COOKS Incorporated

Consumer Relevancy Concept

• Business and consumer are talkingtwo different languages

• There is a gap between consumer expectations and business’ delivered satisfaction of needs

Why is there a new concept?

• Business developed a bias and a ‘myth consumer’

• Businesses only scratch the surface of the consumer psyche

• Consumers created a new set of needs

Why is there a new concept?

Why is there a new concept?

The currently existing concepts of consumer satisfaction tell to be the all-rounder in excellence (price, service, product, experience and access)

BUT: The meaning to consumers constantly shifts, all-round excellence is not appealing anymore!

Consumer Relevancy

What is consumer relevancy about?

• Focus on a few attributes instead of the entire range

• Emphasize context surrounding the offering as much as the content of the offering

• Building a meaningful and personal value set

Consumer Relevancy

What is consumer relevancy about?

“Human values are the contemporary currency of commerce.”

➤ Reinforcement of consumers’ value set

Consumer Relevancy Concept

Consumer-centric transactions have 5 attributes:Price, product, service, access, experience

• Price - honest and consistent• Product - good rather than top quality• Service - Standardized and uniform treatment• Access - clear and specific navigation• Experience - respectful, enjoyable, non-entertaining

Consumer Relevancy Concept

Step 1:

Determining the company’s market position in the eyes of every kew stakeholder.

Consumer Relevancy Concept

Step 2:

Defining the type of human values the company should showcase to obtain maximum competitive differentiation according to the key stakeholders.

Consumer Relevancy Concept

Step 3:

Choose one attribute your company wants to dominate. (e.g. product)

Choose one attribute your company wants to differentiate on. (e.g. experience)

The other three attributes remain on an average level. (e.g. price, service, access)

Consumer Relevancy Concept

Access Experience Price Product Service

Provides a solution

Provides individual intimacy

Is the pricing authority

Generates inspiration

for customers

Provides customization

of products and services

If a business dominates on this

attribute, it . . .

Provides convenience

Shows care for the customer

Is consistent in its pricing

Generates reliability for

customers

Provides education for

customers

If a business differentiates itself

on this attribute, it . . .

Provides ease Shows respect for the customer

Is honest in its pricing

Generates credibility

with customers

Provides for accomodation for customers'

needs

If a business operates at

industry 'par' on this attribute, it . . .

. . . and customers seek the business

. . . and customers prefer the business

. . . and customers accept the business

Consumer Value Attributes

Consumer Relevancy Examples

Price Service Product Experience Access

Saturn, Geico Target, Honda, Staples, Pier 1, Dixons

Chuck E. Cheese, IKEA, Club Med

Avon, E*Trade

Audi, The Home Depot, BMW, Maytag, Continental airlines

American Express, Four Seasons

McDonald's, Progressive Corp., Circles

Primary Attibute

Price

Autozone, Tesco

Service

REI, Midwest Express, Nike Stores, The Disney Store, Harrod's, Bewley's

Amway, Walgreens, Yahoo, Land's End

Nordstrom, Circuit City, Citibank, Allstate, Superquinn

Wal-Mart, Ames, Costco, Red Roof Inns, Zara

Product

Willams-Sonoma, Best Buy

AOLSingapore Airways

Southwest AirlinesExperience

Eddie Bauer, Chase Bank, Whirlpool, Amazon.com, Lowe's

Milage.com, Starbucks

Dell, GatewayDollar General, Charles Schwab, VISA, Carrefour

Access

Seco

ndar

y A

ttrib

ute

Primary and secondary attributes of selected companies

What changed consumer behavior?

Consumers:

• stick to a more diverse and complex life and behavior pattern

• are fed up by information overload

• are part of a breakdown in social infrastructure. Consumer society vs. responsible society

COOKS Incorporated

Marketing & Communication

Laan der Verenigde Naties 40P.O. Box 100Dordrecht

T. +31 (0)78 613 30 00F. +31 (0)78 613 90 00E. info@cooks-inc.comW. www.cooks-inc.com

www.twitter.com/cooksreclame

www.youtube.com/cooksreclame

www.slideshare.net/cooksinc