Chapter #4: Understanding The Customer Experience Flashcards
Explain the total customer experience?
Includes:
Purchase experiences
Usage experiences
Replacement experiences
What are some examples of Purchase Experiences?
Information gathering
Prioritising needs
Evaluating alternatives
Order placement and payment
What are some examples of Usage Experiences?
Delivery & installation
Product usage
Product maintenance
Product repair
What are some examples of Replacement Experiences?
Product upgrades
returns and warranty
Product replacement
Product disposal
*What are lead users?
High knowledgeable and skilled users who often extend the boundaries of a product’s application for achieve a more desired solution
What is reverse innovation?
Starting with customers and learning what they want, but cannot get from existing products, and then developing and delivering that value proposition
What is mass collaboration?
Open ended group collaboration and information exchange
What is crowdsourcing?
Focused problem solving and product idea generation
What does mass collaboration and crowdsourcing help businesses to achieve?
New and innovative solutions for challenging process and problems resulting in product improvements
Customers are willing to pay more for products and services that have an __________________.
Economic value and save them money
How do we determine a product’s economic value?
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)
How could a printer manufacturer lower the life-cycle cost of a printer?
Reuse and recycle program
Trade in old products in exchange for a credit to purchase new products
What is relative performance?
Helps more readily assess performance around a benchmark average of 100
What is perceived customer value?
Customers considering more than product performance when determining overall value
What is relative performance?
The weighted average of product performance and other sources of value including service quality and brand reputation
What is relative cost of purchase?
The product price plus operating costs relative to all products
How do we measure perceived customer value?
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.
What is the overall performance index?
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
Outside of rational benefits, certain products also offer ________ benefits
Emotional
Why is it important for a brand to create a “brand personality”?
Can deliver customer value through emotional benefits and serving their psychological needs
Why do we need to identify value drivers and the level of price sensitivity?
We need to know what a customer will pay for better performance
