Consumer Behaviour

Post Decision Processes

Dissonance

After an acquisition or consumption decision, the consumer may feel uncertain about whether the correct choice has been made Post purchase dissonance is most likely to occur when
More than one alternative is attractive The decision is important

How does this influence consumer behaviour?

Creates anxiety The customer would like to reduce this anxiety

Regret

Post purchase regret occurs when

Consumers perceive an unfavourable comparison between the performance of the chosen option and the unchosen options Regret may be felt even when the consumer has no information about the unchosen alternatives

When the decision cannot be reversed There is a negative outcome from the choice made

Buyers of BMW receive a copy of BMW magazine, filled with interesting facts and information about the car. This reduces dissonance.
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Model of learning from consumer experience

Process of hypothesis testing On the basis of past experience or another sources

Word of mouth Advertising Consumers form a hypothesis or expectation about a brand, a consumption experience They set out to test it

Hypotheses can be formed in relation to any aspect of consumer behaviour

Purchase Consumption disposition

A model of learning from consumer experience

Consumer familiarity with the domain Consumer motivation to learn

Prior beliefs

Hypothesis generation

Exposure to evidence

Encoding of evidence

Integration of evidence and prior beliefs

Revised beliefs

Ambiguity of the information environment

What affects learning from experience

Motivation

When consumers are motivated to process information, many hypotheses will be generated Active engaging in the process of learning
High knowledge:

Prior knowledge or ability

well defined beliefs and expectations Unlikely to generate new hypotheses Less likely to search for information Inhibits learning

Ambiguityof the information environment or lack of opportunity

Consumers may lack sufficient information to confirm or disprove hypotheses Many offerings may be similar in quality Little information gained from the experience Hypotheses supported by advertising or word of mouth Information gathered by experience cannot be disproved, so they see the product as consistent with their prior expectations

Responses to dissatisfaction

Complaints Negative word of mouth

Complaints

The majority of dissatisfied customers do not complain Complaining is more likely to occur when

Motivation is high Ability is high Opportunity is high Level of dissatisfaction is high Severity of the problem is high They perceive that complaining will take a lot of effort and time Chances of benefiting from it are low Product or service is insignificant

Consumers are less likely to complain when

Complainer types

Passives: least likely to complain Voicers: likely to complain directly to the retailer or service provider Irates: angry consumers, most likely to engage in negative word of mouth, stop patronage and complain to the provider but not to a third party Activists: engage heavily in all types of complaining including to a third party

Negative word of mouth

Often motivated to tell others More likely to occur when

Problem is severe Consumers are not happy with the companys responsiveness Perceive that the company is at fault