Ch8 Segmenting – requirement for successful MFS
* breaking down of a market into smaller groups of consumers based on their needs efficiencies in mkt activities * unique: abundance of individual data and resources
* process: 1. collecting data 2. using market segmentation tools (computer driven, cluster analysis) 3. customer targeting 1. internally collected data (customer demographics, life stage, psychographics, transaction records) / externally purchased (credit info, geo-demographics) 2. cluster analysis: most popular segmentation approach, uses computer algorithm that objectively recognizes segments BUT input variables affects strogly, max 10 variables, no correlated variables 3. targeting customer with mkt plans in particular segments: age, life stage, social class / can be used with pricing strategies * targeting through predictive models: predict a individual consumer’s behavior based on information on existing customers * segmenting existing customers (in contrast to new customer acquisition above): focus on loyal customers (CRM), profits from existing easier than acquiring new (eg cross-selling) * loyalty: higher than in other industries due to lack of initiative to change, decreasing due to competition procedures for processing complaints! * measuring loyalty: repeated transactions, analyzing complaints, customer surveys
Ch9 Customer satisfaction
* satisfied customer: buys potentially other products, less price sensitive, less post purchase dissonance, word-of-mouth * customer’s quality perceptions: objective performance, quality of human contacts, company image * satisfaction formation: expectations – performance disconfirmation satisfaction * measuring satisfaction: customer retention cycle, cross-sold services, complaints, surveys * determinants of services satisfaction: reliability, responsiveness,...