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Expectation Confirmation Theory (ECT)

Expectation Confirmation Theory posits that user satisfaction and continuance intention are determined by expectations and perceived performance.

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Expectation Confirmation Theory (ECT) - Process Flow
Expectation
Perceived Performance
Confirmation
What is:

Expectation Confirmation Theory (ECT)

In simple words, imagine:

Liking a new toy because it meets your expectations based on ads.

Expectation Confirmation Theory (ECT) explains how our expectations influence our satisfaction with a product It looks at three steps:

  • Expectation: What we think will happen ‍
  • Perceived performance:  What actually happens some text‍
  • Confirmation: How the actual experience compares to our expectation

If our experience meets or exceeds expectations, we’re satisfied and more likely to continue using the product. ECT helps companies improve customer satisfaction and loyalty.

Explain it to Grandma:

It’s like when you bake a cake after hearing it’s delicious. You expect it to be good, and when it turns out just as tasty as you thought, you’re happy. This theory is about how we feel satisfied when things meet our expectations, like a cake that rises just right.

Business Cases:

Apple
Netflix
Robinhood
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Apple
iPhone
Consumer Electronics

Apple applied Expectation Confirmation Theory when launching the iPhone. The company set high expectations through marketing, which were then confirmed by the product’s performance, leading to high customer satisfaction.

Result
Highly successful
The iPhone has consistently met or exceeded customer expectations, driving strong sales and customer loyalty.
Netflix
Streaming Service
Subscription Services

Netflix used Expectation Confirmation Theory to manage customer satisfaction with its streaming service. By delivering a vast library of content and a seamless user experience, Netflix confirmed the expectations set during the marketing phase.

Result
Successful
Netflix’s ability to meet customer expectations has been key to its global success and customer retention.
Robinhood
Robinhood App
Investment Platforms

Robinhood utilised Expectation Confirmation Theory when launching its investment app. The company set expectations of easy, commission-free trading, which were largely confirmed by the product experience.

Result
Mixed success
While Robinhood attracted millions of users, it also faced backlash when user expectations were not met during market volatility.

Academic Research:

Expectation Confirmation Theory (ECT)

Authors:

Richard L. Oliver

Paper Link

https://en.wikipedia.org/wiki/Expectation_confirmation_theory

Year Researched

1980

Summary:

Expectation Confirmation Theory explained how people's satisfaction with a product or service is influenced by their initial expectations. If the actual experience meets or exceeds these expectations, satisfaction is confirmed. If it falls short, dissatisfaction occurs. For example, if you expect a movie to be great based on trailers but find it boring, your dissatisfaction stems from the unmet expectations.

Some links

  • https://link.springer.com/article/10.1007/s12525-020-00428-w
  • https://www.sciencedirect.com/science/article/abs/pii/S0747563215000236
  • https://en.wikipedia.org/wiki/Expectation_confirmation_theory
  • https://link.springer.com/article/10.1007/s12525-020-00428-w
  • https://open.ncl.ac.uk/academic-theories/27/expectation-confirmation-theory