Chapter #4: Understanding The Customer Experience

Question 1

Explain the total customer experience?

Answer 1

Includes:

Purchase experiences
Usage experiences
Replacement experiences

Question 2

What are some examples of Purchase Experiences?

Answer 2

Information gathering
Prioritising needs
Evaluating alternatives
Order placement and payment

Question 3

What are some examples of Usage Experiences?

Answer 3

Delivery & installation
Product usage
Product maintenance
Product repair

Question 4

What are some examples of Replacement Experiences?

Answer 4

Product upgrades
returns and warranty
Product replacement
Product disposal

Question 5

*What are lead users?

Answer 5

High knowledgeable and skilled users who often extend the boundaries of a product’s application for achieve a more desired solution

Question 6

What is reverse innovation?

Answer 6

Starting with customers and learning what they want, but cannot get from existing products, and then developing and delivering that value proposition

Question 7

What is mass collaboration?

Answer 7

Open ended group collaboration and information exchange

Question 8

What is crowdsourcing?

Answer 8

Focused problem solving and product idea generation

Question 9

What does mass collaboration and crowdsourcing help businesses to achieve?

Answer 9

New and innovative solutions for challenging process and problems resulting in product improvements

Question 10

Customers are willing to pay more for products and services that have an __________________.

Answer 10

Economic value and save them money

Question 11

How do we determine a product’s economic value?

Answer 11

We need to determine it’s life cycle cost:

Lifecycle Cost = Price Paid + Acquisition Cost + Usage Costs + Ownership Costs + Maintenance Costs + Disposal Costs

Then compare the product lifecycle cost to the economic value (difference between them)

Question 12

How could a printer manufacturer lower the life-cycle cost of a printer?

Answer 12

Reuse and recycle program

Trade in old products in exchange for a credit to purchase new products

Question 13

What is relative performance?

Answer 13

Helps more readily assess performance around a benchmark average of 100

Question 14

What is perceived customer value?

Answer 14

Customers considering more than product performance when determining overall value

Question 15

What is relative performance?

Answer 15

The weighted average of product performance and other sources of value including service quality and brand reputation

Question 16

What is relative cost of purchase?

Answer 16

The product price plus operating costs relative to all products

Question 17

How do we measure perceived customer value?

Answer 17

Customer perceptions shape assessments of customer value however some aspects like brand reputation cannot be measured in terms of savings - therefor it needs to be benchmarked against industry and competitor performance.

Question 18

What is the overall performance index?

Answer 18

The Overall Performance Index is a weighted average of the relative advantage and relative importance of the three core areas of performance:

• Product performance
• Service Quality
• Company reputation

Question 19

Outside of rational benefits, certain products also offer ________ benefits

Answer 19

Emotional

Question 20

Why is it important for a brand to create a “brand personality”?

Answer 20

Can deliver customer value through emotional benefits and serving their psychological needs

Question 21

Why do we need to identify value drivers and the level of price sensitivity?

Answer 21

We need to know what a customer will pay for better performance