Introduction     Firms do not sell products and services Firms offer solutions to customer’s problems Customers always look for an alternative Customer needs change due to  Dissatisfaction  Change in needs  Dissatisfaction is not uni dimensional .

Causes of Dissatisfaction  Two Dimensions in features and processes involved in its purchase and consumption  Criticality of the features Level of dissatisfaction depends on the importance of the needs When needs are not met. entrepreneurial opportunity arises  Discontent • • .

Criticality – Discontentment Matrix .

Least attractive Possibility of moving customers to quadrant 1 through Discontent – Criticality tunnel .Criticality – Discontentment Matrix      Quadrant 1 – high dissatisfaction – customer is discontented with a product considered critical. Requires minimal marketing efforts. Quadrant 3 – no dissatisfaction with products they feel aren’t critical.

Barbie     Increased Mattel’s toy sales from $9m to $96m in 5 years Ruth Handler observed her 9year old daughter play with paper dolls. Critical need – dolls that enabled her to fantasize adult life Discontentment – lack of necessary features in existing products. .

. Substantial marketing efforts required. Customers tolerate variations. Products with higher criticality have narrower tolerance zones. Quadrant 4 – Highly contented with critical products.Criticality – Discontentment Matrix      Quadrant 2 – High discontentment with products that aren’t critical to customers.

Ford Edsel . High discontentment Require high investment.Discontentment-Criticality Tunnel     Influence of external & internal factors High Criticality. Kellogs Failures – Iridium Project. Eg.

Eg. Harry potter series Medium criticality low discontentment to high criticality and high discontentment No brand loyalty but uncertainties – ‘satisficing’ & ‘tolerance’ nature of customers Identify new needs and create needs by shortening life cycle.Jakks Pacific       Forbes 200 Best Small Companies in US since 1999 Novelty in Toys – Changes preferred by children Socio-cultural elements – Pro-wrestling era. Colour Televisions .

Where there is low discontentment and high criticality. Challenges in innovation . Promising but not immediate opportunity – when both discontentment and criticality are emerging. Opportunity for Tomorrow – When one of the dimension is existing now and other is only emerging.     .Where to enter?  Understanding the dynamism of criticality and discontentment. Maximum market attractiveness – where both discontentment and criticality are high and currently existing.

Where are the opportunities?  Criticality and discontentment are not only related to products but also to value chain. Customer Dissatisfaction Elimination (CDE) Chain Role of this chain is to eliminate customer dissatisfaction with few or all of the value links. An entrepreneur must analyze this chain and find out where the link lies on the criticality-discontentment matrix.    . The entrepreneur should assess the attractiveness of the opportunity.


Links of the CDE chain are also the source for dissatisfaction and opportunities for entrepreneurs. a Customer Dissatisfaction Elimination (CDE) Chain.Customer Dissatisfaction Elimination (CDE) Chain    Value Chain : products and services required to consume products. . Value chain provides satisfaction and eliminates dissatisfaction i.e.

eBay) Buying Process (Amazon. The processes and activities linking the firm and the customers often become sources of Payment Process (Visa.CDE contd. Each one of these or their sub-activities is a possible new entrepreneurial opportunity:     Information Collection Process (Google.. MasterCard) Delivery Process (FedEx. DHL) . Boo.

CDE Chain and Business Strategy (Domino’s)    Ordering Process Delivery Process Cost and product features .

like to eat tasty things and have all possible comforts… CDM & CDE is a tool to evaluate the appropriateness of their existing strategies .Conclusion    Customer dissatisfaction is a source of opportunity. lazy. Most human beings are basically selfish. prefer to avoid work.

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