Lecture Consumer behaviour: Chapter 7 - Cathy Neal, Pascale Quester, Del Hawkins

In this lecture we examine the postpurchase process as the after sale period. We will also discuss the importance of customer satisfaction and consumer loyalty. This lecture will cover the following topics: postpurchase dissonance, product use, disposal, purchase evaluation, and aspects of gaining customer satisfaction and 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

Postpurchase Consumer Behaviour

– importance of the decision to the consumer

– difficulty of choosing among the alternatives

– individual’s tendency to experience anxiety

Product-Usage Index

Unique Packaging for Competitive Advantage

The Incidence of Product Recalls 1998–2003

Product-Disposal Alternatives

Expectations, Performance

and Satisfaction

– Switching brands, products or stores

– Warning friends and colleagues

Actions Taken by Consumers in Response to

Product Dissatisfaction

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

7–16

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

The five key elements:

1 Developing a core product/service on which to

4 Pricing in a manner that encourages loyalty

5 Marketing to employees so that they perform well for customers

• expressed over time

• where a consumer selects a brand over alternative brands

• a function of psychological processes

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

7–20

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

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

7–21

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)

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

7–23

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 which refers other

customers to your firm

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

7–24

“Loyal customers expect a good price, but

they crave value most of all.”

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

7–26

Measuring Customer Satisfaction

• Qualitative measurement techniques

• Focus groups

• Monitoring surveys