Post purchase behavior

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Philip kotler marketing

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Post purchase behavior

  1. 1. POST-PURCHASE BEHAVIOR 14
  2. 2. Post-Purchase Consumer Behavior
  3. 3. Post-purchase Dissonance <ul><li>Doubt or anxiety experienced after taking a difficult purchase decision. </li></ul><ul><li>Factors Affecting Post-Purchase Dissonance: </li></ul><ul><ul><li>No. of alternatives being considered </li></ul></ul><ul><ul><li>Difficulty in choosing one of the alternatives </li></ul></ul><ul><ul><li>Substitutability – near equal alternatives to choose from </li></ul></ul><ul><ul><li>Attractiveness of foregone alternatives </li></ul></ul><ul><ul><li>Degree of familiarity with the product </li></ul></ul><ul><ul><li>Information available at the time of purchase </li></ul></ul><ul><ul><li>Time and comfort with which the purchase was made </li></ul></ul><ul><ul><li>Expected negative reactions from others </li></ul></ul>
  4. 4. Post-purchase Dissonance (Contd..) <ul><li>Consumers may regret the purchase made due to: </li></ul><ul><ul><li>Product/brand purchased fails to live up to expectations </li></ul></ul><ul><ul><li>Positive post-purchase information about foregone alternatives (upward comparison) </li></ul></ul><ul><ul><li>Negative post-purchase information about alternative chosen – consumers may actively look for information </li></ul></ul><ul><ul><li>“ Consumption guilt ” – for using products that may be potentially unhealthy or harmful in some way </li></ul></ul><ul><li>Product usage/non-usage influences post-purchase dissonance </li></ul><ul><ul><li>May use product incorrectly or in a new way </li></ul></ul><ul><ul><li>May buy a product without much thought and may not use it or discontinue using it after a short period – a product purchased is not necessarily a product consumed </li></ul></ul>
  5. 5. Post-purchase Dissonance <ul><li>Approaches to reduce dissonance: </li></ul><ul><ul><li>Increase desirability of the brand purchased </li></ul></ul><ul><ul><li>Decrease desirability of rejected brand </li></ul></ul><ul><ul><li>Decrease importance of the purchase </li></ul></ul><ul><ul><li>Reverse purchase decision ( return before use ) </li></ul></ul>
  6. 6. Disposal Alternatives
  7. 7. Expectations, Performance & Satisfaction <ul><li>Satisfaction is a function of expectation – hence manage expectations; do not make false promises </li></ul><ul><li>Satisfaction is not to be confused with repurchase intention & customer loyalty. Satisfied customers too switch brands in search of better alternatives </li></ul><ul><li>Dissatisfied customers may make repeat purchases due to lack of better alternatives or resistance to /cost of switching </li></ul><ul><li>Therefore focus on total customer satisfaction and not on immediate repurchase intention </li></ul>Perceived Performance Relative to Expectation Consumer Reaction Better Satisfaction Same Non-satisfaction (neutral) Worse Dissatisfaction
  8. 8. Service Quality - Expectation & Satisfaction <ul><li>Zone of tolerance or zone of accommodation is the difference between ‘desired’ and ‘acceptable’ service levels </li></ul><ul><li>If service falls below ‘acceptable’ level, consumers are likely to switch </li></ul><ul><li>Common reasons for switching to other brands in service industries: </li></ul><ul><ul><li>Failure of main service, including service delay </li></ul></ul><ul><ul><li>Service counter failure – impolite behavior </li></ul></ul><ul><ul><li>Deceptive pricing or unfair price increase </li></ul></ul><ul><ul><li>Inappropriate employee response to service failure </li></ul></ul><ul><ul><li>Better service/pricing by competitors </li></ul></ul><ul><ul><li>Ethical issues – unsafe & unhealthy services, etc. </li></ul></ul>
  9. 9. Dissatisfaction Response – Customer Complaint Behavior Passives Voicers Irates Activists
  10. 10. “ To err is human– to recover, divine” <ul><li>Listen to the squeaky wheel </li></ul><ul><li>Look for complaints -- make complaining easy </li></ul><ul><li>Anticipate needs for recovery </li></ul><ul><li>Accept responsibility (do not refuse to recognize the problem) </li></ul><ul><li>Quick action, e.g., </li></ul><ul><ul><li>Replacement </li></ul></ul><ul><ul><li>Repair </li></ul></ul><ul><ul><li>Refund </li></ul></ul><ul><ul><li>Exchange </li></ul></ul><ul><li>Opportunity to improve customer experience – customer delight </li></ul><ul><li>Empower and train employees </li></ul>Effective Handling of Complaints
  11. 11. <ul><li>The proportion-of-purchases method measures brand loyalty in terms of some arbitrary proportion of purchases (by a consumer) going to a particular brand. For example, if more than 75 per cent of a consumer’s purchases are of a particular brand during a given time period, that consumer could be considered as loyal to the brand. </li></ul><ul><li>The basic premise is that brand loyalty is not an all-or-nothing phenomenon. Instead, it is viewed as a continuum from complete loyalty to complete brand indifference. </li></ul>Brand Loyalty – Proportion-of-Purchases Method
  12. 12. Undivided loyalty: AAAAAAAA Occasional switch: AAA B AAA B Switch loyalty: AAAA BBBB Divided loyalty: AA B A BB A B Brand indifference: A B D C B A C D The different buying patterns, in which A, B, C and D are competing brands, can be portrayed as follows: Brand Loyalty – Proportion-of-Purchases Method (Contd..)

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