associated with an alternative. Utilitarian criteria are functional or economic aspects associated with an alternative. Rationality, Effort, and Variety Studies indicate that too much choice actually contributes to feelings of discontent and unhappiness! Bounded rationality acknowledges that perfectly rational decisions are not always feasible due to constraints found in information processing. Slide 11 What can I do in class? Q: Ask students whether they’ve ever become overwhelmed with too much choice. If not, see whether they can name situations in which consumers are offered too many alternatives to choose from. A: Answers might include selecting a new cellphone or computer or simply visiting a grocery store. Affect-Based and Attribute-Based Evaluations There are two major types of evaluation processes: affect-based and attribute-based evaluations. 1. Affect-based evaluations—Consumers evaluate products based on the overall feeling that is evoked by the alternative. An affect-based process is reflected in the statement, “I’m not even sure why I bought this sweater—I just liked it.” Emotions and mood states play a big part in affect-based evaluations. Beverage marketers, such as Coca-Cola and PepsiCo, have responded to consumer desires for variety in beverages. 2. Attribute-based evaluations—Consumers evaluate alternatives across a set of attributes that are considered relevant to the purchase situation. The rational decision-making process assumes that consumers carefully integrate information about product attributes and make careful comparisons between products. Slide 12 LO3. Explain the importance of product categorization in the evaluation of alternatives process. Product Categorization and Criteria Selection Slide 13 One of the first things that a consumer does when receiving information from the environment is to attempt to make sense of the information by placing it in the context of a familiar category. Within these schemas, both product categories and brand categories are found. Product categories are mental representations of stored knowledge about groups of products. The successful launch of the iPhone is a good example of a product category. Category Levels Consumers possess different levels of product categories. The number of levels and details within each level is impacted by familiarity and expertise with products. 1. Superordinate Categories—These categories are abstract in nature and represent the highest level of categorization. A superordinate category would be “beverages.” 2. Subordinate Categories—These categories are more detailed. Here, the consumer examines the knowledge that he has stored about various options. For example, a consumer would proceed through superordinate and subordinate categories like “Colas,” “Sports Drinks,” and “Juices.” This concept is illustrated in Exhibit 13.4. Slide 14 Slide 15 Perceptual and Underlying Attributes Perceptual attributes are visually apparent and easily recognizable. Size, shape, colour, and price are perceptual attributes. Underlying attributes are not readily apparent and can only be learned through experience with the product. An example of an underlying attribute is product quality. A signal is a characteristic allowing a consumer to diagnose something distinctive about an alternative. Signals often infer information about product quality. This is particularly apparent in the following situations: • When the consumer is trying to reduce risk • When purchase involvement is low • When the consumer lacks product expertise Slide 16 Slide 17 Criteria Selection A number of factors influence the type of criteria that consumers use when evaluating alternatives. 1. Situational Influences—For example, when buying perfume for a loved one, brand name and imagery can be very important. These criteria would therefore be weighted heavily in the evaluation process. 2. Product Knowledge—As a consumer’s level of knowledge increases, he or she is able to focus on criteria that are most important in making a selection and to discount irrelevant information. 3. Expert Opinions—For example, a computer science professor would be able to guide students in selecting the most important criteria to consider when buying a new computer. 4. Social Influences—Friends, family members, and reference groups also impact the type of criteria that are used for decision making. 5. Online Sources—Popular retail sites, such as www.bestbuy.com, also explain what attributes consumers should consider. 6. Marketing Communications—Marketing communications also assist consumers in deciding what features to consider when buying a particular product. Slide 18 Green marketing is a method of marketing that focuses on offering sustainable products. There is a range of consumers that green marketing targets—those die-hards who buy every green product they can to those who only buy green products when the price isn’t too high. Marketers must communicate the effectiveness of their green products, however, because some consumers think green products aren’t as effective as other products. Slide 19 What can I do in class? Have students select a few green marketing products and bring them to class, and/or bring ads for those products. Discuss the products and the marketing applied to them. Have the marketers done their job to convince consumers of the effectiveness of the products? Are Consumers Accurate in Their Assessment of Evaluative Criteria? Judgments are mental assessments of the presence of attributes as well as the benefits associated with those attributes. Consumer judgments are impacted by the amount of knowledge or experience a consumer has with a particular object. During the evaluation process, consumers make judgments about: • Presence of features (Does this MP3 player play videos?) • Feature levels (How many videos can be stored?) • Benefits associated with features (I’d be able to watch a movie on a long trip.) • Value associated with the benefit (That would be nice.) • How objects differ from each other (The other one doesn’t have this.) Slide 20 What can I do in class? Q: What judgments have students made when purchasing large-ticket items? You may want to include purchasing textbooks as an example. Students are very opinionated about this subject. A: Answers will vary. Some professors might have students purchase a book but never use it in class. If this is the case, students will have judgments based on the benefits and value associated with the book. Several issues affect consumer judgments, as follows: 1. Just Noticeable Difference (JND)—The ability of a consumer to make accurate judgments when evaluating alternatives is influenced by their ability to perceive differences in levels of stimuli between two options. 2. Attribution Correlation—Consumers often make judgments about features based on their perceived relationship with other features. 3. Quality Perceptions—Marketers have long realized that consumer perception is critical to marketing success. 4. Brand Name Associations—Brand names also impact consumer judgments. Much like price, brand names can be used as signals of quality. Slide 21 Slide 22 How Many Criteria Are Necessary to Evaluate Alternatives Effectively? Choosing among several brands of products and features can be frustrating. However, research suggests that consumers can handle a surprisingly high number of comparisons before overload sets in. What can I do in class? Q: Ask students to consider the statement, “Consumers are often able to make good choices when considering only a single attribute.” Do they agree or disagree? A: Answers will vary. Discuss the number of criteria necessary to evaluate alternatives effectively. Consumers can handle a lot of information but report not liking to do so. Is that true of the students as well? What If Information Is Missing? Consider the information presented in Exhibit 13.5, which compares data about two televisions that a consumer collects from print advertisements. Slide 23 How Do Marketers Determine Which Criteria Consumers Use? Marketers can use several techniques to determine the criteria that consumers use when judging products, such as perceptual mapping and conjoint analysis to assess choice criteria. Conjoint analysis is used to understand the attributes that guide preferences by having consumers compare products across levels of evaluative criteria and the expected utility associated with the alternatives. LO4. Distinguish between compensatory and non-compensatory rules that guide consumer choice. Consumer Choice: Decision Rules Slide 24 Once consumers have evaluated alternative solutions to a problem, they begin to make choices. Choice does not mean that a particular alternative will be chosen. There are two major types of rules that consumers use when selecting products: 1. Compensatory rules—Allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by performing well on another attribute. 2. Non-compensatory rules—Strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from consideration. Slide 25 Compensatory Models The attitude-toward-the-object model (Fishbein model) that was presented in Chapter 7 represents a compensatory approach. The example from that chapter is shown again in Exhibit 13.6. Slide 26 Non-Compensatory Models There are four major categories of non-compensatory rules that consumer researchers have identified, which are listed as follows: 1. Conjunctive rule—Following the conjunctive rule, consumers set a minimum mental cutoff point for various features and reject any product that fails to meet or exceed this cutoff point across all features. 2. Disjunctive rule—Following the disjunctive rule, consumers set a minimum mental cutoff for various features, which is similar to the conjunctive rule. However, the cutoff point is usually high with the disjunctive rule. The product that meets or exceeds this cutoff on any feature is selected. 3. Lexicographic rule—Following the lexicographic rule, consumers select the product that they believe performs best on the most important feature. 4. Elimination-by-aspects rule (EBA)—Following the EBA rule, consumers set minimum cutoff points for attributes. Beginning with the most important feature, consumers then eliminate options that don’t meet or surpass the cutoff point on this important feature, then move on to the next most important feature and repeat the process. Consumers do this until only one option remains and a choice is made. To illustrate these rules, consider the information presented in Exhibit 13.7. Slide 27 Slide 28 Use of Decision Rules Non-compensatory rules are often used in low-involvement situations because these rules allow consumers to simplify their thought processes. However, these rules are used in highinvolvement purchase situations as well. The decision as to what car to buy is certainly a highinvolvement decision for most people. Retail Outlet Selection Consumers must also choose where they will buy the product. Sometimes, consumers will decide where they will buy before they determine what they will buy. Consumers have gradually become less brand loyal and more store loyal. Of course, consumers may also decide to make their purchases on the Internet. Slide 29 What can I do in class? Q: Ask students to name their favourite stores. Do they agree that consumers are becoming more store loyal and less brand loyal? Do students prefer to shop on the Internet or in a store? Explain. A: Answers will vary. VIDEO CLIP PowerPoint Clip from Kodak Run time 0:42 minutes Slide 30 To maintain sales, even an old and highly successful company such as Kodak must invest in product development and management. Consumers will not continue to buy products that are outdated, particularly in the realm of electronics. To stay on the cutting edge, Kodak has paid close attention to consumers’ needs, even if consumers aren’t yet aware of them. This means occasionally introducing a product that may have low sales because it is ahead of its time. At Kodak, consumer confidence is linked to trusting Kodak’s technical abilities, product usability, and up-to-date merchandise. Ask your students: 1. What attributes of consumers’ decision-making process does Kodak rely on? Answer: Kodak hopes consumers will use perceptual or underlying attributes to pick up and examine the camera based on design or an emotional stimulus. 2. What other attributes are necessary for a customer to actually make a purchase? Answer: A positive interaction with the camera’s features is necessary. Positive user-interface begins when the consumer starts playing and interacting with the camera without difficulty. Price and availability are also important attributes. CHAPTER 14 CONSUMPTION TO SATISFACTION WHAT DO YOU THINK? POLLING QUESTION When I’m treated unfairly by a business, dissatisfaction describes my feelings well. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.icancb.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with those of other students taking consumer behaviour courses across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behaviour students have answered this polling question thus far. LEARNING OUTCOMES After studying this chapter, the student should be able to: LO1 Gain an appreciation of the link from consumption to value to satisfaction. LO2 Discuss the relative importance of satisfaction and value in consumer behaviour. LO3 Know that emotions other than satisfaction can affect post-consumption behaviour. LO4 Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ post-consumption reactions. LO4 Understand problems with commonly applied satisfaction measures. LO6 Describe some ways that consumers dispose of refuse. SUGGESTED LECTURE OPENER When we think about consumer satisfaction and the consumption process, the link seems clear. Businesses with high levels of consumer satisfaction succeed, and those with low levels fail. However, this isn’t always the case. According to a major recent survey, the social networking website Facebook ranks in the bottom 5% of consumer satisfaction with privately held companies in the U.S. Respondents had no shortage of complaints about the site’s performance and user-friendliness. Yet, Facebook continues to grow at an explosive rate. How is this? Consumers who want to participate in social networking and want access to the largest possible community have little choice but to use the Facebook system. This means that the value of access outweighs the value of performance satisfaction. [Source: Matthew Shaer, “Why Facebook Enjoys Explosive Growth—Despite Its Many Stumbles,” The Christian Science Monitor, August 19, 2010, http://www.csmonitor.com.] KEY CONCEPTS WITH POWERPOINT® SLIDES Slide 1 Slide 2 LO1. Gain an appreciation of the link from consumption to value to satisfaction. Consumption, Value, and Satisfaction Slide 3 Consumption Leads to Value The important role of consumption becomes apparent when you consider that, without consumption, there is no value. The basic consumption process is illustrated in Exhibit 14.1. Slide 4 Consumption and Product Classification Important differences exist for the consumption of durable and non-durable goods. Durable goods are goods that are consumed over long periods of time. A washing machine is a durable good. Non-durable goods are consumed quickly. A bag of chips is a non-durable good. Marketers try to increase consumption frequency as much as possible, especially for non-durable goods. Consumption frequency refers to the number of times a product or service is consumed in a given time period. Slide 5 Situations and Consumer Reactions The temporal factors, antecedent conditions, and physical environment are influential on the consumption experience. How, what, and when we consume is largely dependent on our environment. The environment greatly influences consumption and consumer satisfaction. When golfers play on a crowded golf course, their pace of play is determined more by other golfers. Slide 6 Consumption, Meaning, and Transference Value depends on a process called meaning transference. Meaning transference is a process by which cultural meaning is transferred to a product and onto the consumer. Value is affected largely by the meaning of goods, services, and experiences. Few material items are as symbolic as the diamond wedding ring. During the recent economic downturn, researchers found that the demand for diamonds fell, but the symbolism of the diamond wedding ring kept those rings selling. Consumers may not have bought as expensive a ring as they might have a few years ago, but they still bought a ring as a symbol of their love and commitment. Slide 7 Slide 8 Consumption Outcomes and Emotion Consumers choose products, services, and experiences that they believe will deliver value and satisfy their wants and needs. Consumers experience a variety of emotions during the consumption experience including feelings of pleasure, arousal, joy, disgust, fear, and sadness. The relationship among consumption, value, and satisfaction is shown in Exhibit 14.3. Slide 9 What can I do in class? Q: Ask students what emotions they feel during the consumption process. Have students provide examples. A: Answers will vary. LO2. Discuss the relative importance of satisfaction and value in consumer behaviour. Value and Satisfaction Slide 10 Is satisfaction the key outcome variable for marketers and consumers? Consider Exhibit 14.4. If marketers ever faced the decision of providing value or satisfaction, value should be prioritized. As illustrated by the ACSI, firms can do well even when they do not enjoy the highest industry satisfaction scores, but a firm that does not provide value cannot do well. Slide 11 What Is Consumer Satisfaction? Consumer satisfaction is a mild, positive emotional state resulting from a favourable appraisal of a consumption outcome. Several points distinguish consumer satisfaction from other important consumer behaviour concepts: • Consumer satisfaction is a post-consumption phenomenon because it is a reaction to an outcome. • Like other emotions, satisfaction results from a cognitive appraisal. Some refer to this appraisal as the satisfaction judgment. • Satisfaction is a relatively mild emotion that does not create strong behavioural reactions. What Is Consumer Dissatisfaction? Consumer dissatisfaction can be defined as a mild, negative affective reaction resulting from an unfavourable appraisal of a consumption outcome. Slide 12 Slide 13 LO3. Know that emotions other than satisfaction can affect post-consumption behaviour. Other Post-Consumption Reactions Slide 14 Many other factors, including other emotions, may also occur post-consumption. This view can cause other important post-consumption reactions to be overlooked. Among these are the following: • Delight • Disgust • Surprise • Exhilaration • Anger The particular emotion experienced by consumers will do much to determine the behavioural reaction. Slide 15 What can I do in class? Q: Ask students if they have purchased an item from a website thinking it was real and later found out it was counterfeit (e.g., a watch or a purse). How did that make them feel? Were they OK with the fake? Would they buy from the same site again? A: Answers will vary. LO4. Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ post-consumption reactions. Theories of Post-Consumption Reactions Slide 16 Slide 17 The theories of post-consumption reactions are expectancy/disconfirmation theory, equity theory, and attribution theory. Expectancy/Disconfirmation The most commonly accepted theory of consumer satisfaction is the expectancy/disconfirmation theory or model. The basic disconfirmation model proposes that consumers enter into a consumption experience with predetermined cognitive expectations of a product’s performance. When performance perceptions are more positive than what was expected, positive disconfirmation occurs. Positive disconfirmation leads to consumer satisfaction. When performance perceptions do not meet expectations, meaning performance is less than expected, negative disconfirmation occurs. Negative disconfirmation leads to dissatisfaction. If performance perceptions exactly match what was expected, confirmation (sometimes simply referred to as neutral disconfirmation) is said to occur. The expectancy disconfirmation approach is shown in Exhibit 14.5, which reveals that expectations can also directly impact satisfaction (by the dotted line), independent of their role in the disconfirmation process. Slide 18 Expectations Expectations may be thought of as pre-consumption beliefs of what will occur during an exchange and/or consumption of a product. Consumer expectations have two components: 1. The probability that something will occur 2. An evaluation of that potential occurrence Types of Expectations Consumers have different types of expectations that they bring into a consumption situation: • Predictive Expectations—These are expectations that form about what the consumer thinks will actually occur during an experience. • Normative Expectations—These are expectations of what a consumer thinks should happen given their past experiences with a product or service. • Ideal Expectations—These are expectations about what the consumer really wants to happen during an experience if everything was ideal. • Equitable Expectations—These are expectations that a consumer forms regarding what they think should happen given the level of work that they’ve put into the experience. Slide 19 Sources of Expectations How do consumers form expectations? They come from a variety of sources. • Word-of-mouth communication from other consumers • Experience of other consumers • Advertisements and promotions that promise something to the consumer • Personal factors can influence what a consumer expects to get out of a product Slide 20 Expectation Confidence and Performance Perceptions While the disconfirmation approach seems to be relatively straightforward, the processes behind the approach can be complex. Performance Perceptions For example, if a consumer buys a brand of product that they know will be bad, their expectations are likely to be low. Even if these low expectations are met by their performance perceptions, they are likely to be dissatisfied. What can I do in class? Q: Ask students about their expectations. Specifically, ask them about their expectations in the CB course. What did they expect to be doing in class? What did they expect to learn? Did they expect to earn an A? a B? What are their sources for these expectations? A: Answers will vary. Confidence in Expectations and the Confirmatory Bias Another important issue in satisfaction theory is the degree to which consumers are confident in their expectations. Imagine a student who goes into class thinking, “This class is going to be really bad!” There is a tendency for an expectation like this to actually alter a student’s perception of the class experience. If the student thinks the class is going to be bad, he or she may very well look for evidence to support this expectation! The term to explain this phenomenon is “confirmatory bias.” Self-perception theory states that consumers are motivated to act in accordance with their attitudes and behaviours. Expectations and Service Quality Service quality can be thought of as the overall goodness or badness of a service provided. The SERVQUAL scale, a commonly applied technique for measuring service quality, takes this approach. Using this approach, service quality is actually a disconfirmation approach to capturing service quality. Desires and Satisfaction Desires are the level of a particular benefit that will lead to a valued end state. Studies have shown that desires directly impact satisfaction beyond the influence of disconfirmation alone. Emotions and meaning are also an important part of satisfaction formation. Emotions, Meaning, and Satisfaction Emotions and meaning play important roles in consumption. The meaning of the consumption experience can affect the overall satisfaction independently of prior expectations or perceptions. Equity Theory and Consumer Satisfaction Equity theory proposes that consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange. What do consumers get when they buy a computer? Of course, they get the computer, but they also get a warranty, service contract, and maybe even an in-home installation. These items represent their outcomes. The computer salesperson should put time into understanding the consumer’s desires and the way in which the computer will be used so as to match these factors with a good arrangement of product features. Slide 21 Inequitable Treatment Consumers do not always receive the same service from providers. Service providers must be keenly aware of how customers are treated in public to maintain perceptions that all customers are treated in much the same way—or at least treated in a fair way. What can I do in class? Q: Ask students to describe a situation in which they weren’t treated in the same way as other customers. Give examples of service providers that do treat people fairly, in a consistent manner. A: Answers will vary. The Apple store, if students have been to buy products or get help, might be a good example of service providers aware of how they treat their customers. There are always many staff members ready and willing to help people in the store. Inequitable Consumers Some consumers may take a minor mishap and complain so fiercely that managers feel compelled to proffer something overly generous as a way of calming the consumer. Slide 22 Attribution Theory and Consumer Satisfaction Attribution theory focuses on explaining why a certain event has occurred and proposes that consumers look for the cause of particular consumption experiences when arriving at satisfaction judgments. Three key elements constitute the attribution theory: 1. Locus—Refers to judgments of who is responsible for an event. Consumers can assign the locus to themselves or to an external entity, such as a service provider. A selfascribed event occurs when a consumer blames him or herself for a bad event. For example, a consumer might say to herself, “I knew putting the TV outside so we could watch the game was a bad idea when it started to rain.” 2. Control—Refers to the extent to which an outcome was controllable. For example, consumers could ask themselves, “Should this company have been able to control this event?” Two parties at a restaurant are experiencing a long wait to get seated even though they have reservations. The restaurant didn’t count on it being so cold that they couldn’t seat guests on the patio. One party is irate (beyond dissatisfaction) with the restaurant because they believe the restaurant should have planned better. The other party is not happy about the situation but does not blame the restaurant because weather events are uncontrollable. Therefore, the situation does not significantly affect the satisfaction process for this customer. 3. Stability—Refers to the likelihood that an event will occur again in the future. For example, consumers could ask themselves, “If I buy this product again, is another bad outcome likely to happen?” Returning to the restaurant example, if a customer wasn’t seated quickly and had to wait for a table more than once at this same restaurant, he or she naturally comes to believe that this is a stable situation, and satisfaction with the restaurant will be diminished Slide 23 Cognitive Dissonance Cognitive dissonance refers to lingering doubts about a decision that has already been made. Dissonance is sometimes known as “buyer’s regret” or “buyer’s remorse.” A consumer is more likely to experience true dissonance following a purchase when the following conditions exist: • An awareness of many attractive alternatives that may offer comparable value relative to the product/brand purchased • The decision is difficult to reverse • The decision is important and involves risk • The consumer has low self-confidence To lessen feelings of discomfort following a purchase, consumers may do any or all of the following activities: • Return the product if possible • Complain about the experience • Seek positive information about the alternative selected • Seek negative information about the alternatives not selected • Minimize the perceived importance of the decision Slide 24 Cognitive Dissonance and Satisfaction Satisfaction and cognitive dissonance are closely related topics. One difference between the two concepts is that, while satisfaction is generally felt after a consumption experience, dissonance may be experienced even before consumption begins. LO5. Understand problems with commonly applied satisfaction measures. Consumer Satisfaction/Dissatisfaction Measurement Issues Slide 25 Marketers can measure consumer satisfaction in many ways. The following list contains three popular ways in which satisfaction is measured. 1. Direct, Global Measure—Asks consumers to assess their satisfaction on a scale such as the following: How do you rate your overall satisfaction with your television? Completely satisfied Dissatisfied Satisfied Completely satisfied 2. Attribute-Specific—Assesses a consumer’s satisfaction with various components or attributes of a product, service, or experience, such as: How satisfied are you with each of the following attributes of your television? Picture quality Completely dissatisfied 1 2 3 4 5 Completely satisfied 3. Disconfirmation—Compares the difference between expectations and performance perceptions. This measure can be taken in a direct, subjective fashion, such as: Compared to my expectations, this television performs . . . Worse than expected 1 2 3 4 5 Better than expected Slide 26 Improving Satisfaction Measures Satisfaction is one of the most commonly measured concepts in consumer behaviour as well as one of the most difficult to accurately measure. In fact, typical consumer responses to this type of measure show that the vast majority of consumers (80% or more) choose “satisfied” or “completely satisfied” as a measurement. Statistically speaking, the result is data that are left skewed, meaning that the bulk of consumers have indicated that they are satisfied or completely satisfied with a product or service. LO6. Describe some ways that consumers dispose of refuse. Disposing of Refuse Slide 27 Disposal Decisions A final step in consumption is disposal of any consumer refuse. Consumer refuse is any packaging that is no longer necessary for consumption to take place or, in some cases, the actual good that is no longer providing value to the consumer. Slide 28 What can I do in class? Q: Ask students which methods they use to dispose of products. A: Answers may include taking clothes to a second-hand shop, visiting the Salvation Army, and using eBay to sell items. See how innovative your students are at making extra money. A number of disposal alternatives are available, including the following: • Trashing—Consumers can simply throw away waste material including unused products, packaging, and by-products. Many marketers have turned to so-called green marketing initiatives whose aim is to use packaging materials that cut down on the environmental impact of waste. • Recycling—Consumers can recycle used products or packaging. • Converting—Consumers can convert products or product packaging into new products in a number of creative ways. • Trading—Consumers can trade old products for new products. The automotive industry has encouraged this practice for years. • Donating—Consumers can also donate used products to various causes. Eyeglasses, clothing, and cars are often donated to help other consumers who may not be able to afford new products. • Reselling—One of the most popular methods for permanently disposing of used products is to simply sell them. Garage sales and swap meets are popular means of disposing of products. Of course, online methods, such as eBay, are also quite popular with consumers. Slide 29 What can I do in class? Q: Ask students if they have had any luck using online sites such as eBay.ca, Craigslist.ca, and Kijiji.ca to sell either used or handmade (perhaps from recycled products) items. Do they prefer auctions or classified sites? Why? A: Answers may vary. VIDEO CLIP PowerPoint Clip from Boyne Resorts Run time 0:54 minutes Slide 30 Boyne USA Resorts has built on its customer base of sport and leisure enthusiasts to grow from a single outpost to a multi-resort, nationwide company. Because much of Boyne’s success depends on the weather, Boyne leadership, managers, and employees must be resourceful and adaptable in order to keep consumer satisfaction high. In some cases this has meant heavy investment in snowmaking technology, while in others it involves building large-scale, indoor water parks. In any situation, Boyne reinforces consumer satisfaction through a program called “Boyne Basics.” This company-wide program is designed to build excellence in customer service. Ask your students: 1. In what ways does the “Boyne Basics” program enhance customer satisfaction? Answer: The “Boyne Basics” program asks employees to put themselves in the place of the consumer. It offers employees reminder cards on the best way to meet customers’ needs. It also encourages employees to use the facilities. This enhances employee product knowledge and promotes a company culture known as “the Boyne way of life.” 2. How does Boyne company structure reinforce the goal of consumer satisfaction? Answer: Boyne company structure allows for this in terms of big-picture company decisions as wells as the daily interactions between the front-line employees and their direct interactions with customers. Instructor Manual for CB Consumer Behaviour Canadian Barry J. Babin, Eric Harris, Kyle B. Murray 9780176555283
Download
Close
Close
