International Encyclopedia of Hospitality Management

Cognitive dissonance Compensation

Cognitive dissonance

During the post-purchase evaluation stage of the consumer decision process, a buyer may experience cognitive dissonance. Cognitive dissonance refers to doubts that may occur shortly after the purchase of a product or service when the buyer questions whether or not he or she made the right decision in purchasing the product. The consumer typically ponders the question of did I make a good decision? Did I buy the right product or service? Did I get a good value? Hospitality and tourism companies generally minimize these questions with several strategies. Cognitive dissonance may be reduced through effective communication with the consumer and following-up with the consumer after the purchase. Frequent flyer and other loyalty programs help resolve dissonance as they are designed to give something back to the customer, hence improving the value of the product or service. Hospitality providers may also reduce consumer uncertainty by quickly responding to and rectifying any problems identified by the consumer as a result of a purchase as well as offering satisfaction or money-back guarantees or service warranties.

Reference

Kotler, P. and Armstrong, G. (1999) Principles of Marketing, 8th edn. New Jersey: Prentice-Hall.

Juline E. Mills
Purdue University, USA

Collective bargaining

Collective bargaining refers to bipartite negotiations between parties (hospitality managers and employees) who bargain directly with one another, usually unaided by either a mediator or industrial tribunal (Heys, 2001). In some countries collective bargaining can occur with direct legislative support and intervention where industrial legislation provides procedures...

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