customers 6- 1 nobody is more important to the success of a business than its customers

Customers 6- 1

Nobody is more important to the success of a business than

its customers.

Customers 6- 2

Case study — Midwest Express Airlines1

• Understanding customers — methods– Conducts in-flight passenger surveys– Makes use of annual telephone interviews

with its frequent flyers– Holds focus groups six times a year with

customers

Customers 6- 3


• Understanding customers — results– On-time performance– Comfortable accommodation– Good food– Bo be kept informed when problems occur

Customers 6- 4


• Meeting customers’ needs– Offers a one-class, upscale coach service

• The leather seats are oversized and offer plenty of leg room

• Only four seats per row

– Hot, elegant dinners of salmon and filet mignon on china

– Flights are rarely late or canceled, but if there is a delay, Midwest personnel make it a priority to let customers know what’s happening.

Customers 6- 5

Customer orientation

Consumer orientation

Relationship marketing

Customer loyalty

Business-to-business

Market segmentation

Consumer behavior

Using technology

Consumerism


Determining consumer wants and needs and developing products

to satisfy them

Customers 6- 6

問題討論Consumer

orientation


Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• 消費者到 KTV消費，期望獲得什麼？

Customers 6- 7

To exceed customer expectations, to build customer loyalty.

Customers 6- 8

Exceed customer expectations



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

Today business tries to exceed customer expectations by:

“ The perceived quality of goods and services relative to the price”

“ What the customer wants,minus what they settle for”

Providing ValueReducing Customer Sacrifice

Customers 6- 9

Examples



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• 我的 Lucy怕黑…• L. L. Bean• Nordstrom• Dell Computer• American Express– … the experience made him a

customer for life.

Customers 6- 10




Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

Establishing and maintaining long-term satisfying relations with both internal and external customers as well as suppliers

Customers 6- 11

External customers and Internal customers



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

External Customers: People who buy a firms products

Internal: Employees whose job performance affects the ability to satisfy external customers

Customers 6- 12

The Customer-Development Process



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

First-time Customers

Repeat Customers

Clients

prospects

Advocates

Customers 6- 13

Converts customers into advocates



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Exceeding customer expectations

• Creating loyalty programs ( Frequency marketing)– Acknowledging and rewarding

repeat customers.

Customers 6- 14

Example of Loyalty Programs



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

LoyaltyPrograms

Airlines:Frequent flyer miles

Saturn Automobiles:Annual picnic for owners

Road Runner Sports:

Customer clubs

Harley-Davidson:Harley owners

group

Customers 6- 15

案例Consumer

orientation


Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Escape 車隊定期出遊• 連續 3個月，每月刷 5筆就送…

• 買第 2件打七折…

Customers 6- 16

Customers’ needs change. And some businesses lose sight of

these changes because they fail to listen to their customers.

Customers 6- 17

Listening and responding to the customer — Microsoft



Customer loyalty

Listening and responding to the customer


Market segmentation

Consumer behavior

Using technology

Consumerism

• Microsoft’s products → Customers who use them– Corporate systems

customers– Programmers– Knowledge workers– Ordinary Windows

customers– Consumers

Customers 6- 18

Business-to-business buyer vs. Customer buyer



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

Consumer Market:Good purchased by individual for personal use

Business-to-businessGoods purchased to produce other goods and services

Customers 6- 19

Difference between business-to-business market and customer market



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Derived demand• Fewer buyers• Larger buyers• Professional purchasing• Multiple decision makers• Ongoing relationships

Customers 6- 20

Most firms can’t serve all segments of a market.

Customers 6- 21

Market segmentation



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Market segmentationFocusing marketing

efforts at specific groups whose members have similar characteristics.

• Target MarketA group of people who

have similar wants and needs and who the organization identifies as a potential market for its goods or services

Customers 6- 22

Base for Segmenting Consumer Market



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

Demographic

Geographic

Psychographics

Behavioral

Customers 6- 23

Geographic segmentation



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Dividing a market into homogeneous groups on the basis of population locations.

• Examples– 扁帽台南賣得比較好…– 日本人冬天喜歡滑雪…

Customers 6- 24

DEMOGRAPHIC SEGMENTATION



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Distinguishing consumer groups according to characteristics such as gender, nationality, race and ethnicity, age, income, occupation, education, household size, or stage in the family life cycle.

Customers 6- 25

Example of demographic segmentation for VW’s Bug



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Gender: Female• Age: 22-45• Marital Status: Single • Ethnicity: Any• Education: College• Income: $30-45 thousand

per year

Customers 6- 26

Psychographic segmentation



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Dividing a population into homogeneous groups on the basis of personality or lifestyle.

• Example– 新光三越 A11 vs. A8 vs. A9

Customers 6- 27

Behavioral segmentation



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Grouping buyers on the basis of their relationship to a product or service.

• Example– High users

– Brand loyalty

Customers 6- 28

Primary influences on consumer behavior



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

The process by which customers decide to

select, buy, and use goods and services

Social

Personal

Cultural

Psychological

Customers 6- 29

The consumer buying process



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

Recognition of need Recognition of need

Research alternatives Research alternatives

Purchase decision Purchase decision

Post purchase evaluation Post purchase evaluation

Customers 6- 30

The consumer buying process



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Most low-cost, frequently purchased products are habitual purchases. But “high-involvement” purchases are complex decisions.

• High-involvement– Expensive– Infrequently bought– Personally relevant to the

consumer

Customers 6- 31

Highly satisfied customers tend to engage in minimal

additional search for information.

Customers 6- 32

Using information technology to better serve customers1



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

Market Databases: Information developed by statistical sampling and projection

Customers 6- 33

Using information technology to better serve customers2



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

Customer Databases: Information developed by a company that offers specific profiles on customers and their buying behavior.

Customers 6- 34

The cost of attracting a new customer is estimated to be

five times the cost of keeping a current customer happy!

Customers 6- 35

A company can improve profits by 25 to 85 percent when they reduce customer defections by just 5 percent.

Customers 6- 36

Attracting vs. retaining Customers



Customer loyalty


Market segmentation

Consumer behavior

Using technology


Consumerism

• The traditional emphasis in marketing has been on making sales rather than building relationships. This has meant focusing on acquiring new customers rather than retaining existing ones.

• Forward-thinking companies now are focusing on keeping wisely which customers they’re going to have relationships with and working hard to keep the selected set satisfied.

Customers 6- 37

Customer defection rate management



Customer loyalty


Market segmentation

Consumer behavior

Using technology


Consumerism

• Define and measure your retention rate.

• Distinguish the causes of customer attrition and identify those that can be managed better.

• Estimate how much profit was lost from the customer’s defection.

• Calculate the cost to reduce the defection rate.

Customers 6- 38

Consumerism: A social movement that seeks to strengthen the rights of buyers



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

To be

safe

To be inform

ed

To Choose To be

heard

Four rights of consumers identified by John F. Kennedy in 1962

Customers 6- 39

ExamplesConsumer

orientation


Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• 盛香珍果凍… (To be safe)• TARA TV…(To be safe)• 飲酒過量有害健康… (To be

informed)• Windows系統內建瀏灠器… (to

Choose)• Complaint department (To be

heard)

Customers 6- 40

Internal mechanisms to stimulate customer

responsibility1



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Creating a customer-oriented culture– The company has only two

rules: “Rule 1—The customer is always right. Rule 2—If the customer is ever wrong, reread Rule 1.” (Stew Leonards)

Customers 6- 41

Internal mechanisms to stimulate customer

responsibility2



Customer loyalty


Market segmentation

Consumer behavior

Using technology

Consumerism

• Seeking customer feedback– On-site, phone, mail surveys,

toll-free telephone numbers, and hiring outside firms to contact customers…

• Test Sampling– Mystery

customers 6- 1 nobody is more important to the success of a business than its customers

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