CB chapter 10

Hypothesis testing

Comparing prior expectations or predictions with new information, such as evidence from experience.

When a consumer is highly motivated to learn, and evidence about the top dog is unambiguous, the marketer simply needs to try:

Explaining the experience

Walkane Juices is planning to launch a line of flavored beverages. It encourages consumers to take a "$1,000,000 Taste Challenge." According to the challenge, every consumer who is able to identify the flavor with just a sip of the beverage has a chance to win a holiday. In this scenario, Walkane Juices is an underdog trying to:

use promotions to get consumers to try the brand.

In the context of customer satisfaction, low-involvement consumers:

exhibit satisfaction that increases over time after a purchase.

Hypothesis generation

Forming expectations about a brand, product, or service and its consumption.

Exposure to evidence

Actually experiencing the brand, product, or service while consuming it.

Encoding the evidence

Processing information from consumption experiences.

Integrate the evidence

Combining new information from the consumption experience with stored knowledge.

Ambiguity of information

When information from consumption experiences is insufficiently clear or precise to evaluate brand, product, or service performance.

Satisfaction

The feeling that a purchase decision, consumption experience, or disposition decision meets or exceeds one’s expectations.

Dissatisfaction

The feeling that a purchase decision, consumption experience, or disposition decision falls short of one’s expectations.

Disconfirmation

When expectations do not match the actual brand, product, or service performance because performance is either better or worse than expected.

Expectations

A prediction (hypothesis) about the performance of a brand, product, or service and about the outcomes of acquiring, consuming, or disposing of it.

Performance

How well a brand, product, or service does on objective criteria, such as fuel efficiency, battery life, and on subjective criteria, such as style or taste.

Post decision dissonance

Feeling of anxiety experienced post purchase when a consumer wonders whether they made the right decision

Dissonance

Anxiety: maybe I should have picked something different

Regret

Should’ve purchased a different option

Delighted

Intense positive emotion, beyond satisfaction, that consumers experience when the superior performance of a company, brand, products, or service confirms or exceeds their expectations.

Attribution theory

A theory of how individuals find explanations for events.

Pride

The positive emotion that consumers experience upon perceiving that they themselves rather than others or luck are responsible for obtaining positive, hard to get outcomes.

Equity theory

The positive emotion that consumers experience upon perceiving that they themselves rather than others or luck are responsible for obtaining positive, hard to get outcomes.

Ambiguity of information

When information from consumption experience is insufficiently clear or precise to evaluate brand

Loyalty

Repeated patronage of a company, brand, product, or service based on positive attitudes from earlier and expected future consumption experiences.

Disloyalty

Reduced or discontinued patronage of a company, brand, product, or service based on negative attitudes from earlier consumption experiences.

Opportunity costs

The value to the consumer of the best alternative not chosen. The opportunity costs of choosing an option are low when there are few good alternatives and none are better than the chosen option.

Two types of costs stand between consumers urges and their actions: opportunity costs and behavioral costs

opportunity costs and behavioral costs

Behavioral costs

The money, time, effort, and emotional discomfort needed to implement one’s intentions or urges to act.

Irates

angry consumers who are most likely to engage in negative word of mouth, stop buying, and complain to the provider but not to a third party such as the media or government.

Passives

Least likely to complain

Voicers

are likely to complain directly to the retailer or service provider.

Activists

engage heavily in all types of complaining, including to a third party.

Four customer characteristics that are important to marketers who are preparing complaint-resolution policies and practices

1. Customers perceptions of the problem and solutions

2. Customer company relationships

3. Customer socio demographics

4. Customer psychographics

Negative word of mouth communication

The act of consumers sharing negative information about a brand, product, or service with other consumers.

Customer retention

The practice of retaining customers by building long-term relationships with them.

P>E

Positive disconfirmation ( satisfied)

P = E

Simple confirmation ( satisfaction)

P < E

Negative disconfirmation (dissatisfaction)

Disposition

the act of parting from possessions or what is left of them.

Physical detachment

Physically disposing of an item.

Emotional detachment

Emotionally disposing of a possession.