Customer

Relationshi
ps
Chapter 14
MARKETING MANAGEMENT
FRAMEWORK

5C’s
STP 4P’s
Customer
Segmentatio Product
Company
n Price
Context
Targeting Place
Collaborators
Positioning Promotion
Competitors
LEARNING OBJECTIVES:

 How consumers evaluate products?

 How do marketers measure quality and
customer satisfaction?
 What about loyalty and customer relationship
management?
CUSTOMER
EVALUATION
WHAT ARE CUSTOMER
EVALUATIONS, AND WHY
ARE THEY IMPORTANT?
 CUSTOMER EVALUATIONS
COME IN MANY FORMS:
• Customer Satisfaction;

• Perceptions of Quality;

• Customers’ intentions to repurchase the same

brand or from the same provider;

• The likelihood that a customer will generate word of

mouth;

• Speaking favorably to friends and family and

coworkers, etc.
 Marketers don’t track customer
evaluations just because they’re
interesting.

 Marketers know that satisfied customers

contribute to the bottom line.

 Given the hierarchy of customers behavior,

from awareness to trial to repeat and
loyalty, the hope is to satisfy new
customers so that they become loyal.
 Marketers think that you evaluate the goodness of the purchase
against some sort of expectations.

There are three possible outcomes:

1. If customers’ experiences surpass their
expectations
 customers are delighted!

2. If customers’ experiences meet their

expectations
 customers are satisfied.

3. If customers’ experiences fall short of their

expectations
 customers are dissatisfied.
How do consumers
evaluate products?
 HAS CAPTURED THE MINDS OF MARKETERS, AS
EVIDENCED BY THE MANY ADS WHICH STATE, “WE
WISH TO EXCEED OUR CUSTOMERS’
EXPECTATIONS.”

Experience or
expectatio Perceived
Performance
ns

Relative
Compariso
n

Perceived Quality or
Customer
Satisfaction
The comparative evaluation process is
thought to operate whether the
purchase is low or high involvement.

 For the low-involvement purchase, such as a routine

repurchase of your habitual brand of toothpaste, the
process may be nearly instantaneous and equally
quickly forgotten.

 For higher-involvement purchase, the comparison

process is typically quite deliberative and conscious.
These are purchases someone cares a lot about or those
that are more expensive or complicated.
 Sources of Expectations
 If purchase experience are judge relative to
expectations, it is important to understand
expectations. The source of expectations that
consumers trust the most is their own experience.

 Expectation And Experience

 Next, let’s examine the nature of experiences. In
particular, marketers have found that customers
routinely evaluate the core of the purchase itself (e.g.,
reliable performance, tangible cues to quality including
the appearances of the facilities, the employees, the
firm’s communications materials), and when applicable,
the interpersonal aspects of services that may
surround the purchase.
 How do marketers
measure quality and
customer satisfaction?
 ANATOMY OF A CUSTOMER
SATISFACTION SURVEY
1st screen (or 2nd screen: Progress bar
Page), brief intro: • Get more 33%
• Promise detail on complete
Confidently. focal Page 1 of 3.
• Promise not to attributes.
sell data.
Always
• Say their opinion
include at
matters.
least one
open-
3rd screen: minded
demographics
go at the end.
question. Be nice

 Quality and satisfaction are not the same thing.

 Customers’ expectations are a basis of comparison to

judge their levels of satisfaction. They come from
customers’ own experience, their friends’ advice, and
companies’ marketing information.

 Luckily, most customers are pretty realistic. They seek

reliability, tangible cues such as retail appearance and
price, service that is responsive and ideally customized,
competent, and emphatic.
 LOYALTY AND CUSTOMER
RELATIONSHIP MANAGEMENT (CRM)

 Customer satisfaction isn’t a goal in itself.

Companies are in business to make could
perhaps be a monopoly and make money
even with unhappy customers, but most
industries attract compilation, so your
sole provider status won’t sustain for
long.
Customer Ethics
 There’s always a segment of customers with whom we do not want
to encourage relationships.

Company ethics
 From a company’s perspective, how do we determine fair prices?
Econ tells us that a market agreement will be met where supply
and demand curves cross.
RECENCY, FREQUENCY,
AND MONETARY VALUE (RFM)

A loyalty program invites customers to become

members to enjoy certain benefits for frequent or
heavy purchasing, and a CRM (customer
relationship management) program is a tool in
the company that tracts spending, regardless of
whether customers are segmented into loyals or
disloyals and rewarded or not.
CUSTOMER
LIFETIME
VALUE (CLV)
Made by: Rona Mie D. Rafanan