University of the Cumberlands Marketing Management Concepts Discussion

  

1. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.

a. Understand the meaning of perceptions of quality and customer satisfaction

b.

Appreciate the different marketing research techniques and their importance.

Also, provide a graduate-level response to each of the following questions:

c. Discuss how core factors, cues to quality, and interpersonal factors of a product influence your buying decisions. Discuss with supporting examples

.

d. Imagine designing a conjoint for your b-school’s café. In particular, you’re in charge of the daily pizza orders. Pizzas are tricky—while they’re a simple food, they can be created in a zillion combinations. What factors should you test in terms of your fellow students’ likely preferences? Wheat crust vs. white, thick vs. thin, plain cheese vs. sausage vs. sausage and green pepper vs. vegetarian (you get the picture). Design a conjoint that would result in identifying 2 or 3 popular slices that your café managers could order every morning. The student body knows you’re responsible—how do you make most of them happy?

post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced).

Please refer to this textbox: lacobucci, D. (2018).

Marketing management.

5th ed. Cengage Learning

Note: no plagiarism please

© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14
Customer Satisfaction
and Customer
Relationships
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 2
Marketing Framework
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 3
Discussion Questions #1
1. Does customer satisfaction matter?
Why or why not?
2. How do you determine whether you are
satisfied?
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 4
Customer Evaluations
(slide 1 of 3)
• Customer evaluations include
• Customer satisfaction
• Perceptions of quality
• Customers’ intentions to repurchase
• Customers’ likelihood of word-of-mouth, etc.
• Marketers track these evaluations
because they impact the bottom line
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 5
Customer Evaluations
(slide 2 of 3)
• Customer Evaluations =
Experience − Expectations
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 6
Evaluation Outcomes
• If customers’ experiences
• Surpass their expectations→ delighted
• Meet their expectations→ satisfied
• Fall short of their expectations→ dissatisfied
• Low-involvement purchases
• Evaluation is instantaneous
• Expectations are usually latent
• Higher-involvement purchases
• Evaluation is deliberative and conscious
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 7
Customer Evaluations
(slide 3 of 3)
• Search goods
• Evaluate obvious qualities; straightforward
• Experiential purchases
• Evaluate after trial/consumption
• Expectations might not be fully formed; the
experience shapes evaluation & expectations
• Credence purchases
• Don’t have expertise to evaluate
• Evaluate what one can (price, looks, etc.)
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 8
Sources of Expectations
• Personal experience
• Consumers trust their own experience
• Experience can be direct or indirect
• Friends and experts
• Trust those with no commercial gain
• Marketing mix elements
• Ads, price, retail atmosphere, etc.
• Third-party communications
• e.g., Consumer Reports, books, and Internet
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 9
Expectation and Experience
• The core (hygiene factors) and
peripheral components (motivating
factors) of a product both contribute to
satisfaction
• If the core is good, it doesn’t enhance
satisfaction much because it is expected to
be good
• If the core is bad, it can affect dissatisfaction
• Peripheral services can affect both
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 10
Expectation & Experience: Flowcharts
• Marketers create flowcharts that map all
of the interactions between the customer
and company
• From the eyes of the customer
• Flowcharts are used to
• Generate quality measures at each stage
• Identify points of repeated problems
• Suggest system redesigns to improve
efficiency
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 11
Types of Expectations
•
•
•
•
Ideal levels of quality
Predicted levels of quality
Adequate levels of quality
Zone of tolerance exists between the
adequate and predicted levels of quality
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14. 12
Customer Value
• Value
• The trade-off of the quality of the purchase
received compared to the price paid and
other costs incurred
• Marketers try to increase perceptions of
value
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14. 13
Expectations
• Expectations are dynamic
• What pleased a customer last time may no
longer suffice
• Expectations vary cross-culturally
• In individualist cultures, satisfaction is
heavily influenced by quality of reliability and
service provider responsiveness
• In collectivistic cultures, satisfaction is
heavily influenced by the relational aspects
of frontline employees
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 14
Measurement
• Measuring quality with precision is
difficult
• Customer perceptions can be measured
with surveys
• Compare results to previous or competitive
benchmarks
• Surveys that measure multiple facets of
customers’ thoughts are more actionable
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 15
Customer Dissatisfaction
• The primary means to regain a
dissatisfied customer is through
empowered frontline employees
• Immediately redress the problem
• Empathize with customer
• Offer a perk for customer’s troubles
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14. 16
Customer Relationship Marketing
(slide 1 of 2)
• Customer satisfaction is first step in
long-term relationship
• Loyalty programs
• Price discounts may keep customers
from defecting while inducing additional
purchasing
• Some companies may assume loyal
customers are price insensitive and
charge them more
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 17

Customer Relationship Marketing
(slide 2 of 2)
• CRM programs track customer
information including RFM information
• Recency, frequency, and monetary values
of customers’ purchase history
• These factors are used to “score” customers
to identify the most desirable customers
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 18
Discussion Question #2
• Describe the most desirable customers
according to the figure.
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14. 19
Customer Database Information
•
•
•
•
•
•
•
Contact information
Demographics
Lifestyle and psychographic data
Internet info
Transaction data (RFM, etc.)
Rate of response to marketing offers
Complaints
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 20
CRM
• CRM programs
• Take planning and money
• Require ongoing customer monitoring
• Companies struggle to design an
information system with desired qualities
• Integrate inputs from all relevant customer
touch points
• Access information in useful formats for
managerial usage
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 21
Customer Lifetime Value
(slide 1 of 2)
• Companies utilize customer lifetime
value (CLV) to assess customers in
terms of their worth to the company
• Some customers are costly to acquire,
others more costly to retain
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14. 22
Customer Lifetime Value
(slide 2 of 2)
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14. 23
Customer Lifetime Value Example
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14. 24
Managerial Recap
(slide 1 of 2)
• Quality and customer satisfaction can be
precisely measured for goods, but not as
easily for services
• Surveys can be used to ask customers
for their evaluations of any purchase
• Marketers care about loyalty and
customer relationship management
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 25
Managerial Recap
(slide 2 of 2)
• Customer lifetime value is a means of
translating marketing efforts into financial
results
• CLV allows firms to match customer
benefits to revenues to ensure that each
customer relationship remains profitable
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14. 26
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15.
15
Marketing Research
Tools
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 2
Marketing Framework
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 3
Discussion Questions #1
• How can you find the answers to the
following questions?
1. How will your targeted customer respond
to a price of $7.99 compared to $9.99?
2. Should you add a new feature that costs
$4.00?
3. Which is a more effective slogan: “We love
to see you smile” or “Have it your way”?
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 4
Marketing Research
• Marketing decisions should be fact-based
• Smart marketers are continually gathering
market information
• Marketers also conduct specific research
projects
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 5
Marketing Research Techniques
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 6
Marketing Research Process
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 7
Kinds of Data
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15. 8
Popular Research Techniques
1.
2.
3.
4.
5.
6.
Cluster analysis
Perceptual mapping
Focus groups
Conjoint analysis
Scanner data
Surveys
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 9
Cluster Analysis
• Clustering
• Form groups within groups of customers,
who are seeking something similar and
different across groups
• Each group has different attributes
• Often used for segmentation
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 10
Cluster Analysis Example
(slide 1 of 4)
• Segmentation of NPO supporters
• Desired result: Determine if segment exists
that may donate to an NPO that funds
higher education
• Start with a survey
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15. 11
Cluster Analysis Example
(slide 2 of 4)
•
Survey used to interview customers
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 12
Cluster Analysis Example
(slide 3 of 4)
•
NPO dataset
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 13
Cluster Analysis Example
(slide 4 of 4)
• Next, conduct cluster analysis
• C1 cares about environment, but not much
• C4 cares about medical causes; thinks higher ed is
expensive and would support students
• C2 cares about the arts; thinks higher ed helps
society
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 14
Cluster Analysis Questions
• Which segment is most attractive for the
NPO to target? Why?
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 15
Perceptual Mapping
• Positioning studies are used to
understand customer perceptions of
brands in the marketplace
• Perceptual maps assist in positioning
• They give pictures of competing brands and
attributes
• Two approaches
• Attribute-based approach
• Multidimensional scaling (MDS)
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 16
Perceptual Mapping: Attribute-Based
(slide 1 of 2)
• In attribute-based perceptual mapping
• Customers complete a survey
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 17
Perceptual Mapping: Attribute-Based
(slide 2 of 2)
• Responses on each question are
averaged
• Result is a pair of means for each attribute
• e.g., BeFit Gym is perceived as a good value
• The pairs of means are used to plot the
attributes in a two-dimensional space
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 18
Perceptual Mapping Questions #1
1. Which attribute is most important?
2. How does BeFit Gym score on this
attribute relative to competitors?
3. Which attribute should BeFit Gym consider
improving? Why?
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15. 19
Perceptual Mapping: MDS
• Multidimensional scaling starts by
asking, “How similar are these two
brands?”
• Asks for each pair of brands
• Then, each brand is rated on attributes
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15. 20
Perceptual Mapping Questions #2
1. Which brands are viewed as most
similar?
2. Which brand is the most different?
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 21
Perceptual Mapping: MDS
(slide 1 of 3)
• Results are then plotted
• Similar brands are closer together; different
brands are further apart
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 22
Perceptual Mapping: MDS
(slide 2 of 3)
• Next, overlay the perceptual map with
the attribute ratings
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 23
Perceptual Mapping: MDS
(slide 3 of 3)
Feature
fun classes
in ads
Feature staff
in ads
Show fun amenities
• MDS can be used to determine how to
reposition the brand
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 24
Focus Groups
(slide 1 of 2)
• Focus groups
• Used for concept testing & ad development
• Exploratory technique using 2–4 groups of
8–10 customers
• Not good for prediction; best to follow up with
a survey
• Usually last 1.5–2 hours
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 25
Focus Groups
(slide 2 of 2)
• Focus group moderator
•
•
•
•
•
Starts with introductions and easy questions
Proceeds to key client questions
Keeps the discussion going
Brings out quieter members
Controls overbearing members
• Moderator usually analyzes results along
with company input
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15. 26
Discussion Question #2
• Describe at least two research
techniques to answer the following
objective: How will customers respond to
our new packaging?
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15. 27
Conjoint Analysis
(slide 1 of 2)
• Conjoint studies
• Used to understand how consumers make
trade-offs
• Helps uncover customers’ most important
product attributes
• Good for pricing, new products, branding, etc.
• e.g., Would frequent fliers in a loyalty program
want access to an elite club at large airports?
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15. 28
Conjoint Analysis
(slide 2 of 2)
• Participants rate each option from least
to most preferred
• What feature do customers want?
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15. 29
Conjoint Analysis Questions #1
• Fliers’ judgments are in the last column
1. Describe how the customers’ preferred
option differs from the 2nd most preferred.
2. What does this difference mean to
marketers?
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15. 30
Conjoint Analysis Questions #2
• Regression is run on data with flier
ratings as the dependent variable
• Predicted rating = 5 + 1 Club + 2 Upgrade – 4 Fee
1. How would you interpret this?
2. How would you design your program
based on these results?
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 31
Scanner Data
(slide 1 of 4)
• Companies use scanners to track
purchase information and store it in a
database
• Tracked information includes:
• What you bought
• How much you bought
• What brands you bought
• How much you paid for everything
• Loyalty cards then link this information to
each customer
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 32
Scanner Data
(slide 2 of 4)
• Store and area auditors integrate
additional information into database
• e.g., Prices of competing brands,
sales/featured items, advertised brands
• Companies can add data from customer
panel who provide household information
and agree to have their media tracked
• These data, with the other tracked data,
determine purchase patterns
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 33
Scanner Data
(slide 3 of 4)
• Scanner data can be used to forecast
demand and determine responses to
marketing changes
• Experiments with scanner data
• Increase price by X—what happens to sales?
• Manipulate independent variable (price); hold
all else constant; measure impact on
dependent variable (sales)
– Compare sales results to control group
• High internal validity
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15. 34
Scanner Data
(slide 4 of 4)
• Naturalistic observation with scanner data
• Instead of manipulating environment, just
constantly monitor
• Things happen that are beyond your control
– e.g., Competitors raise price
• High external validity
• More difficult to attribute sales differences to
one localized action
• Smart companies do experiments and
naturalistic observation
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15. 35
Surveys
(slide 1 of 2)
• Surveys
• Often used to measure customer
satisfaction, repurchase intentions, etc.
• To administer
1. Write survey questions
2. Pretest them
3. Administer to a sample of customers
4. Analyze results
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 36
Surveys
(slide 2 of 2)
• Survey considerations
• Surveys can be administered in person, over
•
•
•
•
phone, on the Web, etc.
Surveys should be short to enhance
response rate
Responses should be confidential
Responses should not be used for
subsequent sales opportunities
Respondents can be consumers or B2B
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 37
Surveys—Factor Analysis
• Factor analysis is utilized to simplify
variables
• Factor analysis examines strong and
weak correlations to identify underlying
factors common to the responses
• High correlations imply that you may be
measuring the same concept
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15. 38
Discussion Question #3
• Which items hang together?
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15. 39
Discussion Questions #4
1. What would you label Factor 1?
2. What would you label Factor 2?
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 40
Discussion Questions #5
• You developed an idea for a new shoe:
Having a single shoe sole in which you
can clip on different shoe tops to create
different shoes (the Onesole).
• Describe appropriate research techniques to
answer each of the following questions.
1. Is this concept viable?
2. Which will generate more sales: one pair of
soles and one shoe top for $30, or one pair
of shoe soles and 3 shoe tops for $50?
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 41
Managerial Recap
(slide 1 of 2)
• Cluster analysis identifies similar
customer groups—ideal for
segmentation
• Surveys and MDS are used to create
perceptual maps—ideal for positioning
• Focus groups are exploratory—ideal for
product concept and ad testing
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 42
Managerial Recap
(slide 2 of 2)
• Conjoint methods indicate trade-offs—
ideal for product design
• Scanner data—ideal for investigating
brand switching, loyalty, price sensitivity,
and marketing experiments
• Surveys—ideal for satisfaction
• Can be simplified through factor analysis
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
15. 43

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