The moments immediately after purchase, trigger a series of thoughts in the minds of customers. The consequence of losing other substitute choices and impact of gaining alternate choices together can produce mental irregularity, thus, compelling the customer to reconsider the insight of the purchase decision (Kassarjian & Cohen, 1965). Statement of the Problem Cognitive dissonance occurs when a purchaser becomes dissonant about his/her purchase decision. The research seeks to investigate the problem of cognitive dissonance to understand what aspects lead to dissatisfaction after a purchase decision. A dissonant consumer can return a product or discontinue use of a particular service. The concept of cognitive dissonance is much important for organizations because it can significantly impact on the customers’ post purchasing behavior (Hamza & Zakkaria, 2012). The major problem studied in this research is to understand the consequence of cognitive dissonance on the repurchase intention of customers. The research findings in this paper will help businesses to understand better how to retain a customer by reducing the dissonance. The purpose of this research is to examine how cognitive dissonance among consumers can lead to a decrease in customer repurchase. Significance of the Problem The significance of this problem is prevalent in customer retention. Drege (1991) depicted that most companies have a customer acquisition strategy, but few companies have a customer retention strategy. Once companies acquire customers they do not develop a plan to keep them for long-run. Many times, it can be observed especially in retail segment that customer returns or exchanges product because of dissatisfaction. Thus, businesses suffer because the relationship they have with the consumer is not managed well. Businesses also face impact heavily from a lost sale, which results in acquiring a returned product that has lost its value. If there is a way to reduce the dissonance that a consumer feels after purchase behavior, it could lead to positive impacts for the consumer and businesses. The problem of dissonance also represents other significant issue concerning consumers that often experience of dissatisfaction, and failure to complaints result in silent departure of customers from using the company’s services. According to Chebat, Davidow, & Codjovi (2005), a silent loss can create negative impacts on companies such as losing a customer, along with their lifetime flow of revenue. The other negative impact silent losses have on companies is the inability to address the problem at hand. Dissatisfied customers who never protest are subject to multiple losses due to similar reasons. Companies cannot fix problems they do not know to exist. When companies fail to adhere to dissonant customers, they run the risk of harmful word-of-mouth reviews. There are only few investigative researches undertaken about the impact of cognitive dissonance and repurchase intention of customers. Therefore, there is a requirement for increased number of experimental research where relationship between these two variables can be analyzed. This research can further be studied by analyzing respondents about the reason for remaining in good relationship with an organization for a longer period of time. Literature Review According to the observation of Leon, cognitive dissonance is related with the relationships about understandings of people.
Cognitive Dissonance Impacts Repurchase Intention Fatiana Gresham Troy University Introduction Cognitive dissonance is an emotional sensation that arises when there is a difference between what a person considers and information that appeals to their consideration turning it to into anxiety (Festinger, 1957)…
Cognitive Psychology. Cognitive dissonance describes the state of mind characterized by two conflicting thoughts on the same issue. As a result of this dissonance, unpleasant and tense feelings arise, forcing the individual to seek dissonance-reducing strategies.
II. Body………………………………………………………………..………………4-5 The body gives an explanation of an example of cognitive dissonance as well as the role of cognitive dissonance in the lives of human beings. Example of the cognitive dissonance………………………………….
Some of the services they offer comprise of commercial, retail, and corporate banking services. Additionally, it incorporates the provision of asset management, structured finance, real estate finance, private banking, and business banking. On top of that, this bank strived and in 2009, it acquired The First Investor Q.S.C, which is the largest shareholder of the Qatari investment banking company in Qatar hence becoming the bank with the largest shareholders in Qatar (Barwa Bank, 2009).
In general, human beings learn through, observation or even through other classical methods. Humans learn how to adapt to specific disciplines as well as how to ignore some unnecessary responsive stimulus though classical methods. However, in applying the available learning methods, human beings must pass through a comprehensive cognitive process.
Milam (2005) defines post-decision dissonance as a situation where people try to justify the decisions they made in the past mostly after being infringed on. This is because by making a choice to follow certain decisions they may experience disturbance for having left some other likeable decision.
But due to the level of importance witnessed in cognitive dissonance, especially as the theory that has the ideas of fronting selective exposure to various forms of communication. Festinger, for example, carried out relevant synthesis on various instances of studies carried out to establish the relevance of the theory in influencing communication.
One of the most effective means by which this can be leveraged is with regards to what is known as cognitive dissonance. For purposes of this analysis, cognitive dissonance will be understood as a process whereby the advertiser is able to evoke a key level of differential, as well as direct and indirect appreciation for this, within the mind of the individual who is impacted by such advertising.
Microsoft's Buyback Plans for the years 2006 and 2008 have been discussed in great detail. The different situations and reasons for the implementation of these two plans have also been identified.
Corporations fund their businesses by issuing stocks that are purchased by the investors.
This affects decision making in many individuals. Consequently, there is always the feeling that one could have taken the alternative decision. Cognitive dissonance is a usual and very normal condition that at most times, comes
As the wolf’s attempts to get hold of the bunch of grapes fails repeatedly, it eventually gives up. But instead of smarting from the failure, it perks itself by thinking that the grapes were not needed after all. For all it knows they could turn out to be
2 pages (500 words)Research Paper
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