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!)
Tuesday, April 21, 2009
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.
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