Consumption To Satisfaction & Consumer Relationship

LECTURE 11
Consumption to
satisfaction &
Consumer Relationship
La Trobe Business School
CONSUMPTION TO VALUE TO SATISFACTION
Consumption Leads to Value Consumption Depends on Product

Types
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Which one would you consume/ use more?
Non-durable Goods Durable Goods
Marketers always try to increase the FREQUENCY &

QUANTITY of consumption
1
How, what, & when people consume is largely
dependent upon the environment that they are in.
Temporal Factors
Antecedent Conditions
Physical Environment
Your behaviour before/ during/ post consump
tion is influenced by emotion!
CONSUMPTION TO VALUE TO SATISFACTION
2
VALUE AND RELATIONSHIP OUTCOMES
Depending on how the consumption

process happens, one may be able to
estimate the consumption value.
Value comes from use of the service provided

by the product
Value in use: Finding love or finding sex
Value is depended on its Cultural Meaning
3
Value and Satisfaction links together
•A post-consumption phenomenon.
•From a cognitive appraisal
•Mild emotion, not create strong behavioral reactions.
EXPECTANCY DISCONFIRMATION,
EQUITY, AND ATTRIBUTION THEORY
Theories of Post-Consumption Reactions
Expectancy / Disconfirmation
Equity
Attribution
Activity 3
• Look at this incident:

• https://www.youtube.com/watch?v=XUB
eW_NFggM
• Is the customer satisfied? Why?
4
Expectations components:
The probability that something will occur.

An evaluation of that potential occurrence.
Types of Expectations Sources of Expectations
Predictive Word-of-Mouth
Experience
Normative
Advertisements
Ideal
Personal Factors
Equitable
Now, look at it in a different perspective
• Why didn't the customer stops the

salemen immediately when he is
dissatisfied?
5
Equity Theory
Proposes that consumers cognitively compare their own level of inputs and
outcomes to those of another party in an exchange.
If outcomesA/inputsA ≈ outcomesB/inputsB, then satisfaction will be positively affected.
Consumer Satisfaction
Fairness perceptions affect satisfaction
Inequitable treatment
Inequitable consumers
Equity theory – Why he waits
• outcomesA/inputsA ≈ outcomesB/inputsB
He got the necklace with beautiful wraping/

Spend 270 pounds
VS
Sell a 270 pounds necklace / Do the extra
gift wraping
Now, look at it in a different perspective
• Would the customer blame the

salemen?
• Is it inevitable?
6
Attribution Theory
Focuses on explaining why a certain

event has occurred.
Elements
Locus - Judgments of who is

responsible for an event.
Control - The extent to which an
outcome was controllable or not.
Stability - The likelihood that an
event will occur again.
Attribution Theory
WHY would the customer blame the salemen ?

His surprise gift was busted/ ruined
Locus: The salemen – doing too many extra steps
wraping
Control: Controllable
Stability: Not (it's a Christmas special extra)
=> The customer may blame the salemen
POST-CONSUMPTION BEHAVIOR EMOTIONS
Other Post-Consumption Reactions
Delight
Disgust
Surprise
Exhilaration
Anger
7
Negative reaction can occur post
consumption too
Cognitive Dissonance
Lingering doubts about a decision that has already been made - Sometimes
known as buyer’s regret.
Conditions
Consumer is aware that there are many attractive alternatives.
Decision is difficult to reverse.
Decision is important and involves risk.
Consumer has low self-confidence.
Reduce Cognitive Dissonance with

informations
DISPOSING OF PRODUCTS
Consumer Refuse
Any packaging that is no longer necessary for consumption to take place.
The actual good that is no longer providing value to the consumer.
Disposing of Refuse
Trashing
Recycling
Converting
Trading
Donating
Reselling
8
It doesn't end here
VALUE AND RELATIONSHIP OUTCOMES
The consumption value will guide the

relationship between consumers and
brands
9
COMPLAINING AND SPREADING WOM
Complaining behaviour - Action that occurs when a consumer

actively seeks out someone (supervisor, service provider, etc.)
with whom to share an opinion regarding a negative consumption
event
WOM – Word Of Mouth
• Avoid customer leaving!
SWITCHING BEHAVIOUR
Switching - times when a consumer chooses a competing

choice, rather than the previously purchased choice, on the next
purchase occasion
10
SWITCHING COSTS
Switching costs - Costs associated with changing from one
choice (brand/retailer/service provider) to another
Procedural - Lost time and extended effort spent in learning ways of using
some product offering
•
Financial - Total economic resources that must be spent or invested as a
consumer learns how to obtain value from a new product choice
Relational - Emotional and psychological consequences of changing from one
brand/retailer/service provider to another
FACTORS CONTRIBUTING TO
SWITCHING COSTS
The Characteristics of Relationship

Quality
Competence. Consumer views company and service providers as

knowledgeable and capable.
Communication. Consumer and firm understand each other and “speak the
same language.”
Trust. Buyer and seller can depend on each other.
Equity. Both buyer and seller see equity in exchange and are able to equitably
resolve conflicts.
Personalization. Buyer treats the customer as an individual with unique desires

and requirements.
Gratifying. The relationship provides for gratifying (value-added) experiences.
Customer oriented. Strong relationships are more likely to develop when a firm
practices a marketing orientation, and this filters down to service providers and
salespeople.
11

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LECTURE 11

La Trobe Business School

CONSUMPTION TO VALUE TO SATISFACTION

Consumption Leads to Value Consumption Depends on Product

Which one would you consume/ use more?

Non-durable Goods Durable Goods

Marketers always try to increase the FREQUENCY &

CONSUMPTION TO VALUE TO SATISFACTION

Depending on how the consumption

Value comes from use of the service provided

Value in use: Finding love or finding sex

Value is depended on its Cultural Meaning

Theories of Post-Consumption Reactions

• Look at this incident:

The probability that something will occur.

Types of Expectations Sources of Expectations

Now, look at it in a different perspective

• Why didn't the customer stops the

If outcomesA/inputsA ≈ outcomesB/inputsB, then satisfaction will be positively affected.

Fairness perceptions affect satisfaction

Equity theory – Why he waits

He got the necklace with beautiful wraping/

Now, look at it in a different perspective

• Would the customer blame the

Focuses on explaining why a certain

Locus - Judgments of who is

WHY would the customer blame the salemen ?

=> The customer may blame the salemen

POST-CONSUMPTION BEHAVIOR EMOTIONS

Other Post-Consumption Reactions

Consumer is aware that there are many attractive alternatives.

Decision is difficult to reverse.

Decision is important and involves risk.

Consumer has low self-confidence.

Reduce Cognitive Dissonance with

Any packaging that is no longer necessary for consumption to take place.

The actual good that is no longer providing value to the consumer.

It doesn't end here

VALUE AND RELATIONSHIP OUTCOMES

The consumption value will guide the

Complaining behaviour - Action that occurs when a consumer

WOM – Word Of Mouth

• Avoid customer leaving!

Switching - times when a consumer chooses a competing

The Characteristics of Relationship

Competence. Consumer views company and service providers as

Trust. Buyer and seller can depend on each other.

Personalization. Buyer treats the customer as an individual with unique desires

Gratifying. The relationship provides for gratifying (value-added) experiences.

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