POST PURCHASE BEHAVIOUR
Word count: 1,900
According to Blackwell, M & E (2006, P4), Buyer behaviour can be defined as “Activities people undertake when obtaining, consuming and disposing of products and services”
In this essay, I will be focusing specifically on “Post purchase behaviour”, in which I’ll be discussing and evaluating if customers that are satisfied with a supplier and/or their offering will become loyal?
According to Giese and Cote (2000), Customer Satisfaction is defined as “A summary affective response of varying intensity with a time-specific point of determination and limited duration that is directed towards focal aspects of product ...view middle of the document...
(See FIG 1.).
Reicheld and Sasser (1990) suggests that loyal customers enable firms to generate more profit over time because of reduced operating costs, increased purchases and increased profit margin. However, the service profit shows that it's impossible for a business to have customer loyalty without customers satisfaction. Therefore, this suggests that that a current customer who is totally satisfied with the services or product offered by an organisation will most likely become loyal (Bowen & Chen 2001, p.215).
Reicheld and Sasser (1995), goes on to say it cost 5 times more to win a new customer than to a retain an existing (loyal) customer. Reicheld and Sasser (1995) are indicating that if a business solely aims own satisfying their current customers, it will lead to customer loyalty, and it will save them money, as these loyal customers are more likely to spread positive word of mouth to potential customers, in return, the potential customers would come to try out the products/services offered by the organisation, but will have high expectations.
Moreover, current customers tend to influence the expectations of potential customers with whom they interact with, through word of mouth etc. Which leads to potential customers having expectations and perceptions of the business (Davis and Heineke, 1998). This is known as the subjective expectancy disconfirmation theory, whereas consumers enter into a consumption experience with predetermined cognitive expectations of a products performance (Babin & Harris 2012). It is also the difference between customer perceptions and expectation which equals customer satisfaction (Anderson, 1973). Hereby, if the customers' expectations is less than the actual perception of the business, this will lead to a positive disconfirmation (Oliver, 1997). This would lead to high customer satisfaction meaning performance is greater than or equal to the customer’s desired service level, that is, the service performs better or equal to that desired by the customer (Anderson, 1973). However, if the customers' expectations is more than the actual perception of the business, it will lead to a negative disconfirmation meaning the customer would be highly dissatisfied (Oliver, 1997). Nonetheless, Oliver (1999) introduces the loyalty ladder, in which he listed 4 steps that represents different types of customers based on their loyalty to a firm which include; 1. Cognitive loyalty: this is the 1st step of the ladder, when a customer buys based on the features the product has. 2. Affective loyalty: this is the 2nd step of the ladder, when a customer now buys because they like the product. 3. Conative loyalty: this is the 3rd step of the ladder, when a customer now gets committed into buying the product. 4. Action loyalty: This is the 4th step of the ladder, when a customer buys against all odds and they are completely loyal to the brand (Oliver, 1999). This suggest that the more satisfied a customer is with a...