A consumer is more likely to experience true dissonance following a purchase when:

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CHAPTER 14 CONSUMPTION TO SATISFACTION WHAT DO YOU THINK POLLING QUESTION When I’m treated unfairly by a business, dissatisfaction describes my feelings well. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.cengagebrain.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far. LEARNING OUTCOMES After studying this chapter, the student should be able to: L01 Gain an appreciation of the link from consumption to value to satisfaction. L02 Discuss the relative importance of satisfaction and value in consumer behavior. L03 Know that emotions other than satisfaction can affect postconsumption behavior. L04 Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ postconsumption reactions. L04 Understand problems with commonly applied satisfaction measures. L06 Describe some ways that consumers dispose of products. SUGGESTED LECTURE OPENER When we think about consumer satisfaction and the consumption process, the link seems clear. Businesses with high levels of consumer satisfaction succeed, and those with low levels fail. However, this isn’t always the case. According to a major recent survey, the social networking website Facebook ranks in the bottom five percent of consumer satisfaction with privately held companies in the U.S. Respondents had no shortage of complaints about the site’s performance and user-friendliness. Yet, Facebook continues to grow at an explosive rate. How is this? Consumers who want to participate in social networking and want access to the largest possible community have little choice but to use the Facebook system. This means that the value of access outweighs the value of performance satisfaction. [Source: Matthew Shaer, “Why Facebook Enjoys Explosive Growth—Despite Its Many Stumbles,” The Christian Science Monitor, August 19, 2010, http://www.csmonitor.com.]

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LECTURE OUTLINE WITH POWERPOINT® SLIDES Slide 1

Slide 2

LO1. Gain an appreciation of the link from consumption to value to satisfaction. Consumption, Value, and Satisfaction Slide 3

Consumption Leads to Value The important role of consumption becomes apparent when you consider that, without consumption, there is no value. The basic consumption process is illustrated in Exhibit 14.1. Slide 4

Consumption and Product Classification Important differences exist for the consumption of durable and nondurable goods. Durable goods are goods that are consumed over long periods of time. A washing machine is a durable good. Nondurable goods are consumed quickly. A bag of chips is a nondurable good. Marketers try to increase consumption frequency as much as possible, especially for nondurable goods.

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Consumption frequency refers to the number of times a product or service is consumed in a given time period. Slide 5

Situations and Consumer Reactions The temporal factors, antecedent conditions, and physical environment are influential on the consumption experience. How, what, and when we consume is largely dependent on our environment. The environment greatly influences consumption and consumer satisfaction. When golfers play on a crowded golf course, their pace of play is determined more by other golfers. Slide 6

Consumption, Meaning, and Transference Value depends on a process called meaning transference. Meaning transference is a process by which cultural meaning is transferred to a product and onto the consumer. Value is affected largely by the meaning of goods, services, and experiences. Few material items are as symbolic as the diamond wedding ring. During the recent economic downturn, researchers found that the demand for diamonds fell, but the symbolism of the diamond wedding ring kept those rings selling. Consumers may not have bought as expensive a ring now as they might have a few years ago, but they still bought a ring as a symbol of their love and commitment.

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Slide 7

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Consumption Outcomes and Emotion Consumers choose products, services, and experiences that they believe will deliver value and satisfy their wants and needs. Consumers experience a variety of emotions during the consumption experience including feelings of pleasure, arousal, joy, disgust, fear, and sadness. The relationship between consumption, value, and satisfaction is shown in Exhibit 14.3. Slide 9

Q: Ask students what emotions they feel during the consumption process. Have students provide examples. A:

Answers will vary.

LO2. Discuss the relative importance of satisfaction and value in consumer behavior. Value and Satisfaction Slide 10

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Is satisfaction the key outcome variable for marketers and consumers? Consider Exhibit 14.4. If marketers ever faced the decision of providing value or satisfaction, value should be prioritized. As illustrated by the ACSI, firms can do well even when they do not enjoy the highest industry satisfaction scores, but a firm that does not provide value cannot do well. Slide 11

What Is Consumer Satisfaction? Consumer satisfaction is a mild, positive emotional state resulting from a favorable appraisal of a consumption outcome. Several points distinguish consumer satisfaction from other important consumer behavior concepts:  Consumer satisfaction is a postconsumption phenomenon because it is a reaction to an outcome.  Like other emotions, satisfaction results from a cognitive appraisal. Some refer to this appraisal as the satisfaction judgment.  Satisfaction is a relatively mild emotion that does not create strong behavioral reactions. What Is Consumer Dissatisfaction? Consumer dissatisfaction can be defined as a mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome.1 Slide 12

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LO3. Know that emotions other than satisfaction can affect postconsumption behavior. Other Postconsumption Reactions

Babin, Barry J. and Mitch Griffin (1998). “The Nature of Satisfaction: An Updated Examination and Analysis,” Journal of Business Research, 41: 127-136. 1

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Slide 14

Many other factors, including other emotions, may also occur postconsumption. This view can cause other important postconsumption reactions to be overlooked. Among these are the following:  Delight  Disgust  Surprise  Exhilaration  Anger The particular emotion experienced by consumers will do much to determine the behavioral reaction. Slide 15

Q: Ask students if they have purchased an item from a website thinking it was real and later found out it was counterfeit (e.g., a watch or a purse). How did that make them feel? Were they ok with the fake? Would they buy from the same site again? A:

Answers will vary.

LO4. Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ postconsumption reactions. Theories of Postconsumption Reactions

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Slide 16

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The theories of postconsumption reactions are expectancy/disconfirmation theory, equity theory, and attribution theory. Expectancy/Disconfirmation The most commonly accepted theory of consumer satisfaction is the expectancy/disconfirmation theory or model. The basic disconfirmation model proposes that consumers enter into a consumption experience with predetermined cognitive expectations of a product’s performance. When performance perceptions are more positive than what was expected, positive disconfirmation occurs. Positive disconfirmation leads to consumer satisfaction. When performance perceptions do not meet expectations, meaning performance is less than expected, negative disconfirmation occurs. Negative disconfirmation leads to dissatisfaction. If performance perceptions exactly match what was expected, confirmation (sometimes simply referred to as neutral disconfirmation) is said to occur. The expectancy disconfirmation approach is shown in Exhibit 14.5, which reveals that expectations can also directly impact satisfaction (by the dotted line), independent of their role in the disconfirmation process. Slide 18

Expectations Expectations may be thought of as preconsumption beliefs of what will occur during an exchange and/or consumption of a product. Consumer expectations have two components: 1. The probability that something will occur 2. An evaluation of that potential occurrence Types of Expectations Consumers have different types of expectations that they bring into a consumption situation:

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 Predictive Expectations  These are expectations that form about what the consumer thinks will actually occur during an experience.  Normative Expectations  These are expectations of what a consumer thinks should happen given their past experiences with a product or service.  Ideal Expectations  These are expectations about what the consumer really wants to happen during an experience if everything was ideal.  Equitable Expectations  These are expectations that a consumer forms regarding what they think should happen given the level of work that they’ve put into the experience. Slide 19

Sources of Expectations How do consumers form expectations? They come from a variety of sources.  Word-of-mouth communication from other consumers  Experience of other consumers  Advertisements and promotions that promise something to the consumer  Personal factors can influence what a consumer expects to get out of a product Slide 20

Expectation Confidence and Performance Perceptions While the disconfirmation approach seems to be relatively straightforward, the processes behind the approach can be complex. Performance Perceptions For example, if a consumer buys a brand of product that they know will be bad, their expectations are likely to be low. Even if these low expectations are met by their performance perceptions, they are likely to be dissatisfied.

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Q: Ask students about their expectations. Specifically, ask them about their expectations in the CB course. Did they enter into the class expecting an A? B? What are their sources for these expectations? A: Answers will vary. With grade inflation, it will be interesting to see how many students expect As and Bs from their courses. Confidence in Expectations and the Confirmatory Bias Another important issue in satisfaction theory is the degree to which consumers are confident in their expectations. Imagine a student who goes into class thinking, “This class is going to be really bad!” There is a tendency for an expectation like this to actually alter a student’s perception of the class experience. If the student thinks the class is going to be bad, he or she may very well look for evidence to support this expectation! The term to explain this phenomenon is “confirmatory bias.” Self-perception theory states that consumers are motivated to act in accordance with their attitudes and behaviors. Expectations and Service Quality Service quality can be thought of as the overall goodness or badness of a service provided. The SERVQUAL scale, a commonly applied technique for measuring service quality, takes this approach. Using this approach, service quality is actually a disconfirmation approach to capturing service quality. Desires and Satisfaction Desires are the level of a particular benefit that will lead to a valued end state. Studies have shown that desires directly impact satisfaction beyond the influence of disconfirmation alone. Emotions and meaning are also an important part of satisfaction formation. Emotions, Meaning, and Satisfaction Emotions and meaning play important roles in consumption. The meaning of the consumption experience can affect the overall satisfaction independently of prior expectations or perceptions. Equity Theory and Consumer Satisfaction Equity theory proposes that consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange. What do consumers get when they buy a computer? Of course, they get the computer, but they also get a warranty, service contract, and maybe even an in-home installation. These items represent their outcomes. The computer salesperson should put time into understanding the consumers’ desires and the way in which the computer will be used so as to match these factors with a good arrangement of product features.

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Slide 21

Inequitable Treatment Consumers do not always receive the same service from providers. Service providers must be keenly aware of how customers are treated in public to maintain perceptions that all customers are treated in much the same way—or at least treated in a fair way.

Q: Ask students to describe a situation in which they weren’t treated in the same way as other customers. Give examples of service providers that do treat people fairly, in a consistent manner. A: Answers will vary. The Apple store, if students have been to buy products or get help, might be a good example of service providers aware of how they treat their customers. There are always many staff members ready and willing to help people in the store. Inequitable Consumers Some consumers may take a minor mishap and complain so fiercely that managers feel compelled to proffer something overly generous as a way of calming the consumer. Slide 22

Attribution Theory and Consumer Satisfaction Attribution theory focuses on explaining why a certain event has occurred and proposes that consumers look for the cause of particular consumption experiences when arriving at satisfaction judgments. Three key elements constitute the attribution theory:2 Wiener, Bernard (2000). “Attributional Thoughts about Consumer Behavior,” Journal of Consumer Research, 27 (3): 382-387. 2

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1. Locus  Refers to judgments of who is responsible for an event. Consumers can assign the locus to themselves or to an external entity, such as a service provider. A selfascribed event occurs when a consumer blames him or herself for a bad event. For example, a consumer might say to herself, “I knew putting the TV outside so we could watch the game was a bad idea when it started to rain.” 2. Control  Refers to the extent to which an outcome was controllable. For example, consumers could ask themselves, “Should this company have been able to control this event?” Two parties at a restaurant are experiencing a long wait to get seated even though they have reservations. The restaurant didn’t count on it being so cold that they couldn’t seat guests on the patio. One party is irate (beyond dissatisfaction) with the restaurant because they believe the restaurant should have planned better. The other party is not happy about the situation but does not blame the restaurant because weather events are uncontrollable. Therefore, the situation does not significantly affect the satisfaction process for this customer. 3. Stability – Refers to the likelihood that an event will occur again in the future. For example, consumers could ask themselves, “If I buy this product again, is another bad outcome likely to happen?” Returning to the restaurant example, if a customer wasn’t seated quickly and had to wait for a table more than once at this same restaurant, he or she naturally comes to believe that this is a stable situation, and satisfaction with the restaurant will be diminished. Slide 23

Cognitive Dissonance Cognitive dissonance refers to lingering doubts about a decision that has already been made. Dissonance is sometimes known as “buyers’ regret” or “buyers’ remorse.” A consumer is more likely to experience true dissonance following a purchase when the following conditions exist:  An awareness of many attractive alternatives that may offer comparable value relative to the product/brand purchased.  The decision is difficult to reverse.  The decision is important and involves risk.  The consumer has low self-confidence. To lessen feelings of discomfort following a purchase, consumers may do any or all of the following activities:  Return the product if possible  Complain about the experience ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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 Seek positive information about the alternative selected  Seek negative information about the alternatives not selected  Minimize the perceived importance of the decision

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Cognitive Dissonance and Satisfaction Satisfaction and cognitive dissonance are closely related topics. One difference between the two concepts is that, while satisfaction is generally felt after a consumption experience, dissonance may be experienced even before consumption begins. LO5. Understand problems with commonly applied satisfaction measures. Consumer Satisfaction/Dissatisfaction Measurement Issues Slide 25

There are many ways in which marketers can measure consumer satisfaction. The following list contains three popular ways in which satisfaction is measured. 1. Direct, Global Measure  Asks consumers to assess their satisfaction on a scale such as the following: How do you rate your overall satisfaction with your television? Completely satisfied 

Dissatisfied 

Satisfied 

Completely satisfied 

2. Attribute-Specific  Assesses a consumer’s satisfaction with various components or attributes of a product, service, or experience, such as: ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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How satisfied are you with each of the following attributes of your television? Picture quality Completely dissatisfied

1

2

3

4

5

Completely satisfied

3. Disconfirmation  Compares the difference between expectations and performance perceptions. This measure can be taken in a direct, subjective fashion, such as:3 Compared to my expectations, this television performs . . . Worse than expected

1

2

3

4

5

Better than expected

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Improving Satisfaction Measures Satisfaction is one of the most commonly measured concepts in consumer behavior as well as one of the most difficult to accurately measure. In fact, typical consumer responses to this type of measure show that the vast majority of consumers (80% or more) choose “satisfied” or “completely satisfied” as a measurement. Statistically speaking, the result is data that are left skewed, meaning that the bulk of consumers have indicated that they are satisfied or completely satisfied with a product or service. LO6. Describe some ways that consumers dispose of products. Disposing of Refuse

Peter, J. Paul, Gilbert A. Churchill, Jr., and Tom J. Brown (1993). “Caution in the Use of Difference Scores in Consumer Research,” Journal of Consumer Research, 19 (4): 655-662. 3

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Disposal Decisions A final step in consumption is disposal of any consumer refuse. Consumer refuse is any packaging that is no longer necessary for consumption to take place or, in some cases, the actual good that is no longer providing value to the consumer.

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Q: Ask students which methods they use to dispose of products. A: Answers may include bringing clothes to a second-hand shop, visiting the Salvation Army, and using eBay to sell items. See how innovative your students are at making extra money. A number of disposal alternatives are available, including the following:4  Trashing  Consumers can simply throw away waste material including unused products, packaging, and by-products. Many marketers have turned to so-called green marketing initiatives whose aim is to use packaging materials that cut down on the environmental impact of waste.  Recycling  Consumers can recycle used products or packaging.  Converting  Consumers can convert products or product packaging into new products in a number of creative ways. Jacoby, Jacob, Carol K. Berning, and Thomas F. Dietvorst (1977). “What About Disposition?” Journal of Marketing, 41 (2): 22-28. 4

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 Trading  Consumers can trade old products for new products. The automotive industry has encouraged this practice for years.  Donating  Consumers can also donate used products to various causes. Eyeglasses, clothing, and cars are often donated to help other consumers who may not be able to afford new products.  Reselling  One of the most popular methods for permanently disposing of used products is to simply sell them. Garage sales and swap meets are popular means of disposing of products. Of course, online methods, such as eBay, are also quite popular with consumers. Slide 29

Q: Ask students if they have had any luck using online sites from eBay.com to Craigslist.com to etsy.com to sell either used or handmade (perhaps from recycled products) items? Do they prefer auctions or classified sites? Why? A: Answers may vary. VIDEO CLIP PowerPoint Clip from Boyne Resorts Run time 0:54 minutes Slide 30

Boyne USA Resorts has built on its customer base of sport and leisure enthusiasts to grow from a single outpost to a multi-resort, nationwide company. Because much of Boyne’s success depends on the weather, Boyne leadership, managers, and employees must be resourceful and adaptable ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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in order to keep consumer satisfaction high. In some cases this has meant heavy investment in snowmaking technology, while in others it involves building large-scale, indoor water parks. In any situation, Boyne reinforces consumer satisfaction through a program called “Boyne Basics.” This company-wide program is designed to build excellence in customer service. Ask your students: 1. In what ways does the “Boyne Basics” program enhance customer satisfaction? Answer: The “Boyne Basics” program asks employees to put them in the place of the consumer. It offers employees reminder cards on the best way to meet customers’ needs. It also encourages employees to use the facilities. This enhances employee product knowledge and promotes a company culture known as “the Boyne way of life.” 2. How does Boyne company structure reinforce the goal of consumer satisfaction? Answer: Boyne company structure allows for this in terms of big-picture company decisions as wells as the daily interactions between the front-lines employees and their direct interactions with customers.

END OF CHAPTER MATERIAL ONLINE CASE ANSWERS Visit www.login.cengage.com to access the online case studies for CB. 1. Does eBay assess the entire consumption process of its consumers? Why or why not? Suggest different methods for assessing consumer satisfaction that may be useful in eBay’s case. Answer: Relying only on the feedback system, eBay does not assess the entire consumption process. The company only assesses the process up to the point of obtaining the product and not the actual usage, or consumption, of the product. Suggestions from students may include sending out surveys, conducting focus groups, or conducting telephone interviews to assess the other portions of the process after consumers receive the products and begin consuming them 2. How does the consumption situation differ between eBay consumers and consumers at brick-and-mortar retailers? Answer: Consumers shopping at brick-and-mortar stores receive the traditional benefits of being able to shop socially with others, sample or try on products, physically visit several stores, and so forth. For eBay consumers, the social aspect will be absent or greatly altered because most people do not have eBay shopping friends. There will also be no opportunities to try on clothing and shoes or to otherwise try the products before purchasing. Finally, although the eBay consumer has access to many different products, he or she does not have the opportunity to physically visit different stores as part of the shopping experience.

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3. How much did the ACSI score for eBay change from 2005 to 2006 by percentage? What is the significance of these scores and changes, as compared to other large Internet companies represented in the table? Answer: ACSI is an acronym that stands for American Consumer Satisfaction Index and is a validated measure of consumer satisfaction for the companies included in the Index. The percentage of change in the eBay ACSI score between 2005 and 2006 is 1.23%. If this negative trend continues, eBay will experience a decrease in customer satisfaction. In comparison with the other companies represented in the table, eBay is somewhere in the middle. There is definitely room for eBay to improve its ACSI score. In addition, about one-half of the companies in the table have a positive trend in their ACSI scores, and about one-half are experiencing a negative trend. A good policy for eBay is to remove themselves from the middle of the pack, as they are currently, and strive to place themselves in the group of better-performing Internet companies. 4. Use the website for the ACSI scores (www.theacsi.org) to find out how the scores for eBay compare with brick-and-mortar retailers such as Kohl’s, J.C. Penney, Target, Dillard’s, Macy’s, Nordstrom, and Walmart. Explain your findings. Answer: Company eBay Kohl’s J.C. Penney Target Dillard’s Macy’s Nordstrom Walmart

ACSI Score (2006) 80 80 78 77 75 71 NA 72

When compared with these brick-and-mortar retailers, eBay is doing as well as any of them and better than most. It is even performing better than the higher-end stores such as Nordstrom, Macy’s, and Dillard’s. 5. According to the expectancy/disconfirmation theory, what could be one of the problems eBay faces in attempting to increase its consumer satisfaction? Answer: Because it is impossible for a consumer to actually try a product before making the purchase, there is the possibility that a consumer will receive something other than what he or she expected. When a product is not as expected, in most cases it is due to negative disconfirmation because the product turns out to be less than expected. However, it is possible for positive disconfirmation to occur in situations in which the product turns out to better or more than expected. In either case, the chances for this phenomenon to occur are increased because of the nature of making purchases online in the eBay consumption experience.

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REVIEW QUESTIONS (*) Indicates material on prep cards. 1. [LO1] How are value and consumption related? Answer: Consumption is the process that converts products into value, which occurs through the basic consumption process. Exhibit 14.1 illustrates the process that was originally introduced in Chapter 1. 2. [LO1] How do consumers experience utilitarian value through consumption? How do they experience hedonic value through consumption? Answer: Value depends on a process called meaning transference. From a utilitarian standpoint, the meaning of consumption is straightforward. A consumer buys shoe polish to polish his shoes. In other words, utilitarian value is tied to the use of a product. Generally, the meaning is concrete and easily understood. What is not as straightforward is the hedonic component of consumption. Here, inner meanings—including cultural meanings—must be considered. These inner meanings produce the feelings experienced that produce the gratifying response that is termed hedonic value. 3. [LO1] How does cultural meaning influence the consumption process? Answer: Meaning transference begins with culture. Value is affected largely by the meaning of goods, services, and experiences. These meanings are culturally laden. Important cultural ideals or values are transferred onto products by marketing efforts, such as advertising, and by word-of-mouth that occurs between consumers. 4.* [LO1] What determines a product’s authenticity? How and when does authenticity contribute to increased value? Answer: Authenticity means something is real, genuine and has a history or tradition. The consumption of authentic things adds value over the consumption of synthetic experiences particularly when the consumption environment contains high degrees of symbolism or consumers are highly involved in some activity. 5. [LO2] Why is satisfaction an important concept in consumer behavior? Answer: Satisfaction is important because it relates to future behavior albeit not perfectly. It is generally believed that consumers repeat consumption experiences with which they feel satisfaction and do not repeat those which they feel dissatisfaction with. 6. [LO2] How are consumption, value, and satisfaction related? Answer: Exhibit 14.3 shows how value comes from the consumption process and that value, in turn, influences customer satisfaction. As stated in Chapter 2 and suggested by the ACSI scores, value is at the heart of consumer behavior, and value can therefore be thought of as the key outcome variable in the consumption experience. 7. [LO2] Is Walmart’s success due to high customer satisfaction? Take a stance and explain your response. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Answer: The case that Walmart’s success is due to relatively high average customer satisfaction is hard to make. They appear in the lower portion of the ACSI scores. Thus, their success must be due to something else. It’s easier to make the case that relatively high utilitarian value is a key to success. 8.

[LO2] What is the ACSI? Answer: The ACSI is the American Consumer Satisfaction Index. It provides results of surveys charting American consumer average satisfaction scores for many well-known marketing firms. Students should be encouraged to visit the web site and check out scores for familiar companies.

9. [LO3] What is the definition of satisfaction and dissatisfaction? Why are they considered mild emotions? Explain by using a situation in which some emotion other than satisfaction motivated your behavior following a purchase. Answer: Satisfaction is a mild, positive, affective reaction to a favorable consumption appraisal. Dissatisfaction is a mild, negative, affective reaction to an unfavorable consumption appraisal. Among these other specific emotions are delight, disgust, surprise, exhilaration, or even anger. These particular emotions are often much more frequently linked to behavior because, although they are also emotional reactions to appraisals, they are often much stronger. Students should have little difficulty thinking of situations when they were angry and reacted quickly to that emotion. Otherwise, if they feel a strong emotion, such as warmth or love, they can probably relate to how much the emotion controls behavior. 10.* [LO4] How does the expectancy/disconfirmation process work? Answer: The basic disconfirmation model proposes that consumers enter into a consumption experience with predetermined cognitive expectations of a product’s performance. These expectations are used as a type of benchmark against which actual performance perceptions are judged. Disconfirmation becomes central in explaining consumer satisfaction. When performance perceptions are more positive than what was expected, positive disconfirmation occurs. Positive disconfirmation leads to consumer satisfaction. When performance perceptions do not meet expectations, meaning that performance is less than expected, negative disconfirmation occurs. Negative disconfirmation leads to dissatisfaction. Finally, if performance perceptions exactly match what was expected, confirmation is said to occur. 11. [LO4] How does the equity theory approach to satisfaction differ from the expectancy/disconfirmation approach? Answer: The equity theory approach differs in that the expectations that are relevant for equity theory deal with perceptions of equity or fairness. In other words, consumers expect to be treated at least as well as other consumers seeking similar service. When this belief is not matched, consumers will tend to have a negative consumption experience and probably some degree of consumer dissatisfaction. 12. [LO4] What are the key elements of a consumer’s attribution? ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Answer: The three key elements are locus, control, and stability. 13.* [LO4] List different sources of consumer satisfaction. Answer: Exhibit 14.5 summarizes the sources of satisfaction. Expectations, performance, and disconfirmation can all be sources of satisfaction. Expectations that are lower than the actual performance lead to positive disconfirmation and thus, consumer satisfaction. However, performance that is positive, irrespective of disconfirmation, also contributes directly to satisfaction. Good performance encourages a positive affective response such as satisfaction. The confirmatory bias also suggests an assimilation effect where a consumer with high expectations is likely to experience satisfaction. Additionally, students should mention equity attributions and/or attribution theory, which can also be sources of satisfaction. Consumers who perceive themselves as receiving fair treatment experience satisfaction. Also, consumers who have good consumption outcomes, particularly when the event seems controllable (whether the locus is with the firm or the consumer), are likely to experience satisfaction. 14. [LO5] What are the problems associated with measuring consumer satisfaction? Answer: Typically, satisfaction measures produce left-skewed data, meaning that results tend to report many consumers with the highest or near the highest level of satisfaction. This problem is exacerbated because typical satisfaction measures rely on only a single item with too few scale points to allow variance in responses to be shown. When variance is suppressed, satisfaction measures do not relate highly to other outcomes of interest. 15. [LO6] In what major ways can consumers dispose of products? Answer: There are many ways of disposing of products including trashing, recycling, trading, donating, and reselling. INTERACTIVE/APPLICATION EXERCISES 16. Visit a major consumer website such as www.jdpower.com. What types of ratings do they include? What descriptions do they give of their measurement process? If possible, take a survey on the website. What types of surveys do they offer? Answer: Students may find the JD Power website surprising because it actually focuses on the quality ratings of major automobile manufacturers. The point here is to have students examine different consumer sites to see what is available. Most other sites do not contain a great deal of detail on the methodology of rating scales. The ACSI may be an exception. This exercise is worthwhile to illustrate whether the techniques used in these websites are appropriate to obtain useful satisfaction scores. 17.* [LO1, LO2, LO3] What role does hope play in creating satisfaction or dissatisfaction? Can you think of an instance when you felt a lot of hope prior to trying some product? How did it turn out? Answer: Here is an opportunity for students to integrate a lot of information from the entire chapter. Expectations cause feelings of hope. This may heighten the fall if negative ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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disconfirmation occurs. However, if the feelings of hope are strong, and the product falls just below expectations, some assimilation may occur and contribute to satisfaction directly. The students may have other thoughts along these lines that may show an ability to extend the information presented in the chapter. 18. Interview fellow students and ask them what meanings they attach to various products they own. For example, what do their sneakers say about them? What meaning do they ascribe to their choice of automobile? What about their favorite possessions? What meaning(s) do they ascribe to these? Answer: This is a chance for students to use the concept of meaning transference. In particular, their favorite possessions are deeply embedded with meaning. This relates back to information processing and memory, but students may also be challenged to question whether culture plays a role in this process and, if so, how. 19. Ask a friend to describe a recent unsatisfactory experience that he or she had with a company. What emotions did he or she feel? How did he or she deal with the situation? Answer: This activity gives students an opportunity to compare their own experiences to the consumer satisfaction processes described in the chapter. In particular, the bad experiences the friends describe are likely to involve emotions other than simply consumer dissatisfaction. If the friend complained, then he or she may well have experienced anger. Focus on how other emotions may be more closely tied to behavior than the mild emotions of satisfaction and dissatisfaction. 20. Ask a fellow student how the equity theory applies to a recent exchange that he or she had with a company. Does the student think that he or she was treated fairly? How was the perception of fairness affected by his or her level of satisfaction? Answer: This activity is an opportunity to elaborate on the concept of equity theory. Probe students to determine how strongly their perceptions of unfairness or a lack of justice relates to their sense of dissatisfaction, even if other aspects of consumption might be satisfactory. For example, the food could be satisfactory in a restaurant, but if some consumers believed that other consumers received better service, will they still react to the experience with satisfaction? 21. Use the ACSI to discuss how well different insurance companies satisfy consumers. Do the same for fast-food restaurants. In your opinion, do these results suggest that value and satisfaction are highly related within these industries? Answer: This is a key activity for the chapter. Have students visit the ACSI website. Do the well-known companies seem to do best in terms of satisfying customers? Are the more successful companies the ones that produce the highest satisfaction? Have students compare the results to the retail results presented in the chapter. Compare the results with Walmart’s position as a value leader but not a satisfaction leader.

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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*GROUP ACTIVITY In class, have students brainstorm a list of their favorite brands and/or products. This activity is directly related to the consumption process (reaction). During class, have students individually write a letter to the customer service department expressing why they like that particular brand. Have 2-3 students share their letters with the class. Students should be encouraged to send their letters to the particular companies. CHAPTER VIDEO CASE To view the video case Sephora Retailing for Success, go to the CB companion website login.cengage.com to select this video.5 From the beginning, Sephora has carried quality skincare products. Excellent retailing techniques, however, are the real driving force behind Sephora’s success. The company’s opensale environment allows consumers to try any product, or even take home a free sample before they buy. A great location in the heart of the New York City retail district makes it easy for Sephora to attract potential buyers. Sephora also invests a lot of time and money into training their sales staff so that when customers enter the store, they gain a total shopping experience in which their every need is met. The sales people are not paid on commission so they are free to give honest recommendations of products that would be best for their customers. As you watch the video, notice what other retailing methods Sephora uses to promote sales. Ask your students: 1. Visit www.sephora.com and browse the online store. How does Sephora use the online environment to promote its products without the advantage of letting customers try before they buy? Answer: Sephora.com has a flash banner that promises 3 free samples with every online order plus easy returns. Their online store has special articles, tips, contests and videos, all kinds of “interactive” or engaging features to keep an online shopper interested. 2. Sephora is working out the details of a new loyalty program and they have asked you to give your input and advice. What do you tell them? How should they integrate this new program with the retailing mix they have already adopted? Answer: Students’ answers may vary widely. Some students may want to advise Sephora to study other successful retail, fashion, fragrance, or body shop’s loyalty programs. Students may agree with the ideas presented in the video to offer incentives to frequent shoppers, special gift incentives, customized mailings and offers, etc. Other students may advise Sephora against the loyalty program because it may complicate inventory or change the democratic atmosphere of the open sale, non-commissioned sales staff, etc.

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From Lamb, Hair, McDaniel. ReadyMade-Do it Yourself from Marketing 9e, pg. 433. Copyright (c) 2008 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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In which of the following conditions is a consumer more likely to experience cognitive dissonance?

What emotion is generally associated with Postpurchase dissonance?

What is negative Disconfirmation?

Which of the following defines consumption quizlet?