Consumption occasions
• Gift(to whom?)
• Solo consumption (evening escape,
office break)
• Visiting friends / relatives
• At work with colleagues
• Family teatime
• Holiday tradition
• Romantic gesture
21.
Consumption. How much?
•How can influence how much (glass shape)
• Supply influences quantity
• Estimating future needs
• Usage volume segmentation: heavy users, moderate users, light users (16% of
users per 88% of consumption). CLV?
• Overestimation of consumption
• Ways of increasing: enhance the frequency (ads, modify product), more per
occasion (larger pack, variety); visibility and convenience
• More or less?
Consumption. Norms andRituals
• Norms – informal rules that govern consumption behavior
• Rituals – expressive, symbolic activity constructed of multiple behaviors that
occur in a fixed, episodic sequence that tend to be repeated over time
Compulsive Consumption
• Aresponse to an uncontrollable drive or
desire to obtain, use, or experience a
feeling, substance, or activity that leads an
individual to repetitively engage in a
behavior that will ultimately cause harm to
the individual and possibly others
Importance of Satisfaction
ItInfluences Repeat Buying
• Positive post-consumption evaluations are essential for retaining
customers (unless you have a monopoly)
• The likelihood that customers will remain loyal depends on their level
of satisfaction
• However, customer satisfaction does not guarantee loyalty
Importance of Satisfaction
ItUltimately Affects
Shareholder Value
Over the long term, what is the stock return for
companies with higher levels and greater improvements
in customer satisfaction, relative to competition? ACSI
researchers analyzed this using ACSI scores and stock
prices of those companies from 2006 through the first
month of 2025. The cumulative return over this time
period was 2,265% for the leading ACSI companies vs.
605% for the S&P 500.
38.
Importance of Satisfaction
ItShapes Word-of-Mouth
• Consumers often communicate with others about their consumption
experiences
• People who are moderately satisfied don’t talk about products as much
as those who are either extremely satisfied or extremely dissatisfied
• A negative experience spreads 2x faster than a positive one
• Social media amplifies WOM by over 50% compared to in-person
conversations
• Most people trust WOM more than any advertisement.
39.
Satisfaction -> Promotion
•Net Promoter Score (NPS) is a widely used metric that measures
customer loyalty and predicts future business growth.
• It is derived from one primary question: “How likely are you to
recommend our product or service to a friend or colleague?”
• Based on their responses, customers are grouped into three
categories:
○ Promoters (9–10): Highly satisfied and loyal; likely to recommend.
○ Passives (7–8): Moderately satisfied but unenthusiastic.
○ Detractors (0–6): Unsatisfied or unhappy; may spread negative word-of-mouth.
○ https://hbr.org/2003/12/the-one-number-you-need-to-grow
What shapes satisfaction?
Satisfactiondepends on a comparison of pre-purchase expectations to
actual outcomes
• Negative disconfirmation: when product delivers less than expected -
> regret, rage
• Positive disconfirmation: when product delivers more than expected
• Confirmation: product matches expectations