Mitigating Cognitive Dissonance Post-purchase

Chapter –I. Introduction

Background of the study

Cognitive dissonance is a social psychological phenomenon that creates mental discomfort which occurs after decision-making. Festinger described cognitive dissonance as a state which comes into existence when a person gets confused between two cognitions (thoughts), which cannot exist together and hence create tension for him. Each person has much cognition (beliefs or opinions) about himself or herself, other people, and the decision he or she makes. Any two cognitions can be either related or unrelated. Cognitive dissonance theory suggests that consumers experience tension following a difficult decision and may behave in some strange ways in an effort to reduce the dissonance (Fill, 2002: 62).

Dissonance occurs once a decision has been made as prior to making a decision an individual had an option of adjusting to any attitude or behavior which he deemed right as per his choice but once a decision is being made, a commitment has been established between the buyer and the consumer, where he cannot further adjust himself and is liable to stick to his decision. Cognitive dissonance is regarded as a precedent for customer satisfaction to be located between relationship marketing and satisfaction (as Chiu et al., 2005 suggested) to seehow cognitive dissonance discourages satisfaction, and conversely how mitigating cognitive dissonance encourages satisfaction.

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Cognitive dissonance may be influenced by several factors-personal or impersonal. As dissonance experience is a psychological one, therefore it is imperative to understand the important personal factors that could shape the intensity of dissonance in an individual. Moreover, the dissonance could also be aroused when the perceived value of the product is disconfirmed after making a purchase. This generally leads to a state of mind known as cognitive dissonance that motivates an individual to get rid of induced discomfort psychological state.

In purchasing a smartphone, comparing the alternatives available to consumers, they may feel mental discomfort, since consumers have to make one choice out of many. This discomfort intensifies as the consumer makes a purchase of high involvement such as a more featured smartphone or a basic-featured (Solomen et al. 2012). This feeling is professionally coined as “cognitive dissonance” Kotler (2011).

Dissonance is known to arise mainly in three ways – First, any logical inconsistency can create dissonance. Second, dissonance can be created when a person experiences an inconsistency either between his attitude and his behavior or between two of his behaviors. Third, dissonance can occur when a strongly held expectation is disconfirmed, notes (Loudon & Della Bitta 2002). Evidence showed the presence of dissonance in the prepurchase stage of the decision-making process also as depicted by Koller and Salzberger2.

1.1 Problem Statement

The research follows the previous efforts made to uncover the impacts of cognitive dissonance on customer satisfaction. However, we regarded the role of cognitive dissonance in this relationship and regarded cognitive dissonance as the precedent for customer satisfaction with the attainment of ultimate goal of marketing firms (Park et al. 2012).

Cognitive dissonance has indirect impacts on behavioural and attitudinal loyalty. Indeed, this fact uncovers a key factor in customer satisfaction or dissatisfaction. Thus, researchers must consider this influence and look for ways to curb it and could have better thoughts for improvement. In our research, we studied the impacts of cognitive dissonance on consumer satisfaction level, which constructs of customer relationship marketing with respect to consumers, and assessed to see whether they can reduce cognitive dissonance and foster satisfaction and acceptance of cell phones in the consumer's mind. (Pressey and methews 2000) also outlined high commitment, high trust, open communication, and long-term relationship as the indicators of relationship marketing. In summary, our research has an emphatic view of consumer psychology in catalytic marketing. The results of our study provide managerial implications to be used in formulating marketing strategy of marketers. As cognitive dissonance is a precedent for customer satisfaction, marketing managers must look for ways to eliminate the cognitive dissonance caused, since it can discourage satisfaction and there by brand equity towards the brands.

Researchers regarded cognitive dissonance from different perspectives. The latter can encourage incremental sales, and other incentives that finally can end in cost savings for the company (Palmatier et al. 2007) and through utilitarian and hedonic value lead to customer loyalty( Chiu et al. 2005).(Palmer 2006) also mentioned that relationship marketing has three levels including tactical, strategic, and philosophical level.

1.2 Research Questions :

Based on the considerations explained, the present study intends to answer the below research question.

1. Is it possible to mitigate cognitive dissonance in the post-purchase stage through relationship marketing activities and encourage satisfaction and loyalty?
2. What are the factors influencing consumer switch from one brand to another brand of smartphone?
3. Do age, gender, income, and product price affect the post-purchase behavior of consumers?

1.4. Objectives of the Study :

Various research questions were arising before the researcher that needs attention to solve the problems of marketers in the today’s dynamic world.

1. To identify whether demographic characteristics (age, gender) of a buyer can have an impact on the dissonance experienced after making a purchase.
2. To examine the factors influencing the consumer to switch from one brand to another brasmartphone phone.
3. To assess the impact of personal characteristics on dissonance and also has tried to give recommendations to the marketers that would help them to devise strategies for their products.

1.5 Limitation of the study:

• The size of the sample is moderate due to time constraints.
• Respondents may not give an accurate answer to the survey questions.
• Results obtained from the selection of the sample may not represent the overall scenario.

1.6 Theoretical Framework:

• The entire study of the research will be based upon three different type of variable that is, dependent variable(cognitive dissonance) and independent variables( Age, Gender, product’s price).

(Dependent Variable) (Independent Variable)(Communication)(Trust)(Cognitive dissonance)(Behavioral Loyalty)(Product’s Price)

Communication is the construct of relationship marketing, by which customers communicate with the brand and gain information on products and services.

Trust is the construct of relationship marketing which is central to it (Palmer, 1996; Pressey and Mathews, 2000; Berry, 2002; Ndubisi, 2007). Trust also leads to customer satisfaction (Bejou et al., 1998; Terawatanavong et al., 2007; Chattananon and Trimetsoontorn, 2009; Alejandro et al., 2011).

Satisfaction/dissatisfaction theory (Wilkie, 1994; Solomon et al., 2006) in consumer behavior along with the theory of cognitive dissonance shows that satisfaction suffers when consumers feel high cognitive dissonance (Mittelstaedt, 1969; Cohen and Goldberg, 1970; Geva and Goldman, 1991; Dutta and Biswas, 2005; Solomon et al., 2006; Lake, 2009; Jarcho et al., 2011).

Behavioral loyalty is customer loyalty that consists in the mere repetition of purchase behavior, without any mental and/or psychological considerations justifying such behavior and no clear preference for the purchased object

Attitudinal loyalty is the loyalty displayed by consumers when they repeatedly buy brands they know and trust; their consistent attitudes result in habitual buying behavior.

The product’s price is the price you charge your customers or clients will have a direct effect on the success of your business

1.7 Research Hypothesis:

For clarifying the objectives of the research, certain hypotheses were proposed. Recent studies in social psychology have observed the comparative cognitive style of judging and rationalizing things in terms of genuine sample t-tests and correlations have been devised from the data collected.

1.7.1 One sample t-test

A one-sample t-test is used to test whether a population mean is significantly different from some hypothesized value. The mean of a variable to be compared should be substantively interpretable. It can be used to determine if two sets of data are significantly different from each other, and is most commonly applied when the test statistic would follow a normal distribution if the value of a scaling term in the test statistic are known.

1.7.2 Correlation among factors affecting consumer buying behavior

The most familiar measure of dependence between two quantities is the Pearson product-moment correlation coefficient, or “Pearson’s correlation coefficient”, commonly called “the correlation coefficient”. It is obtained by dividing the covariance of the two variables by the product of their standard deviations. The Pearson correlation is defined only if both of the standard deviations are finite and non-zero. If the variables are independent, Pearson’s correlation coefficient is 0, but the converse is not true because the correlation coefficient detects only linear dependencies between two variables.

1. H01: There is no significant difference between the communication of brands and consumers' cognitive dissonance.
2. H02: There is no significant difference in trust on brands and consumers' cognitive dissonance.
3. H03: There is no significant difference in satisfaction and consumers' cognitive dissonance.
4. H04:There is no significant difference in behavioral loyalty and consumers' cognitive dissonance.
5. H05: There is no significant difference in attitudinal loyalty and consumers' cognitive dissonance.
6. H06: There is no significant difference in the price of the product purchased and dissonance experience among customers.

1.8 Literature Review:

It is a general notion that customers evaluate the value of product after the purchase and determine the value produced from them. A human mind by and large evaluates the features of products that have been purchased and starts evaluating them with the expectations made before purchase and with the foregone competitor’s offering benefits. These cognitions continue to strike in the consumer’s mind, ailing him/her to reconsider the purchase just made whether it was a wise or pathetic decision. Customers after purchasing a product generally thinks about the pros and cons associated with them and their cognitions tend to force them to think again and again to their choice of decision. These beliefs get stronger when there exists a disruption between their expectation and disconfirmation.

Dimensions of cognitive dissonance orientation are also included in the literature. According to (Palmer 1996) commitment, interdependence, and trust are central to relationship marketing. (Pressey and methews 2000) also outlined high commitment, high trust, open communication, and long-term relationship as the indicators of relationship marketing. This dimension mainly looks for establishing loyalty. Empathy is the dimension enabling the two parties to see the situation from the perspective of each other in a cognitive sense and understand the desires and goals of someone else. Reciprocity is the dimension that causes each party to provide favour for the other in return of favours. Trust is the belief about the intentions of the other party within the relationship and, as a result, is the level to which each party feels that they can rely on the promise of the other. Trust is considered as the heart of other dimensions, since the greater the trust, the longer the relationship (Berry 2002; Yau et al.2000).

Once the purchase has been made, a human mind starts assessing the pros and cons of the purchase transaction made. This phenomenon leads to the emanation of myriad of conflicting thoughts in the mind of the buyer. The positive aspects of a choice forgone and the negative aspects of the decision made create ascending strain in the human mind and make the buyer rethink about the decision made, notes (Kassarjian and Cohen 1965). Dissonance though is a psychological concept but has a great bearing on the way consumers plan their purchase and effect of the purchase made on their future alliance with the organization. In an era of marketing, where a consumer is spoilt with a plethora of choices as regarding the product to buy, it is difficult to avoid a situation of confusion that leads to dissonance among the consumers. Since cell –phones are augmented with enormous features. However, consumers make their efforts in different ways to reduce the conflicting views which arise in their mind. When a purchase transaction gets completed, most of the consumers feel that their decision has got hugely effected by words of mouth, sales interventions, and deeply involved in variety-seeking. Hence, their cognitive consistency has been compromised to the various marketing interventions made by the seller (Bell 1967; Cummings and Venkatesan 1976).

1.9 Research Methodology

1.9.1 Research Approach

Based on conceptual and theoretical framework, this chapter focuses on the database, universe of the study, sample size, sampling design, data collection, demographic profile and detailed analysis of the statistical tools used in the entire study. The data collected will be useful in determining the various factors on the theoretical model of research. This research will be quantitative research. This research is based on descriptive and casual research design.

1.9.2. Sample Technique

The research will be conducted by using a questionnaire which will be based on factors affecting buying behavior of consumers regarding smartphone. A total of 200 questionnaires will be distributed among smartphone users. There will be no systematic pattern of selection sample in the study. Therefore, convenient sampling technique will be adopted.

1.9.3 Nature and Source of Data:

1.9.3.1. Primary Data

Direct data collection through the questionnaire format. The format of the questionnaire includes closed-ended questions, likert scale, and multi-response questions. The questionnaire will be given to different consumers of different gender and group.

1.9.3.2. Secondary Data

The secondary data were collected from various available sources through desk research including literature survey and referring e-libraries etc. Review of literature and other available information from various published journals, books, newspapers, etc.

1.9.4 Data Management and Analysis

The data was collected with the help of the questionnaire which will be analyzed with the help of the statistical package SPSS 20 and Microsoft Excel. Data will be interpreted through suitable statistical tools.

Data will be analyzed through Reliability analysis, Descriptive analysis, Correlation analysis, and Regression analysis.

References

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