COMM 231 Intro to Marketing – Dr. Ashworth
• We all experience value and satisfaction in the same way.
• Canada Post – declining audience
- Changed their organizational focus, not their customer focus
- Costs are exceeding their revenue
- How are customers going to react?
- If you increase price, demand goes down
- If people are price insensitive, revenue will go up
- They are creating LESS value by eliminating door-to-door
• Satisfaction is exclusive after some experience with the product
• Satisfaction is highly predictive of repurchase behaviour (affects word of mouth)
• Consumers place responsibility of satisfaction on the firm (expectations are
• Expectancy – disconfirmation framework: firms establish expectation with
promotion and we create our own expectations
- Value and satisfaction are negatively related
- Expectations are negatively related to satisfaction