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Understanding Post-Decision Processes in Consumer Behavior

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This chapter delves into the intricacies of consumer problem-solving and post-decision processes. It highlights key concepts such as dissonance, satisfaction, and dissatisfaction, examining the disconfirmation paradigm, attribution theory, and equity theory. The content explores how consumers process decisions, including the evaluation of alternatives and the role of post-purchase feelings. It also discusses the consequences of dissatisfaction, complaining behaviors, and strategies for effective complaint resolution, providing a comprehensive understanding of consumer behavior post-purchase and its implications for businesses.

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Understanding Post-Decision Processes in Consumer Behavior

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  1. Chapter 12POST-DECISION PROCESSES

  2. Model of Consumer Problem Solving Problem Recognition Search for Information Evaluation of Alternatives Choice Decision Purchase Postpurchase Use and Reevaluation

  3. Chapter Overview • Dissonance • Satisfaction/Dissatisfaction • disconfirmation paradigm • attribution theory • equity theory • Complaining/negative WOM

  4. Post-Decision Dissonance Was buying a “previously loved vehicle” at Honest Abe’s the right choice? Should I have gone elsewhere?? • Doubts/Anxiety about product choice • many times we attempt to justify our choices • confirming evidence • denial or minimization of downsides (e.g., the repair bills really aren’t that high) • support from others • modification of beliefs (e.g., I really didn’t want a roomy car!)

  5. Satisfaction/Dissatisfaction Judgements • Disconfirmation Paradigm • ___________ Theory • ________ Theory

  6. The Disconfirmation Paradigm • Expectations: beliefs we have before usage • Performance: evaluation of what happened • Disconfirmation: occurs when these two are not equal • positive leads to satisfaction • negative leads to dissatisfaction • Example: New movie release • Beware of “overpromising”

  7. Attribution Theory • Stability • temporary or frequent? • F • is it my fault or their fault? • Controllability • could it be prevented?

  8. Equity Theory • Fairness of exchange • perceived relationship of cost of production to price charged • relative bargaining power of the two sides • opportunism

  9. Individual Application Exercise • Think about the three ways consumers can conclude they are dissatisfied (disconfirmation paradigm, attribution theory & equity theory). • Explain how each of these approaches could apply to a night at a hotel. • Provide a specific example for each approach.

  10. Dissatisfaction Outcomes I hate your vulgarity and violent films! I’m going to tell all my friends that your newest release stinks! • Complaining • How common is complaining? • Other ways of getting back at the firm • brand switching • active boycotts • Negative WOM

  11. Effective Handling of Complaints • Acceptance of responsibility • Quick action, e.g., • replacement • repair • refund • exchange

  12. Chapter 12 Review • Dissonance • Satisfaction/Dissatisfaction • disconfirmation paradigm • attribution theory • equity theory • Complaining/negative WOM

  13. Model of Consumer Problem Solving Problem Recognition Search for Information Evaluation of Alternatives Choice Decision Purchase Postpurchase Use and Reevaluation

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