Chapter 4 Flashcards
Why is building SCAs key?
all competitors react
What needs to happen before an SCA is built?
firm must establish sustainable position with targeted customer group
Which is the most difficult First principle to execute?
managing SCAs / competitors react
How do firms make SCAs hard to copy
turn to key market-based sources of SCAs
Where are brands most effective in terms of SCA?
large consumer markets
for consumer goods
Where are relationships most effective in terms of SCA?
B2B, service, and complex offering settings
Name 4 ways that competitors can displace firms
- technical innovations
- exploiting changes in customer desires
- individual entrepreneurship
- copycats
customer equity
total of discounted lifetime values of all its customers
BOR Equity Stack
relationship equity, brand equity, offering equity
brand equity
set of brand assets and liabilities linked to a brand, its name, and symbol, that add to or subtract from the value provided by a firm’s offering
relationship equity
set of relational assets and liabilities linked to boundary spanning employees and the social network associated with the offering or experience that add to or subtract from the value provided by a firm’s offering
BOR equity grid
high-level summary of what the firm is trying to achieve with each BOR strategy
