Deck 4: The Customer Experience and Value Creation

Question 1

Why is it more valuable for Lexus managers themselves, rather than a market research firm, to interview customers in order to understand a customer's total experience?

Answer 1

Surveying of customers' experience of certain product using market research firm is a very traditional way to understand customers' experience. But this method has some loopholes in-build in it. This was noticed that customers' often forget to state their frustration with the purchase and use of that product at the time of giving reviews about the experience with the product. To understand problems with the product more precisely one should become a customer of that product.
This is why Lexus managers should indulge themselves to interview customers to understand customer's total experience rather than depending on market research firm.

Question 2

How should customer preference and purchase behavior change as perceived value increases or decreases for vacation packages to Hawaii?

Answer 2

Customer Preference and Purchase Behavior
Perceived customer value is the difference between relative performance and relative cost of purchase. Relative performance means performance of the product in respect to other available product of same kind in the market. Performances of the product, services and brand reputations are the main categories of measuring relative performance. Similarly cost effectiveness of the product in the form of ownership cost and disposal cost in respect to other similar kind of available product, as relative cost of purchase also considered to asses perceived customer value of the product.
So, for a vacation package to H, if perceived value of the package increases the customer's preference will go in favor of the package. As higher perceived customer value implies higher economic value, hence higher satisfaction. Similarly for a lower perceived valued package, consumers preference will go in oppose of the package, hence they will not buy that package.

Question 3

The four interactive marketing performance tools and application exercises outlined here will add to your understanding of economic value, price-performance value mapping, customer value, and price-performance trade-offs as they relate to customer value. To access the tools, go to www.MBM-BEST.com For many of the questions, you can enter the data presented to obtain the answers. You may also enter other data to see the results, and you can save your work. The figure numbers in parentheses are related examples in Chapter 4, but the lettered instructions pertain to the online exercises.
Price-Performance Value Mapping (Figures 4-16 and 4-17)
A. How would the customer value change if the price of the Canon A590 increased from $180 to $199?
B. How much could the price of the Fuji J10 be increased if Fuji wanted the camera to have a $10 value advantage over the next best customer value in the market?

Answer 3

Not Answer

Question 4

Why are emotional benefits important to a brand like Nike or Rolex?

Question 5

How could Apple use empathic design to discover customer problems and new opportunities for value creation for the iPhone?

Question 6

How do psychological motives help shape emotional benefits and customer perceptions of value?

Question 7

The four interactive marketing performance tools and application exercises outlined here will add to your understanding of economic value, price-performance value mapping, customer value, and price-performance trade-offs as they relate to customer value. To access the tools, go to www.MBM-BEST.com For many of the questions, you can enter the data presented to obtain the answers. You may also enter other data to see the results, and you can save your work. The figure numbers in parentheses are related examples in Chapter 4, but the lettered instructions pertain to the online exercises.
Customer Value Analysis (Figures 4-20 to 4-26)
A. How would the company's customer value change if it raised its repair time rating from 5 to 7? How would this affect the competitors' customer values?
B. What would be the value impact of improving the ease-of-use product benefit from 4 to 6? Would this improve perceived customer value more than addressing the repair time benefit problem in the previous question?

Question 8

How does the personality of a spokesperson used in advertising help shape the emotional benefits of a product?

Question 9

What would be the purpose of a printer manufacturer spending a day in the life of a customer at a company that has over 100 printers in its office building?

Question 10

Using Figure 4-27 as a guide, discuss the brand personalities of Kodak, Mountain Dew, and Prudential Insurance, and describe how these brand personalities were created.

Question 11

The four interactive marketing performance tools and application exercises outlined here will add to your understanding of economic value, price-performance value mapping, customer value, and price-performance trade-offs as they relate to customer value. To access the tools, go to www.MBM-BEST.com For many of the questions, you can enter the data presented to obtain the answers. You may also enter other data to see the results, and you can save your work. The figure numbers in parentheses are related examples in Chapter 4, but the lettered instructions pertain to the online exercises.
Price-Performance Trade-Offs and Customer Value (Figures 4-28 to 4-30)
A. Create a trade-off analysis that considers three levels of hamburger quality (poor, average, and good), service quality (poor, average, and good), and price (25% lower than average, average, and 25% higher than average). Rank your preferences for the nine options from 1 (most preferred) to 9 (least preferred). Which aspect of price or performance is most important and which is least important?
B. Which aspect of an average product would you change to improve the overall value?

Question 12

What is automobile trade-off analysis? How would it help Ford understand customer preferences, price sensitivity, and value drivers?

Question 13

Why is understanding the total customer experience of a lead user of an iPad potentially more valuable than spending the same amount of time with an average iPad customer?

Question 14

How could a restaurant determine whether its customers would prefer a proposed premium service that would cost customers 10 percent more for their meals?

Question 15

Why would understanding the customer experience of a lead user of an iPad result in better product improvements than those that Apple engineers might design on their own?

Question 16

How could a bank improve the customer experience by managing customer touch points?

Question 17

How could a business that manufactures and sells hardwood flooring through building supply stores make the best use of mass collaboration to improve product performance and service quality?

Question 18

Why should the two hypothetical videos of a day in the life of a customer using a digital camera go beyond the product and focus on the customer's use of the digital camera?

Question 19

How would you assess the economic value of two SUVs?

Question 20

How could a business selling firewood create a more attractive economic value?

Question 21

How would you explain to HP management the fair price line in Figure 4-18 and HP's perceived customer value for the HP PhotoSmart premium printer? How would you discuss with HP the fact that its printer may be underpriced?

Question 22

What is the advantage of understanding the customer's total experience for a brand such as Kyocera?

Question 23

Why is it important for McDonald's to measure all aspects of perceived performance and perceived cost of purchase?

Question 24

The four interactive marketing performance tools and application exercises outlined here will add to your understanding of economic value, price-performance value mapping, customer value, and price-performance trade-offs as they relate to customer value. To access the tools, go to www.MBM-BEST.com For many of the questions, you can enter the data presented to obtain the answers. You may also enter other data to see the results, and you can save your work. The figure numbers in parentheses are related examples in Chapter 4, but the lettered instructions pertain to the online exercises.
Economic Value Analysis (Figures 4-12 and 4-13)
A. If Sealed Air sold its AirCap product for the same price as the competing product, how would the economic value change? Why shouldn't Sealed Air do this, as a price equal to the competitor's price creates more economic value for the customer?
B. What price would Sealed Air charge for its AirCap product to produce a zero economic value? This would make more money for Sealed Air, but why would this be an unwise move?

Question 25

In what ways can HP improve the perceived value of its personal computers?