Professional Documents
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2008 - 07 - 31 Day 4 Notes (Buyer Behavior) v1
2008 - 07 - 31 Day 4 Notes (Buyer Behavior) v1
-eg giving people an anchor, early on, will have an effect Presentation: Yousef & Mario – Influence Tactics
on later behaviour …quoting higher price on e-bay as --
the asking price
Decoy Effect
-in product line, the middle option is usually chosen
since one is getting the best of both worlds
-many good things that come from repeat purchase EQUITY MODEL
flowing from customer satisfaction -corporate actions also count
-but, they may repeat because there is lack of people want to ensure the whole value chain is
competition or because the price is being constantly being treated fairly
lowered (you can’t rely on these, though, in the long
run) better to rely on customer satisfaction Starbucks highlighting CSR aspects;
-increase in incomes & material wealth has not tracked BASF also highlighting environmental friendliness
increase in happiness over time (bio-degradable plastic);
-actually, men are becoming slightly more happy; American Apparel is “sweatshop free”
women are becoming less happy
People care about
What influences satisfaction? -environment (computers & landfill)
-with life -fairness to workers (fair trade coffee)
-with people -social causes (charities)
-with products
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GAP MODEL
-it’s really just TORA + Expectations / Gap BIASES IN SATISFACTION JUDGMENTS
subject to….
Things that drive Customer Satisfaction Confirmation Bias
performance (functional attributes)
expectations (exp’n 1 + exp’n 2) -eg price guarantee is not well exploited by customers
feelings (hedonic attributes)
GAP: functional gap (actual – expected) + hedonic First Impressions Count
gap (actual – expected) -losses loom larger than gains
-harder to “fix” first negative impression; harder to lose
….so, marketers want to increase positive gap to first positive impression
increase customer satisfaction
The Psychic Effect
….accordingly, it may make sense to “hold back” some -confirmation bias stronger when
attributes, so that you can surprise the customer and * expectations are open-ended
increase the gap, and increase satisfaction * expectations are non-falsifiable
* expectations is perceptual, not quantifiable
it’s a way of getting customers hooked
Error of Attribution
ATTRIBUTION MODEL
-to explain lost satisfaction…it’s -when things go wrong, one’s first tendency is to blame
a special case of the GAP Model to most concrete, obvious thing… so firms are blamed
(see slides) when causes are actually external
Atida Motors case children will tentatively accept what they are told
-good reputation for style and performance, less so for (eg stereotypes)
customer service (but improving)
-new customer service manager opened a new state-of- repetition = truth (availability heuristic)
the art centre in Bangalore
-new model of car was introduced Group Presentation – Nature vs. Nurture
“Andromeda”….experiencing a lot of complaints (Harris Article)
-how to address customer complaints?
Parents traditional view was that this is what
Recommendations matters (psychological determinism, Freud)
-meet expectations and perhaps surpass them
-offer reimbursements Harris suggests that friends are more determinative
-presenters are stressing that in the age of YouTube,
customers have more power to get back at companies Also, genetics play a very important role: twin
studies where they are separated, suggests that
parents have little effect on their offspring
SOCIAL PRESSURE (SP)
Cinderella effect: ability to adapt behaviour to
-used to be that marketing got producers 1 week of environment
movie sales, regardless of quality of movie
-now, it is just a day or two “Peer Trumps Parents” – kids of divorced parents
-advertising is less important nowadays, with VIRAL more likely to drop out of school / get pregnant
advertising (word-of-mouth) taking more prominence (since they have to change peer groups)
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