MRKT 354 Lecture 4: MRKT 354 1-31-2017
9 Aug 2019
School
Department
Course
Professor
MRKT 354 1-31-2017
The Customer Experience and Value Creation
Company that provides superior value: Tim Hortons
• Quality of service / efficiency
• Consistent product at a reasonable price – expectation matches delivery
• General convenience of location – prime locations per traffic/foot patterns
FAB
If the benefits outweigh the competition’s or are relatively more valuable than the price the
product/service will succeed.
Reverse Innovation-Invent to Order
Inventing to order would be market focused – see a need in the market and develop a solution
Customer Collaboration & Ideation
The rise of interactive social media has led to a proliferation of knowledge and has allowed the
consumer greater access to the innovation process and product/service development
Video 1: retailers use the senses to overcome logic and appeal to the emotion-triggering limbic
system. Ex. grocery store is laid out counterclockwise so the non-dominant hand (left) pushes
the cart while the dominant (right) one is free to interact with the products, and the meat is in
one back corner while the dairy is in the other to pull us through the entirety of the store.
Video 2: retialers using body metrics and facial recognition to track what works about their
store (i.e. what you get excited about) and what you like while shopping (facial expressions).
Argument whether or not it’s an invasion of privacy or done to improve the shopping
experience
M&S expenses?
CVI?
Market Segmentation and Segmentation Strategies
Millennials segment is important because they represent the new and are the most influential
to retailers by being at the top of the “influence” pyramid. They influence those younger and
older than them. Power came from the baby boomer generation that pushed for the right to
enjoy youth during the post-WW2 period that evolved over time and was enabled by
technological advancements. However the over-availability of the large amount of information
is causing anxiety, they need to choose filters to organize the info – very non-linear way of
thinking compared to previous thought processes. Extended social network decreases the
