Dissonance and Regret

1. Dissonance and Regret • Dissonance: Uncertainty about whether the correct decision was made • Attempts to rationalize decision and find information to support it • Regret: Perception of unfavorable performance of chosen option relative to one not chosen

2. Learning From Experience • Hypothesis testing • Hypothesis generation (based on prior experience) • Exposure to evidence • Encoding of evidence (Evaluation) • Integration of evidence and prior beliefs • Updating of beliefs to reflect both prior and new impressions

3. Influences on Learning • Motivation • Prior knowledge or ability • Ambiguity of learning environment or lack of opportunity • Processing biases

4. Firm Strategies to Affect Learning • Top Dog (Market Leader) Strategy • Claims to justify the decision by the consumer • Underdog Strategies • Comparison of brands • Promotions to induce trial

5. Satisfaction and Dissatisfaction Judgments • Dimensions • Utilitarian • Hedonic • Factors of Influence • Involvement • High involvement: High initial satisfaction followed by decline • Low involvement: Lower initial satisfaction but increasing over time

6. http://www.theacsi.org/acsi-results/scores-by-industry

7. Satisfaction and Dissatisfaction Based on Thought • Expectations and Performance

8. Some Influences • Assortment size: Choice from larger assortment tends to lead to lower satisfaction • Higher expectations can lead to falling short

9. Attribution Theory • Three issues • Stability • Focus • Controllability • Generally, there is greater blame for failure when the problem is under the control of the firm

10. Satisfaction/Dissatisfaction Based on Feelings

11. Responses to Dissatisfaction • Complaints • To • Firm • Others • Four types of complainers • Passives • Voicers (directly to firm) • Irates (more likely to engage in negative WOM • Activists • Negative word of mouth (WOM)

12. Recycling in Japan