Chapter 12
1

Model of Consumer Problem Solving
Problem Recognition
Search for Information
Evaluation of
Alternatives
Choice Decision
Purchase
Postpurchase Use and
Reevaluation
2

Chapter Overview


Dissonance
Satisfaction/Dissatisfaction
– disconfirmation paradigm
– attribution theory
– equity theory
 Complaining/negative WOM
3


Post-Decision Dissonance
Doubts/Anxiety about product choice
Was buying a
“previously loved vehicle” at Honest
Abe’s the right
– many times we attempt to choice? Should I have gone elsewhere??
justify our choices
 confirming evidence
 denial or minimization of downsides (e.g., the repair bills really aren’t that high)
 support from others
 modification of beliefs (e.g., I really didn’t want a roomy car!)
4

Satisfaction/Dissatisfaction
Judgements
 Disconfirmation Paradigm
 ___________ Theory
 ________ Theory
5

The Disconfirmation Paradigm



Expectations: beliefs we have before usage
Performance: evaluation of what happened
Disconfirmation: occurs when these two are not equal
– positive leads to satisfaction
– negative leads to dissatisfaction


Example: New movie release
Beware of “overpromising”
6

Attribution Theory
 Stability
– temporary or frequent?
 F
– is it my fault or their fault?
 Controllability
– could it be prevented?
7

Equity Theory
 Fairness of exchange
– perceived relationship of cost of production to price charged
– relative bargaining power of the two sides
– opportunism
8

Individual Application Exercise
 Think about the three ways consumers can conclude they are dissatisfied
(disconfirmation paradigm, attribution theory & equity theory).
 Explain how each of these approaches could apply to a night at a hotel.
 Provide a specific example for each approach.
9

Dissatisfaction Outcomes
I hate your vulgarity and violent films!
I’m going to tell all my friends that your newest release stinks!
 Complaining
– How common is complaining?
– Other ways of getting back at the firm
 brand switching
 active boycotts
 Negative WOM
10

Effective Handling of
Complaints
 Acceptance of responsibility
 Quick action, e.g.,
– replacement
– repair
– refund
– exchange
11

Chapter 12 Review
 Dissonance
 Satisfaction/Dissatisfaction
– disconfirmation paradigm
– attribution theory
– equity theory
 Complaining/negative WOM
12

Model of Consumer Problem Solving
Problem Recognition
Search for Information
Evaluation of
Alternatives
Choice Decision
Purchase
Postpurchase Use and
Reevaluation
13