Prentice Hall, 2002 Chapter 4 continue from 4.6 (modifications by J.Molka-Danielsen) Internet...

Prentice Hall, 2002

Chapter 4 continue from 4.6

(modifications by J.Molka-Danielsen)

Internet Consumers, E-Service, and

Market Research

Prentice Hall, 20022


The VALS Segment Profiles

Self-OrientationPeople pursue and acquire products, services, amd experiences that provide satisfaction and give shape, substance, and character to their identities. They are motivated by one of three powerful self-orientations: principle, status, and action. Principle-oriented consumers are guided in their choices by abstract, idealized criteria, rather than by feelings, events, or desire for approval and opinions of others. Status-oriented consumers look for products and services that demonstrate the consumers' success to their peers. Action-oriented consumers are guided by a desire for social or physical activity, variety, and risk taking.

ResourcesResources refer to the full range of psychological, physical, demographic, and material means and capacities people have to draw upon. It encompasses education, income, self-confidence, health, eagerness to buy things, intelligence, and energy level. It is a continuum from minimal to abundant. Resources generally increase from adolescence through middle age but decrease with extreme age, depression, financial reverse, and physical or psychological impairment.


The VALS Segment ProfilesProduct Preferences

Actualizers -cultivated tastes, fine things, wide interests

Fulfilled -practical consumer, durability, functionality

Achievers -prestige products, qualityExperiencers -clothing, fast food,

entertainment, non-conformingBelievers -brand loyaltyStrivers -stylish, impulsive, easily

bored.Makers -practical, not impressed by

possessionsStrugglers -safety, security, careful

consumer


Delivering Customer Servicein Cyberspace

E-service—online help for online transactions

Foundation of service—responsible and effective order fulfillmentCustomer-centered services—order tracing, configuration, customization, security/trustValue-added services--dynamic brokering, online auctions, online training and education


Delivering Customer Servicein Cyberspace (cont.)

Product life cycle and customer servicePhases of product life cycle

Requirements: assisting the customer to determine needsAcquisition: helping the customer to acquire a product or serviceOwnership: supporting the customer on an ongoing basisRetirement: helping the client to dispose of a service or productService must be provided in all of them


Delivering Customer Servicein Cyberspace (cont.)

Customer relationship management (CRM)CRM in action—customer-focused EC

Make it easy for customers to do business onlineBusiness processes redesigned from customer’s point of viewDesign a comprehensive, evolving EC architectureFoster customer loyalty by:1. Personalized service2. Streamline business processes3. Own customer’s total experience… 7. methods.


Customer Relationship Management (CRM)

Customer service functionsProvide search and comparison capabilitiesProvide free products and servicesProvide specialized information and servicesAllow customers to order customized products and servicesEnable customers to track accounts or order status


Customer Relationship Management (CRM) (cont.)

Customer service toolsPersonalized Web pages (Transactive Content)FAQsTracking toolsChat rooms—discussE-mail and automated responseHelp desks and call centersTroubleshooting tools—assist


Customer Relationship Management (CRM) (cont.)

Justifying customer service and CRM programs—2 problems

Most of the benefits are intangibleSubstantial benefits reaped only from loyal customers, after several yearsMetrics—standards to determine appropriate level of customer support

Response and download timesUp-to-date site and availability of relevant contentOthers (8 Metrics mentioned)


Market Research for EC

Aim– find relationship between

ConsumersProductsMarketing methodsMarketers through information

In order to improve customer service

Discover marketing opportunities and issuesEstablish marketing plansBetter understand the purchasing processEvaluate marketing performance


Figure 4-6Market Research Process

Market segmentation—divide consumer market into groups to conduct marketing research, advertising, sales


Market Research for EC (methods)

Conducting online (web-based) market research— approaches:

Surveys (one-response, interactive, state use)Cookies (collect data without permission)Focus groups- identify differences in attributes, benefits, values of various markets.

Goal: understand the target market better.


Table 4-4Online Market Research Process & Results

Online market research methods—fast, cheap, data collection

Source: Based on Vassos (1996), pp. 66-68.


Market Segmentation

Market Segmentation – is dividing customers into logical groups for Marketing R&D, Advertising, and Sales.

Consumer-product relationship (Table 4-3)Segmentation can be cheaper than one-to-one marketing. (Show table).


Market Research for EC (cont.)

Online market research methods (cont.)Conducting Web-based surveysLimitations of online research

Not suitable for every customer or product Skewed toward highly educated males with high disposable income

May be unreliable, biasedMore knowledge is neededState other problems…..


Market Research for EC (cont.)

Datamining (cont.)Major characteristics and objectives of data mining: (historical data, clean, transformed)

Relevant data difficult to find in huge databasesTools help find information buried Can use “data drills” for easy access to answers, may find valuable, unexpected resultsTools combined with spreadsheets for easy analysis and presentation of resultsYields: associations, sequences, classifications, clusters, forecasting, predictions, discover patterns and relationships


Figure 4-7A Framework for Classifying EC Agents

The purchasing decision- making process: agent classification


Intelligent Agents in Customer-related Applications (cont.)

Need identification—helps determine what to buy to satisfy a specific need by looking for specific products information and critically evaluating them

Examples:Salesmountain.com—specifically requested items for individual customersDiscogs.com—sample and buy musicNetcactus.com—help choose giftsQuerybot.com/shopping—looks for deals and finds related information on requested items



Product brokeringExample: Firefly

Used a collaborative filtering process that could be described as “word-of-mouth” to build the profileAsked a consumer to rate a number of productsMatched his ratings with the ratings of other consumersRelied on the ratings of other consumers with similar tastes, recommended products that he has not yet rated



Merchant brokering—intelligent agents for finding vendors

Bargainfinder from Andersen Consulting (first product brokering agent—no longer exists)

Queried the price of a specific CD from a number of online vendors and returned a list of prices (unsuccessful)

Jango (embedded in excite program)Originates the requests from the user’s site instead of from Jango’s vendors have no way to determine whether the request is from a real customer or from the agentProvides product reviews



Negotiation- price and other terms of transaction are determined. (Costly and time consuming.) Some examples (Tete-@-tete, are no longer used.)Purchase and delivery—arrange payment and delivery of goodsAfter sale service and evaluation—automatic answering agents respond to customer queries and remind them of maintenance needs



Other EC agentsAuction support agentsFraud and detection protection agentsCharacter-based interactive (animated) agentsLearning agent


E-learning technology

Extempo's PeopleSkills™ Workshop enables organizations to train staff members in the soft skills they need to drive individual and organizational excellence. Unlike other approaches, whether delivered online or in classrooms, PeopleSkills™ Workshop gives each learner authentic practice in a variety of job-specific conversational role-plays, guided by expert individualized coaching throughout the learning process. Because Extempo automates these unique e-learning services with its patented ExpertAgent™ Technology, learners can have unlimited coaching and role-play practice. As a result, every learner can achieve mastery of the soft skills they need in order to excel in the performance of their jobs. Copyright 2001 Extempo Systems Inc. All rights reserved. Home

Extempo.com


E-learning demo –Role Play


Practical Role Play Exercise


Virtual expert coaches – adjusted to learning context and business situation


Virtual coach on the role-play demo.



Organizational buyer behavior

Purchase same products as individualsTransaction volumes much largerTerms of negotiations and purchasing more complexPurchasing process more important than to an individual buyer

Behavioral model of organizational buyers

Influencing variables different from those of individual buyersOrganization purchasing guidelines and constraintsInterpersonal influences are factors (authority)Group decision making

Prentice Hall, 2002 Chapter 4 continue from 4.6 (modifications by J.Molka-Danielsen) Internet...

Documents

Transcript of Prentice Hall, 2002 Chapter 4 continue from 4.6 (modifications by J.Molka-Danielsen) Internet...