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New Age Consumer BehaviorWeek 5

Exam feedback

SESSION 9

Purpose of consumption

12. Consumer Attitudes

Purpose: understand consumption decisions

13. Consumer Satisfaction Mechanisms

Purpose: conceptualize consumer satisfaction when acquiring goods

SESSION 10

Readings discussions

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New Age Consumer Attitudes

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Consumption involvement with a product brings aboutan attitude – consumer attitude

It is the result of consumers having passed judgmentrelative to their intention and associated expectations.

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Attitudes help consumers:

Organize and simplify experiences

Seek rewards

Express personal values

Construct defense against threats to the self

Facilitate, maintain and disrupt social relations

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From all thepossible attitudessome dominate.

This is becauseattitudes are theexpression andtherefore result ofevaluatedexperiences.

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Dominant attitudes are repeated and stable over timebecause there are matched to the positive symbolicaspects of consumption– matching hypothesis (Hatfield).

Example: using Facebook to recommend businesses(recommendation = attitude matched to FB usage)

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But since consumption is asocial phenomenon as itinvolves interactions withother consumers or/andproducers, attitudes aresocially constructed: theattitudes one has dependon the attitudes othershave – balance theory(Heider).

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Consumer attitudes involve consumer judgments: valueestimates by setting an initial value with the firstconsumer experience (anchor) which is subsequentlyadjusted relative to subsequent experiences – anchor-and-adjust process (Tversky and Kahneman) .

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Consumer attitudes are influenced by the nature of thecontext consumption processes occur.

For analog products, the context is

exclusively sociocultural

For digital products the context / environment is

sociocultural;

functional (digital medium or device)

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If consumer attitudes towards analog products change withfocus, time and dimension, i.e. context, so do consumerjudgments and so do consumption decisions.

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Likewise for digital consumption.

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Consumer attitudes towards digital products evolve

Over time

Across cultures

Across functions

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Example:

Environment = tablets

Product = iads

Finding = iPad ownersare likely to be moresensitive to iads

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New Age Consumer Satisfaction Mechanisms

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In consuming digital and analog products there are threekey moments and two (?) areas:

Demand

1. Deciding on consumption (what, how much etc.)

Consumption

2. Consuming and taking pleasure in doing so

3. Appreciating the overall experience, hence a degree ofsatisfaction

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Deciding

Expected utility theory: emphasis placed on whatconsumers can derive as satisfaction from consumingan optimum quantity of products; example:anticipated satisfaction derived from e-shopping

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Deciding

Prospect theory: emphasis placed on how consumersvalue potential gains and losses that result frommaking losses; example: anticipated time savings frome-shopping

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Deciding

Satisficing theory: emphasis placed on how consumerstry to make acceptable rather than optimal decisions;example: purchasing shoes online is not an optimalprocess

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Satisfaction

Consumer satisfaction, as both aninternal and social state, refers tothe judgment of the degree towhich consumer intentions arefulfilled. The consumption ofdigital products is no different.

Consumer satisfaction may thus beunder-fulfilled or over-fulfilled.

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Satisfaction

Consumer satisfaction isbrought about through:

Product performance

Service quality

Choice criteria t

Satisfaction drivers

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Satisfaction

Consumer satisfaction is largely based on expectationsrelative to consumer knowledge and experience aboutproducts and services.

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Satisfaction

The expectancy-disconfirmation model (EDM) states thatthose expectations that are disconfirmed to be the keyinfluences of consumer satisfaction.

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Reading discussions