CHAPTER 6 Post-purchase Processes: Consumption and Evaluation Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, Ninth Edition Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior Knowing how many and which consumers fall into the user and nonuser categories Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior Knowing how many and which consumers fall into the user and nonuser categories Size of user market is one indicator of market attractiveness Size of nonuser group speaks to future growth opportunities Characterized along many dimensions Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Entire Population Users Nonusers When is it consumed? Where is it consumed? How is it consumed? How much is consumed? •Proximity to purchase •Time of day •Situation A •Situation B •Usage 1 •Usage 2 •Heavy Users •Moderate Users •Light Users Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior When does Consumption Occur? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior When does Consumption Occur? How much time passes between purchase and consumption? What time of day is product used? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior When does Consumption Occur? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior When does Consumption Occur? How much time passes between purchase and consumption? What time of day is product used? When in the year or during which season is product consumed? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Ferrero Rocher advertises its chocolates as being perfect for consumption at Easter. (The gold packaging has made it a popular treat at Christmas time.) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior Where does Consumption Occur? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior How is the Product Consumed? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior How is the Product Consumed? How is the product prepared? Is it consumed alone or with other products? Is it used as intended or have consumers invented a new use? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Hormel addresses consumption issues of how to prepare ham and what side-dishes are good compliments to this main dish. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior How Much Is Consumed? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Behavior How Much Is Consumed? Consumers may be similar in what they consume, but different in how much they consume Usage volume segmentation: dividing consumers into segments based on amount of consumption (heavy, moderate, and light users) Firms can encourage consumption or change amount consumed Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences How Does It Feel? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences How Does It Feel? Positive or negative things you feel when using a product Consumers often don’t feel anything during experience Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences How Does It Feel? Positive or negative things you feel when using a product Consumers often don’t feel anything during experience Firms can position products based on: -Positive feelings resulting from consumption -Elimination of negative feelings resulting from consumption Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Sara Lee focuses on the absence of guilt that is often associated with eating this dessert (too many calories or too much fat). Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences How Rewarding or Punishing Was the Experience? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes Negative Reinforcement Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome Punishment: when consumption leads to negative outcome Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes Negative Reinforcement Purchase Need Product Purchase Product Consumption Receiving Negative Outcomes Punishment Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences Did It Confirm or Disconfirm Expectations? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Experiences Did It Confirm or Disconfirm Expectations? Consumption can meet, exceed, or fall short of expectations If consumers expect something to be easy and it isn’t, that affects evaluation of product Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumption Norms and Rituals Consumption norms: informal rules that govern our consumption behavior Consumption rituals: a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time Holiday rituals (gift giving, parties) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Compulsive Consumption Practices that are undertaken to bolster self-esteem, but are inappropriate, excessive, and disruptive to the lives of those involved Gambling Addiction (shopping, alcohol, food) Internet (web dependency) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Compulsive Consumption Practices that are undertaken to bolster self-esteem, but are inappropriate, excessive, and disruptive to the lives of those involved Some social service agencies are often founded to deal with compulsive consumption Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Post-consumption Evaluations Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Customer Satisfaction It Influences Repeat Buying Positive post-consumption evaluations are essential for retaining customers Customer satisfaction does not guarantee loyalty The likelihood that customers will remain loyal depends on their level of satisfaction Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Customer Satisfaction It Shapes Word-of-Mouth Consumers often talk about their consumption experiences A firms ability to satisfy customers will affect its success in retaining current customers as well as recruiting new ones Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Customer Satisfaction It Shapes Word-of-Mouth Consumers often talk about their consumption experiences A firms ability to satisfy customers will affect its success in retaining current customers as well as recruiting new ones Dissatisfaction Leads to Complaints Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Customer Satisfaction Implications for Competitive Strategy Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Customer Satisfaction Implications for Competitive Strategy Monitor satisfaction levels of competitors’ customers Formulate strategies to attract dissatisfied customers of competitors Advertise success of satisfying customers to enhance reputation and reinforce attitudes of current customers Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. What Determines Satisfaction? Expectancy disconfirmation model: satisfaction depends on a comparison of pre-purchase expectations to actual outcomes Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. What Determines Satisfaction? Expectancy disconfirmation model: satisfaction depends on a comparison of pre-purchase expectations to actual outcomes Negative disconfirmation: when product delivers less than expected Positive disconfirmation: when product delivers more than expected Confirmation: product matches expectations Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Expectations and Satisfaction Miracle-Gro potting mix influences consumers’ expectations about the performance of its product in this ad. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Expectations and Satisfaction Companies Influence Expectations Advertising Brand names (Mercedes) Packaging (Godiva) Price (High vs. Low) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Expectations and Satisfaction Companies Influence Expectations Advertising Brand names (Mercedes) Packaging (Godiva) Price (High vs. Low) Expectations Can Influence Postconsumption Evaluations In ambiguous situations, postconsumption evaluations are susceptible to initial expectations In unambiguous situations, they are less influenced by expectations Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.