Marketing Chapter 18 Homework What Determines Satisfaction For Online Retailers Four

subject Type Homework Help
subject Pages 9
subject Words 4441
subject Authors David L Mothersbaugh Associate Professor of Marketing, Delbert I Hawkins Dr

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CHAPTER 18
POSTPURCHASE PROCESSES, CUSTOMER
SATISFACTION, AND CUSTOMER COMMITMENT
LEARNING OBJECTIVES
LO1: Describe the various post-purchase processes engaged in by consumers
LO2: Define and discuss post-purchase dissonance
LO3: Discuss the issues surrounding product use and nonuse and their importance to marketers
LO4: Summarize disposition options and their relevance to marketers and public policy
LO5: Explain the determinants and outcomes of satisfaction and dissatisfaction
LO6: Describe the relationship between satisfaction, repeat purchase, and customer
commitment
SUMMARY
LO1: Describe the various post-purchase processes engaged in by consumers
Purchase is followed by a number of processes including use, evaluation, and in some cases
LO2: Define and discuss post-purchase dissonance
Following some purchases, consumers experience doubts or anxiety about the wisdom of the purchase.
LO3: Discuss the issues surrounding product use and nonuse and their importance to marketers
Whether or not the consumer experiences dissonance, most purchases are followed by product use.
This use may be by the purchaser or by some other member of the purchasing unit. Monitoring
decision to use the product as well as the decision to purchase the product.
LO4: Summarize disposition options and their relevance to marketers and public policy
Disposition of the product or its package may occur before, during, or after product use.
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LO5: Explain the determinants and outcomes of satisfaction and dissatisfaction
Consumer perceptions regarding satisfaction and dissatisfaction are a function of a comparison process
between consumer expectations of performance and their perceptions of actual performance. When
LO6: Describe the relationship between satisfaction, repeat purchase, and customer
commitment
Satisfaction results in a number of positive outcomes including repeat purchases, positive word of
mouth, and, in some cases, loyalty. Not all satisfied customers are loyal. Simply meeting
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LECTURE TIPS AND AIDS
1) A good way to begin is to have each student describe in writing his or her own postpurchase
processes for three recent purchases. Selected students can then read their descriptions. Class
discussion can then focus on the factors that lead to differing postpurchase processes.
2) Have the students describe two brands of which they are nonloyal repeat purchasers and two for
3) Have the students describe two product categories in which they exhibit multibrand loyalty or
5) Have the students report examples of nonstandard product use. What, if any, marketing strategies
are suggested by the reports?
6) Assign and/or prepare one or more of the CB PRESS HIGHLIGHTS articles for class discussion.
7) Build a recent news story or commercial into your PowerPoints. The searchable Video and
Commercial Links Database can be found in the Instructor Resources in Connect.
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REVIEW QUESTIONS
1) What are the major postpurchase processes engaged in by consumers?
2) How does the type of decision process affect the postpurchase processes?
Habitual decisions involve product use, disposition, and very limited evaluation, and generally
3) What is postpurchase dissonance?
4) What characteristics of a purchase situation are likely to contribute to postpurchase dissonance?
Characteristics of the purchase situation which are likely to contribute to postpurchase dissonance
include:
5) In what ways can a consumer reduce postpurchase dissonance?
6) What is consumption guilt?
Consumption guilt occurs when some negative emotions or guilt feelings are aroused by the use of
a product or service.
7) What is use innovativeness?
8) What is an off-label use, and why is it important to companies?
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Consumers use innovativeness leads to off-label use, whereby consumers use a product for which
9) Why are surveys not always the most effective way to get at innovative product uses?
While surveys can provide useful information and are easier than ever to conduct (given that many
10) What is meant by product nonuse and why is it a concern of marketers?
Product nonuse occurs when a consumer actively acquires a product that is not used at all or used
11) What is meant by the disposition of products and product packaging, and why does it interest
governmental regulatory agencies and marketers?
Disposition of a product and/or its packaging refers to how the product and/or packaging is
12) What is e-waste and why is it a growing concern?
13) What factors influence consumer satisfaction? In what way do they influence consumer
satisfaction?
A consumer's evaluation of a purchase is influenced by the purchase itself, postpurchase
performance relative to those expectations
14) What is the difference between instrumental and symbolic performance, and how does each
contribute to consumer satisfaction?
Instrumental performance relates to the physical functioning of a product while symbolic
performance of a product relates to the aesthetic or image-enhancement performance of a product.
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15) What is affective performance?
Affective performance is the emotional response that owning or using the product provides. It may
16) What courses of action can a consumer take in response to dissatisfaction? Which are used most
often?
When dissatisfaction occurs, a consumer can either take action or take no action. When no action
17) What determines satisfaction for online retailers?
Four dimensions have been identified as follows:
18) What would marketers like consumers to do when dissatisfied? How can marketers encourage
this?
When a consumer is dissatisfied, the most favorable consequence is for the person to communicate
19) What is churn? How does it affect profits?
Churn is a term used to refer to turnover in a firm’s customer base. If a firm has a base of 100
20) What are the sources of increased profits from longer term customers?
Price premiums since repeat and particularly committed customers tend to buy the brand
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21) What is the relationship between customer satisfaction, repeat purchases, and committed
customers?
Customer satisfaction with a brand or store is generally necessary for repeat purchases to occur. If
extent, is committed to him or her.
22) What is the difference between repeat purchasers and committed customers?
Repeat purchasers continue to buy a brand out of habit, lack of choice, because it is the cheapest or
23) What are switching costs?
24) Why are marketers interested in having committed customers?
Loyal customers are somewhat immune to competitors' actions and are more likely to purchase the
25) What is the Net Promoter Score?
26) What is relationship marketing? What strategies are involved?
Relationship marketing attempts to develop an ongoing, expanding exchange relationship with a
firm’s customers. In many ways it seeks to mimic the relationships that existed between
27) What are loyalty programs? What do most of them actually do?
Loyalty programs are intended to encouraging repeat purchases. Many are designed to generate
repeat purchases rather than committed customers.
28) What factors influence e-loyalty?
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Discussion Questions
29) How should retailers deal with consumers immediately after purchase to reduce postpurchase
dissonance? What specific action would you recommend, and what effect would you intend it to
have on the recent purchaser of (gift to) the following?
a) PBS donation
30) What type of database should your university maintain on its students? In general, what ethical
concerns surround the use of such databases by institutions and companies?
The use of information is the area of most concern when dealing with ethical issues. Many may
feel harassed if frequent, unnecessary contact was made with consumers/students.
31) How should manufacturers deal with consumers immediately after purchase to reduce
postpurchase dissonance? What specific action would you recommend, and what effect would you
intend it to have on the recent purchaser of the following?
a) Cell phone
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32) How do some companies capitalize on the concept of use innovativeness?
Companies are using contests, Web-based suggestion boxes, and social media tracking to
33) Discuss how you could determine how consumers actually use the following. How could this
information be used to develop marketing strategy?
a) Microwave
b) Wrist watches
34) How would you go about measuring consumer satisfaction among purchasers of the following?
What questions would you ask, what additional information would you collect, and why? How
could this information be used for evaluating and planning marketing programs?
a) Cell phone service
b) Walmart.com
35) What level of product dissatisfaction should a marketer be content with in attempting to serve a
particular target market? What characteristics contribute to dissatisfaction, regardless of the
marketer’s efforts?
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This discussion question can focus on what level of consumer satisfaction is practical in serving
consumers with diverse needs, perceptions, experiences, and personalities. Discussion could first
36) Describe the last time you were dissatisfied with a purchase. What action did you take? Why?
Answers will vary. Many students will not remember a specific instance of dissatisfaction, which
37) Are you a mere repeat purchaser of any brand, service, or outlet? Why are you not a committed
customer? What, if anything, would make you a committed customer?
Students will enjoy this exercise. First, specify the objective of the program. Is it to build brand
38) Respond to the questions Consumer Insight 18-1.
The reason has to do with the underlying factors that drive consumers to engage in positive WOM
which appear to relate to having an emotional commitment (attitudinal loyalty) toward the firm or
brand.
39) What are some of the negative consequences of “firing” customers?
Students should be encouraged to discuss their emotional responses. They likely range from
40) Are you a committed customer to any brand, service, or outlet? Why?
41) Design a customer loyalty program for the following.
a) High-end hotel chain
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b) Grocery store chain

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