Exam 14: Consumption to Satisfaction

Which theory focuses on explaining why a certain event has occurred?

Consumer refuse is any packaging that is no longer necessary for consumption to take place or, in some cases, the actual good that is no longer providing value to the consumer.

A refrigerator is an example of a durable good.

Consumer satisfaction is a mild, positive emotional state resulting from a favorable appraisal of a consumption outcome.

Permanent goods are goods that are consumed over long periods of time.

Define expectations and name and describe the four types.

The De Beers diamond company advises men to spend two months' salary for a diamond engagement ring for their beloved because "A Diamond is Forever." Interestingly, diamond engagement rings didn't have much meaning in the United States prior to 1930 or so. Therefore, diamond engagement rings derive their value from culture, which is a process called _____.

Performance perceptions can directly influence consumer satisfaction formation independent of the disconfirmation process, particularly when expectations are high.

Self-attribution theory states that consumers are motivated to act in accordance with their attitudes and behaviors.

Expectations do not affect performance perceptions.

LOUIS VUITTON SCENARIO Carla purchased a Louis Vuitton Fantaisie Handbag for $1,430 when she was in New York City last weekend. She's always liked this brand but never purchased a real one before this. In fact, she has a counterfeit Louis Vuitton handbag, a wallet, and a scarf. While the counterfeit products look just as good as the real brand, they aren't of the same quality as the legitimate branded products. She was very nervous about spending so much money for a handbag, but the sales lady was so kind and explained the benefits of the brand to her and made her feel very welcome in the store. She explained that consumers can only purchase true Louis Vuitton products at Louis Vuitton stores or from its website. She also explained that if she ever had any problem with her handbag that she should return it to the store for repair or a replacement. All things considered, Carla's experience at the store and her purchase far exceeded anything she had expected. -Refer to Louis Vuitton Scenario. The overall positive service experience Carla had at the Louis Vuitton store is indicative of the _____ at the store.

Lori moved into a new house and was supposed to get her phone connected in August, but hurricane Katrina struck the day a serviceman was supposed to hook it up. As a result, she was not able to get phone service until several months later because there was so much devastation from the hurricane. Lori was not mad because she realized that the phone company did not have control over the weather or the extent of the destruction it caused. Which element of attribution theory does this illustrate?

Ken is buying a new car next week and he expects that he will get a good deal and that driving the car will be fun. Which type of expectations are these?

Value creation is the reason for a firm's very existence.

A self-ascribed event occurs when a consumer blames him- or herself for a bad event.

Expectations are the level of a particular benefit that will lead to a valued end state.

Sam doesn't like to get rid of any of his possessions. As a result, his house is so full of stuff that he can hardly move in it. Which term is used to describe people like Sam?

_____ are the level of a particular benefit that will lead to a valued end state.

LOUIS VUITTON SCENARIO Carla purchased a Louis Vuitton Fantaisie Handbag for $1,430 when she was in New York City last weekend. She's always liked this brand but never purchased a real one before this. In fact, she has a counterfeit Louis Vuitton handbag, a wallet, and a scarf. While the counterfeit products look just as good as the real brand, they aren't of the same quality as the legitimate branded products. She was very nervous about spending so much money for a handbag, but the sales lady was so kind and explained the benefits of the brand to her and made her feel very welcome in the store. She explained that consumers can only purchase true Louis Vuitton products at Louis Vuitton stores or from its website. She also explained that if she ever had any problem with her handbag that she should return it to the store for repair or a replacement. All things considered, Carla's experience at the store and her purchase far exceeded anything she had expected. -Refer to Louis Vuitton. Even though Carla had a good experience purchasing her handbag and was satisfied, she still had a few doubts about her decision to purchase the handbag in the first place. Carla is experiencing _____.

Expectations that form about what a consumer thinks will actually occur during an experience are called _____ expectations.