Scientific research shows how imagining a future experience is often more satisfactory than the actual experience, and how the memory of an experience is mostly determined by only a few key events. This feeds into the field of service and relationship marketing where the perceived quality of a service or a brand image should match or preferably exceed the hidden, outspoken and implied expectations of the customer. In this lecture I summarize this research and show how it can be synthesized into a holistic brand and product design framework. I further suggests how to use this framework together with the Innovation Games® platform to analyze customer expectations and perceptions in order to develop brands and products that resonate with customers.
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Understanding User Expectations & Experiences in Brand/Product Development
1. January 24-25, 2013
Igsummit.weebly.com
Understanding User Expectations &
Experiences in Brand/Product
Development
Ulf Hannelius, PhD, EMBA
Aneega AB
Stockholm, Sweden
ulfhannelius@aneega.com
2. January 24-25, 2013
Igsummit.weebly.com
In this presentation I will cover
•The Nordic School of Service Marketing
•Research findings relating to
expectations, brand image and memory
•How Innovation Games can help figure it
all out
3. January 24-25, 2013
Igsummit.weebly.com
The Nordic School
• The customer as a participant
• From a customer perspective there are only
services on the market
• Marketing is not a separate business function
5. January 24-25, 2013
Igsummit.weebly.com
Brand
Image
Expected Total Perceived Quality Experienced
Quality Quality
•Marketing
Brand
communication
Image
•Sales & PR
•Brand image
•Word-of-Mouth
•Customer
needs, values and Technical Functional
learnings Quality: What Quality: How
Adopted from Grönroos C: Service management and marketing. 2008
6. January 24-25, 2013
Igsummit.weebly.com
Brand
Image
Expected Total Perceived Quality Experienced
Quality Quality
•Marketing
Brand
communication
Image
•Sales & PR
•Brand image
•Word-of-Mouth
•Customer
needs, values and Technical Functional
learnings Quality: What Quality: How
Adopted from Grönroos C: Service management and marketing. 2008
7. January 24-25, 2013
Igsummit.weebly.com
Expected
Quality
Unclear Outspoken expectations Implied
expectations expectations
Unrealistic Realistic
Focus and adjust to
improve quality
Adopted from Ojasalo, J: Quality Dynamics in Professional Services. 1990
8. January 24-25, 2013
Igsummit.weebly.com
Expected
Quality
Unclear Outspoken expectations Implied
expectations expectations
Unrealistic Realistic
Focus and adjust to
improve quality
Adopted from Ojasalo, J: Quality Dynamics in Professional Services. 1990
9. January 24-25, 2013
Igsummit.weebly.com
Brand awareness
Marketing
communication
Desired Brand Brand image
identity
Total Perceived Quality
Fulfillment of brand
promise
Adopted from Grönroos C: Service management and marketing. 2008
10. January 24-25, 2013
Igsummit.weebly.com
Expectations Perceived quality
Brand image
Modified by
Cognition, em
otions and
behavior!
27. Hidden needs, emotions and Brand Image
Expectations
Context and time
Product
Box
Spider Web Functional and Technical quality
Start my
day
My worst Prune the
Buy a feature 20/20 vision
Nightmare Remember Product Tree
the future
Online experience: Me and My shadow
Perceived quality: Speed Boat
28. January 24-25, 2013
Igsummit.weebly.com
Further reading
Service and relationship marketing
Grönroos C: Adopting a service logic for marketing, 2006
Grönroos C: Service management and marketing. 2008
Expectations
Rudd et al: Leave Them Smiling: How Small Acts Create More Happiness than Large Acts. Working paper.
Wilson &Mayers: How happy was I anyway? A retrospective impact bias. 2003
Mogilner et al: The Shifting Meaning of Happiness. 2011
Mogilner et al: How Happiness Affects Choice. 2012
Mogilner et al: Time Will Tell: The Distant Appeal of Promotion and Imminent Appeal of Prevention. 2007
Wirtz et al: WHAT TO DO ON SPRING BREAK? The Role of Predicted, On-Line, and Remembered Experience in Future Choice. 2003
Marketing Metaphoria: What Deep Metaphors Reveal About the Minds of Consumers
Brand image
Aaker et al: When Good Brands Do Bad. 2004
Aaker et al: Cultivating admiration in brands: Warmth, competence, and landing in the
“golden quadrant”. 2011
Venkatamarani et al: Two Roads to Updating Brand Personality Impressions: Trait Versus Evaluative Inferencing. 2005
Winchester & Winchester: Exploring Negativity Bias in Brand Beliefs and Stated Brand Switching Propensity. 2009
Memory
Mitchell, T. R. et al:. Temporal Adjustments in the Evaluation of Events: The "Rosy View". 1997
Aaker et al: Recalling Mixed Emotions. 2008
Pocheptsova&Novemsky: The Effect of Context on Memory-based Judgments of Hedonic Experiences. Working paper.
Baumeister et al: Bad Is Stronger Than Good. 2001
Kahneman: Thinking fast and slow. 2011
Todd et al: Psychophysical and Neural Evidence for Emotion-Enhanced Perceptual Vividness. 2012
29. January 24-25, 2013
Igsummit.weebly.com
Thank you!
Ulf Hannelius, PhD, EMBA
Aneega AB
Stockholm, Sweden
ulfhannelius@aneega.com
Editor's Notes
How I met Grönroos and how his marketing perspective resonated with IGDraw a product and the service perspective on the white board. From a goods marketing perspective consumption is a black box. Traditional marketing has served more to push products and focus on exchange of products rather than interaction and relationships. “Therefore, exchange and facilitating transactions never became a focus of research, nor a starting point for the development of marketing models. Instead, facilitating interactions and the management of interactions between the firm and the customer became a more productive focal point.”Good logic: make goods available as resources for customers (we create value)Service logic: help customers create value
Explain framework. Tthe European perspective (i.e. Groönroos’ model) suggesting that service quality consists of three dimensions, technical, functional and image, and that image functions as a filter in service quality perception.
Explain the importance of functional quality (SERVQUAL) but, “..functional quality had a stronger influence on image and overall service quality relative to technical quality.” - Service quality dimensions: an examination of Grönroos’s service quality model, Example KONE support/maintenance
Explain model
Unclear (hidden) expectationsUnrealistic innovation opportunity (competitor may be able to fulfill these needs)
Understand both internal (identity) and external (image) to build the brand. Note, we don’t develop brands, customers develop or we co-develop brands.
Draw a time lineHappiness = Excitement or Calm (future or present focus, see old and young people). Temproal focus, anticipation and presentsSelf-dependentvs interdependent = seek pleasure avoid pain. Compare with Luke’s observation on internal vs customers in BAFDraw parallel to change projectsAnticipation important (look at new Apple releases vs carriers that lock you in for 2 years)Discounting of future events
Focus on more supportive beliefs that outweigh the dissonant belief or behavior.Reduce the importance of the conflicting belief.Change the conflicting belief so that it is consistent with other beliefs or behaviors.Linked to negativity bias – rationalize away negative events that affect your self-esteemConnect to the silence of agile (Steve Rogalsky) – Cognitive ease after brainstorming individual ideasKnowsy alignment
Draw the pyramid (surface metaphors, metaphor themes, deep metaphors)Focus on similarities – human notice patterns and categories before details --> find the patterns and use for marketing and designBalanceTransformationJourneyContainerConnectionResourceControl
Explain the research (draw)Exciting vs sincere transgression show loyalty graph (sincere + good, sincere + bad; exciting + good; exciting + bad)
Explain the example of Harley DavidsonDraw one rugged person and one non-rugged, draw HD and show how info flows from HD to customersConsumers who are chronic on the “rugged” trait may believe that this new information dilutes the brand’s “macho ruggedness” image, and they may downgrade theirruggedness ratings accordingly. However, those who are nonchronic on ruggedness are unlikely to change their ini- tial ruggedness ratings of Harley-Davidson when they receive information about its environmental consciousness (an evaluatively positive claim), unless the situational con- text succeeds in priming the trait. Our findings also suggest that even in the face of information disconfirming specific personality impressions, marketers can maintain positive brand personality impressions among a segment of con- sumers (those who are nonchronic on that specific trait) by providing consumers with trait-irrelevant positive informa- tion about the brand.
Explain research, non-prifts war, profits competent.Example top brandsAdd some money or words to non-profits. Or CSR to profits
Negativity bias, examplesBad word of mouth (5:1 rule; 12Pradaxa example
Kahnemanexperiemnt water and colonoscopy (draw)
Research that shows how mood, evaluation and choice interlinkFrom Aaker: Specifically, participants who were led to feel excited evaluated an ad prom- ising an adventurous vacation more favorably, whereas those who were led to feel calm evaluated an ad promising a serene vacation more favorably (Kim, Park, and Schwarz 2010)