HEIP 144 Chapter Notes - Chapter 5: Switching Barriers
SchoolUniversity of Maryland
DepartmentEntrepreneurship and Innovation
Course CodeHEIP 144
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Discovering New Points of
● Most profitable strategies based on this
● Companies can differentiate at every point where it comes in contact with customers
● Consumption chain: customer’s experience with a product or service
● If companies open creative thinking to consumption chain they can uncover new
● Mapping the consumption chain
○ Assemble groups from different areas of the company
■ Especially those in contact with customers
○ Identify steps through which customers pass from becoming aware of product to
dispose or not using it
○ Every product will have a different consumption chain
● How do people become aware of the need for the product/service?
○ Differentiate an everyday consumer product
○ Makes customers aware of a need that had gone unrecognized in the past
● How do consumers find your offering?
○ Must make product available when competitors are not
○ Must make product ubiquitos
○ Must offer product in places competitors do not
○ Make search process:
■ Less expensive
■ More habitual
○ Must allow consumer to tailor search experience to needs
● How do consumers make their final selections?
○ Narrow down possibilities
○ Selection process must be comfortable
○ Encourage people to come to your business through selection process
○ “Selling” is not done by the salespeople but by the selection process the
cusomers create for themselves
● How do customers order and purchase your product or service?
○ Connect customers directly to the company system
○ Allow direct drop shipment
○ Allow automatic restocking
○ Benefit of differentiaion is that it imposes a switching cost
○ Expensive to swithc, creating a deterrant to competition
● How is your product or service delivered
○ Affords many opportunities for diferentiation
● What happes when our product or service is delivered?
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