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Week 7 Notes

by: Ian Adams

Week 7 Notes CONSCI 3910 - 0010

Ian Adams
GPA 3.606

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About this Document

These notes are from class on 2/23 and 2/25.
Consumer Service and Satisfaction
Jay Kandampully
Class Notes
consumer science
25 ?




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Popular in Behavioral Sciences

This 2 page Class Notes was uploaded by Ian Adams on Saturday February 27, 2016. The Class Notes belongs to CONSCI 3910 - 0010 at Ohio State University taught by Jay Kandampully in Fall 2015. Since its upload, it has received 47 views. For similar materials see Consumer Service and Satisfaction in Behavioral Sciences at Ohio State University.

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Date Created: 02/27/16
CONSCI 3910 Week 7 Notes Service Marketing  Old, traditional marketing of services is no longer successful o Companies cannot tell customers what they want, rather they need to find out  what the customer wants o Firms have to transform their customers into marketers that tell others about the  services they enjoy o Making a return on investment (ROI) is achieved through customer satisfaction o Spending money on creating experiences for consumers is much more effective  than spending money on an ad  Marketing and Customer Relationship of Physical Goods o Old flow: Production → Marketing → Consumption o New flow: Consumption → Marketing → Production  Main Functions of Marketing o Communicate with the consumers o Get feedback from the consumers  Social Customers o People today can post on social media about their experiences o People today can create customer communities (such as My Starbucks Idea for  Starbucks or Harley Owners Group for Harley­Davidson)  Inter­relationship Between Production, Consumption, and Marketing in Services o The overlap of production, consumption, and marketing are the buyer­seller  interactions  Production and consumption happen at the same time due to the nature of  services, and marketing efforts must happen then to ensure the consumer  has a positive experience  Marketing, operations, and human resources in a firm must equally work  together to create memorable experiences  Prevailing Marketing Myth: Promotion is key to success o Promotion does not work for services because each service provided is a unique  experience o For the majority of the things we buy, we are paying mostly for the experience  and not the product  Price is 60% Experience, 40% Product  Example: The actual cost of the coffee itself at Starbucks is very low, but  the price for the drink is high due to the created experience  The higher the created experience, the higher the charge can be  3 Phases of Customer Experience o Pre­Consumption  Before you undergo the service  You may have heard things about the service from others, but you do not  know what your experience will be like CONSCI 3910 Week 7 Notes o Consumption  Actually undergoing the service  Phase where most money spent on marketing should be used to improve  overall experience satisfaction rate o Post­Consumption  After you have undergone the service  Customers can promote their experience to others  Customers are more likely to tell others about the service if a storyline was created during the service


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