1 CONSUMER BEHAVIOR notes What is Consumer Behaviour?

Activities people engage in while selecting, purchasing and using products so as to satisfy needs and desires. The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization (people on the job make decisions as to which products the firm should use). Consumer behavior involves the use and disposal of products as well as the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. The impact of consumer behavior on society is also of relevance. 1. Consumer 2. Values • If you want to understand a person’s behavior, you must understand his or her values.

Values are basic convictions (notions) about what is right and wrong. Value system

Value system is a hierarchy based on a ranking of an individual’s values in terms of one’s intensity. Source of our Value Systems

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A significant portion is genetically determined. Other factors include national culture, parents, teachers, friends, and similar environmental influences.

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Values - Relatively stable and enduring • If we know an individual’s values, we are better able to predict a behavior in a particular situation • Values differ between generations. • Values differ between regions. • Values differ between cultures. Terminal values & Instrumental values • Terminal values are the end-state we hope to achieve in life. • Instrumental values are means of achieving these terminal values. Terminal and Instrumental Values in Rokeach Value Survey Terminal values • A comfortable life • An exciting life • A sense of accomplishment • A world at peace • Equality • Family security • Freedom • Happiness • Inner harmony • Mature love • National security • Pleasure • Salvation • Self-respect • Social recognition • True friendship • Wisdom Instrumental values • Ambitious • Broad-minded • Capable

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• • • • • • • • • • • • • • •

Cheerful Clean Courageous Forgiving Helpful Honest Imaginative Independent Intellectual Logical Loving Obedient Polite Responsible Self-controlled

Attitudes • Attitudes have three evaluative components: – Cognitive component of an attitude is the opinion or belief segment of an attitude. – Affective component is the emotion or feeling segment of an attitude. – Behavioral component is the intention to behave in a certain way toward someone or something. Sources of Attitudes – Acquired from parents, teachers, and peer group members. – There are “genetic” predispositions. – Observations, attitudes that we imitate.

Attitudes are less stable than values.

Cognitive Dissonance • Cognitive dissonance is a conflict between two values or between values and behavior. Attitude Point # 1 • It is our attitude that tells the world what we expect in return.

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A cheerful expectant attitude communicates to everyone we come in contact with that we EXPECT THE BEST in our dealings with our customers. Attitude Point # 2 • It is our attitude toward life that determines life’s attitude toward us. A simple cause and effect.

It is your attitude toward others that determines other’s attitude toward you. Attitude Point # 3 • To achieve and find the life you want, you must think, act, talk, and conduct yourself as would the person you want to become. For example, if one wants to be successful, he or she must think, act, talk, and conduct himself as would a successful person. Attitude Point # 4 • The higher you go up in any organization of value, the greater the attitude you will find.

A great attitude is not the result of success; rather success is the result of a great attitude. And so it is with you – you are in charge of your attitude. Attitudes Composite of a consumer’s (1) Beliefs about, (2) Feelings about, (3) Behavioral intentions toward some object--within the context of marketing, usually a brand or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumer will react to the object. Beliefs • A consumer may hold both positive beliefs toward a product/service

5 • • • • Beliefs that consumers hold need not be accurate May even be contradictory Since a consumer holds many beliefs for each belief. Measurement problems Measuring attitudes is difficult In many situations. consumers often do not give very reliable answers. she may lack a driver’s license.g. • As with affect. but other considerations/reasons may ride over. but does not buy pick up truck with the fear of being ridiculed. this is sometimes a logical consequence of beliefs (or affect). Thus. she would rather have a computer. consumers do not consciously set out to enumerate how positively or negatively they feel about a product/service How important these beliefs are. Social influence She is sixteen. buy or not buy the brand). Attitude Change Strategies • . and their evaluation of the performance of product/service with respect to these beliefs. and has money for only one of the two. but may sometimes reflect other circumstances • Not necessarily belief /affect based decision making. Attitude-Behavior Consistency or in-consistancy • Ability Although junior high school student likes pick-up trucks and would like to buy one. we take the weight or importance of that belief and multiply it with its evaluation Affect • Affection • • Positive opinion Unconsciously associate with ‘good’ thought/experience Behavioral Intention • The behavioral intention is what the consumer plans to do with respect to the object (e. has money to buy both. which were never uncovered because an erroneous measurement was made.. She may be unable to do so • Competing demands for resources Although the above student would like to buy a pickup truck on her sixteenth birthday. the consumers may act consistently with their true attitudes.

Changing beliefs • Attempting to change beliefs is the obvious way to attempt attitude change. particularly when consumers suspect that the marketer has a self-serving agenda in bringing about this change (e. to get the consumer to buy more or to switch brands). • Consumers are less likely to use this availability as a rationale for their purchase and may continue to buy the product even when the product is less conveniently located. Changing affect • To try to change affect This may or may not involve getting consumers to change their beliefs The approach of classical conditioning try to “pair” the product with a liked stimulus. Approaches to belief change • Change currently held beliefs It is generally very difficult to attempt to change beliefs that people hold.. particularly when consumers hold unfavorable or inaccurate ones. Changing behavior • Another way to get people to switch to our brand is to at least temporarily obtain better shelf space so that the product is more convenient. when consumers buy a product on deal. chances are that they will continue unless someone is able to get them to switch. the low price) and may then switch to other brands on deal later. this is often difficult to achieve because consumers tend to resist.g. thus.6 • Changing attitudes is generally very difficult. Examples Dalda vanaspati (hydrogenated oil) Papad sold in the market . they may justify the purchase based on that deal (i. even if they are inaccurate.. • To get people to switch to our brand is to use temporary price discounts and coupons. particularly those that are strongly held. however.e. “pair” a car with a beautiful woman a biscuit with smart kid an edible oil with healthy family Changing behavior • People like to believe that their behavior is rational. once they use our products.

7 Change the importance of beliefs • To strengthen beliefs those already are in favor of the product • Most consumers already agree with this. and very risky. In Japan. groups of men and women may take steam baths together without perceived as improper. to attempt to change ideals. • By the way. art. Morality • In general. and any degree of explicit racial prejudice. view is that one should not be naked in public. and any other capabilities and habits acquired by person as a member of society. the law that once banned interracial marriages in South Africa was named the “Immorality Act. belief.” • Knowledge and beliefs are important parts A person who is skilled and works hard will get ahead Differences in outcome result more from luck. but the belief can be made stronger.” even though in most civilized countries this law. morals. that what at least some countries view as moral may in fact be highly immoral by the standards of another country. • For example – • Promise tooth paste – clove oil Colgate Active –contains salt Vatika Hail oil -Amla Add beliefs • Consumers are less likely to resist the addition of beliefs so long as they do not conflict with existing beliefs • For example – • Bournvita with milk Change ideal • It usually difficult. • On the other extreme. Important characteristics • Comprehensive . Culture and Subculture • Culture is part of the external influences that impact the consumer • “That complex whole which includes knowledge. would itself be considered highly immoral. custom. • For example. on the other hand. women in some Arab countries are not even allowed to reveal / faces.

• Manifested within boundaries of acceptable behavior • Conscious awareness of cultural standards is limited • Falls somewhere on a continuum between static and dynamic depending on how quickly the society accept change. Cultural differences center around five key dimensions • Power distance: To what extent is there a strong separation of individuals based on rank? Power distance tends to be particularly high in Arab countries and some Latin American ones. in general. countries with lower uncertainty avoidance tend to be more tolerant of risk. Cultural differences center around five key dimensions • Individualism vs.S. femininity “Masculine” values involve competition and “conquering” nature by means such as large construction projects. while Indonesia and West Africa rank toward the collectivistic side. while it is more modest in Northern Europe and the U.. Cultural differences center around five key dimensions • Masculinity vs. while “feminine” values involve harmony and environmental protection. Japan actually ranks in the middle of this dimension. .8 All parts must fit together in some logical fashion • Culture is learned rather than being something we are born with. and the Netherlands rate toward individualism. Cultural differences center around five key dimensions • Uncertainty avoidance A “structured” situation with clear rules is preferred to a more ambiguous one.S. collectivism: To what extent do people believe in individual responsibility and reward rather than having these measures aimed at the larger group? Contrary to the stereotype. The U. Britain.

45 centimeters • Personal . Merely touching someone may cause an unpleasant reaction. managers like to see quick results. will stand close to the Englishman. Four main distances in American social and business relations: • Intimate . • The two may be quite a distance from the place where they were originally standing! Physical appearance and physical contact • Plays a very important role in creating first impression. • Physical attractiveness affects the way you perceive yourself and the way others perceive you. The Arab will then move forward to be closer. and dominance. Amount of eye contact varies greatly among cultures. likeability. attractiveness. • The Arab.80 centimeters • Social -1. The latter will move back • Watching to the Englishman. Short term orientation In the U.> 3 meters • Watch an Arab and an Englishman in negotiation.. while Japanese managers are known for take a long term view. The Englishman will keep moving backward. patting.30 meters to 3 meters • Public . showing friendliness in the manner of his people. • Personal Dress: Clothing has been found to affect perceptions of credibility. often accepting long periods before profitability is obtained. Physical contact: generally avoided in conversation among ordinary friends or acquaintances.9 Cultural differences center around five key dimensions • Long term Vs.S. hugging or kissing—can be quite embarrassing and awkward • No harm is meant. the two may be quite a distance from the negotiation. • Touching. • . • By the end of the negotiation. Types and Application of the body language Distance between people conversing Different people have different ideas about the proper distance between people conversing. intrusive and offensive and could arouse a strong dislike and even repugnance. and that such gestures are merely signs of friendliness or affection • Would be considered rude.

palm up. with forefinger only moving back and forth. Language issues • One word may mean one thing in one country. • Japanese who believe that the less eye contact. Attitude Change Strategies • Changing attitudes is generally very difficult. particularly when consumers suspect that the marketer has a self-serving agenda in bringing about this change (e. Chinese gesture is a hand extended toward the person. fingers crooked in a beckoning motion. • Americans see eye contact as a sign of honesty and a lack of eye contact or shift eyes as a sign of untruthfulness. or obedience. • Chinese avoid long direct eye contact to show politeness. close hand. especially the hand and the head. • For Americans.10 French will demand at least some direct eye contact. To refuse to meet someone’s eyes an unfriendly gesture. the higher the level of esteem. • Gestures • Gesture is the expressive movement of a part of the body. • The American is a hand extended toward person.g. to get the consumer to buy more or to switch brands). or respect. To divert eyes from a business colleague is a sign of respect and reverence.. but something off-color in the another. open palm. the Chinese coming-here gesture is like good-bye gesture. Changing affect • To try to change affect . Attitude changes &culture. • Many Chinese would see American coming-here gesture as offensive. • For coming here. • Same gestures have different meanings in different cultures. • British believe that looking someone directly on the eye to be a mark of rudeness until a more familiar relationship is established.

however. Examples Dalda vanaspati (hydrogenated oil) Papad sold in the market Change the importance of beliefs • To strengthen beliefs those already are in favor of the product • Most consumers already agree with this. • • Consumers are less likely to use this availability as a rationale for their purchase and may continue to buy the product even when the product is less conveniently located. they may justify the purchase based on that deal (i. once they use our products. when consumers buy a product on deal. particularly those that are strongly held.e. • To get people to switch to our brand is to use temporary price discounts and coupons. “pair” a car with a beautiful woman a biscuit with smart kid an edible oil with healthy family Changing behavior • People like to believe that their behavior is rational. Changing behavior • Another way to get people to switch to our brand is to at least temporarily obtain better shelf space so that the product is more convenient.. thus. • For example – . chances are that they will continue unless someone is able to get them to switch.11 This may or may not involve getting consumers to change their beliefs The approach of classical conditioning try to “pair” the product with a liked stimulus. Changing beliefs • Attempting to change beliefs is the obvious way to attempt attitude change. but the belief can be made stronger. even if they are inaccurate. the low price) and may then switch to other brands on deal later. Approaches to belief change • Change currently held beliefs It is generally very difficult to attempt to change beliefs that people hold. particularly when consumers hold unfavorable or inaccurate ones. this is often difficult to achieve because consumers tend to resist.

” even though in most civilized countries this law.12 • Promise tooth paste – clove oil Colgate Active –contains salt Vatika Hail oil -Amla Add beliefs • Consumers are less likely to resist the addition of beliefs so long as they do not conflict with existing beliefs • For example – • Bournvita with milk Change ideal • It usually difficult. • By the way. belief. Important characteristics • Comprehensive All parts must fit together in some logical fashion • Culture is learned rather than being something we are born with. In Japan. custom. the law that once banned interracial marriages in South Africa was named the “Immorality Act. groups of men and women may take steam baths together without perceived as improper. to attempt to change ideals.” • Knowledge and beliefs are important parts A person who is skilled and works hard will get ahead Differences in outcome result more from luck. view is that one should not be naked in public. women in some Arab countries are not even allowed to reveal / faces. and any other capabilities and habits acquired by person as a member of society. would itself be considered highly immoral. morals. and very risky. and any degree of explicit racial prejudice. that what at least some countries view as moral may in fact be highly immoral by the standards of another country. • For example. • Manifested within boundaries of acceptable behavior • Conscious awareness of cultural standards is limited . Morality • In general. Culture and Subculture • Culture is part of the external influences that impact the consumer • “That complex whole which includes knowledge. • On the other extreme. on the other hand. art.

Britain. • The realm of the celebrity’s impact is confined to bestow a distinctive identity and provide AV to the brand • . Celebrities add new dimensions to the brand image. and the Netherlands rate toward individualism.13 • Falls somewhere on a continuum between static and dynamic depending on how quickly the society accept change. D is Distinctive Identity AV is Added values. Japan actually ranks in the middle of this dimension. and refresh the brand image. Lack of ideas. Celebrity values define. collectivism: To what extent do people believe in individual responsibility and reward rather than having these measures aimed at the larger group? Contrary to the stereotype.S. The multiplier effect formula for a successful brand • S=P* D*AV --the multiplier effect Where S is a successful brand. while it is more modest in Northern Europe and the U. The U. Instant credibility or aspiration PR coverage. while Indonesia and West Africa rank toward the collectivistic side.S. Cultural differences center around five key dimensions • Power distance: To what extent is there a strong separation of individuals based on rank? Power distance tends to be particularly high in Arab countries and some Latin American ones. P is an effective product. Convincing clients. Impact on Brand Celebrity endorsements motives • • • • • • Instant Brand Awareness and Recall. Cultural differences center around five key dimensions • Individualism vs..

14 • The celebrity does not have the power to improve or debilitate the efficiency and features of the core product. • Celebrities are no doubt good at generating attention. they are rendered useless when it comes to the actual efficiency of the core product. Compatibility Parameters between the celebrity & brand image • Fit with the brand image • Target audience match • Values • Cost of acquiring • Product match • Controversy risk • Popularity • Availability • Physical attractiveness • Credibility • Prior endorsements • Brand user • Profession Successful celebrity endorsements for a brand Tabassum Prestige pressure cookers Jalal Agha Pan Parag Kapil Dev Palmolive Shaving Cream . Consumers’ skepticism • Celebrities alone do not guarantee success. • People realize that celebrities are being paid a lot of money for endorsements and this knowledge makes them cynical about celebrity endorsements. as consumers nowadays understand advertising. Compatibility of the celebrity’s persona with the overall brand image • A celebrity is used to impart credibility and aspiration values to a brand. • On the other hand. They know what advertising is and how it works. recall and positive attitudes towards advertising provided that they are supporting a good idea and there is an explicit fit between them and the brand. purchase intentions and actual sales. • A good brand campaign idea and an intrinsic link between the celebrity and the message are musts for a successful campaign. creating positive attitudes to brands. but the celebrity needs to match the product.

Constantly changing to ‘currrent’ popular star has made it successful. mission statement kind of way has been Lux toilet soap.15 Sunil Gavaskar Dinesh Suitings Kabir bedi Vimal suitings Shah Rukh Santro Hrithik Roshan S kumar Amir Khan Incredible India First ad to cash in on star power in a strategic. Advantages of a celebrity endorsing a Brand • Establishment of Credibility • Ensured Attention • PR coverage • Higher degree of recall • Associative Benefit • Mitigating a tarnished image • Psychographic Connect • Demographic Connect • Mass Appeal • Rejuvenating a stagnant brand • Celebrity endorsement can sometimes compensate for lack of innovative ideas Disadvantages of a celebrity endorsing a brand • The reputation of the celebrity may derogate after he/she has endorsed the product • The vampire effect • Inconsistency in the professional popularity of the celebrity • Multi brand endorsements by the same celebrity leading to overexposure • Celebrities endorsing one brand and using another competitor • Mismatch between the celebrity and the image of the brand Consumer decision making Process Steps in consumer decision making model Need recognition . long-term.

. • Marketers may also try to suppress problem recognition by consumers for products like cigarettes. Three types of consumer decision making • Habitual decision making Low purchase involvement with no external information • Limited decision making Consumer evaluates limited alternatives with some external information • Extended decision making Large number of alternatives with the help of extensive information search from both internal and external sources Problem recognition • Initiated with identification of a gap in the actual state and the desired state as perceived by the consumer. • • • Rational decision makers Consumers as uninvolved. • Information search • Alternative evaluation and selection. Consumers as cognitive decision makers. But all these views ignore the influence of emotions on consumers' choices.16 Search for information Alternatives Evaluation Purchase Post purchase evaluation Three phases in consumer decision making process • Problem recognition. • Marketing triggers involve identifying consumer problems through various techniques and then acting on these. alcohol. The need awareness can trigger through nonmarketing and/or marketing triggers. passive decision makers. • The consumer may be aware or unaware of the problem or need. etc.

. and then from external sources. • Attitude-based choice (based on decision rules).based choice Based on attribute-by-attribute comparison across brands Perceived risk Consumer’s uncertainty about the consequences of future actions. Types of risk: Performance risk Financial risk Physical risk Social risk Time-loss risk Evaluation of Alternatives • For majority of products or services there are likely to be a number of competitors. product. etc. consumer. friends. Consumer decision making involves seeking information on three important aspects of product Evaluation criteria. • The amount of external search to be done depends on various market. internet. i.e. Alternatives available. Influencing Factors • • • Economic Age & Life stage Geography . • Alternatives evaluation& selection Involves making the brand choice after evaluating all the alternatives. • Attribute. Attributes of each alternatives.. Three types of consumer choice processes • Affective choice (based on 'it feels right' factor). and situational variables. i. • The process of choosing between them can be shown as a number of filtering processes.17 Information search • Initially done from internal sources.e. memory and experience.

III. II. Class I. no children living at home • Solitary survivor in labor force • Solitary survivor II Retired • Geography • Urban –Rural • Town class – Metro. govt colony .18 • • • • Social class Occupation Culture Psychological Factors Economic Environment • GDP growth • • Disposable income Income distribution Age & Life stage • Bachelor stage Young single people not living at home. retired. Middle.IV • Locality – Upper. Lower • Type – Civil. Cantonment. Newly married couples Young no children • Full nest I Youngest child under six • Full nest II Youngest child six or over • full nest III Older married couples with dependent children • Empty nest I Older married couples with no children living with them • Empty nest II Older married couples.

Interests. The urban area is segregated into: A1. C. Opinions VALS Value Life-Styles • Arnold Mitchell (SRI International) • Life style hierarchy Psychological Factors • Maslow hierarchy of needs Howard-Sheth model of buying behavior Consumer decision making differs according to the strength of attitude towards the available brands in a product class. • SEC is made to understand the purchase behavior and the consumption pattern of the households. . B2.19 Socio-Economic Classification • In addition to income classification and consumer classification. B1. A2. E1. D. Indian households can also be segmented according to the occupation and education levels of the chief earner of the household (the person who contributes most to the household expenses). • This is mainly used by market planners to target market before launching their new products. Social class • AB Managerial and professional • C1 Supervisory and clerical • C2 Skilled manual • DE Unskilled manual and unemployed SEC Table Rural classification Culture • Peer pressure Reference groups Also known as membership groups • • • • Family Life-style AIO Activities. E2. This is called as Socio-Economic Classification (SEC).

In this situation. • Significative Information furnishes physical brand characteristics such as Quality. availability • Symbolic . This model suggests three levels of decision making Extensive problem solving.20 It attempts to explain the complexity of the consumer decision making process in case of incomplete information. Limited Problem solving • This situation exists for consumers who have little knowledge about the market or partial knowledge of what they want to purchase. distinctive. consumer knows very well about the different brands and he can differentiate between different characteristics of each product. • According to the Howard-Sheth model there are four major sets of variables: • Inputs Perceptual and Learning Constructs Outputs Exogenous (External) variables Howard & Sheth Model construct INPUTS • These input variables consist of three distinct types of information sources in the consumer’s environment. service. consumer does not have basic information or about the brand and he does not have any preference for any product. price. Limited problem solving. Habitual response behavior • In this level. • In order to arrive at the brand preference some comparative brand information is sought. Habitual response behavior Extensive problem solving At this level. consumer will seek information about all different brands in the market before purchasing.

– • Outputs The consumers actions Constructs – • perceptual Obtaining and handling information about the product or service. • Exogenous (External) variables:The importance of the purchase Consumer personality traits Religion Time pressure Howard & Sheth model • Inputs (stimuli) • • • • significative The 'real' (physical) aspects of the product or service – symbolic The ideas or images attached by the supplier – social The ideas or images attached to the product by society. service. availability • Consumer’s social environment Family. • consumers goals. preferences and buying intentions are all included Outputs • The outputs are the results of the perceptual and learning variables and how the consumers will response to these variables. information about brands.21 Verbal or visual product characteristics such as Quality. reference group. distinctive. – . criteria for evaluation alternatives. How the consumer receives and understands the information from the inputs. price. social class Perceptual and Learning Constructs • It deals with the psychological variables involved when consumer is making a decision. such as reference groups.

many innovations spread to other people. Time share holidays • Maturity stage : Scooters. later. Later. Digital camera DTH . Branded Basmati Rice. or ideas to spread among people. • Chrysler invented the minivan • IBM did not invent the personal computer.22 learning The process of learning leading to the decision itself – Diffusion of Innovation • The diffusion of innovation refers to the tendency of new products. magazines • Extinct : Typewriters. pagers. when new products or ideas come about. practices. they are only adopted by a small group of people initially.on line gaming. • Hatch back cars introduced by almost all companies. • Second Home/week end home saturation point Saturation levels • Various studies have arrived at the saturation point (level) for various products at the country level • As a percentage of population Examples of innovation . Diffusion of Innovation • Products tend to go through a life cycle Diffusion of Innovation EXAMPLES • Introduction stage :LED TV. • Usually. laundry soap New products • New products can be new in several ways • Many firms today rely increasingly on new products for a large part of their sales. I phones. soft soap • Growth stage : 100/150cc motor bikes. (subsequently sold the business to Lenovo) • cellular phones and pagers were first aimed at physicians and other price-insensitive segments. firms decided to target the more price-sensitive mass market. but entered after other firms showed the market to have a high potential. video games • Decline stage : Dress material.

cellular phones. Factors influencing speed of innovation • Relative advantage (i. and even automobiles of the 1990s are driven much the same way that automobiles of the 1950 were driven. under favorable terms. Very little usually changes from year to year in automobiles. Accepting credit cards was not a particularly attractive option for retailers until they were carried by a large enough number of consumers.e. after which the cards became worthwhile for retailers to accept. signing up large corporate accounts. In general. discontinuous innovations are more difficult to market since greater changes are required in the way things are done. the convenience factors seemed to be a decisive factor in the “tug-of-war” for and against adoption. in contrast. early in the cycle.digital cameras • A dis continous innovation involves a product that fundamentally changes the way that things are done For example The fax and photocopiers. it was necessary to “jump start” the process. fax machines. Forces working against innovation Risk Performance risk Financial risk Physical risk Social risk Time-loss risk • Degrees of innovation • A continuous innovation includes slight improvements over time. • The case of credit cards was a bit more complicated and involved a “chicken-and-egg” paradox. the ratio of risk or cost to benefits For example. . have a strong relative advantage. but the rewards are also often significant. • Consumers.23 ATM cards spread relatively quickly. were not particularly interested in cards that were not accepted by a large number of retailers. • Although some people were concerned about security. others who did not yet hold the cards could see how convenient they were.. and ATM cards. • A dynamically continuous innovation involves some change in technology. Since the cards were used in public. Thus. although the product is used much the same way that its predecessors were used Television sets .

people are more likely to imitate similar than different models. Hybrid seeds. and the extent to which the product could be tried influence the speed of diffusion. . the more likely an innovation is to spread. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. • Opinion leadership: The more opinion leaders are valued and respected. • Extent of switching difficulties influences speed Many offices were slow to adopt computers because users had to learn how to use them. The style of opinion leaders moderates this influence • Consumer Segmentation In marketing products & services Three approaches to marketing • Undifferentiated strategy All consumers are treated as the same. entail some advantages. • Physical distance: The greater the distance between people. Portable fire extinguishers. • Lower priced products often spread more quickly. Three approaches to marketing • Differentiated strategy Example Most airlines offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. this is the case only for commodities.24 But products such as automobile satellite navigation systems. with firms not making any specific efforts to satisfy particular groups. UK Vs USA • Homophily: The more similar to each other that members of a culture are. the more likely an innovation is to spread . Budget Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. the less likely innovation is to spread. For example. Some cultures tend to adopt new products more quickly than others • Modernity: The extent to which the culture is receptive to new things. Usually. For example: Match Box • Concentrated strategy One firm chooses to focus on one of several segments that exist while leaving other segments to competitors. but the cost ratio is high. North India Vs south India. For example.

(1) Determine which kinds of customers exist. Consumer Segmentation & Targeting Segmentation involves finding out what kinds of consumers with different needs exist. The same airlines then sell some of the remaining seats to more price sensitive customers who can buy two weeks in advance and stay over.25 These travelers—usually business travelers pay high fares but can only fill the planes up partially. Market segmentation • Identify basis for segmentation • Determine important characteristics of each segment • Targeting Determine important characteristics of each segment • Economic factors • Demographic • Geographic • Psychographic • Occupation • Education • Peer pressure • Psychological factors • User status Targeting Segment viability • Size • • • Identity Relevance Access Single segment /Multiple segments • Implications • Cost : Benefit ? . (2) Select which ones we are best off trying to serve (3) Implement our segmentation by optimizing products/services for that segment (4) Communicating that we have made the choice to distinguish ourselves that way.

26 – – – – – – Product modification Duplication of marketing efforts in each segment Extra inventory Promotion Extra distribution Loss of economies of scale Full coverage • Implications • – – – – – – Cost : Benefit ? Product modification Duplication of marketing efforts in each segment Extra inventory Promotion Extra distribution Loss of economies of scale Position Variables used to differentiate consumers for a given product category • Need to determine which variables will be most useful in distinguishing different groups of consumers The variables that are most relevant in separating different kinds of soft drink consumers are • (1) (2) (3) (4) preference for Taste vs. Light consumers . non-cola taste price sensitivity—willingness to pay for brand name Heavy vs. low calories preference for Cola vs.

Gifts Variables for segmentation 3 • Propensity to adopt new products – Innovators & early adopters • Tend to be opinion leaders • Key targets for pre-release MC • Encourage product trial – Early majority • Wait-and-see. detailed customer research. tie to traditional. • Lifestyle and values (socio-economic class) Some consumers want to be seen as similar to others. Variables for segmentation 1 • Demographic variables Income. “proven” value Segmenting current customers • Start with careful. frequency of shopping Occasion or situation of product usage Variables for segmentation 2 • Benefits sought Shampoo. gender. urban. Manual or automatic gears cars Fully automatic or semi automatic washing machine Body deodorant. ethnicity. while a different segment wants to stand apart from the crowd. • Behavior Loyal Vs Not loyal. influenced by early adopters – Late majority & laggards • Risk-averse. perfume soap • Buyer Vs User/Beneficiary They may be distinct segments For example. education. – What characteristics do they have in common? – These characteristics will also help in targeting new prospects. • Study buyers as well as users. • Identify the most profitable customers.27 We now put these variables together to arrive at various combinations. location (rural vs. and family size. Evaluate profitability of serving each segment you’ve identified . East vs.Tooth paste. West). they may be distinct segments. Heavy Vs Light consumption Place of shopping. Hair oil .

• Once people have been classified into segments in accordance with the benefits they are seeking. • Individual benefits are likely to have appeal for several segments. • DOES LOW MILEGE. However. its brand perceptions. its media habits. accordingly. its personality and lifestyle. frequency & monetary indicators): Key predictors of future purchases by current customers ⇒ CLV • Segment by profitability. and so forth. AND GETS LITTLE SATISFACTION FROM MAINTAINING THE CAR.28 • Consider future potential as well as current profitability. each segment is contrasted with all of the other segments in terms of its demography. • LIKELY TO BE OLDER WHITE COLLAR. can be used as an effective lever in segmenting markets. HAS LITTLE TECHNICAL ABILITY. the research that has been done thus far suggests that most people would like as many benefits as possible. • The benefits sought by consumers determine their behavior much more accurately than do demographic characteristics or volume of consumption. In fact. its volume of consumption. • RFM (recency. A Motorists’ Typology • THE UNINVOLVED VERY LOW INTEREST OR INVOLVEMENT WITH CAR OR MOTORING. • .THIS GROUP INCLUDES MOST WOMEN MOTORISTS. • THIS GROUP SELDOM TINKERS WITH THE CAR AND DOES VERY FEW REPAIRS. the relative importance they attach to individual benefits can differ importantly and. considering: – Purchase volume (high/low) – Current profitability (high/low) Segmentation for prospects • Use profile of profitable current-customer segments to target prospective customers • Self-selection of segment members – when you can’t easily identify or locate segment members among a broad audience Benefit segments Benefit Segmentation • The benefits which people are seeking in consuming a given product are the basic reasons for the existence of true market segments.

ESPECIALLY MOTOR ACCESSORY SHOPS. ABOUT HALF. • LIKELY TO BE MALE AND WHITE COLLAR. A Motorists’ Typology THE PROFESSIONALS • THESE ARE HIGHLY INVOLVED WITH DRIVING AND WITH THE CAR. AND ARE LIKEY TO OWN AN OLDER CAR. ARE MORE INVOLVED IN WORKING ON THE CAR THAN IN DRIVING ITMUCH THE REVERSE OF THE PROFESSIONAL GROUP. SECOND HAND CAR. • MAINLY USE CAR FOR BUSINESS. • THIS IS ALMOST THE REVERSE OF THE UNINVOLVED GROP.ARE WORKING CLASS. • THEY HAVE MANY ACCESSORIES ON THE CAR. HAVE TECHNICAL ABILITY AND OBTAIN MUCH SATISFACTION FROM MAINTAINANCE. BUT DO LITTLE OF THE SERVICING OR REPAIR THEMSELVES. • . DRIVING RELATIVELY NEW CAR OFTEN A COMPANY CAR.THEY LEAVE SRVICING TO THE GARAGE AND TEND TO BUY PETROLCOMPANY BRANDS OF OIL. • THEY HAVE A HIGH LEVEL OF DRIVING EXPERIENCE. A Motorists’ Typology THE TINKERER • THROUGH A COMBINATION OF ECONOMIC NECESSITY AND ENTHUSIASM. • NEARLY ALL ARE MALE AND ABOVE AVERAGE PROPORTION. DO HIGH MILEGE. ENJOY TALKING ABOUT THE CARS AND ARE INTERESTED IN MOTOR SPORT. • A Motorists’ Typology THE ENTHUSIAST A HIGH DEGREE OF INTEREST AND INVOLVEMENT WITH THE CAR AND WITH DRIVING AND WORKING ON IT. • HAVE A STRONG TENDENCY TO BUY FROM NON GARAGE OUTLETS. • MAINLY CONCERNED WITH KEEPING CAR ON ROAD.29 THIS GROUP RELIES HEAVILY ON GARAGE MECHANIC AND WILL FOLLOW THE DEALER’S ADVICE IN THE CHOICE OF MOTOR OIL. • THESE PEOPLE DO MANY REPAIRS. • NEARLY ALL CAHNGE AND TOP UP OF OIL THEMSELVES AND HAVE STRONG OPINION ABOUT BRANDS.BUT ONLY AS A NECESSARY PART OF THE WORKING LIFE.

is aimed a “techies. Thus.YOU POSITION THE PRODUCT IN THE MIND OF THE PROSPECT.CAR LIKELY TO BE OLD.SECOND HAND USED MAINLY FOR PLEASURE AND DRIVING TO WORK. • TO RETIE THE CONNECTION THAT ALREADY EXISTS. • Product Positioning POSITIONING • POSITIONING STARTS WITH A PRODUCT. as a computer for “non-geeks. • A PIECE OF MRCHANDISE. in contrast. • TEND TO BE MALE AND WORKING CLASS.VERY OFTEN SKILLED.TEND TO TOP UP AND CHANGE OIL THEMSELVES BUT ARE BRAND CONSCIOUS.AN INSTITTION.THEY HAVE LOW MILEGE. Apple Computer has chosen to position itself as a maker of user-friendly computers. • THAT IS . • TEND TO BE NORMAL IN MOST OTHER RESPECTS.POSITIONING IS WHAT YOU DO TO THE MIND OF THE PROSPECT.” Positioning Options Operationally excellent firms • Maintain a strong competitive advantage by maintaining exceptional efficiency.” The Visual C software programming language.A COMPANY. • THEY DO MOST OF MINOR WORK ON THE CAR BUT MAY LEAVE BIGGER JOBS TO THE GARAGE. Apple has done a lot through its advertising to promote itself.OR EVEN A PERSON • BUT POSITIONING IS NOT WHAT YOU DO TO THE PRODUCT. A Motorists’ Typology THE COLLECTOR • AN ENTHUSIASM FOR COLLECTING TRADING STAMPS IS THE DISTINGUSHING CHARACTERISTIC OF THIS GROUP. • YOUNG AND IN EXPERIENCED. • THE BASIC APPROACH OF POSITIONING IS NOT TO CREATE SOMETHING NEW AND DIFFERENT. through its un intimidating icons. Positioning strategy • Positioning involves implementing our targeting.30 THEY GET MUCH SATISFACTION FROM MAINTENANCE WORK AND TINKERING BUT ALTHOUGH THEY DO MANY REPAIRS.A SERVICE. thus enabling the firm to provide . BUT TO MANIPULATE WHAT’S ALREADY UP THERE IN THE MIND. For example.

• There are two main approaches to multi-dimensional scaling. In the a priori approach. cannot be as efficient as the operationally excellent firms and often cannot adapt their products as well to the needs of the individual customer. A great deal of money is often needed for advertising and other promotional efforts.31 reliable service to the customer at a significantly lower cost than those of less well organized and well run competitors. because they work with costly technology that need constant refinement. and in many cases. • One approach to identifying consumer product perceptions is multidimensional scaling. Repositioning • An attempt to change consumer perceptions of a brand. Attempting repositioning • it is important to understand how one’s brand and those of competitors are perceived. • Repositioning in practice is very difficult to accomplish. constantly maintaining leadership in innovation. and less value is put on customizing the offering for the specific customer. • Intel is an example of this discipline. the repositioning fails. • Wal-Mart is an example of this discipline. Customer intimate firms • Excel in serving the specific needs of the individual customer well. • Reliability is also stressed. • There is less emphasis on efficiency. • It may then be possible to attempt to “move” one’s brand in a more desirable direction by selectively promoting certain points. usually because the existing position that the brand holds has become less attractive. with extensive systems predicting when specific quantities of supplies will be needed. which is sacrificed for providing more precisely what is wanted by the customer. subject to reliable performance. • The emphasis here is mostly on low cost.” allowing us to plot brands against each other. Technologically excellent firms • Produce the most advanced products currently available with the latest technology. • We identify how products are perceived on two or more “dimensions. • These firms. IBM are examples of this discipline. market researchers identify . Elaborate logistical designs allow goods to be moved at the lowest cost.

respondents are asked to rate the extent of similarity of different pairs of products How similar. • CUSTOMER SATISFACTION & SERVICE QUALITY AUDIT Why companies loose customers? • 1% DIE • 3% MOVE AWAY • 4% JUST FLOAT • 5% CHANGE ON RECOMMENDATION . the computer then identifies positions of each brand on a map of a given number of dimensions. This is useful when (1) The market researcher knows which dimensions are of interest and (2) The customer’s perception on each dimension is relatively clear (as opposed to being “made up” on the spot to be able to give the researcher a desired answer). The computer does not reveal what each dimension means—that must be left to human interpretation based on what the variations in each dimension appears to reveal. Instead. Two main approaches to multi-dimensional scaling • Similarity rating approach Respondents are not asked about their perceptions of brands on any specific dimensions. on a scale of 1-7. This is useful when (1) the market researcher knows which dimensions are of interest and (2) the customer’s perception on each dimension is relatively clear (as opposed to being “made up” on the spot to be able to give the researcher a desired answer). Two main approaches to multi-dimensional scaling • a priori approach Market researchers identify dimensions of interest and then ask consumers about their perceptions on each dimension for each brand. • This second method is more useful when no specific product dimensions have been identified as being of particular interest or when it is not clear what the variables of difference are for the product category.32 dimensions of interest and then ask consumers about their perceptions on each dimension for each brand. • Using a computer algorithms.

33 • • • 8% GO FOR CHEAPER 10% CHRONIC COMPLAINER 68% GO ELSEWHERE BECAUSE PEOPLE THEY DEAL WITH ARE INDIFFERENT TO THEIR NEEDS Consider these statistics: Only 4% of all customers with problems complain. • Cost of hiring and training a new employee is up to 10 times greater than retaining current ones. • Measure customer satisfaction. will increase profitability. hence become our advocates. • Cost of acquiring a new customer is 5 to 7 times greater than retaining current ones. • The most powerful reason for doing anything in business is that it will increase profitability. The average person with a problem eventually tells 9 other people. • Satisfied customers tell 5 other people about their good treatment. • Why is Customer Satisfaction Critical to a Business? • A higher customer satisfaction means: – Customer stays with us (Retention) – Gives us more business (Leverage relationship) – Does not think of competition (Create barriers to migration) – Says good things about us. and acting appropriately on the results. NOT taking action allows your customer base to decay while permitting your competition to gain market share. (Helps acquire new customers) GAIN IN MARKET SHAREIN IN MARKET SHARE . • • PHILOSOPHY • Research has demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an existing one.

• GUEST IN A HOTEL. WANTS MORE THAN A PRODUCT.WANTS MORE THAN A TREATMENT. WANTS MORE THAN A ROOM.WANTS MORE THAN A SAFE FLIGHT • CUSTOMER IN A LARGE STORE. • RESTAURANT’S PATRON WANTS MORE THAN A MEAL. CUSTOMER SATISFACTION . • AIRLINES PASSANGER .34 GAIN IN MARKET SHARE Customer's perception Value of your company is based on the following attribute foundation: • • • • Organizational Product Service Future Behavior CUSTOMERS’EXPECTATIONS • A PATIENT IN A DOCTOR’S WAITING ROOM. CUSTOMER RELATIONS! THE KEY CHARACTERISTICS • PROCEDURAL • PERSONAL FACTORY • FRIENDLY ZOO FREEZER QUALITY SERVICE –CUSTOMER ORIENTED PROCEDURAL PERSONAL PROMPT FRIENDLY EFFICIENT PLEASING UNIFORM INTERSTED CUSTOMERS WANT MORE THAN A JUST THE PRODUCT OR SERVICE THAT IS OFFERED THEY ALSO WANT TO BE TREATED WELL.

Questionnaire Design 5. Analyzing the Data 8. Benchmarking 10. ANOTHER APPROACH TO MEASURING EXPECTATIONS • Bring in the competitive context . and prioritized for remedial action. the least important as 1 and Spread the rest based on these as a base. Identify the Attributes 4. Defining Customer Satisfaction • Satisfaction = Experience v/s Expectations • – – In terms of measurement Identify and prioritize expectations. such that key dissatisfaction areas can be identified. CUSTOMER SATISFACTION MEASUREMENT – The level of satisfaction with the company overall as well as on key delivery parameters.35 Customer satisfaction is the customer's perception that a supplier has completely satisfied their expectations. Develop the Research Design 3. – Provide actionable inputs. Using the Data 9. Pretest the CSM Program 7. Measure deliveries against each of these. but not the criticality of each v/s the others in terms of customer decisions. Defining the Objectives 2. – Understand the level of importance of each of these parameters in causing satisfaction (or dissatisfaction). DESIGN AND USE OF CSM PROGRAM 1. Designing the Sample Plan 6. LIMITATIONS Helps build a hierarchy of importance. Benefits of doing Satisfaction Surveys Measuring Expectations – Prevalent Methods METHOD Rank dimensions /parameters from a large list -1 to last Treat the most important as 100.

Research design flows directly from the stated objectives. • Identify customer's priorities. • Ability to provide consistent results. IDENTIFY THE ATTRIBUTES Research design is a fundamental part of the CSM process. • Learn customer's tolerance band. – This is a very important requirement and if another operator offers this more than my operator. I would definitely start dealing with them. – This is an important requirement and if another operator offers this more than my operator. – This is not an important requirement at all.. • Learn performance ratings relative to your competitors’ performance. • Measures the original intent. I would be favourably inclined towards this operator. and even if another operator offers this more than my operator. • Meaningful questions to the customer. • Must be developed to ensure reliability. • Establish priorities for improvement.36 Let the customer specify how critical (not just important) is a parameter to him in keeping a relationship going – in the context of the product • The scale to be used is: – This is a critical requirement and if another operator offers this more than my operator. • Eliminates bias. • Receive first-hand input on your company's performance.. • DEFINING THE OBJECTIVES Any road will do if you don't know where you want to go. • . I would not be favourably inclined towards this operator. I will not be impressed at all. I would probably start dealing with them. • Obtain performance ratings relative to your customer's priorities. – This is not a very important requirement but if another operator offers this more than my operator.

37 QUESTIONNAIRE DESIGN • Accurate identification of attributes that are important to the customer is the foundation upon which all subsequent portions of the CSM program must be built. • • • • Product attributes Service attributes Organizational attributes Future behavior attributes KEY DIMENSIONS • RELIABILITY/PERFORMANCE • EMPATHY • AESTHETICS/TANGIBLES • RESPONSIVENESS • ASSURANCE EXPECTATIONS FROM AN AIRLINE SERVICE DIMENSIONS • RELIABILITY TAKE OFF/LANDS IN TIME PROBLEM SOLVING INTEREST TAKE OFF/LANDING SMOOTHLY PROBLEM FREE JOURNEYS RESPONSIVENESS CORRECT INFORMATION ABOUT SERVICE PROMPTNESS HELPFULNESS EMPLOYEE NEVER TOO BUSY EXPECTATIONS FROM AN AIRLINE SERVICE DIMENSIONS • EMPATHY CARING INDIVIDUAL ATTENTION CONVINIENT TIMINGS RESERVATION/CHECK-IN ACCESSIBILITY UNDERSTANDING OF SPECIFIC NEEDS • • TANGIBLES MODERN PLANS/SYSTEMS NEAT/PLEASANT STAFF .

38 VISUALLY APPEALING OFFICES PROFESSIONALISM • ASSURANCE SAFETY CONSISTANT /COURTEOUS KNOWLEDGE TO ANSWER QUERRIES INSTILLS CONFIDENCE IMP RATI Satisfaction survey PARAMETER EXPEC EXPRI DIFF NG • (SCORE 1TO 5) EMPATHY CARING INDIVIDUAL ATTENTION 1 3 CONVINIENT TIMINGS 2 1 RESERVATION/CHECK-IN ACCESSIBILITY 2 2 UNDERSTANDING OF SPECIFIC NEEDS 2 1 TANGIBLES MODERN PLANS/SYSTEMS 2 2 NEAT/PLEASANT STAFF 4 1 VISUALLY APPEALING OFFICES 3 0 PROFESSIONALISM 1 3 ASSURANCE SAFETY 4 1 CONSISTANT /COURTEOUS 1 3 KNOWLEDGE TO ANSWER QUERRIES 1 2 INSTILLS CONFIDENCE 2 2 31 20 26 24 4 3 4 3 • 27 28 24 21 4 5 3 4 • 26 26 24 24 5 4 3 4 Satisfaction survey .

39 PARAMETER EXPRI DIFF (SCORE 1TO 5) • RELIABILITY TAKE OFF/LANDS IN TIME 3 2 PROBLEM SOLVING INTEREST 2 2 TAKE OFF/LANDING SMOOTHLY 2 2 PROBLEM FREE JOURNEYS 3 2 • IMP RATING 31 25 23 21 EXPEC 5 4 4 5 2 2 3 1 RESPONSIVENESS CORRECT INFORMATION ON SERVICE 23 2 PROMPTNESS 29 3 HELPFULNESS 26 0 EMPLOYEE NEVER TOO BUSY 22 2 4 5 3 3 IMPORTANCE OF DIMENSIONS Reliability Responsiveness Empathy Aesthetics Assurance SERV-QUAL Scores CUSTOMER SATISFACTION INDEX SERVICE DIMENSIONS DEVELOPED FOR A TELECOM SERVICE • RELIABILITY • Call quality • Clarity of voice • Network coverage • Roaming facility • Billing/ Recharge • Value added services • • • • TANGIBLES Available tariff plan Call charges Cost of other VAS .

CONSIGNEE BILLING SERVICE CONSISTANCY POLICIES PROVIDING INFORMATION ON POLICIES • .40 • • • • • • • • • • • • RESPOSIVENESS Accessibility Quality of Personnel Quality of Interaction Time taken for resolution ASSURANCE Corporate Vision & Strategy Dynamic/ Innovative Industry leadership EMPATHY Free On net calling Night talk SERVICE DIMENSIONS DEVELOPED FOR A COURIER SERVICE • RELIABILITY/PERFORMANCE ABILITY TO DELIVER AND PICK UP RANGE OF DESTINATIONS OFFERED CONFIDENTIALITY • EMPATHY ACCESSIBILITY CARING INDIVIDUAL ATTENTION AESTHETICS/TANGIBLES APPERANCE MODERNITY OF STAFF OFFICE EQUIPMENT SERVICE DIMENSIONS DEVELOPED FOR A COURIER SERVICE • RESPONSIVENESS WILLINGNESS TO HELP PROVIDE PROMPT SERVICE • • FEATURES TRACKING OF PARCELS INSURANCE PROVIDED OCTOROI.

• . Is Your Satisfaction Measurement System Working? A few key questions to answer: • Are we asking the right questions? Do you truly understand which needs customers are satisfying through the use of your product or service? How are your product's features meeting those needs? • Are we asking the right people? A convenient sample may not always give you the most accurate information. Companies need to include unhappy customers as well as happy ones. former customers as well as current • Is the frequency of data collection appropriate? Surveys related to an event.41 FOLLOW UP BENCHMARKING • SELECTING THE BEST IN CLASS COMPANIES FOR EACH ITEM TO BE BENCH MARKED. • MEASURING YOUR OWN PERFORMANCE FOR EACH BENCH MARK ITEM. • MEASURING PERFORMANCE OF THE BEST IN CLASS COMPANIES FOR EACH ITEM AND DETERMINING THE ‘GAP’ BETWEEN YOU AND BEST IN CLASS. BEST IN CLASS COMPANIES CAN BE YOUR DIRECT COMPETITORS OR EVEN COMPANIES FROM A DIFFERENT INDUSTRY. such as an interaction with customer service. a re-purchase or product upgrade • A few key questions to answer: Does the analysis and reporting of the data present an accurate picture of what customers are telling you? Small sample sizes and frequent surveying can paint a misleading picture if not analyzed appropriately.

the sample sizes.42 Can data collection be improved or streamlined? If you think you are spending a lot of time and money on your customer satisfaction data collection. • Is customer data fed into your internal processes for product development and process improvement? Many product development teams are so focused on technology that they are unable to respond to customer needs that may be difficult to quantify or measure. Changing the frequency of the surveys. there may be opportunities to streamline. or the methodology may provide opportunities to save time and money. QUALITY OF SERVICE • TWO FACETS • LEVEL & VARIABILITY • – LEVEL : SETTING HIGH STANDARD OF QUALITY VARIABILITY : CONSISTANCY IN QUALITY – CONSISTANCY IN QUALITY – STANDARDISATION OF SYSTEMS • PRE SET STANDARDS AND CREATED CONSUMER EXPECTATIONS SHOULD NEVER BE COMPROMISED • • VARIABILITY IS UNSETTLING TO MANY CUSTOMERS HIGH VARIABILITY IMPLIES LACK OF CONTROL OVER SYSTEMS. – COMMERCIAL BANK:REGULARITY IN SENDING BANK STATEMENT HAD HIGHEST IMPORTANCE SCORE. Principle uses of the customer satisfaction information • . EXAMPLES • Mc DONALDS : CONSISTANCY IN QUALITY • CANADA POST OFFICE : DEMAND WAS NOT FOR QUICKER SERVICE BUT MORE DEPENDABLE AND CONSISTANT DELIVERY TIMES • CHOICE OF COURIER : WHO WOULD DELIVER DEFINITELY ON A GIVEN TIME RATHER THAN WHO PROMISES TO DELIVER FASTER.

by the continuing efforts of companies to shift the focus of their customer interactions and their business processes • • From transactions to relationships. acceptable standards of performance. feedback. • Determine the time and resources involved in making these value-enhancing changes . . in part. • Determine customers' perceptions of the organization's current performance as compared to its key competitors .43 Identify the changes the organization wants to make to provide greater value to its customers . • Provide direction. • This evolution is driven. and motivation to employees • Customer Symmetry The field of customer measurement has progressed beyond single metrics to a multi-dimensional view of the entire customer landscape.

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