Post Purchase Process

Introduction

Many businesses have started focusing on customer relationship and loyalty programmes to increase:
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Customer satisfaction Commitment, and Retention of important customers.

Post Purchase Action

Consumers engage in a constant process of evaluating the things that they buy. In case of certain purchases, consumers experience postpurchase dissonance. This occurs as a result of the consumer doubting her-his wisdom of a purchase. After purchase, most products are put to use by consumers, even when they experience dissonance. Other purchases may be followed by non-use because the consumer returns or keeps the product without using it.

Post-purchase Dissonance

Cognitive dissonance occurs as a result of some discrepancy between a consumers prior evaluation and the purchase decision. Dissonance theory was derived from 2 basic principles:
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Dissonance is unpleasant & will motivate the person to reduce it. Individuals experiencing dissonance will avoid situations that produce more dissonance.

Post-purchase dissonance is most likely to occur when more than one alternative was attractive and a relatively permanent and difficult decision had to be made. The doubt or anxiety resulting from such a decision is termed as post-purchase dissonance.

Post-purchase Dissonance

The probability that a consumer will experience dissonance and the magnitude of such dissonance, is a function of the following factors:
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The degree of irrevocability of the decision The importance of decision to the consumer The difficulty of choosing among the alternatives The individuals tendency to experience anxiety

Post-purchase Dissonance

Consumers experience post-purchase dissonance because making a relatively permanent commitment to a selected alternative requires one to forgo the alternative attributes of the alternative not purchased. In case of nominal-decisions and most cases of limiteddecisions, consumers are unlikely to experience postpurchase dissonance because in such decisions consumers do not consider attractive attributes in a brand not selected. For example, if a consumer purchases the least priced brand of toilet soap out of three alternatives that she/he views as equivalent on all relevant attributes except price, she/he would not experience dissonance.

Post-purchase Dissonance

The consumers may use one or more of the following approaches to minimize the dissonance:
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Increase the desirability of the brand purchased Decrease the desirability of alternatives not selected Decrease the importance of the purchase decision Return the product before using it

Post-purchase Dissonance

Sometimes consumers reduce post-purchase dissonance by internal re-evaluations.

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In this process, they enhance the value of attributes of the selected brand and decrease the value of attributes present in brands not selected.

Consumer search for additional external but favorable information that serves to confirm the wisdom of a particular purchase choice.

Post-purchase Dissonance

According to dissonance theory, individuals experiencing dissonance would be expected to actively avoid information that would tend to increase their dissonance and seek information supporting their decision. Favorable information supports and reinforces the consumers confidence in the correctness of the purchase decision. Consumers search for their receptiveness on reinforcing ads is greatly increased. Follow-up sales efforts too can help reduce post-purchase dissonance in consumers.

Relationship of Expectations, Performance and Satisfaction

Level of expectation Perceived performance relative to expectation More than expected Same as expected Worse than expected Below minimum desired performance Satisfaction Non-satisfaction Dissatisfaction Above minimum desired performance Satisfaction / Commitment Satisfaction Dissatisfaction

The Disconfirmation Paradigm

Expectations Positive Satisfaction

Disconfirmation Dissatisfaction Negative Performance

Feelings

Consumers buy products not only for what they can do but also for what they mean. For most products, there are two dimensions to performance:
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Instrumental performance relates to the physical functioning of the product. Symbolic performance refers to performance that relates to aesthetic or image enhancement.

Dissatisfaction Responses

Disconfirmation is mediated by consumers desire to understand why products fail. Considering the large number of purchases that consumers make, most consumers are generally satisfied with a majority of their purchases and dissatisfaction occurs only with some purchases. Marketers should try their best to reduce dissatisfaction and effectively resolve customer complaints whenever they occur.

Dissatisfaction Responses
Post-purchase Evaluation

Dissatisfaction

Take Action

Take No Action

Negative Attitude

Complain to Retail Outlet Or Company

Stop Buying The Brand Or From the Store

Negative Word-ofMouth

Complain to Consumer Protection Agencies

Take Legal Action

Product disposition
PRODUCT Keep it Get rid of it permanently Get rid of it temporarily

Use it to serve original purpose Convert it to serve new purpose

Rent it

Loan it

Throw it away

Give it away To be (re)sold

Trade it

Sell it Direct to consumer Through middleman To middleman

Store it

To be used

Marketing Strategies

Marketers need to focus on

(1)

(2)

(3)

Creating reasonable expectations among consumers through appropriate promotional efforts, and Ensure consistency in product quality so that whatever expectations are created among consumers through marketing communications are fulfilled. Should develop an efficient system to receive complaints and encourage consumers to record their complaints as soon as they occur.

Marketing Strategies

Marketers need to focus on

(4) Simply receiving complaints efficiently is not enough. Consumers who record their complaints expect tangible results and failure to effectively deal with their complaints can be disastrous for the concerned marketer. (5) It is essential for the marketers to not only give consumers an opportunity to complain but also to effectively resolve the cause of their complaints. (6) Anticipating dissatisfaction and acting promptly to remove the cause before it occurs.