Marketing Analytics Review Session Dr Arne Floh a.floh@surrey.ac.uk Skype: arnefloh

EXAM GUIDELINES

Exam Guidelines Make a plan and structure your answer. What are the key terms? Bring sub questions in logical order Answer all sub-questions in a detailed way (if possible) (Use references) Structure Define key variables Discuss pros&cons of key concepts/methods Try to link various sub-questions Use ‘good’ Marketing Analytics examples Conclusion

How can customer satisfaction be measured How can customer satisfaction be measured? How does it relate to SERVQUAL? Use examples to illustrate your answer.

Customer Satisfaction Definition The degree to which a consumer's expectations are fulfilled or surpassed by a product. The post-purchase evaluation of a consumer action by the ultimate consumer or the decision maker. Overall (longitudinal perspective) vs. episode view Measurement of Customer Satisfaction Survey Mistery shopping Critical incident method (Analysing customer complaints) (Analysing customer defections)

Confirmation-Disconfirmation Paradigm Expectations … Satisfaction Performance Satisfaction = Attribute Performance - Expectations Source: Hansen (2008, p. 181)

National Customer Satisfaction Index Base- line 09 10 11 12 13 Previous Year % Change First Year % Change Audi 83 84 -1.0 0.0 Nissan 82 BMW 80 78 81 3.0 Toyota All Others 77 76 5.0 Car Manufacturers 79 4.0 Volkswagen -2.0 1.0 Peugeot 73 7.0 Vauxhall 75 Ford -3.0 Renault 72 74 http://ncsiuk.com/index.php

Kano Model

Importance-Performance-Matrix

SERVQUAL vs. SATISFACTION Both concepts focus on the expectancy-disconfirmation process. Oliver (1997) attempted to differentiate these two concepts by proposing that: service quality = “a judgment of performance excellence” (p. 28)  functional or objective performance. satisfaction = “the consumer’s fulfilment response, the degree to which the level of fulfilment is peasant or unpleasant” (p. 28)  emotive outcome. It’s absolutely critical to discern these two concepts via THEORETICAL & OPERATIONAL DEFINITIONS when both are measured in one study.

SERVQUAL Key lessons from SERVQUAL: measure a concept with multiple items to achieve sound validity & reliability measure a concept with multiple items  to check the uni- or multi-dimensionality of a concept. determine the THEORETICAL & OPERATIONAL definitions of a concept to facilitate measurement. propose a rigorous process for scale development.

SERVQUAL II Tangibles: Physical facilities, equipment, and appearance of personnel Reliability: Ability to perform the promised service dependably and accurately Responsiveness: Willingness to help customers and provide prompt service Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence Empathy: Caring, individualized attention the firm provides its customers

SEVQUAL III SERVQUAL is a very “versatile” concept & has been adopted & adapted in various contexts such as: online shopping; mobile technology adoption; food consumption (e.g. dining out); sport consumption (e.g. sporting events); banking; tourist destination, & so forth.

Review Questions

Session 1 - Introduction What is Marketing Analytics? (Aims, Characteristics,…) What is the value of Marketing Analytics?

Week 2 - Segmentation What is Market Segmentation? How do you decide the number of clusters? How can discriminant analysis used for market segmentation?

Week 3 - Positioning What is Positioning and how can if be linked to statistical methods? What are the pros and cons of positional mapping? Discuss the various types of positioning maps. Be able to interpret positioning maps.

Week 4 – Response Models What is a model? How can marketing modelling be used to support management decision making?

Session 5 – Relationship Marketing What is the linkage between perceived customer value and customer lifetime value. Use theoretical frameworks and examples to illustrate your answer. How can customer satisfaction be measured? How does it relate to SERVQUAL? Use examples to illustrate your answer. How can loyalty be measured? How can these measures be linked to customer profitability?

Week 6 – Sales Forecasting I Why we need accurate forecasts in marketing? How to interpret basic forecasting methods including MA and SES methods? How regression models can be applied to forecasting product sales?

Week 7 – Sales Forecasting II Why is Sales Forecasting so important? Discuss the various methods of Sales Forecasting and use examples to illustrate your answers. How can the process of product development be planned? How can the success during the various stages be tested? How can the Bass Model be used for Marketing Decisions? Use theoretical frameworks and examples to illustrate your answer.

Week 8 – Conjoint Analysis What is Conjoint Analysis and how can it be used for product development? How can results of Conjoint Analysis be interpreted? What are pros& cons of Conjoint Analysis? How can it be linked with other statistical methods?

Week 9 – Marketing Mix How can advertising effectiveness be measured? Discuss the adbudg model and its pros&cons.

Week 10 – Web & Social Media Metrics Compare and contrast different web metrics. Compare and contrast different social media performance metrics.

Q&A

Availabilities Exam Date: TBD Email: a.floh@surrey.ac.uk SurreyLearn: Discussion Board Office Hours by appointment