Lect 5- SDlogic, ARA model

Question 1

What is b2b marketing ?

Answer 1

• A company attempting to generate the interest of another company to see them a product or service (Ellis,2011)
• B2B activities make a major contribution to most national economies
• B2B activities are 10 to 15 times greater than B2C as more money is being spent

Question 2

What are examples of B2B and B2C consumers?

Answer 2

B2B - Intel, IMB

B2C - H&m, Dior

Question 3

What is the goods dominant logic?

Answer 3

There was little focus on customer service, little contact with customer after the purchase, had a short term time scale, little emphasis on customer service

Question 4

What is service dominant logic?

Answer 4

• Focus on customer retention and customer value
• Emphasis on relationship quality and maintaining customers in the long term
  -Emphasis on ‘serving the exchange partner’s needs’ rather than ‘selling things’
  “the application of specialised competences (knowledge and skills), through deeds, processes, and performances for the benefit of another entity or the entity itself”. Vargo and Lusch (2006, p. 283)

Question 5

What is Kotlers 1977 quote about SDL?

Answer 5

Customers do not buy goods or services. They buy offerings which render services, which create value…activities render services, things render services.

Question 6

What does SD logic focus on?

Answer 6

• Focuses on intangible resources, relationships and the creation of value
• Emphasis on ‘serving the exchange partner’s needs’ rather than ‘selling things’

Question 7

What does the ARA model stand for?

Answer 7

• Actors
• Resources
• Activities

Question 8

What are actors in the ARA model?

Answer 8

• individuals or some group of
  individuals such as an organisation
• they have agency, the ability to act purposefully & act within structures and contain purposeful actions

Question 9

What are resources within the ARA model?

Answer 9

anything that an actor can draw on for support. Often for value creation

Question 10

What is meant by service and value within the actives part of the ARA model?

Answer 10

Service -application of resources for the benefit of another actor or oneself
Value: benefit, an increase in well-being of a particular actor

Question 11

What are the four axioms of the S-D logic

Answer 11

A1: Service is the fundamental basis of exchange

A2: The consumer is always a creator of value

A3: All economic and social actors are resource

A4: Value is always unique and phenomenologically determined by the beneficiary

Question 12

What does the customer engagement cycle show?

Answer 12

• Shows the states throughout which relationships develop overtime
• Each arrow represents a different strategy

Question 13

Who created the customer engagement cycle?

Answer 13

Sashi, Cm 2012

Question 14

Whats involved in the connection and interaction stage?

Answer 14

Connection - Where do you find your clients and how do you represent yoursef? Firm must have strong sense of self-esteem and courage

Interaction- Once connected the customer can interact with the seller personnel and other customers

Question 15

Whats involved in the satisfaction and retention stage stage?

Answer 15

Satisfaction - Only if the customer is satisfied then they will stay connected and continue to interact with one another

Retention - If the customer is still interested then they are satisfied and retention is achieved

Question 16

Whats involved with commitment and advocacy?

Answer 16

• Effective communications leads to higher levels of trust and emotional bonds in relationships with sellers
• spread the word about their positive experiences with a product, brand, or company
  Only if loyal customers in long-term relationships develop emotional bonds will they likely become advocates for a product, brand, or company

Question 17

Whats involved with engagement?

Answer 17

delighted or loyal customers share their delight or loyalty in interactions with others in their social networks
customer delight and customer loyalty are necessary for customer engagement

Question 18

What are high involvement products?

Answer 18

• Important to the consumers self image
• May represent a risky purchase in terms of financial risk, technological risk and social risk
• Have significant emotional appeal and are socially meaningful
  e. g car, house, telephone

Question 19

What are low involvement goods?

Answer 19

• Don’t carry as much risk
• May be an impulse purchase
• E.g food, shampoo,toilet roll