1. Customer Loyalty and Product Strategy Chapter 12

2. Customer Satisfaction Firms are in control of: Basics Support Process for problems Extraordinary services

3. Developing Extraordinary Services Individual, personalized attention Ask and remember their wants Overkill on communication Follow-up on lost customers

4. Customer Service As A Competitive Advantage Small firms can give more individual attention to customers Fewer Employees: –employees have latitude in responding to customer needs

5. Problem Recognition This stage must occur first Current state differs from ideal state Influencing factors: –changing the actual state –affecting the desired state

6. Information Search and Evaluation Collection and evaluation of information (using internal/external sources) This process will take longer for a new product

7. Purchase Decision How and where to make purchase many outlets to choose from In-store features are important in obtaining the purchase

8. Post-Purchase Evaluation Decision-making process continues after purchase cognitive dissonance and complaints are related to satisfaction Consumers vary in their acts when they are displeased

9. Psychological Factors Needs – same products satisfies needs differently Perceptions – individuals’ interpretation that gives meaning to different stimuli understanding helps with planning communications Motivations – force that gives direction to unsatisfied needs can help marketers to appeal to consumers Attitudes – Opinion; based on knowledge, feeling, and behavioral tendency Can be an obstacle or catalyst

10. Product Development Idea Accumulation - many ideas; varied origins Business Analysis - study idea in relation to financial concerns; Can it be profitable? Total Product Development - planning, branding, packaging, pricing, promotion - prototype Product Testing - lab tests/test markets

11. Branding Identify product verbally/symbolically easy to pronounce and remember descriptive legal protection promotional possibilities used on more than one product line

13. Sociological Factors Culture – behavioral patterns and values that characterize a group of customers Tremendous impact on purchase and/or use of product Social Class – divisions within a society having different levels of social prestige Lifestyles differ with social class

14. Sociological Factors Reference Groups – groups an individual allows to influence his/her behavior Why this occurs/how can it be used to promote sales Opinion Leaders – group members w/key role Important to identify opinion leaders