Introduction
This project is an article review project that covers important elements and aspects of the chapter “Building Customer Satisfaction, Value, and Retention”. This is a chapter in the section “Understanding Marketing Management” in the authoritative book Kotler on Marketing. The focus of this research will be on customer satisfaction, customer value and customer retention in the context of marketing management. This project will include the review of four scholarly journals and articles on marketing and an application of its key concepts to the chapter. Thus, for each article, there will be a 500-600 word critique of the article and a 500-600 word opinion of the writer on how the article relates to the elements of marketing management as outlined in the textbook. Fundamental aspects of the articles reviewed are highlighted in yellow to show they are the original thoughts of other writers.
Article 1: Enhancing Relationships With Customers Through Online Brand Communities
Summary
The fundamental essence of this article is to show the main elements and aspects of brand communication in the online environment that improves customer-to-customer interaction. This journal article is premised on the fact that the online environment is a place where customers seeking satisfaction solicit for information and data.
The article commences by stating that:
Online brand communities can bring customers closer to a brand, generate “buzz” and enhance brand loyalty.
This is because people now converge more on the online environment rather than in normal communication and discussions. Therefore, on the Internet, consumers are able to exchange ideas and interchange views and concepts. This makes it an appropriate point where communication can be undertaken and brands can be made accessible to consumers. There are posts and other custom-branded communication like blogs that show relationship satisfaction, trust and communication through self-reported interactions on the Internet.
The article identifies that marketing communication increases whilst customers enjoy customer-to-customer communication and interactions and this encourages purchases. This is because customers seek value and they get this value by shopping for opinions online in order to draw a conclusion.
The writers of the article state that there are some aspects of online brand communications that can be enhanced in a process of marketing management in order to achieve results. They outline four main ways through which communication online can be improved in order to give customers better value and enhance their shopping experience.
These four areas include:
1. Enhance the timeliness of information exchanged.
There is the need for information about customer value to come early enough to get more attention from the audiences. This is because most consumers look for information about new products and new services. Therefore, it is necessary to provide this information early enough. Timeliness is important because it enables rewards and other benefits of a company to be laid out early. This gets people to rush for it and helps to spread information about the new product offering.
2. Enhance the relevance of information posted.
Customer-to-customer interaction is based on relevance. Information must be useful to the customer and this must be based on something consumers want. Therefore, it is important to have a focus and this focus must be based on what consumers really want. There must be segmentations on whatever online forum is being used and this must target different interest groups that represent consumer classes.
3. Extend the conversation.
There is the need to find ways and means through which customer-to-customer interaction will be comprehensive enough. This way, there will be information for different classes of consumers. These information should enable consumers to also present their own evaluation and views in order to promote better kinds of critique and evaluation. Meaningful information must also be encouraged to promote more questioning and evaluation in order to make the forum enticing and tantalizing.
4. Increase the frequency of information exchanged.
There should be the exchange of regular information and there must be ways through which communication will be done over and over again. This way, offers like contests should be launched to get people to regularly participate. Special opportunities should be given on the forum and there must be a way of acknowledging helpful members of the forum to keep it interesting.
Opinion
Customer value is necessary because companies are constantly at war and they have to find ways of serving consumers better in our period of consumer sovereignty. Therefore, firms must do everything they can to ensure that they gain a higher share of consumers. This is to be done through all channels of communication and interaction. Therefore, the Internet provides a propitious avenue through which companies can reach out to their consumers and interact with them.
The research of Adjei et al (2012) shows that the online communication can be done through the use of informal pointers that are generally discarded by companies. This includes social media, forums and blogs. This might require paying a professional blogger or social media activist to present organized programs that will attract and sustain interest in the product on offer.
The four pointers raised in the article include the need to present information in a timely manner and get it to consumers at a point of their need. This is because product launch leads to questions that are traditionally ignored. Thus, using social media can encourage people of all backgrounds to present their questions about the product and answer them. Thus, timing is key and vital. This is the best way of getting customer value and in most cases, taking their inputs in an emergent manner and fashion.
The relevance of information is vital. This is because information must be given to consumers who need it and must be done in ways that will encourage them to appreciate it. Therefore, having social media reviews must be done in a way that promotes consent by giving content that consumers want. Therefore, a company must give information that is important to consumers and consumers can identify with. This will help to provide major guidance and information that will provide a better basis for consumers to make purchasing decisions and also enjoy the product to the fullest.
There must be various means through which the consumers will be kept talking. Therefore, there must be incentives and motivations that will get consumers to discuss aspects of the product critiqued in a blog. This should include the presentation of giveaways and other promotional elements that will make the blog interesting and more valued by consumers. Various links must also be provided to add up to the general brand equity creation which his key in marketing management. Furthermore, diversity is important and must be promoted in various ways and forms. There must be inclusion and there must be people from all backgrounds and origins who are encouraged to partake in an online discussion.
Finally, there must be the frequency of information. A blog or forum that is not actively visited and updated does not get the connection needed to provide information at a good rate. Therefore, blogs and forums on the internet must be infused with information that will give consumers and potential consumers some kind of reward and assistance. This will keep the blog lively and promote interchange. Also, it might be a good point for the creation of an emergent strategy because information can be given regularly that will be taken into the product design unit of a company. This will help make the products of a company more relevant and more ideal to the needs of the consumers.
Article 2: Exterior atmospherics and consumer behavior
Summary
In the article, the writers examine aspects of the Servicescape in meeting consumer needs and shaping consumer behavior. This is a study of consumer behavior in the environment of service delivery. Thus, the research examines how atmospheric variables affect the way consumers view value at a point of sale.
The study investigates the elements of external atmospheric variables. This is done by examining how window display and landscaping affect the way consumers think of boutique apparels. This has to do with the display and the elements in the immediate environment of the consumers.
The research commences by identifying the core theoretical framework for the study. The writers state that
Atmospherics research falls under the broad discipline of environmental psychology, which often employs the stimulus-organism-response (S-O-R) mode
This theory is based on the idea that human being feel stimulus and stimulus influences our concept of value and what we need at a given point in time. Thus, when we see products presented at a given point, we are tempted to react in a certain way to the product and its components. Therefore, the research utilizes this model to study what consumers do in such situations. The model is summed as follows:
Merchandising can refer to how products are packaged, promoted, and displayed but it can also refer to how the store looks. Atmospherics are the environmental elements that help create the retail image of a store and set the mood to stimulate sales
Data is collected form students in an American university and their responses to display and elements of a shop window was taken aggregated and regressed in order to show major trends and results of how they react to display. The findings show consumer behavior and how it changes along various lines.
The results were presented in two parts:
R1: Window display and landscaping had no main effects on pleasure or arousal.
R2: The presence of window display and landscaping influenced respondents’ liking of the store exterior and patronage intentions.
R3: Consumers’ liking of the store exterior and mood positively influenced patronage intention
The first result indicates that consumer value is not increased or decreased in relation to what happens. This is because there is no major arousal or pleasure that comes when looking at the landscape or window display.
However, the second result shows that the presence of a good display provides an influence that cause the consumer to like the store’s interior. This is because it gets the consumer’s curiosity to be aroused. This leads to the movement into the shop to appreciate the internal arrangement and the elements in the shop. This promotes and enhances the consumer experience and its processes.
Furthermore, the third finding shows that the consumer’s liking of the store’s interior arouses the mood for patronage intention. This means that the purchase of things in a shop is often led by what the shop displays on the window and the landscape. This does not normally get consumers to take a decision to buy a product. Rather, they get consumers to inquire further and this inquisitive attitude leads to a purchase decision. Therefore, customer value is an ongoing process and marketing management can arouse and sustain this desire and expectation.
Opinion
As identified in figure 2.1 of Kotler, the idea of consumer value is a process. It is not a one-off thing that happens instantly. Rather, it is a process that builds up until a consumer can decide to make a purchase. It starts with image value which leads to personal value and then service/product value and total customer value.
Juxtaposing this build up to the case of consumers and their attributes towards the Servicescape of most shops, it is not surprising that consumers are not moved directly by the things that are displayed in a shop. Rather, they are moved to identify their needs and expectations and then deliver it. Basically, this process goes on and consumer decisions and choices changes over time. There are major trends and procedures that define the way and manner in which we make our purchasing.
Therefore, it can be identified that consumer behavior patterns are ongoing and they change all the time. This is something that starts with basic things that attracts consumers. However, this attraction leads to curiosity which causes consumers to eventually make choices and decide to buy a particular product.
This implies that marketing management benefits from display and the Servicescape. This is because display plays a major role in showing consumers what they could potentially get from a shop. Display is essential in the apparel markets. Therefore, it is necessary for it to be arranged in ways that will attract and get consumers to inquire more. Once they are within the shop, there should be an excellent display that would get consumers to appreciate and feel good about the products a shop has to offer. This procedure will ensure that consumers are able to buy products.
It can also be inferred that customer service is key. This is because display might not be enough to get a consumer to make a purchase. Rather, what kind of shop assistance a person would get is important and vital in getting consumers to gain important insights into products. Therefore, I conclude that it is important to have a system in marketing management that would get consumers to understand appreciate what a company has to offer at a given point in time. Marketing management thrives on answering the questions of consumers and doing things consumers want and desire. This way, their inner needs and expectations are going to be honored and dealt with.
Furthermore, it can be said that consumer value is strongly influenced by configuration. The kind of display and physical evidence is important and key. Therefore, signage, visual ingenuity and a strong desire to get consumers to appreciate and undertake a stronger level of indulgence is important and vital. A firm must do everything in its power to promote the best interest and desires of consumers and this should be done by presenting lead pointers and familiar things like a good window display to get consumers to respond by asking questions and pursuing the greater good of pursuing a given product or service.
Article 3: The Role of Customer Engagement Behavior in Value Co-Creation: A Service System Perspective
This article starts with a long background which discusses the extent to which the Service industry has changed in the past 50 years. This is shown by the fact that there is a blurring between the lines of firms and customers. Firms are to do what consumers want in order to stay relevant. Therefore, every company has to stay within the right side of what consumers want and desire.
The research therefore evolves into a long literature review on the concept of customer engagement. This is a way through which companies undertake various methods of consumer behavior studies and processes within that scope. This leads to an identification of the fact that there must be multiple ways of gathering consumer information. This is the only way firms can remain relevant and provide services that meets the best interest and needs of consumers.
As the paradox continues, the authors make a groundbreaking claim:
However, the term is embryonic and academics and practitioners alike lack understanding on how customer engagement contributes to value co-creation. This paper marks the first attempt to conceptualize the role of customer engagement behavior (CEB) in value co-creation within a multi-stakeholder service system.
With this, the researchers use an array of theories and perspectives to present the view of value creation and how it is done in the transport industry. Therefore, they study the way stakeholders come to play to define value. This moves out of the normal scope of value creation whereby consumer needs alone is taken into account. Rather, the needs of other parties like consumers, communities, businesses and governmental organizations are presented in the research. The research identifies that there are three main ways through which value outcomes are perceived by stakeholders and this includes:
Augmenting,
Co-developing,
Influencing and
Mobilizing behavior.
The study indicates that there are value co-creation which is done through diverse contributions of stakeholders. This include the firms and other stakeholders who are expecting certain things based on their own unique expectations and desires. Augmenting is a desire of people who want to see constant improvement. These are usually stakeholders who use a particular service. They demand more value that goes beyond the normal scope and element.
Co-developing is about those who play a leading role in creating something or causing a given service to be delivered. This includes stakeholders and other parties who play part in the creation of the value for the consumer. They have their need in engagement and must be heard.
Furthermore, there is the influencers who have power and authority to change things. In this study, these were the media and political opponents who have power to draw attention to aspects of a given road transport facility. Therefore, it is necessary to take their perspective into account since they have the ability to make demands that could have far-reaching implications.
Also, there are people who have the mobilizing ability. These are organizers and the project team members. They have value and they have demands that they put across. To ensure that results are appropriate, the needs of these stakeholders must be taken seriously and included in the entire development procedure in order to provide a service that is of a sufficiently high quality.
Opinion
Consumer sovereignty is key and vital in all situations and contexts. Most businesses that are focused on profits undertake marketing management in the context of what consumers want and desire. However, this article brings to the fore, some important things that require a lot of analysis and review. These are major processes and procedures that are important. They cover different matters including the demands of other stakeholders like the leadership of a community and standard setters in a given industry.
This article brings me to a position that the marketing management is not only about satisfying consumers. It is also about the reputation of a company. If a company meets the needs of stakeholders, the marketing management process will go well. This brings to mind the idea of corporate social responsibility which is a major part of corporate branding. Customers’ satisfaction is sometimes based on what they think or feel about the wider community and the wider society. Therefore, there is the need for service delivery to be a totality rather than just a limited aspect and scope of a given delivery.
Therefore, I conclude from this that there is the need for engagement in order to create value. These engagements might not have direct implications for satisfying customers. They might have long-term implications in creating corporate brand. However, where they blend with the need to satisfy consumer needs immediately, they must be considered a priority and efforts must be made to ensure that consumer needs are satisfied whilst the needs of the wider society and all stakeholders are met.
There is a long-term interest in firms meeting their immediate needs and expectations. This immediate desire is to sell and gain more profits. This is what most marketers are evaluated upon. Therefore, value creation on the basis of what consumers need is important. However, there is also a requirement to remain faithful and loyal to consumers. Therefore, there is the call and justification for a situation where consumer needs of all types and in all situations is done to promote the best interest and the best needs of stakeholders.
This study also shows that in many cases, the needs of various stakeholders is often congruent and the same as the needs of consumers. This is because the needs of stakeholders like standard setters often come together to promote the best interest for a larger population. Also, the needs of financiers of projects and other interest groups are important because they all come together to provide the best of services and results to consumers. Kotler’s view of high-performing businesses is one where stakeholder needs are met and integrated into the process and this causes a firm to use its resources and organization to meet these needs (2012 p40). The indication is that there are many important elements and features of the market. And to stay strong and consistent, a company will have to do everything in its power to meet the needs of stakeholders and various players in order to satisfy consumers ultimately. Ultimate customer satisfaction is based on listening to different stakeholders and integrating their inputs as a means of gaining better results.
Article 4: Introduction to the Special Issue: Information Technology in Retail: Toward Omnichannel Retailing
Summary
E-commerce and Information technology has changed the world of business significantly. There is the centralization of the information generation and utilization process. This is because there are many portals through which information can be gathered, stored and presented for decision making on customer satisfaction in general. This has led to a lot of in-store technology which prevents the presentation of specific information peculiar to specific units of a business. This creates new opportunities for or retailers. The researchers who wrote this article sought to find the best way of aggregating this information and utilizing it for the best interest of consumers.
Therefore, they identified that there is the need for a lot of integration and the gathering of information. This is due to the integration of different innovative methods and systems of data collection and gathering. Therefore, consumers have no choice but to make sacrifices for their personal data to be presented to businesses. This makes it easy for retailers to gather information and utilize it. Therefore, to ensure maximizing customer value, they urge retailers to continue providing more information and utilizing customer data in a much more closer manner.
They state that:
As the line between online and physical channels is blurred, a new approach to channel integration is emerging—the omnichannel, which aims to deliver a seamless customer experience regardless of the channel.
They present the unique concept of omnichanneling. This is a process where different channels of information about consumers can be created and data can be gathered from consumers in order to identify what they really want. With this done, a company can gather intelligence and provide better data-driven services for consumers. This makes consumers more satisfied and increases the chances of a firm getting it right.
This introduction presents the results of focus group discussions on the role of information technology in retail, new business models, and the future role of traditional stores as e-commerce advances.
The main consensuses found in this study include the need to create channel integration. This means every channel of information that is gathered must be integrated into the general stream of information. There is also the need to introduce mobile technology information gathering systems. This will ensure that information from mobile phone users amongst consumers can be easily taken and effort can be made to meet these goals and expectations.
The role of traditionally informal systems like social media becomes relevant to serving consumers. Therefore, social media information must be identified and integrated into the general framework of channels. There is the need to respond to diverse consumer requirements. This is the best way to create customer value and leverage it across a wide array of information.
The need for omnichanneling also gives room for the redesign of the supply chain system. This is because there is the need to reposition a firm if customer value is to be provided in a flawless fashion. Furthermore, there is the need for sensitive legal matters like consumer privacy to be taken seriously by companies and service providers.
Opinion
Kotler identifies in page 41 that the best companies that get marketing management right are those that have a structural design that links different business units. This outlines the importance of supply chain and operations management and information systems in a company. This is because marketing is about delivering something of value to consumers to enhance an exchange process that meets a value or provides a solution to consumers. Therefore, it is necessary and vital for companies to find ways of providing their services in the best and most appropriate manner to attain results.
Omnichanneling is important because it allows a firm to understand what consumers want and provide it for them. Consumers’ tastes always change. But it can be inferred from the kind of behavioral patterns shown in information and data relating to sales, purchases and other trends in the consumption process. There are many elements and aspects of this that promotes better interaction and data collection from companies and entities that provide good and services to meet consumer needs.
Omnichanneling is used by technology companies. They have algorithms to link profiles and gather information in order to move the company in ways that leads to better results. Therefore, it is necessary for normal businesses to utilize this. Thus, a company must view marketing from a customer relations approach and method. This means that businesses must gather data and evaluate it. Allowing units to operate independent of each other is only going to lead to problems and issues. Therefore, it is necessary to gather data and information regularly. The procedure must include the collection and aggregation of data and information.
There must be plugins and funnels that will gather and sort information. This will provide important patterns for marketing decisions and choices to be made. This will make a company more productive and satisfy the needs of their consumers better.
The entire essence of the textbook is to show how much consumer value creation and need satisfaction is key. If consumers’ needs are not known at a particular time, this is almost impossible. Therefore, the gathering of information and aggregation of this information is important and vital. There must be the collection of information from traditional and non-traditional approaches and methods. This would lead to the gathering of as much information as possible.
Most modern firms view technology as an asset and a tool that is valuable. Therefore, omnichanneling is an important solution to the gathering and evaluation of consumer needs and providing them. This helps a firm to gather more information and utilize it for the betterment of its service delivery. This helps to promote better activities and service delivery.
There is however a sensitivity with consumer privacy. This is because when firms start to rely on data, they often stretch the limit and move to the gathering of information that is personal and must not be gotten by them. This could lead to some form of sensitivity that could create ethical and legal problems for companies. Thus, legal consultations might be necessary before this multi-channel approach is taken.
References
Adjei, M., Noble, C., & Noble, S. (2012, June 13). Enhancing Relationships With Customers Through Online Brand Communities. MIT Sloan Management Review. Retrieved from http://sloanreview.mit.edu/article/enhancing-relationships-with-customers-through-online-brand-communities/
Jaakkola, E., & Alexander, M. (2014). The Role of Customer Engangement Behavior in Value Co-Creation: A Service System Perspective. Journal of Service Research 17 (3), 247-261.
Kotler, P. (2012). Kotler on Marketing. New York: The Free Press.
Mower, J., & Kim, M. (2012). Exterior atmospherics and consumer behavior. Journal of Fashion Management Marketing and Management 16 (4), 442-453.
Piotrowicz, W., & Cuthbertson, R. (2014). Introduction to the Special Issue: Information Technology in Retail: Toward Omnichannel Retailing. International Journal of Electronic Commerce 18 (4), 5-16.
