Chapter 18: Part 1 Flashcards Preview

MKT 424: Exam #3 > Chapter 18: Part 1 > Flashcards

Flashcards in Chapter 18: Part 1 Deck (19)
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1

Postpurchase dissonance

consumer reaction after making a difficult, relatively permanent decision, doubt or anxiety occurs

2

The probability and magnitude of such dissonance are a function of:

- Degree of commitment or irrevocability of the decision
- Importance of the decision to the customer
- Difficulty of choosing among the alternatives
- Individual’s tendency to experience anxiety

3

Consumers may use one or more of the following approaches after the purchase to alter the decision or reduce the dissonance:

- Increase the desirability of the brand purchased
- Decrease the desirability of rejected alternatives
- Decrease importance of purchase decision
- Reverse the purchase decision (return product before use)

4

Consumption guilt

when negative emotions or guilt feelings are aroused by the use of a product or a service

5

Particular alternative such as product/brand/retail outlet is chosen because

it was thought to be a better choice

6

When brand is in consumer’s inept set, three things can drive choice:

1. Available alternatives do not exist, 2. Emergency situation, 3. Family decisions

7

Nature of problem and percentage listing each as a reason why they switched providers:

Core service failure (44%), Service encounter failures (34%), Pricing (30%), Inconvenience (21%), Responses to service failure (17%), Attraction by competitors (10%), Ethical problems (7%), Involuntary switching (6%)

8

Instrumental performance

the physical functioning of the product

9

Symbolic performance

aesthetic or image-enhancement performance

10

Affective performance

emotional response that owning or using a product or outlet provides

11

Options available to dissatisfied consumers:

Take action (complain, stop buying from brand or store, etc.), Take no action (less favorable)

12

Marketers should strive to minimize

dissatisfaction and effectively resolve dissatisfaction when it occurs

13

Firms need to satisfy consumer expectations by:

1. Creating reasonable expectations through promotional efforts
2. Maintaining consistent quality so that reasonable expectations are fulfilled

14

Acting on complaints in a timely & effective manner is

key to consumer satisfaction

15

Retaining consumers by encouraging and responding effectively to complaints is more

economical than attracting new customers through advertising or other promotional activities

16

Objective is to produce

committed or brand-loyal customers

17

Repeat purchasers

continue to buy same brand even though they have no emotional attachment to it

18

Switching costs

cost of finding, evaluating and adopting another solution

19

Brand loyalty

biased behavioral response expressed over time by a decision-making unit with respect to one or more alternative brands