Choice and Satisfaction Flashcards
(18 cards)
What is satisfaction?
The attitude like feeling of a customer towards a product or service after it has been used.
“ the full meeting of ones expectations” (Oliver 1980)
How do you measure satisfaction? (4 things)
- Overall satisfaction
- Attribute satisfaction
- Loyalty Measurement (likely to stay)
- Intention measurement
Explain satisfaction through Disconfirmation theory?
Disconfirmation theory: assumes consumers satisfaction or dissatisfaction results from a positive or negative discrepancy between performance and expectations of goods and services.
positive disconfirmation= performance> expectations
Negative disconfirmation: expectations>performance
two cognitive variables: pre purchase and disconfirmation. post and pre purchase are compared with each other, determining the disconfirmation. whether positive or negative, will lead to satisfaction or dissatisfaction.
What are the sources of expectations? (4 things)
- Memories of past experiences
- WOM communications
- Thirds party information
- Cultural Milieu
How does expectations vary? (two types)
- active expectations: consumers has through about what will happen
- Passive expectations: general frame of reference that might be called upon as and when necessary (friend said pizza was really good, should have it sometime)
note criticism: performance affects satisfaction directly as well through disconfirmation (Oliver, 1993)
What factors affect consumer satisfaction? (4 things)
- Expectations
- Disconfirmation (product performance)
- Product performance
- Consumption emotions (derived from product performance rather than disconfirmation)
What are the consequences of customer satisfaction or dissatisfaction? (5 things)
- Exit
- WOM advertising
- Repurchase intentions
- Loyalty
- Complaining behaviour
What are some important implications about satisfaction? 3 things)
- it means a higher level of behavioural tendency
- Doesn’t necessarily make them a more loyal customer however
- Satisfaction affects expectation, even if expectation levels are going down, perception will go up. Next time the customer will be satisfied
What is the attribution theory? (Mizerski et al 1979, Weiner 2000)
- Consumers seek explanations for causes of outcomes.
- Attribution has 3 elements, influence, satisfaction/dissatisfaction:
1. Focus
2. Controllability
3. Stability
Define Loyalty
The relationship between the relative attitude shown by a person towards a brand/product and their patronage behaviour (Dick and Basu, 1994)
What are 4 categories of Loyalty?
- Loyalty: High attitudes, High level patronage
- Latent Loyalty: high relative attitude, low repeat patronage
- Spurious Loyalty: low relative attitude but high repeat patronage
- No loyalty: low attitude and low level of repeat patronage
What is the purpose of loyalty programmes?
- Retain customers by providing them value and satisfaction
- increase spending by existing customers
- cross-sell other products of which existing customers might not be aware
Define Relational consumption? (Evans et al 2004)
Long term relationship between consumers and organisations. through mutual exchange, fulfilment of promise and adherence to relationship norms in order to enhance experience of the parties concerned.
What does Richfield argue about consumer repeat purchase patterns? ( 4 things)
- they don't necessarily repeat loyalty they may be: 1. Trapped by inertia 2. Indifferent to brands 3. High exit imposed by the brand 4. Reduced need for given product/brand
What are some of the reasons for consumers switching behaviour? (Keaveny, 1995) (8 things)
- Core Service failure
- Service encounter failure
- Employee response to service failure
- Pricing
- Inconvenience
- Attracted by a competitor
- Ethical issues
- Involuntary switching
What are the two most important post-purchases phenomenon?
- Customer Satisfaction: ones full meeting of ones expectations (Oliver 1980)
- important for marketers, WOM. - Consumers imagined ideas about how the product is going to function (Shin and Huber 2000)
What is the Equity theory?
Fairness, rightness or deservingness judgement that consumer make in reference to what others receive (Oliver 1997)
What is Disposable behaviour?
- concerns the disposal of used-up products including those we no longer need. customers engage in a variety of theses such as: throwing away, recycling, selling/swapping, giving away or keeping.
- technological advancement have led to shorter life cycles for some products
