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Xxzipkc > B2C > Flashcards

B2C Flashcards

1
Q

customer behavior

A

the study of individuals, groups or organizations and the processes they use to select, secure, use and dispose of porducts… to satisfy needs and the impacts of these processes on customer and society

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2
Q

customer behavior implications

A

understand of customer behavior enables firms to adapt and improve their campaigns and strategies
and furthermore enables them to reach and satisfy the needs of their customers

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3
Q
  1. problem recognition:

concept of needs

A

subjectively perceived deficiancies,

difference between actual and desired state of being

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4
Q
  1. information search
A

heightened attention - more open to information about products

information search - more intense searcher who seeks out different sources (reading material, peers, friends, users…)

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5
Q
  1. information search:

sources of information

A

personal
commercial
experimental
public

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6
Q
  1. evaluation of alternatives
A

achieve a place in customer´s awareness set, evoked set and especially choice set

recognize competitors in choice set

identify customers information sources and evaluate their relative influence

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7
Q
  1. evaluation of alternatives:

definitions of sets

A

number of products or brands the customer will become aware of

number of alternatives considered

number of products or brands for which more information is processed

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8
Q
  1. evaluation of alternatives:

definitions of sets

A

number of products or brands the customer will become aware of

number of alternatives considered

number of products or brands for which more information is processed

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9
Q
  1. purchase decision
A

in some cases a customer may decide not to evaluate each product and/or intervening factors may affect the decision - attitudes of others, unanticipated situational factors -

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10
Q
  1. post pruchase behavior
A 
confirmation disconfirmation paradigm
perception vs expectation
delight
satisfaction
dissatisfaction
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11
Q
  1. post purchase behavior:

ways to influence

A

increase performance
influence perception
manage expectations

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12
Q

Decision theory / biases

A

normative theory - best decision to take (fully informed & rational)

descriptive theory - explains how individuals actually make decisions and takes into account psychological influences and limited information processing capacity

explains irrationality and decision anomalies

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13
Q

decision making:

influencing factors

A

psychological influences
marketing mix influences
sociocultural influences
situational influences

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14
Q

biases / behavioural effects

A

framing effect
anchoring effect
endowment effect
status quo bias

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15
Q

framing effect

A

change in risk preferences depending on how choices are described

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16
Q

anchoring effect

A

point of reference (influences person towards given value)

in developing their final estimate decision makers adjust the considered anchor but tend to do so insufficiently

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17
Q

endowment effect

A

demand higher price for item endowed with than oneself would pay for it (overestimation of value / psychological influence)

loss when given up, gain when acquired

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18
Q

status quo bias

A

tendency of maintaining one´s current (previous) decision

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19
Q

prospect theory definition

A

descriptive decision theory
describes decision between akternatives that involve risk and probabilities are known
-predicts real life choices

20
Q

prospect theory concept

A

two phases of choice process:
early phase of editing
subsequent phase of evaluation

21
Q

prospect theory assumptions

A

a) natural reference point
b) function is concave for gains, convex for losses
c) loss function is steeper than gain function
i. e. losses loom larger than gains

22
Q

editing phase

A

organize and reformulate available options
coding (define outcomes relative to neutral reference point)
combination (simplifiy prospects by combining probabilities for identical outcomes)
segregation (riskless / risky - decomposition into sure gain and risky prospect)

23
Q

evaluation phase

A

individual will choose alternative with highest subjective value (SV)

24
Q

prospect theory implications / take aways

A

response of market to offer
how to frame advertising
pricing and adjustment of premium customer is willing to pay
how product´s price s perceived to competition
how new product is positioned

25
Q

look at implications for marketing of customer irrationality effects

A

… adoption barriers
buying price vs selling price
negative framing
positive framing to customer type ( risk-averse/taking)
price partitioning, bundling, negotiations

26
Q

Marketing mix in b2c marketing

A

changing market conditions: single channel - emergence of information technologies - multi channel!

27
Q

clicks and mortar business model

A

+ availability and convenience; cut costs

  • diffcult to run two businesses at same time
28
Q

bricks and mortar business model

A

+ location-based attraction; adress senses; higher trust

  • limited opening hours, huge overhead costs, fixed location
29
Q

shopping via mobile devices

A

offer unique value, add convenience, entertain, offer incentives, provide social value

30
Q

flash sales

A

+ sell overstock & unwanted products
customers are attracted by deals
stimulate short-term demand
visit more frequently

  • lower brand´s perceived value and reference price
    attraction of bargain hunters (will not pay normal price)
31
Q

freemium

A

+ generate revenue after basic relationship
attracts new users (trial)
low marginal costs
minimal marketing costs
fast user increase, potential for commercials

  • low value perception
    more freeloaders than paying: costs outweigh revenue
    risk of too many features in free version
32
Q

Customer relationship management

A

tools & methods to maintain custoemr relationships and promote customer loyalty

c.l. : interaction, bonuses/rewards, building barriers

33
Q

relevance of CRM

A

challenging market conditions:
increasing individualization of customer needs
differentiation via CRM needed (product/service not sufficient)

34
Q

impact chain of CRM

A

customer satisfaction

  • x customer retention (re-buying, cross-buying, recommendation)
  • x increase in profit (sales volume, price, costs)

economic success relationship success
increase in profit

35
Q

new customer loyalty view

vs old

A

vorher Gegenteil , implication loyal customers lead to higher profits

  • cost more to keep
  • pay lower prices because of knowledge
  • do not always act as word-of-mouth marketers

implication: focus on loyal AND profitable customers

36
Q

customer satisfation - loyalty graph

A

cool satisfaction / area of indefference

move, converst to valuable customers

37
Q

customer loyalty matrix

A

…

38
Q

Tools for identifying important customers

A

ABC analysis
Customer lifetime value
Customer portfolio
Scoring model

39
Q

Disadvantages ABC analysis

A 
single criterion only
revenue (profit is more informative)
static
retrospective / everything else equal assumption
no consideration of future potential
40
Q

Five-stage model of customer decision process

A

assumption: customer is cognitive
1. problem recognition
2. information search
3. evaluation of alternatives
4. purchase decision
5. post purchase behavior

41
Q

scoring model

A

…. assessment criteria

42
Q

customer portfolio

A

attractiveness of customer: size of wallet, growth of purchases/year, knowhow of customer, image of customer

own position:
share of wallet
stability of relationship
switching costs

43
Q

revenue cost relationship

A

different evolutions (problematic)

44
Q

CLV +-

A

re buying, cross buying

expect discounts
lowered customer reference price

45
Q

three drivers of customer value

A

acquistion - incresing customer base
margin - growing profit from existing customers
retention - minimize defection

46
Q

CLV analysis take-aways for CRM

A

acquiring customer - liik for positive CLV / flows from customer exceed costs
costs of satisfying customer needs must be considered
customer retention is costly too - allocate resources efficiently
customers=risky assets - have a well-balanced /diversified portfolio

Xxzipkc (5 decks)

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