Throughout the semester, I really enjoyed working with my group to determine a market segment, research that segment, gain insights from them, and develop a product to meet their needs in a specific room in the house. Our group worked with 10 – 13 year old boys in the backyard. Although I feel the project was a success, there were many roadblocks along the way.
One concept in particular that I now truly comprehend is the process of gaining insights and how important that is to developing a product. When I first signed up for this course, Customer Insights, I was unsure exactly what it would consist of. Through this project, I was able to understand the concept of customer insights. By creating a project that focused more on the insights and the segment than the final product, we were able to produce a more appealing final product. Throughout the semester, I actually forgot that the purpose of the project was to create a product because we were so focused on the segment. We were able to perform research pertaining to the segments’ attitudes, hobbies, interests, and opinions. This allowed the group to truly understand our segment. By getting a clear and consistent image of the segment, we were able to design a product that had multiple features directly reflecting their wants. It was incredibly interesting to learn the process of gaining insights and to see how beneficial those insights are when creating a product.
Another skill that I now have a better understanding of is the process of research. The project proved that without adequate research methods, marketers cannot gain the appropriate insights needed to develop a product. It was very difficult to initially decide what methods of research our group would utilize. The group finally decided to perform surveys, interviews, and observation. After deciding on the methodology, the next important step was to construct the survey. This part was very difficult because surveys are so complex. We had to decide the amount of questions that would provide adequate responses, without becoming grueling for respondents. Once we determined the length of the survey, we had to decide on the amount of open-ended and multiple-choice questions that would be effective for our research. It was especially difficult designing a survey that would be easily understandable for young boys, but would still provide thorough insights. Finally, deciding on the wording of questions was also tough since we did not want to be leading or influence answers. I think that the survey could have been formulated more effectively; however, it did serve its purpose for our project.
Working on a group for this class, I was able to make strong connections with teammates. It was interesting to see the ideas that each member came up with. I think that working in a group allows for more creativity because teammates collaborate onto other ideas to make a final product. The process is much more effective when working with a group. I also liked working with a group because different teammates had access to the segment. It is also great to see how each member contributes, not only to the idea for the final product, but also to the project as a whole. Each teammate has his or her own role: organizing the meetings, keeping the team on task, making sure deadlines are met, putting together the presentation, etc. I also think that Professor Walls was able to give us constructive feedback that helped us to improve the following updates.
To conclude, I would just like to say that I really enjoyed this class. Professor Walls was a great teacher. He made the material interesting and he always made me laugh! The classmates were great too. We really seemed to feed off each other’s comments during discussions, making the class more interactive. I am really glad that I finally had a chance to take one of Professor Walls’ classes!
Monday, May 4, 2009
Tuesday, April 21, 2009
Effects of Twitter on Businesses- Comment on "Crisis 101: Now Measured in Minutes" Blog
I am writing in response to the blog on customerevangelists.com titled Crisis 101: Now measured in Minutes, written by Ben McConnell. The blog was written on April 16 and addresses the issue of how quickly bad word-of-mouth can now spread through the latest trendy social network Twitter. It is very interesting how Twitter has become so successful, so quickly, and that the site can actually affect businesses. Most people get a Twitter and think, “Oh, I am just going to update the online world about what I’m watching on TV or having for dinner.” In actuality, people use Twitter at all times of the day to alert the world on just about anything. The most talked about items are then posted on the left side of the Twitter homepage, so that users can see the trending topics. When those topics are clicked, users can view all that was said about the topic. This had quite negative effects for Amazon and Domino’s after each of their blunders. On the contrary, it has had extremely positive implications for Sarah Boyle and Adam Lambert, two other “trending topics” lately.
So how are businesses to respond? I think that Comcast has done particularly well in combating the negative effects of the company’s rather poor image of customer service. Frank Eliason, a Comcast employee, now has the official position of tweeting to customers who bad-mouth the company. Not only does he tweet, but he also comments blogs. This strategy, although controversial to some, I find quite appealing. I think it is nice to see companies reaching out to distraught customers in ways that are consistent with modern times. Of course phone and email is still important in many circumstances, but quick tweets also get the point across and, to me, seem more genuine. The fact that Eliason takes the time to search what is said about Comcast through Twitter and Blogs shows that he truly cares. The company has also decided to expand the position and have a team that works round the clock to find any unfavorable comments and mitigate the effects.
Of course it gets me thinking, what next? There are so many social networks and different types of media that now affects business, what will be next? Eventually, along with Marketing, Finance, and Accounting departments, there will be departments of business strictly dedicated to Social Networking. I can foresee employees in the “Social Networking Department” responsible for promoting the business, apologizing to complaining customers, even addressing how the business is doing in terms of stocks, sales, dividends all via Twitter!
Although to some of the older, less technologically advanced society, this may seem aggravating and inconvenient, I believe that it will be well received. Twitter users, being one myself, like the quick updates available, so to have businesses joining in is appealing. Of course we have seen it can be damaging for some businesses, Amazon and Domino’s, I think overall it will turn out to be helpful to the business.
Now, off the subject, but kind of on the subject, it is interesting to me how people decide what to Tweet. I think it sort of ties into Customer Insights in finding out why people say what they do. When you only have 140 characters to express what you are doing how do you decide what to say? And when you decide to say something completely off-topic that does not pertain to the question what are you doing, why do you do it? I mean I have read many tweets that are completely ridiculous information, some that address a serious subject, others that mention a feeling, etc. What triggers what Twitter’s “customers” will tweet about??? (Now, that’s alliteration at it’s best!)
So how are businesses to respond? I think that Comcast has done particularly well in combating the negative effects of the company’s rather poor image of customer service. Frank Eliason, a Comcast employee, now has the official position of tweeting to customers who bad-mouth the company. Not only does he tweet, but he also comments blogs. This strategy, although controversial to some, I find quite appealing. I think it is nice to see companies reaching out to distraught customers in ways that are consistent with modern times. Of course phone and email is still important in many circumstances, but quick tweets also get the point across and, to me, seem more genuine. The fact that Eliason takes the time to search what is said about Comcast through Twitter and Blogs shows that he truly cares. The company has also decided to expand the position and have a team that works round the clock to find any unfavorable comments and mitigate the effects.
Of course it gets me thinking, what next? There are so many social networks and different types of media that now affects business, what will be next? Eventually, along with Marketing, Finance, and Accounting departments, there will be departments of business strictly dedicated to Social Networking. I can foresee employees in the “Social Networking Department” responsible for promoting the business, apologizing to complaining customers, even addressing how the business is doing in terms of stocks, sales, dividends all via Twitter!
Although to some of the older, less technologically advanced society, this may seem aggravating and inconvenient, I believe that it will be well received. Twitter users, being one myself, like the quick updates available, so to have businesses joining in is appealing. Of course we have seen it can be damaging for some businesses, Amazon and Domino’s, I think overall it will turn out to be helpful to the business.
Now, off the subject, but kind of on the subject, it is interesting to me how people decide what to Tweet. I think it sort of ties into Customer Insights in finding out why people say what they do. When you only have 140 characters to express what you are doing how do you decide what to say? And when you decide to say something completely off-topic that does not pertain to the question what are you doing, why do you do it? I mean I have read many tweets that are completely ridiculous information, some that address a serious subject, others that mention a feeling, etc. What triggers what Twitter’s “customers” will tweet about??? (Now, that’s alliteration at it’s best!)
Sunday, April 12, 2009
Extended Outline for Paper
I. Introduction
A. Thesis- Every element of the retail store works in collaboration to convey a message to the customer. The message conveyed is the store image. Some stores communicate an appropriate image to the customer, allowing the customer to easily identify what experience the retailer is creating and who is being targeted. On the other hand, some store elements make the retailer appear inconsistent with the message the store is trying to convey. Whatever the circumstance is, store image is extremely important and store image encompasses many different elements.
II. Body
A. Why store image is important?
1. I will explain the pros for creating a consistent store image. I will use articles to support what positive effect it can have on store loyalty and long-term customer value.
i. “On the Relationship Between Store Image, Store Satisfaction, and Store Loyalty” by Josee Bloemer
ii. “Managing the Total Customer Experience” by Leonard L. Berry, Lewis P. Carbone, and Stephan H. Haeckel
iii. “A conceptual model of retail image influences on loyalty patronage behavior” by Osman M.Z.
B. Elements of the retail store that are important when conveying the store image to the customer
1. Atmospherics
i. Color Scheme
a. The color scheme of a store creates moods for the customer.
b. Warm colors v. Cool colors and physiological and psychological effects
ii. Scent has an effect on impulse buying and customer satisfaction
iii. Music played targets the specific customer
iv. Lighting can illuminate merchandise, create specific mood, and capture a feeling
v. Visual Communications such as signs and graphics add personality
2. Layout of the store demonstrates the image of the store. Free form, racetrack, and grid
3. Fixtures also convey message to customer. Fixtures include racks, shelving, tables, and gondolas
C. Case Study: Crate & Barrel, Nordstrom, Ruehl, and Forever 21
1. Crate & Barrel successfully integrates elements of its store to create a consistent message to the customer.
i. Bright colors show that the Crate & Barrel customer is very lively.
ii. Merchandise organized into rooms allows the customer to envision an entire space. It is also very experiential.
iii. Pricing is consistent with merchandise quality. Merchandise shelving, racks, flooring, walls, etc. are all representative of the pricing and quality of the store.
iv. Would like to elaborate more on many specific elements after I visit the store and perform more research*
2. Nordstrom’s store image is evident from the store elements.
i. Piano player makes customers feel like guests.
ii. Carpeted sections where customers spend more money
iii. Shelving, lighting, racks, etc. are all very formal to coincide with the high-priced merchandise
iv. Will elaborate more after further research*
3. Ruehl does not do a good job in defining who their customer is
i. Atmosphere is very laid back, but targeting higher income yuppies
ii. Need to visit store and further research areas of improvement*
4. Forever 21 incorporates extremely mixed elements into their retail environment
i. Chandeliers adorn the ceiling, but merchandise is very cheap
ii. Jewelry area is laid out on tables and walls, but merchandise is lower end
iii. Some areas of the store have a specific theme and color scheme that looks rich, while other areas have poorly constructed aluminum racks
iv. Elaborate more after further research and visits*
III. Conclusion
A. What I have learned from this study
1. It is important to incorporate all elements of the retail store in line with the store’s image.
i. Relate back to positive affects that can be achieved
B. Relation to customer insights and customer experiences
1. Understanding how a customer visualizes your store is important to understanding the store image and to adapting the store elements
2. It is important to keep in mind the experience the customer expects to receive from the retailer when incorporating store elements
KEY CONCERNS WITH PAPER:
I am concerned that I will not be able to find substantial articles and secondary research to support my research. I currently have found three articles, and I have a textbook to support evidence. I am also worried that the material may become very repetitive. It worries me that since the material seems similar I may find myself constantly repeating specific points. I am also still deciding what stores I may focus on for the case analysis. I may look into REI or Sam’s Club as a demonstration of effective store element integration. Finally, I am most concerned that I may not be able to provide adequate evidence to demonstrate the poorly integrated stores. Right now, I have decided on Ruehl and Forever 21; however, these stores may change as I begin my research. I hope that I will be able to site specific examples of each store thoroughly.
A. Thesis- Every element of the retail store works in collaboration to convey a message to the customer. The message conveyed is the store image. Some stores communicate an appropriate image to the customer, allowing the customer to easily identify what experience the retailer is creating and who is being targeted. On the other hand, some store elements make the retailer appear inconsistent with the message the store is trying to convey. Whatever the circumstance is, store image is extremely important and store image encompasses many different elements.
II. Body
A. Why store image is important?
1. I will explain the pros for creating a consistent store image. I will use articles to support what positive effect it can have on store loyalty and long-term customer value.
i. “On the Relationship Between Store Image, Store Satisfaction, and Store Loyalty” by Josee Bloemer
ii. “Managing the Total Customer Experience” by Leonard L. Berry, Lewis P. Carbone, and Stephan H. Haeckel
iii. “A conceptual model of retail image influences on loyalty patronage behavior” by Osman M.Z.
B. Elements of the retail store that are important when conveying the store image to the customer
1. Atmospherics
i. Color Scheme
a. The color scheme of a store creates moods for the customer.
b. Warm colors v. Cool colors and physiological and psychological effects
ii. Scent has an effect on impulse buying and customer satisfaction
iii. Music played targets the specific customer
iv. Lighting can illuminate merchandise, create specific mood, and capture a feeling
v. Visual Communications such as signs and graphics add personality
2. Layout of the store demonstrates the image of the store. Free form, racetrack, and grid
3. Fixtures also convey message to customer. Fixtures include racks, shelving, tables, and gondolas
C. Case Study: Crate & Barrel, Nordstrom, Ruehl, and Forever 21
1. Crate & Barrel successfully integrates elements of its store to create a consistent message to the customer.
i. Bright colors show that the Crate & Barrel customer is very lively.
ii. Merchandise organized into rooms allows the customer to envision an entire space. It is also very experiential.
iii. Pricing is consistent with merchandise quality. Merchandise shelving, racks, flooring, walls, etc. are all representative of the pricing and quality of the store.
iv. Would like to elaborate more on many specific elements after I visit the store and perform more research*
2. Nordstrom’s store image is evident from the store elements.
i. Piano player makes customers feel like guests.
ii. Carpeted sections where customers spend more money
iii. Shelving, lighting, racks, etc. are all very formal to coincide with the high-priced merchandise
iv. Will elaborate more after further research*
3. Ruehl does not do a good job in defining who their customer is
i. Atmosphere is very laid back, but targeting higher income yuppies
ii. Need to visit store and further research areas of improvement*
4. Forever 21 incorporates extremely mixed elements into their retail environment
i. Chandeliers adorn the ceiling, but merchandise is very cheap
ii. Jewelry area is laid out on tables and walls, but merchandise is lower end
iii. Some areas of the store have a specific theme and color scheme that looks rich, while other areas have poorly constructed aluminum racks
iv. Elaborate more after further research and visits*
III. Conclusion
A. What I have learned from this study
1. It is important to incorporate all elements of the retail store in line with the store’s image.
i. Relate back to positive affects that can be achieved
B. Relation to customer insights and customer experiences
1. Understanding how a customer visualizes your store is important to understanding the store image and to adapting the store elements
2. It is important to keep in mind the experience the customer expects to receive from the retailer when incorporating store elements
KEY CONCERNS WITH PAPER:
I am concerned that I will not be able to find substantial articles and secondary research to support my research. I currently have found three articles, and I have a textbook to support evidence. I am also worried that the material may become very repetitive. It worries me that since the material seems similar I may find myself constantly repeating specific points. I am also still deciding what stores I may focus on for the case analysis. I may look into REI or Sam’s Club as a demonstration of effective store element integration. Finally, I am most concerned that I may not be able to provide adequate evidence to demonstrate the poorly integrated stores. Right now, I have decided on Ruehl and Forever 21; however, these stores may change as I begin my research. I hope that I will be able to site specific examples of each store thoroughly.
Tuesday, March 31, 2009
"Prada Gets Personal"
I think it is really interesting to see all the innovations that have been made to create a better shopping experience for the customer. The retail store has, in many circumstances, become like the hospitality industry in making sure that guests are completely satisfied. I have noticed this on my own, and the article “Prada Gets Personal” in Business Week makes it even more evident.
First of all, Prada has taken the initiative to make their store aesthetically pleasing. The first step in the retail experience is what meets the eye. If you can attract customers visually to your store, you can bring them inside, where the spending begins. Prada has commissioned Dutch architect Rem Koolhaas to design the retail space. The store features walls of glass, stadium-style bleachers to display shoes, and a 30-foot wooden "wave" that doubles as a stage. It also presents beautiful marble, zebrawood, and exposed brick.
Beyond the visual experience, Prada presents impressive technological advancements that allow employees to find a wealth of information on the Internet. Having the opportunity to find what is in stock, different fabrics, matching accessories, and even offering a virtual dressing room creates a total shopping experience.
In the current state of our economy, it is important for retailers to understand what keeps customers coming in. I think that Prada has really enhanced the customer experience, so that even in a down economy, customers are flocking into the store and most likely spending money. Even though Prada is an extremely high-end retailer, they are still seeing customer traffic because of the experience they offer.
Other retailers, especially lower-end stores, should take direction from Prada in creating a total shopping experience. These retailers would be able to truly capitalize on the experience aspect of shopping and increase sales. There are just a few things that encourage spending in a poor economy and experience is a primary factor. If Prada, being a very high-end retailer, is seeing an increase or even constant sales, then lower-end retailers would really see an increase in sales. It is important to not only feature sales and promotions, but to ultimately create an experience and make people want to come into your store!
First of all, Prada has taken the initiative to make their store aesthetically pleasing. The first step in the retail experience is what meets the eye. If you can attract customers visually to your store, you can bring them inside, where the spending begins. Prada has commissioned Dutch architect Rem Koolhaas to design the retail space. The store features walls of glass, stadium-style bleachers to display shoes, and a 30-foot wooden "wave" that doubles as a stage. It also presents beautiful marble, zebrawood, and exposed brick.
Beyond the visual experience, Prada presents impressive technological advancements that allow employees to find a wealth of information on the Internet. Having the opportunity to find what is in stock, different fabrics, matching accessories, and even offering a virtual dressing room creates a total shopping experience.
In the current state of our economy, it is important for retailers to understand what keeps customers coming in. I think that Prada has really enhanced the customer experience, so that even in a down economy, customers are flocking into the store and most likely spending money. Even though Prada is an extremely high-end retailer, they are still seeing customer traffic because of the experience they offer.
Other retailers, especially lower-end stores, should take direction from Prada in creating a total shopping experience. These retailers would be able to truly capitalize on the experience aspect of shopping and increase sales. There are just a few things that encourage spending in a poor economy and experience is a primary factor. If Prada, being a very high-end retailer, is seeing an increase or even constant sales, then lower-end retailers would really see an increase in sales. It is important to not only feature sales and promotions, but to ultimately create an experience and make people want to come into your store!
Tuesday, March 24, 2009
The Persuaders
I think that The Persuaders was a rather interesting video. After watching it, I became more aware than ever of all the efforts and thought that goes into understanding the consumer and how he or she thinks. It is also really crazy to see just how much we are in contact with advertisements, even when we do not even notice it. Advertising agencies go to great lengths to have their products featured in so many ways.
An extremely fascinating aspect of the video was of course the findings of the brilliant Dr. Rapaille. Dr. Rapaille, a former autistic psychiatrist, has been labeled a market research guru. He has developed a 3-stage technique to understand why consumers behave the way that they do. The object is to take the subjects through a journey moving from reason to emotion to the primal core, where Rapaille believes the decisions are actually made. The technique involves a series of focus groups and activities to analyze customers’ attitudes toward a particular topic.
The first stage, reason, simply involves asking the subjects what comes to mind when they think of the topic, in this case luxury. The subjects of course state things like well-made, money, etc. This stage is just to have the subjects begin to think and feel that they have done a good job. Rapaille states that there are never any new findings at this stage, but it gives the respondents time to feel intelligent. Then they all take a break before continuing with the next section.
The next stage involves capturing their emotions. The subjects are asked to create a story that they would tell a five year-old from another planet that would explain luxury. This allows Rapaille to bring out the emotional attachments that the subjects have to the topic. It also allows them to be very creative, not so logical, and simple, since they are dealing with a young child. Then the subjects all take another break.
Finally, the third stage, getting to the primal core, involves reminiscing. This stage is extremely confusing for the subjects, especially since there are no chairs and they have to lie on the floor. Rapaille asks them to imagine the first time that they experienced luxury. The atmosphere is very relaxing and leads to very deep thought. This triggers what he calls the “reptilial hot buttons” that make them act. This truly shows what drives them to behave as they do.
Another interesting topic that Rapaille speaks about is the fact that each word has a mental meaning. This assigned meaning is what Rapaille refers to as the unconscious code in the brain. I think that this is very true. There are definitely certain words in particular that I feel I have attached a meaning to. For example, the word mother, an obvious example, but nonetheless a good one. To me mother is compassionate, enduring, powerful, attentive, and beautiful. Some people may have attached different meaning to that word, but I definitely have that unconscious code for mother. A consumer product word example, hoodie. When I hear the word hoodie, I think soft, comfortable, and warm. If a company is selling a hoodie that is thin and itchy, it is not going to appeal to me as a consumer. I believe that Rapaille is right that people attach a mental meaning to every word and I really liked that finding.
Lastly, I would like to just mention the efforts of Song Airlines that were presented in the film. I feel that it was a very appealing approach to the airline industry. I liked the aesthetic that the kiosk, the retail store, the plane itself, and the commercials all provided. I felt that Song was definitely appealing to a market that was underrepresented in the airline industry. Personally, I would have definitely been a Song customer!
An extremely fascinating aspect of the video was of course the findings of the brilliant Dr. Rapaille. Dr. Rapaille, a former autistic psychiatrist, has been labeled a market research guru. He has developed a 3-stage technique to understand why consumers behave the way that they do. The object is to take the subjects through a journey moving from reason to emotion to the primal core, where Rapaille believes the decisions are actually made. The technique involves a series of focus groups and activities to analyze customers’ attitudes toward a particular topic.
The first stage, reason, simply involves asking the subjects what comes to mind when they think of the topic, in this case luxury. The subjects of course state things like well-made, money, etc. This stage is just to have the subjects begin to think and feel that they have done a good job. Rapaille states that there are never any new findings at this stage, but it gives the respondents time to feel intelligent. Then they all take a break before continuing with the next section.
The next stage involves capturing their emotions. The subjects are asked to create a story that they would tell a five year-old from another planet that would explain luxury. This allows Rapaille to bring out the emotional attachments that the subjects have to the topic. It also allows them to be very creative, not so logical, and simple, since they are dealing with a young child. Then the subjects all take another break.
Finally, the third stage, getting to the primal core, involves reminiscing. This stage is extremely confusing for the subjects, especially since there are no chairs and they have to lie on the floor. Rapaille asks them to imagine the first time that they experienced luxury. The atmosphere is very relaxing and leads to very deep thought. This triggers what he calls the “reptilial hot buttons” that make them act. This truly shows what drives them to behave as they do.
Another interesting topic that Rapaille speaks about is the fact that each word has a mental meaning. This assigned meaning is what Rapaille refers to as the unconscious code in the brain. I think that this is very true. There are definitely certain words in particular that I feel I have attached a meaning to. For example, the word mother, an obvious example, but nonetheless a good one. To me mother is compassionate, enduring, powerful, attentive, and beautiful. Some people may have attached different meaning to that word, but I definitely have that unconscious code for mother. A consumer product word example, hoodie. When I hear the word hoodie, I think soft, comfortable, and warm. If a company is selling a hoodie that is thin and itchy, it is not going to appeal to me as a consumer. I believe that Rapaille is right that people attach a mental meaning to every word and I really liked that finding.
Lastly, I would like to just mention the efforts of Song Airlines that were presented in the film. I feel that it was a very appealing approach to the airline industry. I liked the aesthetic that the kiosk, the retail store, the plane itself, and the commercials all provided. I felt that Song was definitely appealing to a market that was underrepresented in the airline industry. Personally, I would have definitely been a Song customer!
Sunday, March 8, 2009
Lessons in Gaining Customer Insights: Pros and Cons
There are many different attempts at gaining customer insight. Many marketers use the term so loosely that they may not even realize what exactly they are aiming to gain. It is important to determine customer insights in marketing because it is the process of learning why customers are behaving as they are. However, it seems that customer insight is, to some, such a vague subject and that being able to accurately gain the necessary insight may be a tricky thing.
In the “Kenna’s Dilemma” chapter from Malcolm Gladwell’s Blink, Gladwell points out several important lessons that marketers should follow to actually have measurable customer insight. There were many tests that different companies tried out, but these tests did not yield representative conclusions. This proves that there is more than just simply asking customer if they like or dislike something. One must carefully choose how to formulate surveys, tests, etc. to determine how customers truly feel on the inside about a product. Nevertheless, I still feel that no matter how perfect a marketer is at gaining insight, all methods have their pros and cons.
In my opinion, a beneficial way to determine customer insight would be to actually observe how people react to your product in a natural setting. As Gladwell mentions with the Coke vs. Pepsi example, people were given a taste test and not actually given the entire product in a natural setting. This test returned false results. However, if the customer would have been observed drinking an entire Pepsi while watching TV or having dinner, etc., the marketers would have understood their true feelings.
Although this method would be ideal, it poses tremendous obstacles. The fact that it is extremely difficult to have the ability to observe customers in a natural setting is the most obvious threat. If marketers were able to offer products as samples to try out or in a store, or restaurant, etc. and could just watch the customers and their reactions they may be able to gain actual insight. On the other hand, it is very difficult to judge what exactly their reactions are relating to and what they liked or disliked. But, a marketer could use initial reactions to a product in a natural setting as a preliminary test of many in gaining customer insights.
Another lesson that I think is important to note is that of timing. I think it is very important to gain insights soon after customers have encountered the product. Reducing the time in gaining insight is crucial because customers are so fickle and quick to change. Sometimes, consumers will think one way about their experience with a specific product right after use, and then later when questioned about their experience may second-guess those initial feelings. People’s ideas change as time progresses, so it is especially critical to get feedback almost immediately.
On the other hand, immediate feedback on customer’s feelings can be challenging. It also limits the methods of testing that can be used. For example, if customers are sent a survey to fill out regarding their feelings about a product, they may return their results weeks later. This may lead to non-representative answers.
Overall, I believe Malcolm Gladwell does a very good job of addressing what concerns there are in gaining customer insight and the right and wrong ways to go about it. He cites specific examples that the reader can relate to in why certain methods may not have been ideal and vice versa. I understand why you are so interested in Gladwell, Professor Walls. He is a pretty smart guy!
FINALLY, IT IS MOST IMPORTANT TO NOTE THAT NEXT WEEK IS SPRING BREAK!!! WOOOOOOHOOOOOOO
In the “Kenna’s Dilemma” chapter from Malcolm Gladwell’s Blink, Gladwell points out several important lessons that marketers should follow to actually have measurable customer insight. There were many tests that different companies tried out, but these tests did not yield representative conclusions. This proves that there is more than just simply asking customer if they like or dislike something. One must carefully choose how to formulate surveys, tests, etc. to determine how customers truly feel on the inside about a product. Nevertheless, I still feel that no matter how perfect a marketer is at gaining insight, all methods have their pros and cons.
In my opinion, a beneficial way to determine customer insight would be to actually observe how people react to your product in a natural setting. As Gladwell mentions with the Coke vs. Pepsi example, people were given a taste test and not actually given the entire product in a natural setting. This test returned false results. However, if the customer would have been observed drinking an entire Pepsi while watching TV or having dinner, etc., the marketers would have understood their true feelings.
Although this method would be ideal, it poses tremendous obstacles. The fact that it is extremely difficult to have the ability to observe customers in a natural setting is the most obvious threat. If marketers were able to offer products as samples to try out or in a store, or restaurant, etc. and could just watch the customers and their reactions they may be able to gain actual insight. On the other hand, it is very difficult to judge what exactly their reactions are relating to and what they liked or disliked. But, a marketer could use initial reactions to a product in a natural setting as a preliminary test of many in gaining customer insights.
Another lesson that I think is important to note is that of timing. I think it is very important to gain insights soon after customers have encountered the product. Reducing the time in gaining insight is crucial because customers are so fickle and quick to change. Sometimes, consumers will think one way about their experience with a specific product right after use, and then later when questioned about their experience may second-guess those initial feelings. People’s ideas change as time progresses, so it is especially critical to get feedback almost immediately.
On the other hand, immediate feedback on customer’s feelings can be challenging. It also limits the methods of testing that can be used. For example, if customers are sent a survey to fill out regarding their feelings about a product, they may return their results weeks later. This may lead to non-representative answers.
Overall, I believe Malcolm Gladwell does a very good job of addressing what concerns there are in gaining customer insight and the right and wrong ways to go about it. He cites specific examples that the reader can relate to in why certain methods may not have been ideal and vice versa. I understand why you are so interested in Gladwell, Professor Walls. He is a pretty smart guy!
FINALLY, IT IS MOST IMPORTANT TO NOTE THAT NEXT WEEK IS SPRING BREAK!!! WOOOOOOHOOOOOOO
Sunday, February 22, 2009
Final Paper Topic
I am very interested in the retail industry, particularly high fashion retailers. I have always been up to date with fashion trends and find the industry very exciting. I also feel that the fashion industry is a very interesting to study when it comes to customer insights and experience.
I feel that the overall image of a retail store is a very important aspect for the retailer to emphasize. The retailer must pay close attention to every element of the store. This is where my research will begin. My paper will be focusing on customer insights into the elements of a retail store. I will write the paper as a case analysis focusing on a specific fashion retailer and touch on every element of their store.
I am currently questioning some issues. First, I am unsure whether I will find a retailer that successfully creates an image for the customer, or a retailer that has failed at accomplishing this task. I may also address one of each. In addition, I do not know at this point if I will also mention the online retail store and the message that it sends. I also have thought about addressing a retailer that is not exclusively a fashion retailer.
The paper will relate back to class by concentrating on the importance of customer experience in the retail store and the insights into the elements of the store. For example, customer experience is obviously important because retailers research every element of the store to create an experience that is equal to the image of the store in the customer’s mind. Customer insights are what leads the store to determine specific elements and what their overall image is.
To better explain what I mean, take Wal-Mart for example. Wal-Mart is a retailer that focuses on everyday low prices and wants the customer to see them as a no frills store. This is communicated through specific elements of the retail store. The shelving, the racks, and the flooring are elements of the store that scream, “I’m not expensive!” The image that the store exudes is consistent with the image in the customer’s mind. However, this is not just by chance, it is considered with deep thought and research on creating an experience and customer insight.
I have not, yet, found an article that completely addresses what my paper is focusing on; however, I have found an article that stresses the importance of store image. The article is called “On the relationship between store image, store satisfaction and store loyalty,” by Josée Bloemer from Limburg University Centre in Belgium and Ko de Ruyter of Maastricht University in The Netherlands. The article is from the website emeraldinsight.com that I found through Google scholar. The title explicitly states what the article addresses. It points out the positive relationship between store image and loyalty. Therefore, it is extremely important for a store to convey a store image in line with the image of the customer. This can lead to increased satisfaction and store loyalty. I plan to find more articles that are a closer match to my specific paper topic. I do worry; however, that I will not find enough outside research that coincides with my paper.
I think that this paper topic will be interesting and I hope that I can really delve into the research and find good stores to analyze.
I feel that the overall image of a retail store is a very important aspect for the retailer to emphasize. The retailer must pay close attention to every element of the store. This is where my research will begin. My paper will be focusing on customer insights into the elements of a retail store. I will write the paper as a case analysis focusing on a specific fashion retailer and touch on every element of their store.
I am currently questioning some issues. First, I am unsure whether I will find a retailer that successfully creates an image for the customer, or a retailer that has failed at accomplishing this task. I may also address one of each. In addition, I do not know at this point if I will also mention the online retail store and the message that it sends. I also have thought about addressing a retailer that is not exclusively a fashion retailer.
The paper will relate back to class by concentrating on the importance of customer experience in the retail store and the insights into the elements of the store. For example, customer experience is obviously important because retailers research every element of the store to create an experience that is equal to the image of the store in the customer’s mind. Customer insights are what leads the store to determine specific elements and what their overall image is.
To better explain what I mean, take Wal-Mart for example. Wal-Mart is a retailer that focuses on everyday low prices and wants the customer to see them as a no frills store. This is communicated through specific elements of the retail store. The shelving, the racks, and the flooring are elements of the store that scream, “I’m not expensive!” The image that the store exudes is consistent with the image in the customer’s mind. However, this is not just by chance, it is considered with deep thought and research on creating an experience and customer insight.
I have not, yet, found an article that completely addresses what my paper is focusing on; however, I have found an article that stresses the importance of store image. The article is called “On the relationship between store image, store satisfaction and store loyalty,” by Josée Bloemer from Limburg University Centre in Belgium and Ko de Ruyter of Maastricht University in The Netherlands. The article is from the website emeraldinsight.com that I found through Google scholar. The title explicitly states what the article addresses. It points out the positive relationship between store image and loyalty. Therefore, it is extremely important for a store to convey a store image in line with the image of the customer. This can lead to increased satisfaction and store loyalty. I plan to find more articles that are a closer match to my specific paper topic. I do worry; however, that I will not find enough outside research that coincides with my paper.
I think that this paper topic will be interesting and I hope that I can really delve into the research and find good stores to analyze.
Sunday, February 15, 2009
The Importance of Customer Experience
It has been my observation that offering a unique customer experience is the special secret to keeping a company afloat. Since there has been a trend towards experience oriented shopping, it is crucial for companies, especially retailers, to center their business around more than just the products or services, but on the entire shopping experience. Companies are trying anything to gain share of wallet in the state of a poor economy, and most customers agree that the key feature that urges them to spend is the experience.
The article Super Market by Ron Lieber gives a precise description of Central Market as an experience oriented grocery store. Lieber states that Central Market offers a family, educational, foodie, laboratory, and orienteering experience. I would definitely agree with Lieber. I find that Central Market is a fun place to just look around, and I hate going grocery shopping. In my opinion, Central Market has really done their research and learned that many customers dread going grocery shopping because it can be such a long, draining process. They have completely turned this “chore” into a fun experience for all types of customers. Central Market offers its customers a seating area, a café, and a much more open, less crowded feel. I have even had business school group meetings at Central Market because it offers an area to work that does not have to be so quiet. It pleased the group members because it offered an escape from the monotony of the library. We could grab a snack if we got hungry; we could people watch if we needed a quick break from working. I felt that the group was much more productive when we met at Central Market. Obviously, this reiterates the fact that Central Market’s idea of offering a unique grocery experience has definitely worked in their favor.
A few other stores that I believe offer a unique shopping experience are The Apple Store, Bass Pro Shops, and IKEA; however there are many other retailers that also provide a great customer experience. First of all, simply the look of The Apple Store is very appealing to customers. The clean lines and sleek color palette make the store attractive to the eye. It is also great to be able to try out every Apple product right there in the store. Customers are able to get online, check their email, and listen to music in the midst of their shopping trip. The Apple Store also has extremely knowledgeable employees onsite to help with any troubleshooting or customer service problems their customers may have. The Apple Store even has a section for the kids, so they can get on the computer and play a game while Mom and Dad get what they need. Bass Pro Shops is another retailer that truly understands the importance of customer experience. The large displays and scenery of the stores makes it an experience in itself. Then there is the huge array of products. Finally, the ability to cast a lure into an actual tank before purchasing puts the icing on the cake, if you are a fisherman anyway. Finally, IKEA is a destination store that works to make sure the customers have a fun experience while shopping for furniture. IKEA has a complete dining area in all of its stores serving anything from coffee and donuts to meatballs. This is perfect for the mom who wants to shop and the dad who wants to eat with the kids, or vice versa. The actual process of shopping at IKEA is also very unique. The customer simply walks around the store with a brochure of all the products and check what he or she wants to purchase. There are also many types of help in the form of maps, telephones, and people, so that the customers can find exactly what they are looking for or get any other questions answered.
As you can see, many stores are currently transitioning their services to accommodate for the trend towards a total shopping experience. However, there are many retailers who have fallen short on satisfying this need and I believe that these will be the companies that collapse in the midst of a tight economy.
The article Super Market by Ron Lieber gives a precise description of Central Market as an experience oriented grocery store. Lieber states that Central Market offers a family, educational, foodie, laboratory, and orienteering experience. I would definitely agree with Lieber. I find that Central Market is a fun place to just look around, and I hate going grocery shopping. In my opinion, Central Market has really done their research and learned that many customers dread going grocery shopping because it can be such a long, draining process. They have completely turned this “chore” into a fun experience for all types of customers. Central Market offers its customers a seating area, a café, and a much more open, less crowded feel. I have even had business school group meetings at Central Market because it offers an area to work that does not have to be so quiet. It pleased the group members because it offered an escape from the monotony of the library. We could grab a snack if we got hungry; we could people watch if we needed a quick break from working. I felt that the group was much more productive when we met at Central Market. Obviously, this reiterates the fact that Central Market’s idea of offering a unique grocery experience has definitely worked in their favor.
A few other stores that I believe offer a unique shopping experience are The Apple Store, Bass Pro Shops, and IKEA; however there are many other retailers that also provide a great customer experience. First of all, simply the look of The Apple Store is very appealing to customers. The clean lines and sleek color palette make the store attractive to the eye. It is also great to be able to try out every Apple product right there in the store. Customers are able to get online, check their email, and listen to music in the midst of their shopping trip. The Apple Store also has extremely knowledgeable employees onsite to help with any troubleshooting or customer service problems their customers may have. The Apple Store even has a section for the kids, so they can get on the computer and play a game while Mom and Dad get what they need. Bass Pro Shops is another retailer that truly understands the importance of customer experience. The large displays and scenery of the stores makes it an experience in itself. Then there is the huge array of products. Finally, the ability to cast a lure into an actual tank before purchasing puts the icing on the cake, if you are a fisherman anyway. Finally, IKEA is a destination store that works to make sure the customers have a fun experience while shopping for furniture. IKEA has a complete dining area in all of its stores serving anything from coffee and donuts to meatballs. This is perfect for the mom who wants to shop and the dad who wants to eat with the kids, or vice versa. The actual process of shopping at IKEA is also very unique. The customer simply walks around the store with a brochure of all the products and check what he or she wants to purchase. There are also many types of help in the form of maps, telephones, and people, so that the customers can find exactly what they are looking for or get any other questions answered.
As you can see, many stores are currently transitioning their services to accommodate for the trend towards a total shopping experience. However, there are many retailers who have fallen short on satisfying this need and I believe that these will be the companies that collapse in the midst of a tight economy.
Wednesday, February 4, 2009
The Paradox of Choice
Barry Schwartz expresses some very interesting points in his presentation on “The Paradox of Choice”. Schwartz reveals his feelings on the amount of choices consumers have to make in today’s society. The overall theme of the address is that because of the large amount of choices consumers make, consumers are not happier, but actually more dissatisfied.
I believe this message presents a very valid argument. However, I do not agree that this paradox happens in all instances. In my opinion, there are certain times when people like to have choices and there are times when people dislike multiple options. I also believe that in some situations, whether a consumer enjoys the many choices or dislikes them relates to the generation in which that consumer is a part of. I will give an example that, of course, relates to food. Since, I love to eat, I am hungry, and I am constantly thinking about food, this example comes to mind. One day while I was at home for the Winter break, I decided to go pick up sandwiches for lunch for my family and I. The options were Subway, Which Wich, and a hometown Deli called Daviss Deli. My mom and dad quickly expressed that they wanted Daviss Deli. They both said that they like Daviss better because they make the sandwiches with certain things on each sandwich and you have no decisions to make. The turkey sandwich comes with mayo and pepper jack cheese, the Poboy comes with three meats, and a special relish sauce. All sandwiches are predetermined; there are no decisions to be made and that was why they chose to eat there.
However, I, a member of Generation Y, happen to enjoy the many choices in food outlets. In fact, one of my favorite places to eat at, Freebirds, is the ultimate in choices. You must decide if you want a flour, wheat, cayenne, or spinach tortilla; and that is just the first choice! Then there is the meat, the veggies, the beans, and the sauces. In terms of the food industry, it seems to me that places with so many choices have just in the last decade began to really flourish. This may possibly be indicative of the age of the people who are now eating at those places. This would prove that age might be a factor in determining the level of appreciation one receives when he or she has many choices.
Now to change from food to the rest of consumer products, I do not think that having many options is always a good idea, no matter your age. Sometimes we as consumers just want to buy a product and be done with it. Schwartz states that because there are so many alternatives, consumers feel disappointed when they are not 100% satisfied, but that if there were just one or two options then they would understand if they are not completely satisfied. Schwartz again makes a very good point. I have actually been a victim of this paradox when purchasing a pair of jeans.
Like Schwartz mentioned, gone is the day when we can purchase just a pair of jeans. Although I usually like having many choices, this day was different. I rushed to the mall because I was in dire need of new jeans. Well, maybe not dire need, but I wanted some. I was in a rush because I really did not want to end up in traffic, and I had things that I needed to get done. I went into the store hoping to get my size and go, but this was not the case. I had to decide on wash, rise, straight leg, flare leg, long, short, regular, etc. It took up all my time, and I ended up in traffic on the way back. To this day, I have only worn that pair of jeans a couple of times. Why? Because I left being not totally satisfied. If I would have ran in, bought a pair in my size in five minutes, and then been dissatisfied that would have been different. There is more margin for error when you do not have so many choices. But, I spent time and was still not totally happy, which makes it even more worse. Schwartz was right.
Overall, I would have to say that the paradox of choice is rampant in today’s society and becoming all the more prevalent in any product from detergent to computers. Some people enjoy these choices, others dislike them, and still others change from day to day depending on the circumstance. I am one of those—a floater.
I believe this message presents a very valid argument. However, I do not agree that this paradox happens in all instances. In my opinion, there are certain times when people like to have choices and there are times when people dislike multiple options. I also believe that in some situations, whether a consumer enjoys the many choices or dislikes them relates to the generation in which that consumer is a part of. I will give an example that, of course, relates to food. Since, I love to eat, I am hungry, and I am constantly thinking about food, this example comes to mind. One day while I was at home for the Winter break, I decided to go pick up sandwiches for lunch for my family and I. The options were Subway, Which Wich, and a hometown Deli called Daviss Deli. My mom and dad quickly expressed that they wanted Daviss Deli. They both said that they like Daviss better because they make the sandwiches with certain things on each sandwich and you have no decisions to make. The turkey sandwich comes with mayo and pepper jack cheese, the Poboy comes with three meats, and a special relish sauce. All sandwiches are predetermined; there are no decisions to be made and that was why they chose to eat there.
However, I, a member of Generation Y, happen to enjoy the many choices in food outlets. In fact, one of my favorite places to eat at, Freebirds, is the ultimate in choices. You must decide if you want a flour, wheat, cayenne, or spinach tortilla; and that is just the first choice! Then there is the meat, the veggies, the beans, and the sauces. In terms of the food industry, it seems to me that places with so many choices have just in the last decade began to really flourish. This may possibly be indicative of the age of the people who are now eating at those places. This would prove that age might be a factor in determining the level of appreciation one receives when he or she has many choices.
Now to change from food to the rest of consumer products, I do not think that having many options is always a good idea, no matter your age. Sometimes we as consumers just want to buy a product and be done with it. Schwartz states that because there are so many alternatives, consumers feel disappointed when they are not 100% satisfied, but that if there were just one or two options then they would understand if they are not completely satisfied. Schwartz again makes a very good point. I have actually been a victim of this paradox when purchasing a pair of jeans.
Like Schwartz mentioned, gone is the day when we can purchase just a pair of jeans. Although I usually like having many choices, this day was different. I rushed to the mall because I was in dire need of new jeans. Well, maybe not dire need, but I wanted some. I was in a rush because I really did not want to end up in traffic, and I had things that I needed to get done. I went into the store hoping to get my size and go, but this was not the case. I had to decide on wash, rise, straight leg, flare leg, long, short, regular, etc. It took up all my time, and I ended up in traffic on the way back. To this day, I have only worn that pair of jeans a couple of times. Why? Because I left being not totally satisfied. If I would have ran in, bought a pair in my size in five minutes, and then been dissatisfied that would have been different. There is more margin for error when you do not have so many choices. But, I spent time and was still not totally happy, which makes it even more worse. Schwartz was right.
Overall, I would have to say that the paradox of choice is rampant in today’s society and becoming all the more prevalent in any product from detergent to computers. Some people enjoy these choices, others dislike them, and still others change from day to day depending on the circumstance. I am one of those—a floater.
Tuesday, January 27, 2009
My Thoughts on Generation Y
Generation Y is a generation that is hard to explain. Being a member, I feel that we are very different from all past generations and this makes it more difficult to understand what exactly we are looking for from a marketing point of view. In marketing, it is incredibly important to understand first and foremost the customer and their specific needs and wants, so that your products or services can be tailored to those requests. This is why as marketers, we find it not only beneficial, but also amusing to explore Generation Y and better comprehend what this group is all about.
After reading the article, "Generation Y" and listening to the podcast The MySpace Generation, I am left with a feeling of agreement, but also finding some dissimilarity between my generation and the material presented. It seems to me that the article sets up Gen Y as a group of people who do not want to be advertised to. I don't know that I agree with this entirely. I feel that it would be more true to say not that we are not looking to be advertised to, but that we want advertising that is fresh, unique, and straight-forward. Trite as it may be, our generation has the world at our fingertips and can research anything and everything within minutes. I feel that this is part of the reason that we are so concerned with purchasing products that we can research ahead of time. In my opinion, I see that my generation, myself in particular, goes to the Internet to find the menu to a restaurant, watch movie trailers, research sizes of a dress, and find out the nearest Starbuck's. We are constantly searching for things on the Internet. That is why it is so important for companies to have information on a detailed, easy to navigate website. I know, for example, that if I am thinking of trying a new restaurant, I search it on the Internet ahead of time. If I can't find any information on the restaurant, then I will not try the place. I like to see what they offer or maybe if people have reviewed it. I am not going to waste my time trying a new restaurant when I can go to a place that has food that I know appeals to me.
Another important element that companies and marketers need to notice about Gen Y is that we are very complex and diverse. The article mentions that Levi's are not the hit jean anymore, like they were to our baby boomer parents. That is because we are more intricate. There are so many more types of people that want completely different things. You can't just go to the store and pick up a pair of jeans in your size; they must be the right wash, the right rise, the right cut, pockets, etc. That is why the niche and specialty stores seem to thrive in our generation. These stores appeal to every different type of person. The emo kid, the prep, the hipster, the punk, the outdoorsy, the jock, the brain, and the goth can all find a store that appeals to them.
I also feel that another important factor to note of Gen Y, and possibly the main difference between this group and past generations, is the abundance of social networks that we are involved in. Since MySpace and Facebook are increasingly popular, it is crucial that the marketers tap into this trend. The sites are a form of direct marketing and possible the most rapidly growing form of direct marketing. The popularity of MySpace can best be shown with an example of celebrities who were discovered via this channel. Colbie Caillat and Tila Tequila both became extremely popular through MySpace. This proves that if these social networks can make a regular person into a star, they would also be great ways to promote the latest energy drink, hippest vacuum, or newest blockbuster.
I feel that I am a pretty good example of the typical Gen Yer, with a few exceptions. I am involved in both MySpace and Facebook. I also use the digital world for just about everything. I think it is important to note; however, that although I am a member of Generation Y, I still sometimes use a land line phone, take handwritten notes in a spiral, and even watch the occasional VHS tape.
Subscribe to:
Posts (Atom)
