Consumer Satisfaction
Outline
The concept of consumer satisfaction/ dissatisfaction Theoretical frameworks:
Expectancy-disconfirmation theory Attribution theory
Consumer satisfaction/dissatisfaction
satisfaction refers to a consumers judgment that a product (or its features) provided a pleasurable level of consumption-related fulfillment (Oliver 1997); distinguish: transactions-specific satisfaction cumulative satisfaction
Expectancy-disconfirmation theory
According to ED-theory, satisfaction is a function of three variables:
expectations regarding product performance formed prior to purchase perceptions of product performance resulting from experience with the product comparison of perceived performance with prior expectations, leading to positive or negative disconfirmation or confirmation;
Attribution theory
success and failure experiences with products lead to positive or negative overall emotional reactions, but may also elicit causal inferences along three dimensions:
locus stability controllability
(dis) satisfaction appears to be primarily related to locus of causality; in addition, particular attributions seem to be linked to specific emotions (e.g., failures controllable by the marketer lead to anger) and may influence the type of redress sought (e.g., consumers prefer a refund to an exchange in the case of stable attributions for product failure);
Expected Service
GAP 5
Perceived Service
M A R K E T E R
GAP 1 GAP 3
Service Delivery
GAP 4
Consequences of dissatisfaction
responses to dissatisfaction: do nothing; avoid seller/brand in the future (exit); negative word of mouth to friends; complain to seller or a third party (voice); action taken depends on such factors as the level of dissatisfaction, the importance of the product, the costs and benefits of actions, attribution of blame, and personal characteristics;
Loyalty
a deeply held commitment to rebuy or repatronize a preferred product or service in the future, despite situational influences and marketing efforts having the potential to cause switching behavior (Oliver); often measured by share of purchases, intent to repurchase, RFM, retention and longevity, positive WOM, etc.;
0% 1
extremely dissatisfied
satisfaction
2
somewhat dissatisfied
3
slightly dissatisfied
4
satisfied
5
very satisfied
How much profit a credit card customer generates over time (Reichheld and Sasser)
80 55
42
44
49
year
customer value
$800 $600 $400 $200 $20 $0 50% $134 $38 40% $70 30% 20% 10% 0% $525 $300
defection rate
Note: Customer value refers to the net present value of the profit streams a customer generates over the average customer life.