Angie Aguilar #110th grade “A”

Big Companies Buy Small Brands with Big Values

Even in challenging economic times, consumers have shown they are willing to

pay a premium for “natural” products, organic foods, green-friendly products, and

the like that carry a cost premium. Such values oriented-companies make customers

feel good, and big marketers want a piece of this profitable trend.

In 2000, the large agribusiness conglomerate Unilever bought the flavorful Ben

& Jerry`s ice cream company. Today, the company ads remind customers of shared

values when they promote family farms, a dairy source for Ben & Jerry^s ice creams.

Colgate bought 84 percent of Tom`s of Maine, the all-natural personal care brand

based in Kennebunk, Maine. Tom`s was a small company with a social responsibility

message. French cosmetics giant Lòreal bought London-based retailer The Body Shop,

a personal care chain known for its avoidance of animal tesing and its support for

human and animal rights causes. Large companies recognize the added value the

customer of these formerly small companies received.

Many customers today appreciate the notion that what`s good for you and

good for the planet is the ultimate win-win. Being a consumer of companeis that share

you values can make you feel selfless.

Questions

1. Look up for the underlined company names and identify what

they sell.

-Unilever: Sell products like food and Drink´s, Personal & Home care.

-Ben & Jerry´s: It´s a company that sells ice creams.

-Colgate: Sells products toothpaste, mouthwashes & Oral products hygiene

Angie Aguilar #110th grade “A”

-Tom´s of Maine: Sells products like toothpaste, Deodorants, Creams & Antiperspirants

-Lóreal: It´s sells skincare, cosmetics, makeup, haircare, haircolor, hair styling and men's line.

-The body shop: It produces beauty products.

2. Define the highlighted words.

A. Natural products: is a chemical compound or substance produced by a living organism found in nature.

B. Organic foods: are produced using methods of organic farming.C. Green-friendly products: It’s environmentally friendly.D. Cost premium: the practice of keeping the price of a product or service artificially high

in order to encourage favorable perceptions among buyers, based solely on the price.E. Trend: a general development or change in a situation.F. Conglomerate: a large company that is made up of several smaller companies.G. Retailer: a person, shop, or business that sells goods to the public.H. Animal testing: also known as animal experimentation, animal research, and in vivo

testing, is the use of non-human animals in experiments I. Formerly: at or in a former time; in the past.

3. Watch some ads of the companies mentioned? Is the reading truthful? (Ads remind people of their values...)- Yes4. What does the last paragraph mean? Explain it in your own words.

Angie Aguilar #110th grade “A”

-Now companies seek security environment and the people who make, looking for new products and more efficient way for consumption.5. What are some causes that you believe deeply in?- Customer service, advertising and helps the environment makes the business have more customers.6. What companies or organizations support those similar beliefs?-Green businesses.-Companies that support the welfare of the planet.-Provides security to customers.7. To what extent do you feel more inclined to do business with these supportive organizations? What factors influence your loyalty to them as a customer (external or internal)?-It would be very satisfactory consumption of products produced by these companies as they help save the planet.-The factors include advertising and the way in which customers are greeted in the companies.8. Are there companies you will always try to avoid becauuse of some extrinsic value perceptions such as disagreement with their policy stands, etc.? Could they win you back?Using a client loses the hope of receiving good service is almost impossible to return it because it does not have the same faith that at first.9. Vocabulary words to be defined and added to the Pictionary- Credibility: the state or quality of being believed or trusted.- Value: an amount, esp. a material or monetary one, considered to be a fair exchange in return for a thing- Add-ons: a feature that can be added to a standard model or package to give increased benefits.- Intagible: incapable of being perceived by touch; impalpable.- Tangible: capable of being touched or felt; having real substance.- Extrinsic value: is the portion of an item's worth that is assigned to it by external factors. The opposite of extrinsic value is intrinsic value, which is the inherent worth of an item.- Intrinsic value: same as the current market value. Value investors use a variety of analytical techniques in order to estimate the intrinsic value of securities in hopes of finding investments where the true value of the investment exceeds its current market value.- Warranties: a covenant, express or implied, by which the vendor of real property vouches for the security of the title conveyed.- Perceived value: A customer's opinion of a product's value to him or her. It may have little or nothing to do with the product's market price, and depends on the product's ability to satisfy his or her needs or requirements.

Angie Aguilar #110th grade “A”

Insight into Emerging Trends in Customer Service

*The term insight refers to an understanding based on identification of relationships and behaviors within a context or scenario.*Our context is customer service and our scenario assumes changes that are rapidly becoming realities.

-Significant impact on customer service and loyalty:*Personalization*Technology*Globalization

-Personalization: Customers will no longer accept to be treated as a demographic category. They will not accept a “one-size-fits-all” mentality.They will demand – and get- individually specified products and services.Sucessful companies will adapt to these new demands. They will treat each customer as an individual with special needs and wants.

-technology: It is the engine that will allow much of this customization. However, it is not the only driver to change in the coming decades. It has reshaped expectations dramatically in the last few years. Example: credit cards

Angie Aguilar #110th grade “A”

-Customer Demographics: Young people are becoming active consumers, while the baby boomers are creating a huge number of active 60-plus buyers.

-Globalization: The global economy will require many businesses to be more aware of a broad range of cultures. The demands for personalization will continue to be complicated by the changing nature of customers and employees as groups.

Angie Aguilar #110th grade “A”