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Name: Umair Usman
Registration # 36833
Program: MBA (Weekend)
Semester: III
Course: Methods in Business Research
Topic: Measuring of Satisfaction and Post-Purchase
Process in Services
Submitted to: Muhammad Mumtaz Khan
Submission date: February 22nd 2015
Table of Content
Introduction 1
Literature Review 2
Satisfaction and decision making process 2
Post-purchase and Regret 2  4
Post-purchase and Satisfaction 4
Conceptual Frame work 5
Research Design 6
Research Methodology 7
Sample Design 7
Questionnaire Design 7
Data Collection 7
Data Analysis 7
Analysis 8
Result & Conclusion
Questionnaire
References
1
Introduction
2
Literature Review
Satisfaction and decision making process
The process of need satisfaction arises from the identification of gap between the current state
and the desire state. When an individual feel the need, he/she search product to fulfill those
needs. In order to get maximum satisfaction they look for the best product. Sellers identified
various influences for buyers who actually make the buying decision, the types of buying
decision and stages of buying process (Kotler, 2002). To manage these situations decision theory
buyer uses their analytical thinking and compare the consequences of each alternative in term of
higher benefits, lowest the cost and on a long run basis (Hansson 2005; North 1968; Tryfos
2001).
After making a purchase consumer moves into final stage of buying process where they
experience of satisfaction or dissatisfaction. The closeness between the buyers expectations and
the product perceived performance (Rodgers et al. 1989). As the whole process of purchasing
there is beginning of another process which is known as the post purchase evaluation. The
consumer has an internal war with themselves on whether or not the purchase was right for them
(Boundless 2014).
At this point we draw attention towards dilemma that at the time of purchase it sounds like a
good idea. Then once it is done, it may not be exactly the same what you originally wanted. And
now they look back on their decision whether it was right. As they may have extra money so
they bought it (Boundless 2014). This experience leads them towards their perception generation.
And they use reference group, opinion leaders, and influence in their decision to satisfy their
needs. And this develops their behavior towards whole process which the individual pass
through.
Post-purchase and Regret
This experience further elaborated by researchers through dividing it into Counterfactual
thinking. Counterfactual thinking (CFT): It is the feelings to satisfy one own self by creating an
alternative imagination to better satisfy their needs (Zeelenberg and Pieters 2006; cited by Lee
3
and Cotte 2009). Counterfactual thinking (CFT) is the process of comparing reality with
alternative possibilities by constructing hypothetical scenarios to assess the attractiveness of
alternative possibilities (Kahneman and Miller 1986; cited by Lee and Cotte 2009).
In post purchase, an individual stand on two stages upward CFT and downward CFT (Kahneman
and Miller 1986). Downward counterfactual thinking occur when an individual imagine that the
situation may get worse if he/she selected the other alternative. And the upward CFT is the
perception that situation may get better if the other alternative was selected.
Lets focus on upward CFT, where individual focus on better option. In this scenario the
unavailability of alternative may also become the source of regret (Lee and Cotte 2009). These
feelings of disappointment occur due to over estimation which generating the experience of how
the individual bought and what they bought. Several author suggested that when unfavorable
outcome compared with the better outcome the regret generated (Bell 1982; Tsiros and Mittal
2000; cited by Lee and Cotte 2009).
To manage this dissonance, there are efforts made by various forces in the environment, like
individual defense mechanism active itself to justify its choice and provide reasons and pros and
try to reduce anxiety.
Then sellers also work on this by two techniques pre-purchase and post purchase. The pre-
purchase activity for profit like before purchase they gives lower price so that they can attract
new customer and/or offer free gift or some extra services to generate higher value and reduce or
avoid post purchase regret, which is product not meet the desire expectations (Kuksov and Xie,
2008).
As the following discussion show the post purchase strategy is to provide extra efforts, not
promised before purchase, to serve customers. As this depends on situation if market is not
growing fast the firm may reduce first-period price and provide extra post-purchase efforts
(Kuksov and Xie, 2008). Some practices are sending thank you notes, advertise the product in
superior ads, and they can offer guarantees for their products.
4
Now the focus of this thesis is the problem with getting dissonance from services that you cannot
return. Due to their invisibility, inseparability, permissibility and variability characteristics
services, consumers are more adopt various measures to judge, buy and recommend others such
as intangibility makes assessing quality and value is difficult. And the client will never know its
goodness, until he/she experienced it. In order to overcome this fact, marketers heavily relay on
services process, deliverables, personal interaction, trusted recommendations, clear
communications and benefits to build clients confidence (ReThink Marketing nd).
Post-purchase and Satisfaction
The factor of post-purchase in services has been underestimated, as the nature of this makes it
different from tangible product study. Study establish on the find that elements such as
satisfaction influence repeat visiting and recommending the experience to others (Harrison and
Shaw 2001; 2004). The importance of satisfaction in services are recognizing by word-of-mouth
communication (Young 1981; cited by Harrison and Shaw 2004).
We can assume that the existence of service firm is widely depending on the satisfaction level of
its consumers. Despite the brand equity factor is has been maintain the view the satisfied
customers are believed to affect the long-term viability of organizations through repeat purchase,
brand loyalty and word-of-mouth communication (Cina 1989; Churchill and Surprenant 1982:
Walker 1995; cited by Harrison and Shaw 2004). And in services people, place, physical
environment counted for it value creation.
There is a reality the consumer might not visit after they become dissatisfied by provider, this
evidence by one client level measured by repeated visit, and continuously service delivery or
consumption process (Gabbott and Hogg 1998; cited by Harrison and Shaw 2004). The writers
make evaluation of post-purchase trend in services through measuring the consumers
expectations and their willingness to fulfill them, which are affected by environment  place
and/or surrounding where the actual delivery of services takes place, people who provide the
services and the process in which consumer and service provider involve to deliver the service.
5
Conceptual Frame Work of Satisfaction and Post-purchase Behavior in
Services
The initial conceptualize work in figure-1 was construct after above discussion. This frame of
hypothesis was tested on the level of satisfaction from services availed by selected population. It
shows describe the relationship between variable cause behavior towards post-purchase.
We have also discussed the various level of
satisfaction (upward & downward) after making the
final purchase. Due to the nature of services,
consumers behavior in post-purchase, on this
particular nature of product, is different. And we
try to measure the impact of this changes cause to
perishability, inseparability, intangibility and
heterogametic element makes it quiet difficult to
study the effects on re-buying.
H1: Fulfillment of expectation is associated
with satisfaction
H2: Customer satisfaction is directly affects the post purchase behavior of the product
H3: Satisfaction of customer depend on their expectation and service delivery
These hypotheses tell us about the desirability and intention to re-buy. The consumers
achievement of need fulfillment from the product makes their inner satisfaction and they
recommended to other.
H4: Word of mouth only create attention of customer toward product
The referral group, inner-circle and opinion leaders help the individual in their decision making
while they are uncertain on product purchase. Word-of mouth leads or guide on the occasion
when the person is involve in dilemma whether to purchase or not. And they may also serve as
decision maker in post-purchase.
Post-purchase
Satisfaction
Recommendation
Word-of-mouth
Expectations
Performance
Figure 1
Conceptual Frame Work of Satisfaction and Post-purchase Behavior in
Services
6
Research Design
This is the exploratory research to measure the level of satisfaction and intention for post-
purchase in services. As service product share distinguish characteristics, we try to analysis the
trend followed in service toward post-purchase.
In order to perform our study, as this research is descriptive, we use cohort study as the sample
group shares the same time period of the service availability within a limited geographic region.
The majority of the sample size was depends on metropolitan city and financial stabilized.
Here we deal with the process problem as with the passage of time the variation gives impact on
consumer behavior towards particular needs. Their past experience and word-of-month also play
major role while they were trying new product.
7
Research Methodology
Sample Design
Our sample was consists of 20 individuals, who live in metropolitan, graduates, internet user, and
income group belongs mid-level.
Questionnaire Design
For primary data collection, we use questionnaire approach. It consists of 15 questions, all are
closed ended and range from likert scale to two options.
Data Collection
Data collection performed through google.doc, and the questionnaire spread from social media.
Data Analysis
Data analysis performed on SPSS.
8
Analysis
9
Result & Conclusion
10
Questionnaire
Q.1) How old are you?
20  30 31  45 46  60
Q.3) What is your gender group?
Male Female
Q.3) Income group you belong.
Rs. 20,000  35,000 36,000  50,000 60,000  above
Q.4) Please mark all types of services you regularly avail to;
Food
News
Teaching
Barber/pallor
Fitness
Security
Cleaning
Q.5) For the following statement please tick  the box that matches your view most closely;
I feel that too much time was invested in getting this product.
Agree Slightly agree Neutral Slightly disagree Disagree
Q.6) How often do you feel the following statement is true with you, With more information, I
feel that I could have made a better decision.
All the time Frequently Sometime Rarely Never
Q.7) Using community service is a social status symbol.
Yes No
11
Q.8) How do you feel about the following statement? I should have chosen something else than
the one I bought.
Strongly Agree Agree Neutral Disagree Strongly Disagree
Q.9) How many times your expectation meet your satisfaction level?
Never One Time Two Times Three Times More than Four Times
Q.10) Do you think the satisfactory support service increases the chances to visit the retailer next
time?
Strongly Agree Agree Neutral Disagree Strongly Disagree
Q.11) If I were to go back in time, I would choose something different to buy.
Agree Disagree Dont know
Q.12) What are the things which delight you while getting service;
Product People (service provider/staff)
Environment (surrounding) Price
Q.13) How is purpose to complete word-of-mouth connected to actual performance?
Ideal Desired Needed Adequate
Q.14) What situations enable you to rely on word of mouth?
New buying Complex buying
Same product but new service provider Modified re-buy
Q.15) How effectively your existing referral cause in generating trial for the product purchase?
81% - 100% 61% - 80% 41% - 60%
21% - 40% 0% - 20%
12
References
1. Boundless Postpurchase [online] (03 Jul. 2014) Available from
<https://www.boundless.com/marketing/textbooks/boundless-marketing-
textbook/consumer-marketing-4/consumer-decision-process-40/postpurchase-204-
10576/>
2. Harrison, Paul and Shaw, Robin (2004) Consumer Satisfaction and Post-purchase
Intentions: An Exploratory Study of Museum Visitors, International Journal of Arts
Management; 6:2, p.23.
3. Kotler, Philips (2002) Marketing Management Millennium Edition (10th Edn), Pearson
Custom Publishing, United State of America.
4. Kuksov, Dmitri and Xie, Ying (2008) Pre- and Post-Purchase Management of Customer
Satisfaction 3-8.
5. Lee, Seung and Cotte, June (2009) Post-Purchase Consumer Regret: Conceptualization
and Development of the PPCR Scale. Advances in Consumer Research, Volume 36,
456-457.
6. North, D. Warner (1968) A tutorial introduction to Decision Theory IEEE Transactions
on systems science and cybernetics, Vol., SSC-4, No. 3,
7. Rethinkmarketing Services Marketing: Four Factors that Affect Your Customers
[online] Available from www.rethinkmarketing.com/articles/ReThink Marketing -
Strategic Marketing, Research, & Planning Consultants.htm#top
8. Tryfos, Peter (2001) Decision Theory, Canada, Chapter 3

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Measuring of Satisfaction and Post-Purchase Process in Services

  • 1. Name: Umair Usman Registration # 36833 Program: MBA (Weekend) Semester: III Course: Methods in Business Research Topic: Measuring of Satisfaction and Post-Purchase Process in Services Submitted to: Muhammad Mumtaz Khan Submission date: February 22nd 2015
  • 2. Table of Content Introduction 1 Literature Review 2 Satisfaction and decision making process 2 Post-purchase and Regret 2 4 Post-purchase and Satisfaction 4 Conceptual Frame work 5 Research Design 6 Research Methodology 7 Sample Design 7 Questionnaire Design 7 Data Collection 7 Data Analysis 7 Analysis 8 Result & Conclusion Questionnaire References
  • 4. 2 Literature Review Satisfaction and decision making process The process of need satisfaction arises from the identification of gap between the current state and the desire state. When an individual feel the need, he/she search product to fulfill those needs. In order to get maximum satisfaction they look for the best product. Sellers identified various influences for buyers who actually make the buying decision, the types of buying decision and stages of buying process (Kotler, 2002). To manage these situations decision theory buyer uses their analytical thinking and compare the consequences of each alternative in term of higher benefits, lowest the cost and on a long run basis (Hansson 2005; North 1968; Tryfos 2001). After making a purchase consumer moves into final stage of buying process where they experience of satisfaction or dissatisfaction. The closeness between the buyers expectations and the product perceived performance (Rodgers et al. 1989). As the whole process of purchasing there is beginning of another process which is known as the post purchase evaluation. The consumer has an internal war with themselves on whether or not the purchase was right for them (Boundless 2014). At this point we draw attention towards dilemma that at the time of purchase it sounds like a good idea. Then once it is done, it may not be exactly the same what you originally wanted. And now they look back on their decision whether it was right. As they may have extra money so they bought it (Boundless 2014). This experience leads them towards their perception generation. And they use reference group, opinion leaders, and influence in their decision to satisfy their needs. And this develops their behavior towards whole process which the individual pass through. Post-purchase and Regret This experience further elaborated by researchers through dividing it into Counterfactual thinking. Counterfactual thinking (CFT): It is the feelings to satisfy one own self by creating an alternative imagination to better satisfy their needs (Zeelenberg and Pieters 2006; cited by Lee
  • 5. 3 and Cotte 2009). Counterfactual thinking (CFT) is the process of comparing reality with alternative possibilities by constructing hypothetical scenarios to assess the attractiveness of alternative possibilities (Kahneman and Miller 1986; cited by Lee and Cotte 2009). In post purchase, an individual stand on two stages upward CFT and downward CFT (Kahneman and Miller 1986). Downward counterfactual thinking occur when an individual imagine that the situation may get worse if he/she selected the other alternative. And the upward CFT is the perception that situation may get better if the other alternative was selected. Lets focus on upward CFT, where individual focus on better option. In this scenario the unavailability of alternative may also become the source of regret (Lee and Cotte 2009). These feelings of disappointment occur due to over estimation which generating the experience of how the individual bought and what they bought. Several author suggested that when unfavorable outcome compared with the better outcome the regret generated (Bell 1982; Tsiros and Mittal 2000; cited by Lee and Cotte 2009). To manage this dissonance, there are efforts made by various forces in the environment, like individual defense mechanism active itself to justify its choice and provide reasons and pros and try to reduce anxiety. Then sellers also work on this by two techniques pre-purchase and post purchase. The pre- purchase activity for profit like before purchase they gives lower price so that they can attract new customer and/or offer free gift or some extra services to generate higher value and reduce or avoid post purchase regret, which is product not meet the desire expectations (Kuksov and Xie, 2008). As the following discussion show the post purchase strategy is to provide extra efforts, not promised before purchase, to serve customers. As this depends on situation if market is not growing fast the firm may reduce first-period price and provide extra post-purchase efforts (Kuksov and Xie, 2008). Some practices are sending thank you notes, advertise the product in superior ads, and they can offer guarantees for their products.
  • 6. 4 Now the focus of this thesis is the problem with getting dissonance from services that you cannot return. Due to their invisibility, inseparability, permissibility and variability characteristics services, consumers are more adopt various measures to judge, buy and recommend others such as intangibility makes assessing quality and value is difficult. And the client will never know its goodness, until he/she experienced it. In order to overcome this fact, marketers heavily relay on services process, deliverables, personal interaction, trusted recommendations, clear communications and benefits to build clients confidence (ReThink Marketing nd). Post-purchase and Satisfaction The factor of post-purchase in services has been underestimated, as the nature of this makes it different from tangible product study. Study establish on the find that elements such as satisfaction influence repeat visiting and recommending the experience to others (Harrison and Shaw 2001; 2004). The importance of satisfaction in services are recognizing by word-of-mouth communication (Young 1981; cited by Harrison and Shaw 2004). We can assume that the existence of service firm is widely depending on the satisfaction level of its consumers. Despite the brand equity factor is has been maintain the view the satisfied customers are believed to affect the long-term viability of organizations through repeat purchase, brand loyalty and word-of-mouth communication (Cina 1989; Churchill and Surprenant 1982: Walker 1995; cited by Harrison and Shaw 2004). And in services people, place, physical environment counted for it value creation. There is a reality the consumer might not visit after they become dissatisfied by provider, this evidence by one client level measured by repeated visit, and continuously service delivery or consumption process (Gabbott and Hogg 1998; cited by Harrison and Shaw 2004). The writers make evaluation of post-purchase trend in services through measuring the consumers expectations and their willingness to fulfill them, which are affected by environment place and/or surrounding where the actual delivery of services takes place, people who provide the services and the process in which consumer and service provider involve to deliver the service.
  • 7. 5 Conceptual Frame Work of Satisfaction and Post-purchase Behavior in Services The initial conceptualize work in figure-1 was construct after above discussion. This frame of hypothesis was tested on the level of satisfaction from services availed by selected population. It shows describe the relationship between variable cause behavior towards post-purchase. We have also discussed the various level of satisfaction (upward & downward) after making the final purchase. Due to the nature of services, consumers behavior in post-purchase, on this particular nature of product, is different. And we try to measure the impact of this changes cause to perishability, inseparability, intangibility and heterogametic element makes it quiet difficult to study the effects on re-buying. H1: Fulfillment of expectation is associated with satisfaction H2: Customer satisfaction is directly affects the post purchase behavior of the product H3: Satisfaction of customer depend on their expectation and service delivery These hypotheses tell us about the desirability and intention to re-buy. The consumers achievement of need fulfillment from the product makes their inner satisfaction and they recommended to other. H4: Word of mouth only create attention of customer toward product The referral group, inner-circle and opinion leaders help the individual in their decision making while they are uncertain on product purchase. Word-of mouth leads or guide on the occasion when the person is involve in dilemma whether to purchase or not. And they may also serve as decision maker in post-purchase. Post-purchase Satisfaction Recommendation Word-of-mouth Expectations Performance Figure 1 Conceptual Frame Work of Satisfaction and Post-purchase Behavior in Services
  • 8. 6 Research Design This is the exploratory research to measure the level of satisfaction and intention for post- purchase in services. As service product share distinguish characteristics, we try to analysis the trend followed in service toward post-purchase. In order to perform our study, as this research is descriptive, we use cohort study as the sample group shares the same time period of the service availability within a limited geographic region. The majority of the sample size was depends on metropolitan city and financial stabilized. Here we deal with the process problem as with the passage of time the variation gives impact on consumer behavior towards particular needs. Their past experience and word-of-month also play major role while they were trying new product.
  • 9. 7 Research Methodology Sample Design Our sample was consists of 20 individuals, who live in metropolitan, graduates, internet user, and income group belongs mid-level. Questionnaire Design For primary data collection, we use questionnaire approach. It consists of 15 questions, all are closed ended and range from likert scale to two options. Data Collection Data collection performed through google.doc, and the questionnaire spread from social media. Data Analysis Data analysis performed on SPSS.
  • 12. 10 Questionnaire Q.1) How old are you? 20 30 31 45 46 60 Q.3) What is your gender group? Male Female Q.3) Income group you belong. Rs. 20,000 35,000 36,000 50,000 60,000 above Q.4) Please mark all types of services you regularly avail to; Food News Teaching Barber/pallor Fitness Security Cleaning Q.5) For the following statement please tick the box that matches your view most closely; I feel that too much time was invested in getting this product. Agree Slightly agree Neutral Slightly disagree Disagree Q.6) How often do you feel the following statement is true with you, With more information, I feel that I could have made a better decision. All the time Frequently Sometime Rarely Never Q.7) Using community service is a social status symbol. Yes No
  • 13. 11 Q.8) How do you feel about the following statement? I should have chosen something else than the one I bought. Strongly Agree Agree Neutral Disagree Strongly Disagree Q.9) How many times your expectation meet your satisfaction level? Never One Time Two Times Three Times More than Four Times Q.10) Do you think the satisfactory support service increases the chances to visit the retailer next time? Strongly Agree Agree Neutral Disagree Strongly Disagree Q.11) If I were to go back in time, I would choose something different to buy. Agree Disagree Dont know Q.12) What are the things which delight you while getting service; Product People (service provider/staff) Environment (surrounding) Price Q.13) How is purpose to complete word-of-mouth connected to actual performance? Ideal Desired Needed Adequate Q.14) What situations enable you to rely on word of mouth? New buying Complex buying Same product but new service provider Modified re-buy Q.15) How effectively your existing referral cause in generating trial for the product purchase? 81% - 100% 61% - 80% 41% - 60% 21% - 40% 0% - 20%
  • 14. 12 References 1. Boundless Postpurchase [online] (03 Jul. 2014) Available from <https://www.boundless.com/marketing/textbooks/boundless-marketing- textbook/consumer-marketing-4/consumer-decision-process-40/postpurchase-204- 10576/> 2. Harrison, Paul and Shaw, Robin (2004) Consumer Satisfaction and Post-purchase Intentions: An Exploratory Study of Museum Visitors, International Journal of Arts Management; 6:2, p.23. 3. Kotler, Philips (2002) Marketing Management Millennium Edition (10th Edn), Pearson Custom Publishing, United State of America. 4. Kuksov, Dmitri and Xie, Ying (2008) Pre- and Post-Purchase Management of Customer Satisfaction 3-8. 5. Lee, Seung and Cotte, June (2009) Post-Purchase Consumer Regret: Conceptualization and Development of the PPCR Scale. Advances in Consumer Research, Volume 36, 456-457. 6. North, D. Warner (1968) A tutorial introduction to Decision Theory IEEE Transactions on systems science and cybernetics, Vol., SSC-4, No. 3, 7. Rethinkmarketing Services Marketing: Four Factors that Affect Your Customers [online] Available from www.rethinkmarketing.com/articles/ReThink Marketing - Strategic Marketing, Research, & Planning Consultants.htm#top 8. Tryfos, Peter (2001) Decision Theory, Canada, Chapter 3