...February 05, 2013 Strategy from the Outside In: Profiting from Customer Value Write-Up - Part II I. Introduction In Strategy from the Outside In: Profiting from Customer Value, George S. Day and Christine Moorman use research to determine business strategies that separate successful from unsuccessful firms. This write-up shall have a section, titled § II. Brief Summary, which outlines each chapter in Chapters 7 through 13, including the conclusion. This write-up shall also have a section, titled III. Application, which shall apply the material from § II. Brief Summary to a firm (hereinafter "Firm A") with which I worked as a business consultant. Firm A is a multi-national holding company that specializes in acquiring, supporting, and growing its subsidiary companies through accelerated organic growth as well as through acquisitions and/or strategic joint ventures and divestitures. II. Brief Summary Chapter 7. The Third Imperative: Capitalize on the Customer as an Asset For a firm, the profitability of the customer asset - the sum of the discounted long-term profits associated with the customer's purchases and referrals - is based on three principles. First, that a firm must distinguish between behavioral loyalty – the frequency of customer purchases from a firm when a need arises – and attitudinal loyalty – an attachment to the firm and/or its specific products or services. Second, that a firm must manage customers to engage in behaviors that directly...
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...Emotions and Logic in Consumerism Abstract Consumer purchase decisions are often linked to emotions and can lead to impulse and uninformed buying behavior. This creates a problem for marketers who rely on emotional appeals to increase sales. In order for businesses to grow in today’s economy, they must acquire new customers and at the same time retain the old ones. Research indicates that in order for advertising to be most effective in acquiring and retaining new customers, these emotions must also be linked to logic. This paper examines how marketers are using emotions and logic to generate the most sales and retain more customers. Emotions and Logic in Consumerism Advertising can be seen in virtually every aspect of our lives, and is almost inescapable. We encounter it on billboards, radio, every internet site, magazines, cell phone applications, clothing, television, restrooms, gas pumps, and many more sites. This year in the United States, Black Friday sales hit over $1 billion in online sales. The average cost for a 30 second time slot for a Super Bowl commercial was $3.5 million, according to USA Today. Psychologists, marketers and business people worldwide are interested in why consumers consume. What is the driving force behind why someone will spend so much more money on Black Friday as opposed to other days out of the year? And how can a business better exploit these consumers in order to make more money? With so much money involved in our consumption...
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...Consumer Behavior Models in Tourism Analysis Study Muhannad M.A Abdallat, Ph.D. Assistant Professor Hesham El –Sayed El - Emam, Ph.D. Assistant Professor Department of Tourism and Hospitality, Faculty of Tourism and Archeology King Saud University ABSTRACT The theories of consumer decision-making process assume that the consumer’s purchase decision process consists of steps through which the buyer passes in purchasing a product or service. However, this might not be the case. Not every consumer passed through all these stages when making a decision to purchase and in fact, some of the stages can be skipped depending on the type of purchases. The reasons for the study of consumer’s helps firms and organizations improve their marketing strategies by understanding issues such as: • The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); • The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); • The behavior of consumers while shopping or making other marketing decisions; • Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; • How consumers’ motivation and decision strategies differ between products, that differ in their level of importance or interest that they entail for the consumer; and • How marketers can adapt and improve their marketing campaigns and marketing strategies...
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...international environmental groups such as World Wildlife Fund (WWF) and local organisations such as the Auckland Zoo (over the potential loss of Orang-utan forest habitat to palm oil plantations). The negative publicity from the palm oil debate created damaging ‘noise’ for Cadbury’s ongoing worldwide ethical brand building efforts and its high profile announcements that it would shortly be using the Fairtrade logo for the flagship Dairy Milk brand in key global markets, including Australia and New Zealand (Fairtrade Foundation 2009). Less than three months later Cadbury caved into the conservationists’ demands and reversed their palm oil policy (e.g. New Zealand Herald 17th August 2009). This case study illustrates the relevance of buyer behaviour theories...
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...OrContents Part III/ The usefulness of motivational theory for managers. 2 1. Distinction between Maslow’s Theory and Hertzberg’s Theory of motivation 2 2. Application for Manager 3 3. Apply to LG Electronics 4 Part IV. Understand mechanisms for developing effective teamwork in organizations 4 4.1. Explain the nature of groups and group behaviour within organisations. 4 A. Definition 4 1. Group and group behavior 4 2. Group norms 7 3. Group decision-making 8 4. Group contribution 10 5. Formal and Informal group 11 6. Advantages and disadvantages of informal organisation 12 B. Apply in LG Electronics: 13 4.2: The factors that may promote or inhibit the development of effective teamwork in organizations 13 A: Definition 13 4.1.1: Inhibit the Group 14 4.1.2: Successful teamwork 16 B: Application for LGE 20 4.3 Evaluate the impact of technology on team functioning within a given organization 22 A: Definition 22 4.3.1 The importance of technology in business 23 4.3.2 The important of technology in team 23 4.3.3. Virtual teams of technology 24 4.3.4 Critical Success Factors of Virtual Teams 26 B: Application 27 CONCLUSION 30 Part III/ The usefulness of motivational theory for managers. 1. Distinction between Maslow’s Theory and Hertzberg’s Theory of motivation | Maslow’s Theory of Motivation | Hertzberg’s Theory of Motivation | Meaning | Maslow’s theory is based on the concept of human needs and their satisfaction. | Hertzberg’s theory is based...
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...Good and poor examples of executive summaries This is a GOOD example from an Accounting & Finance assignment. Footnote Executive Summary This report provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of Outdoor Equipment Ltd. Methods of analysis include trend, horizontal and vertical analyses as well as ratios such as Debt, Current and Quick ratios. Other calculations include rates of return on Shareholders Equity and Total Assets and earnings per share to name a few. All calculations can be found in the appendices. Results of data analysed show that all ratios are below industry averages. In particular, comparative performance is poor in the areas of profit margins, liquidity, credit control, and inventory management. The report finds the prospects of the company in its current position are not positive. The major areas of weakness require further investigation and remedial action by management.Recommendations discussed include: improving the average collection period for accounts receivable· improving/increasing inventory turnover· reducing prepayments and perhaps increasing inventory levels The report also investigates the fact that the analysis conducted has limitations. Some of the limitations include: forecasting figures are not provided nature and type of company is not known nor the current economic conditions data limitations as not enough information is provided or enough detail...
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...Fortune Magazine’s 100 Best Companies To Work For MGT 415: Group Behavior in Organizations Professor Catherine Piepenbrink June 2, 2014 In reviewing the most recent results of FORTUNE Magazine's annual ranking of America's “100 Best Companies to Work For”, we look at three of the companies noted. In reviewing the descriptions of the work environments, we will identify elements that appear to foster employee motivation and group cohesion among employees. Also, we will relate this analysis to the material presented in our text. Company 1: Boston Consulting Group (#3) Boston Consulting Group’s career page seems focused on team member individuality, diverse backgrounds that benefit the group or team as a whole. Teams are created for each client, each team member’s education and experiences becoming a piece to the puzzle of finding a way to fulfill the clients needs. Boston Consulting Group boasts they value ideas of individuals and their teamwork over seniority and hierarchy. This gives the consultants at Boston Consulting Group a sense of equality and cohesiveness, opening the door for more input and ideas being shared. They appear to be women and minority focused, having initiatives listed for many different groups (Asian, Black, Hispanic, Lesbian/Gay/Bisexual/Transsexual and Women). By having a large diversity, they are able to meet client’s needs from all areas of business, all over the world. This gives a welcoming...
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...An Analysis on How to Handle Dysfunctional Customers And how they affect on Food Servers in selected Restaurants at Eastwood City ------------------------------------------------- A Method of Research and Thesis Paper Presented to the Faculty of the Hotel and Restaurant Management Arellano University - Pasig ------------------------------------------------- In Partial Fulfilment of the Requirement for the Degree in Bachelor of Science in Hotel and Restaurant Management Presented By: Calinao, Loreinn G. Tierra, Alyssa Marie G. Encio, Mary Bless Estrada, Erik E. Romero, Jerry Arellano University – Pasig Pag-Asa St. Brgy. Caniogan Pasig City Approval Sheet In partial fulfillment of the requirements for the degree of Bachelor of Science in Hotel and Restaurant Management this Method of Research entitled “AN ANALYSIS ON HOW TO HANDLE DYSFUNCTIONAL CUSTOMERS AND HOW THEY AFFECT FOOD SERVERS IN SELECTED RESTAURANTS IN EASTWOOD CITY” was prepared and submitted to the College of Hotel and Restaurant Management. PROF. LOUIE REYES Adviser Approved by the members of panel on October 2014. With a grade of ____ ________________________________________ Chairman _______________ _______________ _______________ Member Member Member Accepted in partial fulfillment of Bachelor of Science in Hospitality and Restaurant Management PROF. KATHERINE GUEVARRA ...
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...2014 8/1/2014 Impact of Ethical Consumerism on Businesses; Sainsbury’s as case study Contents Executive Summary 2 Introduction 2 Ethical Consumerism Types or Categories 2 Sainsbury’s as a case Study 4 Opinion Survey on Consumerism 4 Conclusion and Recommendations 5 Bibliography 6 Executive Summary In a ethnicity of plenty, where organisation are selling very similar products at almost the same price, and of the same quality to even the similar consumers, These consumers are free of charge to make use of other, ethical criteria in making their choice between opposite options. There are definitely different levels of ethical consumption - with some people being highly morals determined, while some are just getting on a generally satisfactory bandwagon. The reality still that there is a rising crowd of ethical consumers which need to be taking seriously. Because now it is very easy to be an ethical consumer The Internet, press, and magazines are all spreading company’s information about where and how their products and services are being generated. Blogs and customer help desk are also help customers who by one way or the other had terrible experience or who have important inside information to obtain immediate international exposure. Exposing unethical conduct and practices is a definite title for journalists, so business organisation is under more enquiry than before. Businesses like Sainsbury’s are carefully but continuously examining how well they are...
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...What are the most important factors that influence customer satisfaction when buying online? Jing, L., Yang, Z, L. and Jun, M. (2012). Measuring consumer perceptions of online shopping convenience. Journal of Science Management, Vol.24 No.2, 2013, pp.191-214. Retrieved from www.emeraldinsight.com/1757-5818.htm In this article, the authors reveal one of the key factors to influence the perceptions of consumer when they do online shopping. The data the article uses is gained through organizational surveys of a major retail company in Hong Kong. The authors use this data to try to identify the key convenience dimensions of online shopping. Their research focuses on revealing the pivotal dimensions of convenience and the related sub-dimensions of online shopping. As the authors mentioned in the article, “Shopping convenience has been one of the principal motivations underlying customer inclinations to adopt online purchasing.” (p.191). The article is useful to my research topic, as the authors point out one of key factors in convenience of online shopping to customers, which is time-saving. The more time consumers spend on connecting with a service, the lower convenience degree consumers will perceive. (p.193). The main limitation of the article is the number of participants in this study is relatively small, thus the authors indicate that the scale items of this research in the future should be further modified or changed to improve validation. Although this article does...
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...MORALES, Marc Russel M. BSBA-MM II-C MM100 – Fundamentals of Marketing Management MABEZA, RYAN MARVIN Nordstrom’s Case Analysis Companies are everywhere. Competition in a global business world are in left and right scenarios. So companies must find the right ingredient for them to be successful. Creating loyal customers is at the heart of every business. Improving efficiency in connecting to customers, building customer satisfaction, customer value and loyalty leads to improved and better business results. Marketing experts Don Peppers and Martha Rogers say, “The only value your company will ever create is the value that comes from customers—the ones you have now and the ones you will have in the future. Businesses succeed by getting, keeping, and growing customers. Customers are the only reason you build factories, hire employees, schedule meetings, lay fiber-optic lines, or engage in any business activity. Without customers, you don’t have a business.” Companies must establish and maintain a high customer value for their products and services because consumers use customer value to make buying decisions. You make buying decisions in day-to-day life experiences. For example in buying for a bottled water drink. Should you buy the wilkins worth P15 or the evian water worth P65? In every buying decision, a consumer asks the same question: 'is what I am going to receive worth what I have to give up in order to get it?' The gain the consumer receives for the benefit is...
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...Customer engagement Customer engagement (CE) is the engagement of customers with one another, with a company or a brand. The initiative for engagement can be either consumer- or company-led or the medium of engagement can be on or offline. CE aims at long-term engagement, encouraging customer loyalty and advocacy through word-of-mouth. Online customer engagement is qualitatively different from offline engagement as the nature of the customer’s interactions with a brand, company and other customers differ on the internet. Leveraging customer contributions is an important source of competitive advantage – whether through advertising, user generated product reviews, customer service FAQs, forums where consumers can socialise with one another or contribute to product development. Customer engagement is about encouraging your customers to interact and share in the experiences you create for them as a business and a brand. When executed well, a strong customer engagement strategy will foster brand growth and loyalty. NEED: CE-marketing is necessitated by a combination of social, technological and market developments: 1. Businesses are losing the power to dictate the communications agenda 2. Decreasing brand loyalty BUSINESS TO BUSINESS CONTEXT: Customer Engagement in a B2B (business to business) marketing context would typically include a collection of the following marketing programs: 1. Customer Advisory Board or Council 2. Customer Reference Program 3. Executive Sponsor...
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...4.1 Group Behavior and Nature of Groups In an organization there are different groups and these groups act distinct to each other. A group is a number of people or things that are placed together. However there are different definitions given by different authors in defining what a group is. According to author Charles Handy he defined a group as ‘any collection of people who recognizes themselves to be a group.’(1993) On the other hand Marvin Shaw, he defined a group as ‘a group is defined as two or more people who collaborate with one another in a sense that each person persuades and is persuaded by each other.’(1981) Generally groups are categorized into two main types named as Formal and Informal groups. Formal group is a type of group that is well-structured and a group established by management, subordinates or by representatives of an organization. These types of groups are established to take care of a particular task. The prime function of a formal group is to further the objectives and aims of the organization as introduced in mission statements and policies. Normally these types of groups work under a single supervisor. The following are the types of Formal groups, * Command Groups; this is a type of group in which individuals report to a given manager. In other words this is a group containing both managers and their subordinates. * Committee Groups; Committee groups are more of a formal working group. In this type of formal group individuals...
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...How does celebrity endorsements influence consumer behavior in fast fashion industry? 1. Introduction The fashion industry has come a long way over the past two decades. In the early years, big players such as Marks & Spencer offered a relatively straightforward fashion retail choice. However, with the lower cost of starting a retail outlet, the market has become more crowded since then. So called fast fashion retailers, are by no means the only one who succeeded and grew over the past years. Overall, the fast fashion retailers experienced a greater growth compared to the fashion industry as a whole (Cachon and Swinney, 2011). Such retailers are now ubiquitous and spotting a person on the streets who does not wear at least one fast fashion clothing item is rare. The key point to success lies in their business model; making the trends available to everyone. The rapid global changes have restructured the way fashion retailers do business. In today’s competitive market, using celebrity endorser to promote brands on television is a fairly common practice (Erdogan et al. 2001). Celebrity endorsements is believed to help consumers remember the message of the advertisement and the brand name the celebrity is endorsing. This creates the personality of a brand because when a celebrity is paired with a brand, this image helps shape the image of that brand in the minds of consumers (Argrawal & Kamakura, 1995). Celebrity endorsement is a new strategy in brand selling...
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...BUYER BEHAVIOUR POST PURCHASE BEHAVIOUR Word count: 1,900 According to Blackwell, M & E (2006, P4), Buyer behaviour can be defined as “Activities people undertake when obtaining, consuming and disposing of products and services” In this essay, I will be focusing specifically on “Post purchase behaviour”, in which I’ll be discussing and evaluating if customers that are satisfied with a supplier and/or their offering will become loyal? According to Giese and Cote (2000), Customer Satisfaction is defined as “A summary affective response of varying intensity with a time-specific point of determination and limited duration that is directed towards focal aspects of product acquisition and/or consumption” While Customer Loyalty is said to be “a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing” (Oliver, 1999). However, there are two distinctive ways of describing loyalty; One being attitude, whereas different feelings create an individual’s overall attachment to a product, service, or organization (Hallowell, R, 1996). The other being behavioural, which include customer continuing to purchase services from the same supplier, increasing the scale and or scope of a relationship, or the act of recommendation without having an attachment to the product, service or organisation (Hallowell, R, 1996). FIG 1. Reicheld and Sasser (1990) argues that satisfaction...
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