Chapter 7: Postpurchase processes,
customer satisfaction and consumer
loyalty
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-1
Postpurchase processes, customer
satisfaction and consumer loyalty
Final consideration in the consumer decision
making process
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-2
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
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-3
Postpurchase processes
• Postpurchase dissonance
• Product use and non-use
• Disposal
• Purchase evaluation
• Customer satisfaction, repeat purchase behaviour
and consumer loyalty
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-4
Postpurchase consumer behaviour
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-5
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
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-6
Product use and non-use
• Product use
–
use innovativeness
– regional variations
– multiple vs single use
• Packaging
• Defective products
– product recalls
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-7
Product-usage index for VCR,
microwave and PC
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-8
Unique packaging for competitive advantage
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-9
Incidence of product recalls in Australia
Year
Consumer
goods
Food
Therapeutic
Motor
vehicles
2005-6
187
69
325
156
2004-5
160
62
381
155
2003-4
165
80
436
128
2002-3
179
81
448
99
2001-2
209
73
265
95
2000-1
111
36
172
115
95
55
141
89
1999-2000
Ref: www.recalls.gov.au/stats_recall.php
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-10
Product disposal and
marketing strategy
• Recycling
–
–
product
package
• Trade-ins
–
to motivate replacement
• Second-hand markets
–
–
E.g. textbooks, clothes
‘Cash converters’
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-11
Product-disposal alternatives
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-12
Purchase evaluation
• Evaluation of a purchase is influenced by:
–
–
Expectations
Perceived performance
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-13
Expectations, performance and satisfaction
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-14
Dissatisfaction responses
• Possible outcomes of a negative purchase
evaluation:
–
–
–
Taking no action
Switching brands, products or stores
Warning friends and colleagues
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-15
Dimensions of performance
• Customers switch ‘away’ from service providers
rather than ‘to’ providers.
• In one study the reasons were:
–
–
–
–
–
–
–
Core service failure (44%)
Service encounter failures (34%)
Inconvenience (21%)
Response to service failures (17%)
Attraction to competitors (10%)
Ethical problems (7%)
Involuntary switching (6%)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-16
Actions taken by consumers in
response to product dissatisfaction
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-17
Four types of response styles associated
with dissatisfaction have been identified:
• Passives (14%)
–
Seldom take action, younger group, don’t see a benefit from
complaining
• Voices (37%)
–
Seldom take private or public action, usually complain directly to
the firm, older group, believe they are providing a social benefit
• Irates (21%)
–
Take above average levels of private response and average
levels of direct action, but low levels of public action
• Activists (28%)
–
Likely to get involved in private, direct and public action, believe
they are providing social benefits by complaining
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-18
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
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-19
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
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-20
Relationship marketing
Five key elements:
• Developing a core product/service on which to
build
• Customising the relationship to the individual
customer
• Augmenting the core product/service with extra
benefits
• Pricing in a manner that encourages loyalty
• Marketing to employees so that they perform well
for customers
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-21
Brand loyalty is
• Biased
• A behavioural response
• Expressed over time
• A consumer selects a brand over alternative
brands
• A function of psychological processes
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-22
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
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-23
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)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-24
Using technology
• Modern information technology makes possible
these close, ‘customised’ relationships that add
customer perceived-value to the product/service
–
E.g. preferred seats on a airline,
– Type of hotel suite
– Car servicing details
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-25
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 that refers other customers
to your firm
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-26
“Loyal customers expect a good price, but
they crave value most of all.”
(Palmer, 1996)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-27
• Rule No. 1
The customer is always right.
• Rule No.2
If the customer is not right, then refer to
Rule No. 1!
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-28
Measuring customer satisfaction
• Qualitative measurement techniques
• Focus groups
• Monitoring surveys
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-29
Summary
We have discussed:
• The postpurchase process
• The postpurchase dissonance
• Why product use is important to marketers
• Why product disposal is important to consumers
• Concept of customer satisfaction
• Concept of consumer loyalty
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-30
Next lecture
Chapter 8:
Perception
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
7-31