Chapter 6 + First Mover Adv + Omnichannel Retail + Customer Engagement Flashcards
Innovation radar as SCA
- Change what the firm offers
- Change who the customer is
- Change how you sell to customers
- Change where to sell to customers
Offering equity
Refers to the core value that the performance of the product or service offers to the customer, absent any brand or relationship equity effects
To be the best what should you focus on apart from innovation cause that is not enough anymore
- innovate with a focus on customer needs
- continuously refine their offerings
- protect their innovation
Innovative offering strategies
Innovation radar fretwork
Stage gate process
Repositioning strategies
New-technology based strategies
Stage-gate development process
A method for managing the product development process, breaking it into stages with specific criteria that most be met before moving to next stage. It helps reducing risks and improving the success rate of new products
- Idea generation.
- Development.
- Testing.
- Commercialization.
Endowment effect
To include a new feature leads to people to overestimate the value of that feature, where they loose it
2 types of innovation
Incremental
Radical
Incremental innovation
Often pass each stage gate review more easlily because they involve less risks and are easier to evaluate
Radical innovation
Might struggle to through the stages, especially if they are difficult to understand
Jugaad
A Hindi word referring to an innovative fix or simple work-around, so these innovation practices seek creative, quick, unconventional, and frugal solutions to problems
Repositioning strategy
An innovative offering can result from dramatically repositioning an existing offering such as removing some features or adding others
Red ocean strategies
Like the STP method where firms compete for the same customer base and seek to differentiate their offerings based on existing market demands. It works well when customers and market dynamics are known and predictable
Blue ocean strategies
Seek to create new, uncontested market spaces rather than competitive within existing ones. Firms need to innovate to introduce new value proposition that redefine the market or create entirely new demand. (Cirque du Soleil redifined circus by adding theatre and so on)
Sources of first mover advantage
- Economic factors (economies of scale)
- preemption factors (supplier contract, geographic location)
- technological factors (capitalise on product and process innovation)
- behavioural factors(influence customer preferences and define the ideal product attributes
Challenges to first mover advantage
- high demand of uncertainty (if future demand for a product is unclear)
- low barriers to entry (competitors can easily replicate)
- technological shifts (rapid change in technology can render first’s movers early investments obsolete)
- cost advantages by followers (if followers can enter the market with superior production processes or lower costs, they can outperform)
Multi-channel what does it mean?
Offers multiples channels, stores, websites, apps, that operate independently. Customers experience different prices, promotions, or service across channels with little interaction between them.
Omni-channel what it is?
Integrate all channels for s seamless and consistent experience. Customers can switch between channels smoothly, with synchronised data like loyalty points, purchase history, and promotions
2 successful strategies of Omnichannel retailing
- Short term strategies
- create switching costs (loyalty programs and service contracts)
- use of data analytics
- product bundling - Long term strategies
- integrate channels (dual channels)
- exclusive products
- focus on customer experience
Challenges and opportunities in omnichannel retailing
- Blurring barriers (you cannot rely only on location anymore)
- Changing consumer behaviour (more use of mobile devices)
- Retailer adaptation (focus on differentiation, product knowledge, offering integrated services offerings)
Channel integration quality
Refer to a firm’s ability to provide customers with a seamless purchasing experience across all channels.
Key role in omnichannel retailing
4 dimensions of CIQ Chanel integration quality
Channel service configuration
1. Breadth of channel service configuration: customers value having multiple options to complete their tasks (buying online or in store)
2. Transparency of channel service configuration: clear information on what services are available across channels, reducing confusion
Integrated interactions
3. Content consistency: ensuring that product informations, promotions, and prices are the same across alll channels
4. Process consistency: maintaining a consistent experience in terms of service quality, speed and interactions across channels
Conjoint analysis
Statistical technique used in market research to understand how consumers value different features of a product. It helps in assessing customer preferences and predicting their decision making process by evaluating trade offs between various product attributes
Part worth analysis
Part worths represent the value or preference that a consumer assigns to each level of a product attribut in a conjoint analysis. These values indicate the contribution of each attribute level to the overall preference for a product.
Part worth analysis
Part worths represent the value or preference that a consumer assigns to each level of a product attribut in a conjoint analysis. These values indicate the contribution of each attribute level to the overall preference for a product.
