Week 09

Week 09

Consumer Behavior · Davood Wadi, PhD

Post-Purchase Behavior, Satisfaction, and Loyalty

The sale is not the end of the relationship. What happens after the purchase decides whether the consumer returns.

An opened delivery box seen from above, a pair of headphones lying in its tissue paper. Beside it, a card asks HOW WAS IT? above five empty stars.How was it?

After the Purchase

Postpurchase behavior includes everything the consumer does after buying: using the product, judging it, talking about it, and eventually getting rid of it.

Four scenes of the same owner after buying headphones. Using it: wearing them, music notes beside the head. Judging it: hand on chin, holding the headphones, a thought cloud with three of five stars. Talking about it: telling a friend, a speech bubble with the headphones. Getting rid of it: dropping them into an open box.USING ITJUDGING ITTALKING ABOUT ITGETTING RID OF IT

In this stage, the consumer decides whether the purchase was a good one.

That judgment shapes repeat purchases, reviews, recommendations, and complaints.

Keeping an existing customer usually costs less than winning a new one. For this reason, marketers study the postpurchase stage as closely as the purchase itself.

Two customers. KEEP: an existing customer carrying the brand's shopping bag, beside a short stack of three coins. WIN: a new customer, empty-handed, beside a tall stack of ten coins.KEEPWIN

Expectations and Reality: The Disconfirmation Model

Customer satisfaction is the consumer's overall feeling about a product after purchase and use.

The expectancy disconfirmation model states that satisfaction depends on the gap between expectations and perceived performance (Oliver, 1980).

Two rails on one scale. Left: an ad for headphones, set at the level of the consumer's expectations. Right: the headphones, set at the level of their perceived performance, level with the ad. A bracket marks the gap. Verdict: confirmation, the consumer is satisfied.EXPECTATIONSPERCEIVED PERFORMANCEHIGHLOWCONFIRMATIONSATISFIED

Positive disconfirmation occurs when performance exceeds expectations. The consumer is satisfied or delighted.

Confirmation occurs when performance matches expectations. The consumer is satisfied.

Negative disconfirmation occurs when performance falls below expectations. The consumer is dissatisfied.

Marketers who promise too much in advertising raise expectations and make negative disconfirmation more likely.

Exercise · Which one is it?

Each consumer has used a product and compared it with what they expected. Name the outcome the disconfirmation model predicts.

From the booking photos, Lena expected an ordinary hotel room. She is given a room with a sea view and a free breakfast.

Which concept does this case show?

Other Influences on Satisfaction

Perceived quality is the consumer's judgment of how well the product performs its function.

Equity theory states that consumers judge whether an exchange was fair. They compare what they gave, such as money and effort, with what they received.

A balance scale hanging level. On the left pan, what the consumer gave: a stack of coins and a clock. On the right pan, what the consumer received: the headphones.WHAT THEY GAVEWHAT THEY RECEIVED

Attribution theory explains how consumers assign the cause of a product failure.

If a consumer blames the company for a failure that the company could have prevented, dissatisfaction is stronger.

An owner points at the brand's box on the counter; between them lie the headphones with the band snapped at the hinge. A thought cloud above the owner holds a deeply unhappy face.

If a consumer blames chance or their own misuse, dissatisfaction is weaker.

An owner stands with a hand to the forehead beside a table where a knocked-over mug has spilled coffee over the headphones. A thought cloud above the owner holds a slightly unhappy face.

Cognitive Dissonance and Buyer's Regret

Cognitive dissonance is the discomfort a person feels when holding two conflicting beliefs (Festinger, 1957).

Postpurchase dissonance occurs when a consumer doubts a purchase decision after making it.

Buyer's regret is the feeling that another option would have been better.

An owner wearing new headphones stands beside their box, a hand to the chin, picturing in a thought cloud the other pair of headphones, drawn in pencil because it was not bought.

Dissonance is most likely when the purchase is expensive, important, and hard to reverse.

A long receipt with one item line, a large total of $349, and a stamped line FINAL SALE · NO RETURNS.TOTAL$349FINAL SALENO RETURNS

Dissonance is also more likely when the rejected alternatives had attractive features that the chosen product lacks.

Two pairs of headphones side by side. The chosen pair, ticked in teal, has no microphone. The rejected pair, drawn in pencil, has an ochre microphone boom.
Knowledge Check

Which of these purchases is most likely to leave the buyer with postpurchase dissonance?

Reducing Postpurchase Dissonance

Consumers reduce dissonance on their own. They seek information that supports their choice, avoid information that favors the rejected options, or lower the importance of the missing features.

An owner reads a five-star review of her headphones on a phone, back turned to a poster advertising the rival pair with its microphone.
  1. Marketers can help. A follow-up message thanks the customer and confirms the benefits of the product.

    A thank-you card pulled from its envelope, with a small drawing of the headphones and three benefit lines, each ticked in teal.Thank you
  2. Guarantees, warranties, and easy return policies reduce the risk that the consumer feels after buying.

    Left: a certificate headed 2-YEAR WARRANTY with an ochre seal. Right: a shipping label marked FREE RETURNS with an arrow curving back.2-YEAR WARRANTYFREE RETURNS
  3. Advertising that shows satisfied owners reassures recent buyers as well as future ones.

    A magazine ad: two smiling owners wearing the headphones, one waving an arm in delight, under a row of five stars.
  4. Customer service that responds quickly to problems prevents doubt from turning into dissatisfaction.

    A phone chat. The owner's message shows the broken headphones; under the time 2 MIN, the company's reply arrives with a teal tick.2 MIN
Exercise · Sort into groups

Each card describes something that reduces doubt after a purchase. Is the consumer reducing the dissonance on their own, or is the marketer helping?

      Tap a card, then tap the group it belongs to.

      Responses to Dissatisfaction

      A dissatisfied consumer can respond in three ways (Singh, 1988).

      1. A voice response means complaining directly to the seller and asking for a refund or repair.

        At a shop counter, an owner holds out the broken headphones and speaks to the clerk behind it.
      2. A private response means switching brands and warning friends and family.

        An owner carrying a plain shopping bag from another brand warns a friend; the speech bubble shows the broken headphones crossed out.
      3. A third-party response means taking action through an outside party, such as a consumer agency, a court, or a public online review.

        A laptop open on a public review site: beside a small picture of the headphones, a review with one star out of five.

      Most dissatisfied customers never complain to the firm. A complaint is therefore an opportunity to recover the customer.

      A row of twelve unhappy faces. Eleven say nothing; only the last one, nearest the shop, speaks to it, its speech bubble washed teal.

      Product Disposal and Secondary Markets

      Disposal is the final stage of consumption.

      A consumer can keep a product, using it for its original purpose, finding a new use for it, or storing it.

      A consumer can get rid of a product temporarily, by renting it out or lending it.

      A consumer can get rid of a product permanently, by throwing it away, giving it away, trading it, or selling it.

      From the headphones at the top, three paths. Left: an arrow into a house, where they sit on a shelf. Middle: a round trip, an arrow out to a friend who holds them and another arrow back. Right: a one-way arrow to a bracket over four ends: a bin, a wrapped gift, a pair of swap arrows and a price tag.$

      Lateral cycling occurs when one consumer's used product passes to another consumer, through a garage sale, a thrift store, or a resale app.

      Left: the owner holds a phone showing the used headphones listed for sale with a price tag. An arrow leads right to a second consumer who now holds the headphones, washed teal.$

      Secondary markets for clothing, electronics, and furniture give products a second life and create new business models for brands.

      Exercise · Sort into groups

      What is each consumer doing with a product? Sort the cards into the three disposal options.

            Tap a card, then tap the group it belongs to.

            Online Reviews as Postpurchase Behavior

            Writing an online review is one of the most visible postpurchase behaviors.

            Consumers write reviews to help other shoppers, to express satisfaction or anger, to gain recognition, or to return a favor to the firm.

            Social exchange theory helps explain the request to write a review. A request to help other shoppers reinforces a social exchange. A request to help the company reinforces a reciprocal exchange.

            When a review request offered a financial incentive, asking customers to help the company worked less well than asking them to help other shoppers (Wadi et al., 2026a).

            Two review request emails, each offering a $10 credit. One asks the customer to help other shoppers; the other asks them to help the company. Under each, a bar of review intention on a 1 to 5 scale: 4.32 for helping other shoppers, washed teal, and 3.95 for helping the company.HELP OTHERSHOPPERS$10 CREDIT4.32HELP THECOMPANY$10 CREDIT3.95REVIEW INTENTION, 1–5

            Incentives paid only for helpful reviews raised review writing and review length more among first-time reviewers than among experienced reviewers (Wadi et al., 2026b).

            A message framed as a reciprocal exchange with the company led reviewers to write longer reviews, but fewer customers chose to write one (Wadi et al., 2026b).

            A review request to a first-time reviewer, paid for any review, asking the customer to help other shoppers. 6 of 100 customers asked wrote a review; the average review ran 131 characters.THE REQUESTTO: FIRST-TIME REVIEWERHelp other shoppersby writing a review.PAID FOR ANY REVIEW6 OF 100 ASKED WROTE ONEAVERAGE REVIEW: 131 CHARACTERS

            Reviews now have two audiences. They inform human shoppers and the AI agents that read reviews on shoppers' behalf.

            One review card with four stars stands between a shopper, who reads it, and an AI agent, which reads it too.
            Knowledge Check

            An online retailer wants more first-time reviewers to write a review, and it has a budget for rewards. Based on the studies on the slide, which review request fits that goal best?

            From Satisfaction to Loyalty

            Brand loyalty is a pattern of repeat purchase supported by a positive attitude toward the brand (Dick & Basu, 1994).

            1. True loyalty combines frequent repeat purchase with a strong positive attitude.

              The brand's stamp card with nine of ten purchases stamped, and a large heart beside it.
            2. Spurious loyalty is repeat purchase without a strong attitude. The consumer buys out of habit, convenience, or lack of alternatives.

              The brand's stamp card with nine of ten purchases stamped, and no heart beside it.
            3. Latent loyalty is a strong positive attitude without repeat purchase. The consumer likes the brand but rarely buys it, perhaps because of price or availability.

              The brand's stamp card with only one of ten purchases stamped, and a large heart beside it.

            Satisfaction does not guarantee loyalty. Satisfied customers still switch when a competitor offers a better deal.

            A customer walks away from the usual brand's shop toward a rival's sign offering 30% off; her thought cloud holds a smiling face.−30%

            Loyalty programs reward repeat purchase, but they build true loyalty only when customers also value the brand.

            Exercise · Which one is it?

            Each consumer has a relationship with a brand. Name the type of loyalty, using repeat purchase and attitude.

            Dana buys the same toothpaste every month because it is the brand the corner shop stocks. She has no strong feelings about it.

            Which concept does this case show?

            Brand Loyalty and Delegated Repurchase

            AI agents can now reorder routine products for the consumer, such as detergent, coffee, or pet food.

            When an agent handles the repurchase, loyalty can take two forms.

            Loyalty to the brand appears when the consumer names the brand in the instruction, for example "reorder my usual coffee."

            Reliance on the agent appears when the consumer states only a goal, for example "buy coffee at the best price," and lets the agent choose the brand.

            In the second case, the agent's choice depends on the goal it was given and the information it gathers (Wadi & Ma, 2026b). The consumer's past attachment to a brand may count for little unless the instruction mentions it.

            Two coffees on a price-per-ounce scale: the usual brand at $0.45 and a rival at $0.50. The agent told to reorder the usual coffee puts the usual brand in its basket. The agent told to buy coffee at the best price puts the usual brand in its basket.PRICE PER OUNCE$0.35$0.40$0.45$0.50$0.55$0.50“REORDER MYUSUAL COFFEE.”“BUY COFFEE ATTHE BEST PRICE.”

            Spurious loyalty based on habit is therefore at risk when repurchase is delegated. A brand is more secure when the consumer names it in the instruction or when it remains the best option under the consumer's criteria.

            Brands that depend on delegated repurchase compete to be named in the consumer's instruction and to present clear product information to the agent.

            Exercise · Sort into groups

            Each card is an instruction a consumer gives an AI agent to reorder a routine product. Does the instruction show loyalty to the brand, or reliance on the agent?

                Tap a card, then tap the group it belongs to.

                Discussion: The Review You Did Not Write

                Discussion:

                Think of a product you were very satisfied or dissatisfied with. Did you write a review? What would have made you write one, and would the answer change if the firm had offered you a reward?

                A phone shows a review form for the headphones: its five stars and its text box are drawn in pencil, unfilled. A reward tag with a dollar sign is tied to the phone.$