Customer Relationship Management

Prof. Shainesh. G
Benefits to Customers

Benefits to customers

As customers spend a lot of time and effort in evaluating products, specially a high
involvement product, and in choosing a brand. So there is a natural tendency to continue
using the same brand. So if a customer is satisfied, she will not want to look for another
alternative for the next purchase occasion. The effort in comparing alternatives, while
searching for products for time starved consumers makes them reduce their choice, and
repurchasing the same brand simplifies buying and consuming tasks. Consumers will not
have to strain themselves to collect information, compare offerings, so it simplifies
information processing and this enables them also reduce risk. All purchase situations
involves some amount of risk. These include financial risk, performance risk, social risk and
psychological risk. These risks can be reduced if consumers stay with offerings that they
have used satisfactorily.

We often notice that purchases turn into a habit. As consumers, we automatically pick up
brands or products that we have been using for several years. Unless there is a disruption
e.g. due to a bad experience, the customer would want to simplify the buying process. This
simplification provides psychological comfort to customers.

Purchase of high involvement products that are also expensive, such as a car or electronic
gadgets, creates cognitive dissonance. The customer wants to convince himself that he has
made the right choice. So, cognitive consistency is one of the reasons why the customer is
satisfied with his recently purchased high involvement brand.

© All Rights Reserved. This document has been authored by Prof. Shainesh. G and is permitted for use only within the course, Customer
Relationship Management, delivered in the online course format by IIM Bangalore. No part of this document, including any logo, data,
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