Lecture 2 Flashcards
Customer Values
the perceived benefits customers believe they receive from ownership or consumption of a product or service
Main driver behind consumer behaviour
Customer values
Customer values is about
- What drives customer behavior?
- Why does one Customer buy brand A and another brand B?
Value strategies
Operational excellence:
-“I value conveniece, reliable but not state of the art quality”
Product leadership:
-“I value state of the art quaility / status?”
Customer Intimacy:
-“I want to be recognized / am prone to create and maintain relationships”
Value hierarchy
Attributes -> consequence -> desired end-state
Air bags -> i want to feel safe when i drive -> peace of mind
What is privacy?
The right to be left alone
Negative consumer behaviors that occur when they perceive vulnerability
- Falsifying information
- Negative WOM
- Switching behavior
Intrusiveness
a psychological reaction to ads that interfere with a consumer’s ongoing cognitive processing, a highly personalized ad can be perceived as intrusive
Vulnerability
suspectibility to injury or harm
How to attack vulnerability
Empower the consumers via;
- control
- Transparency
High Transparency & Low control
Negative reaction, they are aware of potential issues but cannot act
High Control & Low Transparancy
Uninformed authority, consumers respond favourable. Regardless that they are somewhat blind.
Fundamental issues and challenges that firms face in becoming customer centric
- Culture
- Structure
- Processes
- Financial Metric
