Consumer Behaviour (704003)
Chapter 5:
POST-PURCHASE PROCESSES,
CUSTOMER SATISFACTION and
CONSUMER COMMITMENT
O B J ECT IV E
S
LEARNIN
G
01
DESCRIBE THE VARIOUS POSTPURCHASE PROCESSES
ENGAGED IN BY CONSUMERS.
02
DEFINE and DISCUSS
POSTPURCHASE DISSONANCE
03
DISCUSS THE ISSUES SURROUNDING PRODUCT USE AND
NONUSE and THEIR IMPORTANCE TO MARKETERS
04
SUMMARIZE DISPOSITION OPTIONS and
THEIR RELEVANCE TO MARKETERS
05
EXPLAIN THE DETERMINANTS and OUTCOMES OF
SATISFACTION and DISSATISFACTION
06
DESCRIBE THE RELATIONSHIP BETWEEN SATISFACTION,
REPEAT PURCHASE, and CUSTOMER COMMITMENT
Overview
Consumer Decision-Making Process
Problem or
Need
Recognition
Information
Search
Evaluation of
Alternatives
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
Purchase
Decision
Postpurchase
Behavior
3
Postpurchase Consumer Behavior Processes
Fig 18-1
Purchase
Postpurchase
dissonance
Nonuse
Usage
Product
disposal
Complaint
behavior
Evaluation
Satisfaction
Committed
customers
Repeat
purchases
Increased
use
Brand
switching
Discontinued
use
4
Chapter
05
Post- purchase
Processes
Customer
Satisfaction
Consumer
Commitment
5.1 Post-purchase Dissonance
5.2 Product Use and Nonuse
5.3 Disposition
Purchase Evaluation and Customer
5.4
Satisfaction
5.5 Dissatisfaction Responses
Customer Satisfaction, Repeat Purchases
5.6
and Customer Commitment
Chapter
05
Post- purchase
Processes
Customer
Satisfaction
Consumer
Commitment
5.1 Post-purchase Dissonance
5.2 Product Use and Nonuse
5.3 Disposition
Purchase Evaluation and Customer
5.4
Satisfaction
5.5 Dissatisfaction Responses
Customer Satisfaction, Repeat Purchases
5.6
and Customer Commitment
5.1 Post-purchase Dissonance
DEFINITION
A common consumer reaction
characterized by doubt or anxiety
after making a significant, relatively
permanent purchase decision.
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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5.1 Post-purchase Dissonance (cont.)
a) Factors influencing the possibility and intensity
of post-purchase dissonance
b) Consumers’ approaches to reduce
post-purchase dissonance
c) Consumption guilt
d) Marketing strategies that help reduce postpurchase dissonance
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
8
5.1 Post-purchase Dissonance (cont.)
a) Factors influencing the possibility and
intensity of post-purchase dissonance
 The degree of commitment or irrevocability of the
decision
 The importance of the decision to the consumer
 The difficulty of choosing among the alternatives
 The individual’s tendency to experience anxiety
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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5.1 Post-purchase Dissonance (cont.)
b) Consumers’ approaches to reduce
post-purchase dissonance
 Increase the desirability of the brand purchased
 Decrease the desirability of rejected alternatives
 Decrease the importance of the purchase decision
 Reverse the purchase decision
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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5.1 Post-purchase Dissonance (cont.)
c) Consumption Guilt
Negative emotions or guilt feelings aroused by the
use of a product or a service
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
11
5.1 Post-purchase Dissonance (cont.)
d) Marketing Strategies
 Confirm wisdom of purchase to reduce postpurchase dissonance
(via advertising and follow-up sales communication)
 Validate the use of product to address
consumption guilt
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
12
5.1 Post-purchase Dissonance (cont.)
SUM UP
 Post-purchase dissonance and consumption guilt are common
consumer reactions
 Post-purchase dissonance can be more likely to happen if the
purchase decision was difficult, expensive, important, or
permanent.
 Consumers may use various strategies to reduce this feeling
 Marketers can address post-purchase dissonance through effective
communication and support mechanisms.
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
13
Chapter
05
Post- purchase
Processes
Customer
Satisfaction
Consumer
Commitment
5.1 Post-purchase Dissonance
5.2 Product Use and Nonuse
5.3 Disposition
Purchase Evaluation and Customer
5.4
Satisfaction
5.5 Dissatisfaction Responses
Customer Satisfaction, Repeat Purchases
5.6
and Customer Commitment
5.2.1 Product Use & Product Nonuse
Product Use
the way that consumers interact
with a product after they have
purchased it.
Functional product use
Symbolic product use
Consumer using the product
for its intended purpose
Consumer using the product
to express oneself or to
achieve a certain social
status
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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5.2.1 Product Use & Product Nonuse
Importance & Benefits of Understanding Product Use
a) Design more effective product designs
that meet the needs of consumers
b) Develop more effective marketing
campaigns that resonate with consumers
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16
5.2.1 Product Use & Product Nonuse
Importance & Benefits of Understanding Product Use
c) Identify new product opportunities that
help expand market and boost sales
 Use Innovativeness
 Complementary Products
d) Reduce product liability risks that can
result in legal consequences and negative
publicity
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Product Use & 5.2.2 Product Nonuse
Product Nonuse occurs when a consumer
actively acquires a product that is not used or
used only sparingly relative to potential use
o Why Product Nonuse Occurs
o How Product Nonuse Affects Marketers
o How to Reduce Product Nonuse
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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Product Use & 5.2.2 Product Nonuse (cont.)
Purchase Decision & Usage Decision
• Simultaneous Purchase and Usage Decision
• Separate Purchase and Usage Decision
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Product Use & 5.2.2 Product Nonuse (cont.)
Why Product Nonuse Occurs?
•
The consumer changes their mind between the
purchase and the potential usage occasion.
•
The consumer is not happy with product
performance, features, or value.
•
The product may no longer meet the needs of the
consumer
•
The consumer forgets about the product or forget
how to use it.
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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Product Use & 5.2.2 Product Nonuse (cont.)
Why Product Nonuse Occurs? (cont.)
•
The product is outdated and is no longer useful
•
The consumer has trouble finding the time or
motivation to use the product.
•
The product is not as useful or enjoyable as the
consumer expected.
•
Using the product is too costly and there are
more economical alternatives or options
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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Product Use & 5.2.2 Product Nonuse (cont.)
Why Product Nonuse Occurs? (cont.)
•
The product is difficult to use or inconvenient.
•
The consumer may have replaced the product
with a newer or better version
•
Some consumers just stock up items
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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Product Use & 5.2.2 Product Nonuse (cont.)
How Product Nonuse Affects Marketers
 Reduced repeat sales
 Customer dissatisfaction
 Negative WOM
 Lost positive referrals
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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Product Use & 5.2.2 Product Nonuse (cont.)
How Product Nonuse affects marketers (cont.)
 Reduced brand loyalty
 Brand erosion
 Increased costs
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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Product Use & 5.2.2 Product Nonuse (cont.)
Suggested approaches to reduce product nonuse:
 Educate consumers about product benefits
and use.
 Remind and encourage product use.
 Suggest appropriate product use
occasions.
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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Product Use & 5.2.2 Product Nonuse (cont.)
Suggested approaches to reduce product nonuse (cont.)
 Make products easy to use and
convenient.
 Offer a liberal return policy.
 Use online tools to help consumers find
the right products.
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
26
5.2 Product Use & Product Nonuse (cont.)
RECAP

Product use and nonuse are important to marketers
because they can impact sales, customer satisfaction, and
brand reputation.

Marketers can learn a lot about their products and
customers by monitoring product usage.

Product nonuse can be a costly problem for both marketers
and consumers.

Marketers can use a variety of strategies to reduce product
nonuse and encourage product use.
27
Chapter
05
Post- purchase
Processes
Customer
Satisfaction
Consumer
Commitment
5.1 Post-purchase Dissonance
5.2 Product Use and Nonuse
5.3 Disposition
Purchase Evaluation and Customer
5.4
Satisfaction
5.5 Dissatisfaction Responses
Customer Satisfaction, Repeat Purchases
5.6
and Customer Commitment
5.3 Disposition
Product or packaging disposition can occur
before, during, or after use
1.
Disposition Alternatives
2.
Product Disposition and Marketing Strategy
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
29
5.3.1 Disposition Alternatives Fig 18-2
Recycle
Throw away as
garbage
Use for
original
purpose
Package
Trade in
Use for new
purpose
Store
Get rid of
Retain
Product
Sell to end user,
to middleman,
via middleman
Give away
To be used
To be sold
Loan
12/12/2016
704003 - Evaluating and selecting alternatives
5.3 Disposition
5.3.2
Product Disposition and Marketing Strategy
Why marketers should be concerned of product disposition?
 Long-term environmental reasons
 Short-term economic reasons
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5.3 Disposition
5.3.2
Product Disposition and Marketing Strategy
Five major ways of disposition decisions that can affect a firm's
marketing strategy
Reasons for Concerns
Affect on firm's marketing strategy
1. Consumers are reluctant to
 Can influence the timing and
purchase a new item until they
have “gotten their money’s
worth” from the old one
likelihood of repurchase

o Should allow old items to be
traded in
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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5.3 Disposition
5.3.2
Product Disposition and Marketing Strategy
Five major ways disposition decisions that can affect a firm's
marketing strategy (cont.)
Reasons for Concerns
Affect on firm's marketing strategy
2.
 Can impede acquisition of new
Disposition sometimes must
occur before acquisition of a
replacement because of space
or financial limitations
customers

o Should assist consumers in the
disposition process
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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5.3 Disposition
5.3.2
Product Disposition and Marketing Strategy
Five major ways disposition decisions that can affect a firm's
marketing strategy (cont.)
Reasons for Concerns
Affect on firm's marketing strategy
3.
 Used-product market can hurt
The consumers’ frequent
decisions to sell, trade, or give
away used products generate a
large used-product market
sales of new products

o Should have strategies to deal
with this competition
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
34
5.3 Disposition
5.3.2
Product Disposition and Marketing Strategy
Five major ways disposition decisions that can affect a firm's
marketing strategy (cont.)
Reasons for Concerns
Affect on firm's marketing strategy
4. More and more consumers are  Can appeal to more
concerned with waste and how
environmentally conscious
their purchase decisions affect
consumers
waste

o Should take steps to ensure that
products have minimal waste
and/or can be reused
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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5.3 Disposition
5.3.2
Product Disposition and Marketing Strategy
Five major ways disposition decisions that can affect a firm's
marketing strategy (cont.)
Reasons for Concerns
Affect on firm's marketing strategy
5.
 Should develop products,
Environmentally sound
disposition decisions benefit
packages, and programs that
society as a whole.
encourage proper disposition
Firms and employees are also
decisions
part of that society
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
36
5.3 Disposition (cont.)
Sum up
 Product or packaging disposition can
occur before, during, or after use.
 There are a variety of ways to dispose of
products and packaging, including
recycling, reuse, and disposal
 e-Waste is a growing problem in some
countries
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
37
5.3 Disposition (cont.)
Sum up (cont.)
 Companies and Consumers can play a role
in reducing product and packaging waste
o Companies: by designing their products and
packaging with sustainability in mind.
o Consumers: by understanding the different ways
that products and packaging can be disposed of
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
38
Chapter
05
Post- purchase
Processes
Customer
Satisfaction
Consumer
Commitment
5.1 Post-purchase Dissonance
5.2 Product Use and Nonuse
5.3 Disposition
Purchase Evaluation and
5.4
Customer Satisfaction
5.5 Dissatisfaction Responses
Customer Satisfaction, Repeat Purchases
5.6
and Customer Commitment
5.4 Purchase Evaluation & Customer Satisfaction
5.4.1
The Evaluation Process
1. Expected Performance (Expectations):
Level of performance that
consumers expect from a product
Purchase
2. Perceived Performance:
Consumers evaluating the
level of performance that
they actually experience from
a product against their
expectations
 Dissatisfaction
 Nonsatisfaction
 Satisfaction
Usage
Evaluation
Satisfaction
40
5.4 Purchase Evaluation & Customer Satisfaction
5.4.1
The Evaluation Process
1. EXPECTED PERFORMANCE
Purchase
Usage
2. PERCEIVED PERFORMANCE
Evaluation
 Dissatisfaction
 Nonsatisfaction
 Satisfaction
Satisfaction
41
5.4 Purchase Evaluation & Customer Satisfaction
5.4.1
The Evaluation Process (cont.)
1. Expected Performance

Consumer’s expectations for a product

Based on a variety of factors

Different levels of expectations for different
products, depending on the product
category and the situation
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
42
5.4 Purchase Evaluation & Customer Satisfaction
5.4.1
The Evaluation Process (cont.)
2. Product Perceived Performance

Consumer's subjective judgment of how well
a product meets their expectations
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
43
5.4 Purchase Evaluation & Customer Satisfaction
5.4.1
The Evaluation Process (cont.)
4. Results
 Satisfaction & Brand Commitment: product
exceeding expectations
 Satisfaction: product meeting expectations
 Dissatisfaction: product performing below
expectations
 Nonsatisfaction: product confirming
consumers’ low expectation of that product
44
5.4 Purchase Evaluation & Customer Satisfaction
5.4.1
The Evaluation Process (cont.)
Satisfaction
Repeat
purchases
Increased
use
Brand
advocacy
Committed
customers
Significant Impact of Consumer Satisfaction on Future Purchase Decisions
45
5.4 Purchase Evaluation & Customer Satisfaction
5.4.2
Causes of Satisfaction and Dissatisfaction
Why people switch service providers?
(from major research results)
Critical Reasons
Performance Dimensions

Core function failure
44%

Service encounter failures
34%

Pricing
30%

Inconvenience
24%
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5.4 Purchase Evaluation & Customer Satisfaction
5.4.2
Causes of Satisfaction and Dissatisfaction
Why people switch service providers?
(from major research results)
Minor Reasons
Performance Dimensions

Responses to service failures
17%

Attraction by competitors
10%

Ethical problems
7%

Involuntary switching
6%
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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5.4 Purchase Evaluation & Customer Satisfaction
5.4.2
Causes of Satisfaction and Dissatisfaction
Why people switch service providers?
(from major research results)

Major causes are the perceived problems with their
current service provider, not because of competitor
actions!

For many products, complete satisfaction requires
adequate performance on both Instrumental and
Expressive (Symbolic) dimensions

Satisfaction can also come from product Affective
Performance
48
Chapter
05
Post- purchase
Processes
Customer
Satisfaction
Consumer
Commitment
5.1 Post-purchase Dissonance
5.2 Product Use and Nonuse
5.3 Disposition
Purchase Evaluation and Customer
5.4
Satisfaction
5.5 Dissatisfaction Responses
Customer Satisfaction, Repeat Purchases
5.6
and Customer Commitment
5.5 Dissatisfaction Responses
Dissatisfaction
Take action
Take no action
Less favorable
attitudes
Complain to
stores or to
manufacturers
Stop buying
that brand or
that store
Engage in
negative
W.O.M.
Complain to
private or
government
agencies
Initiate legal
action
50
5.5 Dissatisfaction Responses (cont.)
Most dissatisfied consumers are likely to:

switch brands, engage in negative WOM, instead of
complaining to companies

engage more in negative WOM than satisfied
consumers do in positive WOM
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
51
5.5 Dissatisfaction Responses (cont.)
5.5.1
Marketing Strategy and Dissatisfied Customers
A. Satisfying consumer expectations
to avoid negative WOM
B. Handling the viral effect of negative WOM on social
media
C. Making it easy for consumers to complain
D. Proactively handling and learning from customer
complaints
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
52
5.5 Dissatisfaction Responses (cont.)
5.5.1
Marketing Strategy and Dissatisfied Customers
A. Satisfying consumer expectations to avoid negative WOM
Strategies
 Set clear and reasonable expectations
 Maintain consistent quality
 Be transparent and honest with customers
 Empower customer service representatives to resolve
problems quickly and easily
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
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5.5 Dissatisfaction Responses (cont.)
5.5.1
Marketing Strategy and Dissatisfied Customers
B. Handling the viral effect of negative WOM on social media
Strategies
 Monitor social media for negative mentions of your brand
 Be proactive in responding to negative WOM
 Use social media to share positive customer experiences
 Partner with social media influencers
 Offer incentives for positive reviews
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
54
5.5 Dissatisfaction Responses (cont.)
5.5.1
Marketing Strategy and Dissatisfied Customers
C. Making it easy for consumers to complain
Strategies
 Provide multiple channels for complaint submission
 Make the complaint process simple and easy to follow.
 Provide timely and effective responses
 Offer solutions that resolve the consumer's problem
 Go above and beyond to resolve the consumer's problem
 Be transparent and honest with consumers
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
55
5.5 Dissatisfaction Responses (cont.)
5.5.1
Marketing Strategy and Dissatisfied Customers
D. Proactively handling and learning from customer complaints
Strategies
 Create an internal process for handling customer
complaint
 Empower and train your customer service representatives
to be proactive
 Use technology to track customer complaints
 Use customer complaints to improve R&D and marketing
campaigns
704003 - Post purchase processes, customer satisfaction and consumer loyalty (Mai Nguyen)
56
Chapter
05
Post- purchase
Processes
Customer
Satisfaction
Consumer
Commitment
5.1 Post-purchase Dissonance
5.2 Product Use and Nonuse
5.3 Disposition
Purchase Evaluation and Customer
5.4
Satisfaction
5.5 Dissatisfaction Responses
Customer Satisfaction, Repeat
5.6 Purchases and Customer
Commitment
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
Committed customers: Customers
with brand advocacy and loyalty.
Unlikely to switch brands.
Committed
Customers
Repeat Purchasers
Satisfied Buyers
Total Buyers
Repeat purchasers: purchased the
brand more than once. Likely to
continue buying but still vulnerable
to competitor actions
Satisfied buyers: purchased and satisfied
with a product. Likely to repurchase, but
not necessarily committed or loyal
Total buyers: purchased the brand at least once. Potential market for the
company, but not necessarily loyal or satisfied
58
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.1
Repeat Purchasers, Committed Customers, and Profits
 Churn
 Customer Acquisition Cost (CAC)
 Customer Retention Costs (CRC)
 Customer Lifetime Value (CLTV)
59
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.1
Repeat Purchasers, Committed Customers, and Profits
 Churn
The turnover in a firm’s customer base
Example: year 2022
o Customer base = 100 customers
o 20 left
o Churn rate = 20% (20/100)
60
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.1
Repeat Purchasers, Committed Customers, and Profits
 Customer Acquisition Cost (CAC)
The total cost of acquiring a new customer
Example:
o $2,000 on Search Engine Advertising (SEA) costs
o $8,000 on Content Marketing costs
o 10,000 new customers
o CAC = $10/customer
61
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.1
Repeat Purchasers, Committed Customers, and Profits
 Customer Retention Costs (CRC)
The average cost of keeping one existing customer
Example:
o Customer retention activities costs:
 $5,000 on customer support
 $10,000 on loyalty programs
o 1,000 retained customers
o CRC = $15/customer ($15,000/1,000)
62
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.1
Repeat Purchasers, Committed Customers, and Profits
 Customer Lifetime Value (CLTV)
Predicted net profit generated over the entire future
relationship with a customer
CLTV = Average Customer Purchase Value * Average Customer Lifespan
o Average customer purchase value: The average amount of revenue
that a customer generates for a business over the course of their
relationship with the business.
o Average customer lifetime: The average number of years that a
customer is expected to remain a customer of a business.
Example:
• Company average customer lifetime: 5 years
• Company average customer value: $1,000 per year.
• Company's CLTV = $5,000 ($1,000 * 5 years)
63
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.1
Repeat Purchasers, Committed Customers, and Profits
Facts:
 Customer Acquisition Cost (CAC) is usually higher
than Customer Retention Cost (CRC)
 Repeat Purchasers and Committed Customers are
more profitable than new customers
 Repeat Purchasers and Committed Customers
(with CLTV increasing over time) are more
profitable than some unprofitable customers
64
Sources of Increased Customer Profitability over Time
Figure 18-5
Price premium: repeat and committed customers tending to buy the brand
consistently rather than waiting for a sale or continually negotiating price
Referrals: profits generated by new customers acquired as a result of
recommendations from existing customers
Lower costs: occur because both the firm and the
customer learn how to interact more efficiently over time
Increased sales volume:
customers tending to use
a wider array of a firm’s
products and services
over time
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.1
Repeat Purchasers, Committed Customers, and Profits
Strategies to improve profitability:
 Reducing churn rate
 Increasing CLTV
 Retaining Repeat Purchasers and Committed
Customers
 Converting customers into brand loyalists
Total buyers  satisfied  repeat  committed
66
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.2
Repeat Purchasers, Committed Customers, and Marketing Strategy
Marketing objectives must be specific
1. Attract new users to the product category.
2. Capture competitors’ current customers.
3. Encourage current customers to use more.
4. Encourage current customers to become repeat
purchasers.
5. Encourage current customers to become committed
customers.
67
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.2
Repeat Purchasers, Committed Customers, and Marketing Strategy
Objectives
1. Attract new users to the product category.
2. Capture competitors’ current customers.
Strategies

Convince potential customers with superior value

Retain customers after the initial sale

Generate positive, or at least neutral, WOM
communications.
68
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.2
Repeat Purchasers, Committed Customers, and Marketing Strategy
Objectives:
3. Encourage current customers to use more.
4. Encourage current customers to become repeat
purchasers.
5. Encourage current customers to become committed
customers.
Strategies

Focus on Relationship Marketing
69
Customer Satisfaction Outcomes
Fig 18-6
Our total
products
Increased
use
Repeat
purchases
Consumer
decision
process
Superior
value
expected
SALES
Perceived
value
delivered
Customer
satisfaction
Brand
loyalty
Competitor
total
products
WOM
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.2
Repeat Purchasers, Committed Customers, and Marketing Strategy
Relationship Marketing:
“An attempt to develop an ongoing,
expanding exchange relationship with
customers”
71
5.6 Customer Satisfaction,
Repeat Purchases & Customer Commitment
5.6.2
Repeat Purchasers, Committed Customers, and Marketing Strategy
Relationship Marketing 5 Key Elements
1. Developing a core product around which to build a
customer relationship.
2. Customizing the relationship to the individual customer.
3. Augmenting the core service or product with extra
benefits.
4. Pricing in a manner to encourage loyalty.
5. Marketing to employees so that they will perform well for
customers.
72
Chapter
05
Post- purchase
Processes
Customer
Satisfaction
Consumer
Commitment
5.1 Post-purchase Dissonance
5.2 Product Use and Nonuse
5.3 Disposition
Purchase Evaluation and Customer
5.4
Satisfaction
5.5 Dissatisfaction Responses
Customer Satisfaction, Repeat Purchases
5.6
and Customer Commitment
Postpurchase Consumer Behavior Processes
Fig 18-1
Purchase
Postpurchase
dissonance
Nonuse
Usage
Product
disposal
Complaint
behavior
Evaluation
Satisfaction
Committed
customers
Repeat
purchases
Increased
use
Brand
switching
Discontinued
use
74