Customer Analysis & Value Creation + Ch4 & 5

Question 1

3 components of Total Customer Experience (TCE)

Answer 1

Purchase experiences
Usage experiences
Replacement experiences

Question 2

4 components of purchase experiences (IPEO)

Answer 2

Information gathering
Prioritizing needs
Evaluating alternatives
Order placement & payment

Question 3

4 components of usage experiences (DPPP)

Answer 3

Delivery & installation
Product usage
Product maintenance
Product repair

Question 4

4 components of replacement experiences (PRPP)

Answer 4

Product upgrades
Returns and warranty
Product replacement
Product disposal

Question 5

Empathetic design

Answer 5

Truly understanding and improving customer experiences and needs

Question 6

Lead users and why to leverage their experiences

Answer 6

Highly knowledgeable
Push product boundaries
Provide ideas and insights
Identify key benefits

Question 7

Features, advantages, and benefits (FAB)

Answer 7

Features - tangible/intangible characteristics
Advantages - performance results
Benefits - individuals value the advantage provided, how the product meets needs

eg: Taylormade driver
F = latest tech/materials
A = longer drives
B = lower golf score

Question 8

Reverse innovation - invent to order

Answer 8

Usually associated with discontinuous innovations

Learn what customers want but cannot get from current products. If feasible, the firm can invent to order

Question 9

Reverse innovation - invent to order 5 steps (LICDL)

Answer 9

Listen
Identify
Choose
Develop
Launch

Question 10

Mass collaboration

Answer 10

Open-ended group collaboration and info exchange

Question 11

Crowdsourcing

Answer 11

Focused problem solving and product idea generation usually from internet users

Question 12

Economic value

Answer 12

Comparison of a product’s life-cycle cost versus that of a competitor’s

Question 13

6 sources of economic benefit and value creation (PAUFMD)

Answer 13

Price paid
Acq costs
Usage costs
Financing and insurance costs
Maintenance costs
Disposal costs

Question 14

Customer value and relative performance/price metrics

Answer 14

CV, relative performance, and relative price are all metrics for comparing a product against the competition

Question 15

3 types of perceived performance/benefits (PSB)

Answer 15

Product benefits
Service quality
Brand/company reputation

Question 16

Conjoint analysis and value drivers

Answer 16

Used to identify which attributes are most influential in decision making

Question 17

3 key components to effective needs-based segmentation (FPP)

Answer 17

Features
Performance
Price

Question 18

7 steps in segmentation

Answer 18

Needs based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment strategy (acid test)
Marketing mix strategy

Question 19

Needs-based segmentation

Answer 19

Group clients based on needs and benefits sought

Question 20

Segment identification

Answer 20

Determine demographics, lifestyle, usage
Distinct, identifiable and actionable

Question 21

Segment attractiveness

Answer 21

Access, market growth, competitive industry

Question 22

Segment profitability

Answer 22

NMC
ROS
ROI

Question 23

Segment positioning

Answer 23

Value proposition includes all key elements of the situation and all the benefits the target customer is looking for

Question 24

Segment acid test

Answer 24

Present groups of target consumers with storyboards, see if consumers identify with the message

Question 25

Segmentation strategies

Answer 25

Mass market (generic value prop)
Large market (address one of the core customer needs)
Adjacent segment
Multi-segment
Small segment
Niche
Subsegment

Question 26

Adjacent segment strategy

Answer 26

Move into the next closest market (slow build)

Question 27

Multi-segment strategy

Answer 27

Various segments distinguish the overall market

Question 28

Small segment strategy

Answer 28

Focus on a small segment often ignored by big firms

Question 29

Niche segment strategy

Answer 29

Highly defined marketing effort aimed at a small group

Question 30

Sub segment strategy

Answer 30

Allows for a business to add value