customer analysis n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Customer Analysis PowerPoint Presentation
Download Presentation
Customer Analysis

Loading in 2 Seconds...

play fullscreen
1 / 50

Customer Analysis - PowerPoint PPT Presentation


  • 105 Views
  • Uploaded on

Professor Andrés Musalem Marketing Management Fuqua School of Business. Introduction What’s Marketing? Three C’s Customer Company Competition Four P’s Product Promotion Price Placement Summary. Customer Analysis. Agenda. Value Proposition Consumer Behavior

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Customer Analysis' - terena


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
customer analysis
Professor Andrés Musalem

Marketing Management

Fuqua School of Business

Introduction

What’s Marketing?

Three C’s

Customer

Company

Competition

Four P’s

Product

Promotion

Price

Placement

Summary

Customer Analysis
agenda
Agenda
  • Value Proposition
  • Consumer Behavior
  • Measuring Consumer Perceptions
  • Measuring Consumer Preferences
the value proposition
The Value Proposition

Benefits

(including

EVC) to

Target

Market

Net

Value to

Target

Market

Cost

to

Target

Market

examples of successful value propositions
Examples of Successful Value Propositions

Volvo Station Wagon

  • Benefits: Durability and safety
  • Price: 20 percent premium
  • Target market: Safety-conscious “upscale” families
slide5

Volvo Safety Firsts

1927 Safety glass windshields with automatic windshield wipers

1944 Steel cage created to help protect passenger compartment

1944 Laminated windshields installed 15 years before mandatory

1958 Three-point shoulder/lap seat belt patented by Volvo

1959 Three-point shoulder/lap seat belts introduced in some models

1960 Padded instrument panel installed

1967 Three-point seat belts included in rear outboard seats

1970 Industry's first auto accident investigation team established

1973 Electric rear window defroster made standard on all models

1984 Antilock brakes (ABS) installed

1987 Three-point seat belts included in rear centre seat

1991 Integrated booster cushion added for children

1992 Side impact structure installed five years before mandatory

1995 World's first Side Impact Air Bags introduced

2000 Whiplash Protection System introduced

2003 World’s first SUV with Rollover Protection System and Roll Stability Control

understanding my customers
Understanding My Customers
  • Who are our customers?
  • Why do they buy?
  • What important benefits do we provide them with?
purchase funnel barriers to purchase
Purchase Funnel: Barriers to Purchase

No

Is the customer aware of our product?

Buy a competingproduct

Yes

No

Arepriorbeliefs favorable?

Yes

No

Is information available to customer?

Yes

No

Isevaluation favorable?

Yes

No

Is the productavailable?

Yes

PURCHASE

Yes

Yes

No

Is usage satisfactory?

hypothetical example marketing research results
Hypothetical Example: Marketing Research Results
  • 85% of customers are aware of our product
  • 60% of those are willing to consider our product
  • 68% of those can find information
  • 50% of those decide to buy it
  • 75% of those find it when they need it
investment behavior boys will be boys
Investment Behavior:Boys Will be Boys
  • Men are dramatically more confident in their investment skills than women
  • They in turn trade 45% more than women with comparable portfolios
  • This leads men to earn an average return of 0.93% less than women

Barber and Odean, QJE 2001

the pepsi challenge
The Pepsi Challenge
  • One cup has M, the other Q?
  • M or Q?
how many f s
How many F’s?

FINISHED FILES ARE THE RE-SULT OF YEARS OF SCIENTIF- IC STUDY COMBINED WITH THE EXPERIENCE OF MANY YEARS

what s more important
What’s More Important?
  • Objective reality
  • Perceived reality
perceived vs objective reality
Perceived vs. Objective Reality:

An amateur bicycle racer in Los Angeles, has concluded that his iPod's Shuffle command favors the rapper 50 Cent -- and perhaps more important, that it knows exactly the right time to play 50 Cent's biggest hit, ''In Da Club.''…

…The iPod knows somehow when I am reaching the end of my reserves, when my motivation is flagging,'' Mr. Greist insisted. ''It hits me up with 'In Da Club,' and then all of a sudden I am in da club.''

NYTimes 8/26/2004

a possible solution multi dimensional scaling mds
A possible solution:Multi-dimensional scaling (MDS)
  • The basic assumption: while people may not be able to reliably report what attributes drive their choices, they can report perceptions of the similarities of brand or companies
perceptual mapping of hotel chains
Perceptual Mapping of Hotel Chains

Average perceived similarities

but knowing perceptions is not enough
But knowing perceptions is not enough
  • How are attributes traded off when choices are made--i.e., what is their relative importance?
the world s favorite paintings survey results in the u s a
Do you prefer paintings that are related to religion or not related?

What seasons would you like to depict?

Do you prefer outdoor or indoor scenes?

Do you prefer paintings predominantly of children, women, men, or it doesn’t matter?

Do you like paintings of one person or a group of people?

Thinking back on the paintings you have liked in the past, for the most part were the figures working, at leisure, or posed portraits?

20% related, 63% not related

15% Winter, 26% Spring, 16% Summer, 33% Fall

88% outdoor, 5% indoor

11% children, 6% women, 2% men, 77% doesn’t matter

24% one person, 48% group

23% working, 43% leisure, 27% posed

The world’s favorite paintings: survey results in the U.S.A.
survey results continued
Do you prefer paintings in which the person or people are nude, partially clothed, or fully clothed?

Do you prefer paintings from a long time ago, like Lincoln or Jesus, or more recent figures like Kennedy or Elvis?

Do you prefer painting of wild animals, like lions, giraffes, or deer, or of domestic animals like dogs, cats, or other pets?

What type of outdoor scene appeals to you the most: forests, lakes, rivers, oceans, and seas; field and rural scenes, or cities?

3% nude, 13% partially clothed, 68% fully clothed

56% long ago, 14% recent

51% wild animals, 27% pets

19% forests, 49% water, 18% fields, 3% cities

Survey results, continued...
survey results continued1
If you had to name one color as your favorite, what would it be?

Do you like to see expressive brush strokes or the surface of the canvas to be smooth?

Do you prefer larger paintings or smaller paintings?

If large, would it be the size of a dishwasher, full-sized refrigerator, or a full wall?

44% blue, 12% green 11% red, 4% black, 4% purple, 3% brown, 3% pink, 16% others

54% strokes, 35% smooth

41% larger, 34% smaller

67% dishwasher, 17% refrigerator, 11% wall

Survey results, continued
slide35

Canada

France

Finland

Turkey

slide36

Italy

Holland

price sensitivity conjoint analysis
Price Sensitivity & Conjoint Analysis

R2 is choosing between two products:

Vaio, 60Gb, $900, 6 hours

    • Utility=16+19+0+6= 41
  • Repeating this analysis for all respondents:

69% 31%

Dell, 20Gb, $700, 2hours

  • Utility=26+0.1+32+3= 61.1
price sensitivity conjoint analysis1
Price Sensitivity & Conjoint Analysis

What if Sony matches Dell’s price ($900  $700)?

Vaio, 60Gb, $700, 6 hours

    • Utility=16+19+32+6= 73
  • Repeating this analysis for all respondents:

69%87% 31%13%

Dell, 20Gb, $700, 2hours

  • Utility=26+0.1+32+3= 61.1
the value of brands and product attributes
The value of brands and product attributes
  • Reducing price by $400 (from $900 to $500) increases utility by 64 points:

$400 = 64 utility points

=> 1 utility point = $400/64= $6.25

  • How much more is R2 willing to pay for getting a Vaio instead of an Apple Mini-notebook (when all other attributes are equal)?
  • Difference in Utility=16-6=10 points.
  • In Dollars: 10points x $6.25 per point = $62.5

=> We can use Conjoint Analysis to estimate the $ value of a brand.

key takeaways
Key Takeaways
  • Value Proposition = Benefits – Costs
  • Consumer Decision Process:
    • Funnel: Multiple opportunities to fall through the cracks
  • Consumer choices are driven by perceptions and preferences.
  • Measuring perceptions: attribute ratings or similarly ratings (MDS).
  • Measuring preferences: self-reported weights or conjoint analysis.
a model of consumer behavior
A Model of Consumer Behavior

SOCIAL AND GROUP FORCES

Culture Subculture Social class Reference groups Family and households

PSYCHOLOGICAL FORCES

Motivation Perception Learning Personality Attitude

SITUATIONAL FACTORS

When consumers buy

Where consumers buy

Why consumers buy

Conditions under which

consumers buy

INFORMATION

Commercial sources

Social sources

BUYING-DECISION PROCESS

Need recognition

Choice of involvement level

Identification of alternatives

Evaluation of alternatives

Purchase and related decisions

Postpurchase behavior

conjoint analysis implementation
Conjoint Analysis: Implementation
  • Two attributes with two values each:
    • Cuisine: French or Mexican
    • Food Quality: Excellent or Fair.
  • Define two dummy variables:
    • Cuisine:
      • x1=1 if French Cuisine
      • x1=0 if Mexican Cuisine
    • Food Quality:
      • x2=1 if Excellent Quality
      • x2=0 if Fair Quality
conjoint analysis estimation
Conjoint Analysis: Estimation
  • Ask a respondent to rate all possible combinations:
  • Estimate linear regression:

Rating=w0+w1x1+w2x2+error

  • Interpretation of results:
    • w1: how much more a customer values a French restaurant over a Mexican restaurant =1.5.
    • w2: how much more a customer values excellent over fair quality=4.5.
conjoint analysis interactions
Conjoint Analysis: Interactions
  • Estimate this alternative model:

Rating=w0+w1x1+w2x2+w12x1x2+error

  • Interpretation:
    • w1: how much more a customer values a French restaurant over a Mexican restaurant =1
    • w2: how much more a customer values excellent over fair quality=4.
    • w12: additional value that a customer assigns from going to a restaurant that is both “French” and has “Excellent” quality=1.
conjoint analysis more than 2 levels
Conjoint Analysis: More than 2 levels
  • What if one variable has more than 2 levels?
  • Example: Excellent, Fair and No Information.
  • Need as many dummy variables as the number of levels-1.
  • Define 2 dummy variables for food quality:
    • If x2e=1: excellent quality
    • If x2f=1: fair quality
    • If x2e=0 and x2f=0: no information
  • Estimate linear regression:

Rating=w0+w1x1+w2ex2e+w2fx2f+error