Lecture 11

Question 1

Experience route

Answer 1

Commodities > goods > services > experiences

Question 2

Customer journey management

Answer 2

Customer journey management is the design and implementation of the customers experiences along the entire decision process

This encompasses every step of the consumer decision process

Customer journey:
Consideration > evaluation > purchase > consumption > bond / advocate

Question 3

Back in the days - the purchase funnel view

Answer 3

Awareness > familiarity > consideration > purchase > loyalty

Question 4

Key characteristics of the purchase funnel view

Answer 4

Focus on advertising to build brand awareness
Push marketing perspective
No consideration of post purchase decisions

> assumption: consumers systematically narrow down the consideration set until they purchase one brand

> assumption: post purchase is a trial period which determines whether a consumer stays loyal or not

Question 5

Two trends killed the purchase funnel view

Answer 5

Ongoing digitilisation: increasing access of information (ie low info cost)

Consumer driven marketing - traditional marketing no longer dominant source of info
Increasing importance of the post purchasing stage

Question 6

Customer journey: changing from a funnel to a journey orientation

Answer 6

Requires:
Going beyond single transactions and considerations set
Identifying the entire journey of the customer (dynamic approach)
Managing the cumulative experience along the entire decision process

Challenges in companies:
No map of the customer journey
Common focus on advertising and touchpoints optimisation, not journey orientation
Cross functional disconnections within Compnies > silos

Question 7

Customer journey: framework

Answer 7

Consideration - initial consideration set of brands
Based on prior experience, brand awareness, or recommendations

Evaluation- consumers actively seek info and evaluate potential options
New brands are added and previously considered one subtracted

Purchase - point of purchase
Increasing relevance due to undecided consumers

Enjoy, advocate, bond - open ended relationship between the consumer and the brand
Consumers remain engaged and share their experiences

Question 8

Post decision dissonance

Answer 8

Post decision dissonance Is a feeing of anxiety over whether the correct decision was made

Dissonance can turn in post purchase regret: feeling that you should have bought a different product

Managerial relevance: even after purchase consumers continue searching for info

Question 9

Confirmation disconfirmation paradigm

Answer 9

Performance alone does not influence satisfaction, expectations play an inflectional role

Question 10

Key takeaways form lec 11

Answer 10

In high effort decision making: consumers don’t buy products, they buy experiences

Creating superior experiences requires to manage each step of the consumer decision process, including the post purchase system

The customer journey framework provides a powerful tool to manage consumers cumulative experiences along the decision process

Acquiring new customers is more costly and less profitable than keeping existing customers, the post purchase stage is crucial

Manage post decisions dissonance and avoid regret by the provision of supporting info even after the purchase decision