DPR/37215/2015

DJL 1319 : CUSTOMER RELATIONS

Question 1:

The customer lifecycle is a term that describes the different steps a customer goes
through when they are considering, buying, using, and remaining loyal to a particular
product or service. State and discuss the five stages of the customer lifecycle.

Awareness:

This is the stage where a potential customer becomes aware of a product or service, either
through advertising, word of mouth, or some other means. At this stage, customers are in the
process of forming an initial impression and gathering information about the product or
service.

Consideration:

In this stage, customers have identified a need or desire and are actively considering solutions
that can meet those needs. They may compare different products or services, research them
online, and seek recommendations from friends or family.

Purchase:

At this stage, customers have made a decision to buy a product or service. They may
complete a transaction online, visit a physical store, or engage with a salesperson.

Usage:

This stage involves the customer using the product or service and forming an opinion about
it. If the customer is satisfied with the product or service, they may become a loyal customer
and recommend it to others. If the customer is dissatisfied, they may switch to a competitor or
discontinue use altogether.

Loyalty:

In this stage, customers have formed a long-term relationship with the product or service and
are committed to continuing to use it. They may also become advocates and promote the
product or service to others. This stage is important because loyal customers are more likely
to make repeat purchases, refer others, and provide valuable feedback to the company.
It's important to note that customers may not always progress through these stages in a linear
manner, and they may cycle back to previous stages, for example, when considering a new
product or service. Companies can influence customer behavior at each stage by providing
relevant and helpful information, offering exceptional customer service, and creating
compelling marketing campaigns

Question 2:

Customer satisfaction is defined as an overall evaluation based on the total purchase

and consumption experience with the good or service over time (Fornell, Johnson,
Anderson, Cha & Bryant 1996). Discuss ten different ways to achieve customer
satisfaction.

Providing high-quality products or services: This is the most basic and important way to
achieve customer satisfaction. Customers are more likely to be satisfied when they receive
products or services that meet or exceed their expectations.

Offering excellent customer service: Providing helpful, responsive, and friendly customer
service can have a big impact on customer satisfaction. Customers want to feel valued and
heard, and they want their problems and concerns to be addressed promptly and effectively.

Listening to customer feedback: It is important to actively seek and listen to customer

feedback, and then use that feedback to make improvements to products, services, and
processes. This shows customers that their opinions and experiences are valued.

Responding to customer complaints: When customers have a problem or complaint, it is

important to respond quickly and effectively to resolve the issue. This helps to build trust and
loyalty with customers.

Offering personalization: Personalizing the customer experience, whether through targeted

marketing, personalized recommendations, or customized products, can increase customer
satisfaction.

Providing transparency: Being transparent about products, services, policies, and processes
can build trust and confidence with customers, leading to higher levels of satisfaction.
Being reliable: Consistently delivering on promises and meeting customer expectations can
create a positive customer experience and increase satisfaction.

Going the extra mile: Providing unexpected or extra value to customers, such as offering a
discount, providing a free service, or going above and beyond in customer service, can
enhance the customer experience and increase satisfaction.

Continuously improving: Continuously seeking to improve products, services, and

processes can demonstrate a commitment to customer satisfaction and help to build trust and
loyalty.

Building relationships: Building strong, personal relationships with customers through

regular communication and engagement can foster loyalty and lead to higher levels of
customer satisfaction.

In conclusion, customer satisfaction is a key factor in the success of any business, and there
are many different ways to achieve it. The most important is to focus on providing high-
quality products and services, and to continuously seek to improve the customer experience.

Question 3:

Co-creation is a management initiative, or form of economic strategy, that brings

different parties together in order to jointly produce a mutually valued outcome. State
and discuss the four categories of co-creation.

Co-creation refers to the process of involving customers in the creation of products or

services. This approach can help to improve customer satisfaction and engagement, as well as
increase innovation and efficiency. There are four main categories of co-creation:

Co-design: This refers to the process of involving customers in the design of a product or
service. This can help to ensure that the final outcome meets the needs and expectations of
the target customer group.
Co-development: This involves customers participating in the development of a product or
service, either through providing input into the design process, testing prototypes, or
providing feedback on the final outcome.

Co-creation of value: This refers to the process of creating value through collaboration
between customers and the company. This can involve customers contributing ideas,
providing feedback, or participating in the delivery of the product or service.

Co-creation of experiences: This involves customers participating in the creation of

experiences related to a product or service, such as through event planning, brand
management, or product launches.

In all of these categories of co-creation, the goal is to involve customers in the creation
process in order to produce a mutually valued outcome. This can help to increase customer
engagement and satisfaction, improve the overall quality of the product or service, and
increase innovation and efficiency.