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Lecture 11

MGMC02H3 Lecture Notes - Lecture 11: Affective Forecasting, Controllability, Customer Satisfaction


Department
Management (MGM)
Course Code
MGMC02H3
Professor
Bill Mc Conkey
Lecture
11

Page:
of 6
MGMC02 Post-Decision Process Chapter11
Post-Decision Dissonance and Regret
Loss of confidence in decision of:
Acquisition, consumption, Disposition
Dissonance:
Anxiety when MAO high and more than one alternative is attractive
Regret:
Unfavorable comparison
Consumer anticipation
A Model of learning from consumer experience:
Hypothesis testing:
Testing out expectations through experience
Hypothesis generation:
Forming expectations about a product
Exposure to evidence:
Actually experiencing the product or service
Encoding of evidence:
Processing the info one experiences
Integration of evidence:
Combining new info with stored knowledge
Factors affecting Learning from experience:
Motivation:
When high, generate many hypotheses and want exposure
Prior knowledge/ability:
With moderate knowledge comes most learning
Ambiguity of information:
If evidence unambiguous, the experience lead to learning
Processing biases
Confirmation
Overconfidence
Strategies:
Top dog: discourage learning
Underdog: encourage learning
Consumer Judgments:
Satisfaction: positive evaluation
Dissatisfaction: negative evaluation of an outcome
Dimensions:
Utilitarian: how well the product or service functions
Hedonic: how the product makes me feel
Customer satisfaction:
Satisfied customers come back
Leads to profitability
Customer Dissatisfaction:
Stop purchasing
Complain
Spread negative word-of-mouth
Satisfaction/Dissatisfaction based on thoughts
The Disconfirmation Paradigm
Expectations: the desired product outcomes, & include pre-consumption
beliefs about overall performance levels of attributes
Performance: Objective & Subjective
Simple confirmation & Positive disconfirmantion lead to satisfaction
Attribution Theory:
A theory of Causality, blame, explanations for events