- Количество слайдов: 32
MBA 671 Dr. S. Borna
Objectives ä Define value & satisfaction - understand how to deliver them ä The nature of high-performance businesses ä How to attract & retain customers ä Improving customer profitability ä Total quality management
Determinants of Customer Delivered Value Image value Personnel value Services value Total customer value Product value Customer delivered value Monetary cost Time cost Energy cost Psychic cost Total customer cost
High Performance Business Set strategies to satisfy key. . . By improving critical business. . . and aligning. . . Stakeholders Processes Resources Organization
Firm infrastructure Market. Out. Serving Inbound Operabound ice Logistics tions and Logistics sales Primary Activities in Procurement in Technology Development Ma rg Human resource management rg Ma Support Activities The Generic Value Chain
Levi Strauss’ Value-Delivery Network Order Du Pont (Fibers) Order Milliken (Fabric) Delivery Order Levi’s (Apparel) Delivery Order Sears (Retail) Delivery Customer Delivery Competition is between networks, not companies. The winner is the company with the better network.
Satisfied Customers: ä Are loyal longer ä Buy more (new products & upgrades) ä Spread favorable word-of-mouth ä Are more brand loyal (less price sensitive) ä Offer feedback ä Reduce transaction costs
The Concept of Value One of the prerequisites of Exchange: Each party has something that might be of value to the other party. intrinsic value/ extrinsic value
According to Lancaster (1966) A product is a bundle of attributes.
The bundle of attributes can be made up: • • • tangible objects services ideas/concepts personalities places organizations
Net Value total value Net value total product offering total cost: tangible intangible
CONSUMER SATISFACTION DISSATISFACTION Satisfaction/dissatisfaction is a person’s feelings of a pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.
Prepurchase Expectation of Product Performance Actual Product Performance Postpurchase Satisfaction Comparison dissatisfaction
How to measure consumer s/ds? 1. Complaint and suggestion systems: (hot lines, 800 numbers, etc. 2. Customer Satisfaction surveys 3. Ghost Shopping 4. Lost customer Analysis Note: Measurement Problems
How to handle customers’ complaints? Need for a complaint management process. The need for customer retention, Customer Lifetime value Measurement problems related to customer life time value
Product Quality 1. The Concept of Quality 2. Marketer’s Role in Defining and Delivering Quality
Quality #1 ä Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
PRODUCT QUALITY THE CONCEPT OF QUALITY: HOW TO “OPERATIONALIZE” IT?
(P. W. Bridgeman, The Logic of Modern Physics) In general, we mean by any concept nothing more than a set of operations; the concept is synonymous with the corresponding set of operations. (H. Marcuse, One Dimensional Man)
Product Quality (S. Schnaars) Why product quality is more important? 1. Competitive pressures to increase quality 2. Quality advantage of imports over
Product Quality Cont. 3. Quality is more important to consumers 4. Quality is sustainable
Different views of product quality Views 8 Dimension of Product Quality Products that work Reliability Durability Conformance to Specification
Different views of product quality Design Excellence Superior Satisfaction of Needs Performance Product features Serviceability, Aesthetics Perceived Quality
What Is Quality? According to Kotler: Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied (consumer’s) need.
Quality mix: The need for multiple perspective 1 QUALITY MIX ISSUES a. ABSOLUTE QUALITY b. RELATIVE QUALITY CONFORMANCE Q. PERFORMANCE Q.
ISSUE NO. 2 OBJECTIVE VS. SUBJECTIVE MEASURES ISSUE NO. 3 DIFFERENCES AMONG PRODUCT CATEGORIES ISSUE NO. 4 CHANGES IN VALUED ELEMENTS
Quality Mix Strategies
INCREASING OVERALL LEVEL OF QUALITY ELEMENTS OF QUALITY
FOCUSING ON A QUALITY SEGMENT Quality improvement ELEMENTS OF QUALITY
TRADING PRICE AND QUALITY HIGH A PRICE X B B E C D LOW HIGH QUALITY
REQUIREMENTS FOR QUALITY IMPROVEMENTS 1. 2. 3. 4. 5. 6. LONG-TERM COMMITMENT EMPLOYEE INVOLVEMENT WORKER TRAINING PRODUCT DESIGN MARKETING-R&D INTERFACE LONG-TERM CONSUMER SATISFACTION
Review ä Define value & satisfaction understand how to deliver them ä The nature of high-performance businesses ä How to attract & retain customers ä Improving customer profitability ä Total quality management