Textbook Notes (362,730)
Canada (158,028)
MGMC02H3 (51)
Chapter 11

Chapter 11 Notes.docx

7 Pages
Unlock Document

University of Toronto Scarborough
Management (MGM)
Bill Mc Conkey

Chapter 11 Notes Post-Decision Processes Dissonance and Regret Post-decision dissonance- a feeling of anxiety over whether the correct decision was made - Most likely to occur when more than one alternative is attractive and the decision is important - One way of reducing this is to search for additional information, this search is very selective Post-decision regret- a feeling that one should have purchased another option - You may feel regret even if you have no info about unchosen alternatives - If u can’t reverse your decision, have negative outcome from your chosen alternative, or have made a change from the status quo Learning from consumer experience - Experiences that occur during acquisition, consumption, or disposition are important sources of consumer knowledge o More motivated to learn under these circumstances, actually experiencing event is more involving, they have more control o Info is more vivid and easier to rmb than other types of info, not always accurate Model of learning from consumer experience Hypothesis testing- testing out expectations through experience - Important because without them, consumers are less likely to gather evidence that they need to learn 4 stages: 1. Hypothesis generation- forming expectations about the product or service (e.g. Steve Carrell movies are great) 2. Exposure to evidence- actually experiencing the product or service (e.g. watches new Steve Carrell movie) 3. Encoding of evidence- processing the information one experiences (e.g. assesses to see if movie is great) 4. Integration of evidence and prior beliefs- combining new info with stored knowledge (e.g. if movie’s good, confirm hypothesis) What affects learning form experience? - Motivation, prior familiarity/ability, ambiguity of the info environment/lack of opp, processing biases 1 Motivation - When motivation low, consumers generate few/no hypothesis and less likely to learn unless process is simple like operate conditioning - Can still facilitate learning if motivation is low Prior knowledge/ability - Experts are not likely to generate new hypothesis/less likely to search for more info - Low-knowledge people lack skills to develop hypothesis to guide learning process - Moderately knowledge consumers most likely to generate hypothesis and learn from experience Ambiguity of info environment/lack of opp - Ambiguity information- when there is not enough info to confirm/disprove hypothesis - Occurs because many offerings are similar in quality and consumers get little info from experience - Ambiguous info= don’t learn from experience - Unambiguous info= learn from experience Processing biases - Confirmation bias and overconfidence inhibit learning by making consumers avoid both negative and diagnostic information Top dog strategies - Market leader - Limitations on learning are good because consumers will confirm existing beliefs and be overconfident - When motivation to learn high (consumers find info that could be disproving and lead to a brand switch)  block exposure to evidence (encourage consumers not to acquire new information) Underdog strategies - Lower-share brands encourage learning because new info may lead consumers to switch brands How do consumers make satisfaction or dissatisfaction judgements? Satisfaction- the feeling that results when consumers make a positive evaluation or feel happy with their decision Dissatisfaction- the feeling that results when consumers make a negative evaluation or are unhappy with a decision - Evaluate using utilitarian dimensions (how well product functions) - Hedonic dimensions (how the product makes someone feel) 2 - High-involvement consumers tend to express higher satisfaction immediately after a purchase due to extensive evaluation, satisfaction declines over time - Lower-involvement consumers exhibit lower satisfaction, increases with greater use over time - Attracting new customers is more expensive than marketing to existing customers Marketers should aim for satisfaction when responding to customers’ questions and concerns because: 1. These tend to be highly loyal customers 2. These consumers will influence others through word of mouth after the contact - It takes 12 positive experiences to overcome a single negative one Satisfaction/dissatisfaction based on thoughts Relate to: 1. Whether consumers’ thoughts and expectations about the offering are confirmed or disconfirmed by its actual performance 2. Thoughts about causality and blame 3. Thoughts about fairness and equity Expectations and performance: the disconfirmation paradigm (see pg 281 11.7) Disconfirmation- the existence of a discrepancy between expectations and performance Expectations- beliefs about how a product/service will perform Performance- the measurement of whether the product/service actually fulfills consumers’ needs - Can be objective- based on actual performance which is constant across consumers (e.g. mileage of the car) - Subjective- based on individual feelings which varies across consumers (e.g. how good it makes me feel driving it) - Better than expected perf leads to positive disconfirmation and satisfaction - Performance as expected leads to simple confirmation and satisfaction - Performance lower than expected leads to negative disconfirmation and dissatisfaction - Formal evaluation - Provide consumers with warranty and guarantee can create positive expectations that will lead to satisfaction Causality and blame: attribution theory Attribution theory- A theory of how individuals find explanations for events When a product does not fulfill consumers’ needs they will find an explanation based on 3 factors: - Stability- is the cause of the event temporary or permanent? - Focus- is the problem consumer or marketer related? 3 - Controllability- is the event under the customer’s or marketer’s control? - E.g. satisfaction with services depends on whether consumer holds company responsible for the outcome and believes the outcome stems from a stable/unstable cause Fairness and equity: equity theory Equity theory- a theory that focuses on the fairness of exchanges between individuals, which helps in understanding consumer sati
More Less

Related notes for MGMC02H3

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.