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Decisions Related to Post Purchase:Product Set up and Use

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Consumer Psychology (PSY - 514)
VU
Lecture 39
Decisions Related to Post Purchase
Understanding:
1. Product Set up and Use
a. Providing Information and Assistance
b. Providing Information and Assistance
c.  Understanding the Consumer's Consumption System
Decisions About Warranties
1. Decisions Related to Post Purchase
Some very important Marketing Implications flow from Consumer Post Purchase decisions in the following two
areas:
1. Product Set up and Use
2. Related Products and Services
2. Product Set up and Use
The marketing implications resulting from Consumer behavior related to Product Set up and Use are important in
the following areas:
a.  Providing Information and Assistance
b. Understanding the Consumer's Consumption System
c.  Decisions About Warranties
a) Providing Information and Assistance
Consumers may purchase durable goods from full service retailer or self service stores or ware houses
Full Service Retailer: is required to provide consumer with necessary information on how to carefully install the
product as well as methods of operation
Self Service Stores/Ware houses: Consumers have to assume the responsibility of delivery and installation
functions. Nevertheless, there might still be important need for the store to explain to the consumer proper
installation and operation of the product.
Importance of Information on Product Set up and Use
The importance of information on product set up and use is highly critical in today's self service economy. If
proper information is not provided to the consumer they must rely exclusively on whatever literature comes with
the product. In such situations marketers need to assess if their product literature is readable and understandable.
b) Understanding the Consumer's Consumption System
Understanding how a product is used by the consumers, how a product fits into the consumer's consumption
system is of fundamental importance to consumers. While understanding the consumption system it is important
for the marketer to understand how the consumer performs the total task of whatever s/he is trying to accomplish
when using the product. Marketers need to do this to:
Make improvements in the product's quality and functions
Suggest new uses for the product
c) Decision about Warranties
Warranty is a promise by the manufacturer or seller that the product or service is free from defects in materials and
workmanship and that the problems will be corrected if failure occurs during the warranty period.
An effective warranty can offer several consumer benefits including the following:
Providing assurance of product services/quality
Increasing self confidence about product/service choice
Reducing feelings of risk of ownership because of return and refund privileges
126
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Consumer Psychology (PSY - 514)
VU
Reducing dissonance because of warranty assurance of quality
Designing a Warranty Program
Designing a Warranty Program: Two Approaches
Strategy
Offensive: Maximize Profits
Defensive: Limit Liability and Costs
Warranty Type
Replacement/Repair
Pro Rata
Warranty Length
Long
Short
Warranty Breadth
Broad
Narrow
Product Scope
Holds true for all items
Only for some items in the product line
Market Scope
World wide
Limited by country, state and channel
Coverage
Parts, labor and some consequential
Parts only
damages
Conditions
Loose
Strict
Properly Administered Warranty Program
A properly administered program should have the following components:
Use simple, clear and easy to understand warranty wording (no complications)
Encourage customers to use the warranty
Clarify who will execute the program and what standards must be met (centers, personnel, etc..)
Collect, analyze and use warranty information
Constantly monitor consumer and dealer response to invoking warranty
Promptly reimburse dealers or agents for warranty work
Monitor and control costs
Warranties Influence on Consumers
Warranties can produce positive effect on product evaluations as these act as powerful marketing tools when
competition is tough. It also guarantees of satisfaction may be combined with the growing use of toll free numbers
Conditions for Strong Warranties
Conditions for strong warranties include the following:
The price of the product/service is high
Customers egos are heavily involved (cars)
Customers' expertise is low (computers)
The negative consequences of failure are great
The industry has a bad image for quality
127
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Consumer Psychology (PSY - 514)
VU
The company depends upon frequent customer repurchases (related products)
The company's business is strongly affected by word of mouth
128
Table of Contents:
  1. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer Behavior
  2. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
  3. INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price
  4. INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value
  5. VALUE AND RETENTION FOCUSED MARKETING AND CONSUMER DECISION MAKING PROCESS
  6. CONSUMER RESEARCH:Quantitative Research, Qualitative Research
  7. MAJOR STEPS IN CONSUMER RESEARCH PROCESS:Design of Primary research
  8. QUANTITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  9. QUANTITATIVE RESEARCH DATA COLLECTION TECHNIQUES:ATTITUDE SCALES
  10. QUALITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  11. CUSTOMER SATISFACTION MEASUREMENT, SAMPLING, AND DATA ANALYSIS AND REPORTING
  12. MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation
  13. BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION
  14. BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION
  15. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues
  16. BASES FOR SEGMENTATION: HYBRID SEGMENTATION STRATEGIES
  17. MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE
  18. HOW CULTURE IS LEARNT ENVIRONMENTAL INFLUENCES:Formal Learning
  19. CULTURE AND ITS MEASUREMENT ENVIRONMENTAL INFLUENCES
  20. MEASUREMENT OF CULTURE ENVIRONMENTAL INFLUENCES:Consumer Fieldwork
  21. SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  22. AGE AND GENDER SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  23. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Market Segmentation
  24. SOCIAL CLASS CHAPTER 4: ENVIRONMENTAL INFLUENCES:Occupation
  25. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Affluent Consumer
  26. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Membership Group
  27. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups
  28. UNDERSTANDING PERSONALITY CHAPTER 5: INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOR
  29. CONSUMER PERSONALITY, TRAIT THEORY AND SELF IMAGES
  30. CONSUMER MOTIVATION:Needs, Goals, Generic Goals
  31. UNDERSTANDING LEARNING:Intentional and Incidental Learning, Implications for Marketers
  32. INSTRUMENTAL CONDITIONING, INFORMATION PROCESSING AND MEMORY
  33. ATTITUDES:Characteristics of Attitudes, Attitudes have consistency
  34. ATTITUDE FORMATION AND CHANGE:How attitudes are learned?
  35. ATTITUDE CHANGE STRATEGIES:Resolving two conflicting attitudes
  36. INTRODUCTION TO CONSUMER DECISION MAKING:Decision Complexity
  37. Problem Recognition, Search and Evaluation and Decision and Purchase
  38. Decision and Purchase:Consumer Decision Rules, Output, Relationship Marketing
  39. Decisions Related to Post Purchase:Product Set up and Use
  40. Marketing Implications of Decisions Related to Post Purchase:Understanding
  41. Post Purchase Evaluation:Determinants of Satisfaction, Consumer Complaint Behavior
  42. Post Purchase Dissonance:Dissonance Reduction, Marketing Implications
  43. Consumerism:Roots of Consumerism, The Nature of Consumerism
  44. Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy
  45. Review Consumer Psychology Course:Consumer Research, Consumerism