1. Marketing

2.  Manufacturing
◦ Apple, Nike
 Advertising
◦ HUL, P&G
 Marketing
◦ Film producers
 IT Infrastructure
◦ Cloud based services
What can be Outsourced

3.  Aspirations
◦ Successful Businesses are aspirations realized
 Ideas
◦ Successful Businesses are about
implementation of innovative ideas.
 Relationships
◦ Relationships creates trust, commitment,
positive energy
◦ Provide information, investments, reputation
What cannot be outsourced?

4.  Customer Value can be Tangible and Intangible
◦ Tangible benefits can be imitated by competition
◦ Tangible benefits and resultant advantages are
difficult to maintain
◦ Customer Satisfaction of tangibles is a moving target.
Customers expect more when they get more.
◦ Expensive to create and maintain .
 Consumer Intangibles
◦ Symbolic Consumption (Imagery, aspirations)
◦ Hedonic Consumption (A superior Experience)
◦ Value we can capture can be more than the cost of
Marketing is Customer Value
creating it
 Brand Premium

5.  On tangibles?
◦ Certainly yes
◦ Lower the cost of production, sourcing,
operations, have the least operating margins
◦ Provide the convenience , assortment, quality
assurance , longer working hours, quick billing
◦ Have Economies of Scale, have large scale
 Be Big
Where do we want to compete?

6.  On Intangibles?
◦ Certainly yes
 Build a Brand
◦ Create aspiration in consumers to associate : What
I get is more than the price product will fetch in the
market.
◦ Create symbolic Value
 Provide a unique consumption experience
difficult to duplicate
◦ Create hedonic value
◦ Personal relations, warmth, recognition, emotional
bond
Where do we want Customer Experience
◦ Service differentiation and to compete?
Management
 Customization

7.  What is the unique value you want to
provide the consumer?
◦ Functional /Utilitarian (Tangibles)
◦ Symbolic Aspirational brand(Intangible)
◦ Hedonic Experience (Intangible)
 A Marketing strategy involves your choice
of
◦ What type of consumers to serve?
◦ What value to provide?
◦ Communicating and Influencing the consumer
Strategic Marketing

8.  Types of mental responses
◦ Affect : Feel
 A state of Mind
 Feeling responses
◦ Cognition : Thought
 Mental process
 Thinking responses
◦ Behavior : Act
 Overt or Covert
 ABC Model of Influence
Influencing Consumers

9.  Emotion to Mood
◦ Joy, Love, Fear, Guilt, Anger, Warmth, Disgust,
Sadness, Calm, Blue, Boredom, Dislike,
Melancholy
◦ Positive and negative
◦ Strong or Weak
◦ Innate or learned
 Mental Biases
Affect

10.  Thought
◦ Information processing
 Thoughts about
◦ Benefits
◦ Comparisons
◦ Advantages
◦ Apply previous learning
Cognition

11.  Consumption behavior
◦ Purchase
◦ Selection
◦ Choice of a store
◦ Join a scheme
◦ Recommendation and referral
◦ Repeat Purchase
Behaviour

12. Love Marriages
ABC

13. Cognition > Affect > Behaviour

14. Cognition > Behaviour > Affect

15. Affect > Behaviour > Cognition

16. Affect > Cognition > Behaviour

17. Behaviour > Affect > Cognition

18.  Please recall the experience as a customer
you were most dissatisfied?
◦ Please Describe on a sheet
Customer Service

19. Customer Experience
Management
 Service Quality
◦ How do customers perceive and evaluate service
quality?
◦ What are managers’ perceptions about service
quality?
◦ Do discrepancies exist between the perceptions of
customers and those of managers?
◦ How can Retailers improve customer service and
achieve excellence?

20.  A Customers can be Satisfied and
Dissatisfied at the same time
◦ Different factors cause satisfaction and
dissatisfaction
◦ Identify factors (hygiene factors) that cause
dissatisfaction and remove them
◦ Identify factors (Satisfiers) that cause
Satisfaction and Implement.
Service Quality and
Satisfaction

21. Determinants of Perceived
Service Quality
Word of Personal Past
Mouth Needs Experience
External
Expected Communication
Service to Customers
Service
Quality Perceived
Gap Service
Quality
Perceived
Service

22. A “GAPS” MODEL OF SERVICE QUALITY
CUSTOMER RETAILER
Market Organization’s Service
Information Understanding Standards
Gap of Expectations Gap
Customers’
Service Organization’s
Expectations GAP Service
1 GAP Standards
2 Service
Service GAP
Quality
Performance
Gap
5 GAP Gap
3
GAP Organization’s
Customers’ 4 Service
Service Performance
Perceptions
Organization’s Internal
Communications Communicatio
to Customers n Gap

23. The Five Dimensions of
Service Quality
Reliability Ability to perform the
promised service dependably
and accurately.
Assurance Knowledge and courtesy of
employees and their ability
to convey trust and
Tangibles confidence.
Empathy Physical facilities, equipment,
and appearance of
personnel.
Responsiveness Caring, individualized
attention the firm provides
its customers.

24. Five Expectation
Categories
 Reliability - deliver what is promised
 Responsiveness - do it promptly
 Assurance - know how to do it
 Empathy - do it with respect and
understanding
 Tangibles - ensure that buildings,
surroundings, and materials are
attractive

25. Service Quality
ASSURANCE
 Employees who instill confidence in
customers
 Making customers feel safe in their
transactions
RELIABILITY  Employees who are consistently courteous
 Employees who have the knowledge to
 Providing service as promised answer customer questions
 Dependability in handling customers’
service problems EMPATHY
 Performing services right the first time  Giving customers individual attention
 Providing services at the promised time  Employees who deal with customers in a
 Maintaining error-free records caring fashion
 Having the customer’s best interest at heart
 Employees who understand the needs of
RESPONSIVENESS their customers
 Keeping customers informed as to  Convenient business hours
when services will be performed TANGIBLES
 Prompt service to customers  Modern equipment
 Willingness to help customers  Visually appealing facilities
 Readiness to respond to customers’  Employees who have a neat,
requests professional appearance
 Visually appealing materials
associated with the service

26. Relative Importance of Service
Dimensions When Respondents
Allocate 100 Points
RELIABILITY
32%
TANGIBLES
11%
RESPONSIVENES
S EMPATHY 16%
22%
ASSURANCE
19%

27.  Reliability: accuracy of billing, meeting
promised delivery dates
 Assurance (trust): guarantees and
warranties, return policies, Faith
 Tangibility: appearance of store and
salespeople
 Empathy: personalized service,, recognition
by name, understanding the requirements
 Responsiveness: returning calls and emails,
giving prompt service
Assessing Service
Characteristics