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Consumer Behaviour and FoodMarketing AEB 41

1

Consumer satisfaction andConsumer satisfaction and

complainingcomplaining

Week 8 28 February 2003

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2

The postThe post--purchase phasepurchase phase

of consumptionof consumption Customer satisfaction and

dissatisfaction (CSD)

Quality of goods (services) Actual or perceived?

High quality product: more profits Better margins

Easy sale and brand extensionHigher loyalty

Customer complaining behaviour

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3

Research on quality andResearch on quality and

satisfactionsatisfaction High quality leads to higher profits

(Buzzel and Gale, 1987)

It costs less to retain existing customersthan to gain new onesSatisfied consumers do not look for

alternatives

Total quality management (ISO 9000) Product improvement driven by customer

comments

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4

Is it only t

he good?

Is it only t

he good?

Service components

Service environment

Store layout, etc.

Service product

How many tills (at the exit)?

Service delivery Is the cashier smiling, kind, etc.?

Service happens in real time

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5

Two models of consumerTwo models of consumer

satisfactionsatisfaction Confirmation model (CM)

Familiarity/habit with unsatisfactory product

Confirmed negative expectation Low arousal

Disconfirmation model (DM)High arousal

Disconfirmed expectation Exceeding expectation (satisfaction)

Not fulfilling expectation (dissatisfaction)

Simple confirmation

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The confirmation model

The confirmation model

Consumption

Expected negative outcome

Discontent

Little complaint or productavoidance

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What is consumerWhat is consumer

(dis)satisfaction?(dis)satisfaction? The buyers cognitive state of being

adequately or inadequately rewarded for

the sacrifice he has undergone (1969) Oliver (1981) definition

(disconfirmation)

Summary psychological state

Disconfirmed expectations (prior feelings)

Short duration of surprise/excitement

Change of attitudes

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Consumer satisfactionConsumer satisfaction It is a post-consumption evaluation

that a chosen alternative at least

meets or exceeds expectations

Engel et al., 1995

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Expectations

Expectations

Equitable performance

Normative judgement reflecting the

performance that should be provided

by the product, given costs and efforts

devoted to purchase and use

Ideal performance Expected performance

What the performance probably will be

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Factors affectingFactors affecting

(dis)satisfaction in the DM(dis)satisfaction in the DM Size of discrepancy between

expectation and experience

Importance or value of the product

Perception of the product

performance (CM satisfaction effect)

High performance when HP is expected

is better than low performance when

LP is expected

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Disconfirmation modelDisconfirmation model

(unsatisfactory case)(unsatisfactory case)Consumption

Perception of actual

attributes

Expectation about

attributes

Disconfirmation

(perception-expectation)

Dissatisfaction (modified by explanations such asbad luck, responsibility, etc.)

RESPONSE

(word of mouth, complaint, switch, nothing)

Expectation,

attitude, loyalty

and

consumption

are affected

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SatisfactionSatisfaction

It is also strongly influenced bydisconfirmation

Satisfaction is additive (retailsatisfaction)

Measuring satisfaction anddissatisfaction in questionnaires:

Negative emotionPositive satisfaction

Surprise

Interest

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Consumer Behaviour and FoodMarketing AEB 41 13

Satisfaction and loyaltySatisfaction and loyalty

Surprise

Interest

Satisfaction

???????????????????????

Increased

Loyalty

Recommendproduct to

others

Try lineextensions

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Satisfaction, perceivedSatisfaction, perceived

quality and attitudesquality and attitudes Disconfirmation is based on

episodes

Over time, satisfaction is reflected

byattitudes

By measuring attitude, we can

measure perceived quality

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Response to consumerResponse to consumer

satisfaction and dissatisfactionsatisfaction and dissatisfaction About 15-25% of products are

unsatisfactory

Response to perceived product failure Exit (switching, boycotting)

Voice (complaining)

Negative word of mouth

Complain to supplier (e.g. substitution)

Legal complaints

Vandalism?

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Attribution of performance toAttribution of performance to

supplier and dissatisfactionsupplier and dissatisfaction Availability of explanations Ease of recall

Distinctiveness of a product failure

Worse-than-expected outcomes have a larger impact

than Better-than-expected ones (endowment effect,prospect theory)

Causal inferences Stability (is the problem clearly due to

someone/something and not exceptional?)

Locus of causality (who is to blame? Me or thesupplier?)

Controllability (can the agent intervene and solve theproblem?)

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ComplainingComplaining

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Factors affectingFactors affecting

complaining behaviourcomplaining behaviour Reluctance to complain

Word of mouth is often enough

Low relation between the degree ofdissatisfaction and the likelihood tocomplain

Theory ofPlanned Behaviour

Expected outcomesNormative influence

Control factors

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Expected outcomes

Expected outcomes

Expected returns vs opportunity

costs

Replacement, apology, better

goods/service in the future

Wasted time, embarrassment, lost

opportunities Importance of the product

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Normative influence

Normative influence

What other think I should do?

Not necessary that someone else

should be actually aware of decision

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Control factorsControl factors Knowledge

Ease of access to key personnel

Understanding of causes

Skills

Ability to express complaint

Time

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Is it good to receiveIs it good to receive

complaints?complaints? Reduce negative comments to other

potential customers

After complaining (if it is

satisfactory) it is more likely to

repeat purchase (?)

Good complain-handling raiseloyalty

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The typical complainer

The typical complainer

Young

Higher-than-average education

Higher-than-average income

Other typical characteristics

Positive about consumerist activities

Prefer a lifestyle that demonstrates differenceand individuality

Little hesitancy in letting their problem

known

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Strategies to handleStrategies to handle

dissatisfactiondissatisfaction Refining the product

Belief management

Damage limitation

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Consumer Behaviour and Food

Marketing AEB 41

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Refining t

he product

Refining t

he product

Feedback from consumer

Technical improvement

Customer preference

Monitor competitors practices

Research

Conjoint analysis

Preference Mapping

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Marketing AEB 41

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Belief managementBelief management

Influence relevant expectation Forewarning customers about problems

(price increase)

Reveal hidden benefits Focus on certain characteristics (GM free,organic produce)

Cue negative beliefs about competitorsCompetitive advertising

Dont draw attention to the unnoticedDo not apologise for minor shortfall

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Marketing AEB 41

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Damage limitationDamage limitation Handling complaints politely

Recognising the deficiency

Apologising and responsibility to assist

customers (not necessarily for causingthe problem)

Explain whats gone wrong: it is anexception (?)

Compensating customers whereappropriate

Improve the product to answer tocomplaints

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Marketing AEB 41

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Customer retentionCustomer retention Individualised marketing

Total quality control policy

Early warning satisfaction feedbacksystem (questionnaires on expectations)

Build realistic expectations

Provide guarantees

Provide information on product use Solicit customer feedback

Reinforce customer loyalty

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Marketing AEB 41

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Acase study

Acase study

General Mills (cereals, bakingproducts)

Operation sensory departmentTest acceptance of new product

Sensory panels with daily grading

Results of the program:Reduction in complaintsReduction of costs (returned products)

aeb41-week8

Documents

Transcript of aeb41-week8