Customer and Corporate Vision Alignment Analysis Sample – Field & Retail Venues vs Internet Sales Customer Experience Evaluation

1. Myuran
Kanga
I2
1
Meyers-­‐Levy,
Joan
and
Rui
(Juliet)
Zhu,
“Psychological
Impact
of
Ceiling
Height
in
Retail
Spaces,”
InformeDesign,
Accessed:
March
15,
2014,
http://www.informedesign.org/Rs_detail.aspx?rsId=3387.
1
INDIVIDUAL
ASSIGNMENT
3:
Can
Retail
Stores
Survive
in
the
Face
of
Internet
Competitors?
Purchasing
a
Home
Entertainment
System
at
Best
Buy
vs.
Amazon.com
As
a
technology
savvy
society,
we
expect
our
Home
Entertainment
Systems
to
provide
the
best
sensory
and
emotional
experience
possible.
Here
I
have
compared
the
change
in
shopping
experiences
within
the
past
decade
from
the
typical
‘showroom’
stores
such
as
Best
Buy
to
Internet
venues
such
as
Amazon.com.
Best
Buy
–
Traditional
Service
Outputs:
Face-­‐to-­‐face
human
interaction,
feature
and
typical
operation
demonstrations,
discussions
with
customer
representatives
relating
to
product
pros
and
cons,
personal
customer
representative
preferences/opinions/recommendations,
showroom
setup
experience,
personal
attention
and
customized
advice,
immediate
product
purchase
and
inventory
availability,
guided
shopping
experience,
and
technical
features
explained
and
shown
in
laymen’s
terms.
Non-­‐traditional
Service
Outputs:
Further
than
simple
product
purchases,
customers
seek
unique
service
outputs
that
retailers
may
not
traditionally
target.
Venues
to
interact
with
other
people,
share
in
the
wow-­‐factor
and
hype
related
to
experiencing
new
technology,
opportunity
to
speak
with
other
customers
on
their
opinions
and
experiences,
observe
other
customers
operating
technology
to
form
opinions
about
the
products’
overall
user
experience
and
satisfaction,
provide
a
venue
to
share
time
with
friends
and
family
–
an
informal
location
on
weekends/evenings
to
spend
on
leisurely
shopping
trips.
Experience:
From
the
time
a
customer
drives
into
a
Best
Buy
parking
lot,
they
enter
an
atmosphere
where
little
effort
is
required
to
attain
products.
Parking
lots
guide
customers
to
spaces
and
allow
them
to
enter
the
facility
quickly
and
through
short
distances.
The
parking
lots
themselves
provide
guidance
for
leaving
shopping
carts,
provide
trashcans
for
customer
convenience,
and
even
provide
powerful
lights
for
evening
shopping.
Once
inside
the
store,
the
first
feature
customers
will
note
is
the
friendly
smile
and
emotional
connection
from
the
door
greeter.
Next,
they
notice
the
vast
size
of
the
facility.
Not
only
does
the
breadth
and
depth
of
the
facility
provide
a
showroom
expanse,
the
ceiling
is
also
intentionally
positioned
very
high
to
provide
the
feeling
of
freedom
and
openness1.
Customers
also
hear
music
playing
over
the
intercom
system
with
the
bustling
rumble
of
other
shoppers
as
part
of
the
interactive
experience.
Shiny
plastic
wrapping
and
the
smell
of
new
merchandise
signal
high-­‐technology
expectations.
The
home
theater
department
offers
vivid
TV
displays
with
crisp
images
and
a
wide
range
of
display
color
capabilities.
Not
only
do
customers
get
to
hear
the
sound
clarity
from
the
sound
systems,
but
they
also
feel
the
thump
from
the
bass
in
their
bodies.
Customers
can
feel
and
visually
inspect
the
thin
TV
displays
while
wearing
3D
glasses.
Viewing
images
popping
out
at
customers
enhances
the
sensory
and
emotional
effect.
Holding
remote
controls
in
their
hands
and
sitting
in
recliners
allows
customers
to
feel
the
weight
and
ergonomic
aspect
of
similar
systems
in
their
own
living
rooms.
Once
selections
are
made,
customers
are
guided
towards
registers
where
they
smell
the
buttery
aroma
of
popcorn
or
other
promotional
items
designed
to
attract
customers’
as
they
exit
the
store.
Disadvantages:
Added
cost
to
transport
purchases
or
must
transport
on
your
own,
selection
and
variety
of
products
is
limited,
higher
prices
and
taxes,
travel
inconvenience,
and
time
inefficiency.
Amazon.com
–
Traditional
Service
Outputs:
Fast
and
efficient
purchases,
24
hour
buying
service,
direct
delivery
to
residence,
wide
product
selections,
access
to
easily
accessible
reviews
and
warranty
information,
accessory/option
recommendations,
secure
payment
methods,
lowest
prices,
easy
access
to
products
when
‘I
know
what
I
want,’
and
simple
product
comparison
tools.
Non-­‐traditional
Service
Outputs:
World-­‐wide
shopping
access,
facilitate
“bored
shopper
syndrome”
by
providing
related
interesting
products
or
similar
offerings
on-­‐demand,
searching
feature
to
find
unique
items,
suggested/targeted
merchandise
advertising
based
on
interests
and
habits,
and
eco-­‐friendly
transactions
with
electronic
receipts
and
no
plastic
bags.
Experience:
The
Internet
shopping
experience
provides
customers
with
a
unique
approach
to
acquiring
technology.
Customers
can
more
carefully
compare
technical
specifications
for
displays,
sound
technology,
etc.
side
by
side.
They
are
provided
with
the
options
of
shopping
while
enjoying
the
tastes
and
smells
of
food
at
home
or
even
while
watching
their
favorite
TV
show.
Amazon
presents
customers
with
detailed
product
pictures
of
users
demonstrating
the
equipment
in
their
homes
and
arranges
them
in
an
appealing
manner.
Videos
and
accompanying
sounds
are
also
presented
to
help
demonstrate
product
features
or
show
customers
how
users
typically
operate
equipment.
Emotionally,
customers
can
connect
their
buying
experience
by
sharing
their
findings
with
friends
and
family
through
social
media,
email,
or
mobile
devices.
Disadvantages:
Delay
in
receiving
products
due
to
shipment,
difficult
for
non-­‐technical
buyers
to
understand
technology,
hard
to
compare
visual/auditory
differences
between
systems,
no
hands-­‐on
demoing
capability,
buying
requires
more
thought
and
effort
than
guided
store
approach,
and
no
face-­‐to-­‐face
human
interaction.

2. MAR6930
–
Business
to
Business
Marketing
–
Individual
Assignment
3
2
Net
Promoter
Score
(NPS)
Methodology
Background:
The
‘ultimate
question’
as
Fred
Reichheld
describes
it,
is
used
to
survey
individuals
on
a
firm’s
customer
relationship
loyalty.
The
method
implies
a
philosophy
that
firms
must
convert
more
customers
into
promoters
and
fewer
into
detractors
to
grow.
From
the
customer’s
eyes,
the
NPS
quantifies
long-­‐term
consumer
value
by
taking
the
difference
between
‘assets’
and
‘liabilities.’
Customers
are
sorted
into
three
categories:
promoters
who
are
loyal
&
enthusiastic,
passives
who
are
satisfied
but
unenthusiastic,
and
detractors
who
are
unhappy
&
stuck
in
relationships.
Survey
questions
are
posed
to
participants
requesting
the
likelihood
of
recommending
a
firm
to
friends
or
colleagues
with
a
scale
of
increasing
recommendation
from
0-­‐10.
Responses
from
0-­‐6
are
categorized
as
detractors,
7-­‐8s
as
passives,
and
9-­‐10s
as
promoters.
The
NPS
score
is
calculated
by
subtracting
the
percentage
of
detractors
from
promoters.
Organizations
should
challenge
themselves
by
reviewing
Reichheld’s
NPS
score
to
manage
customer
relationship
improvements.
Questions:
The
following
questions
were
used
to
solicit
NPS
scores
for
Best
Buy
and
Amazon.com.
Six
individuals
participated
in
the
study
including
myself.
1)
On
a
scale
of
0-­‐10
with
10
being
extremely
likely
and
0
being
not
at
all
likely,
what
is
the
likelihood
that
you
would
recommend
Best
Buy
as
a
source
for
a
Home
Entertainment
System
to
a
friend
or
colleague?
Follow-­‐up
question:
Why
have
you
provided
this
likelihood
score
for
Best
Buy?
2)
What
is
the
likelihood
that
you
would
recommend
Amazon.com
as
a
source
for
a
Home
Entertainment
System
to
a
friend
or
colleague?
Follow-­‐up
question:
Why
have
you
provided
this
likelihood
score
for
Amazon.com?
The
score
results
and
responses
are
shown
in
the
following
table.
Survey
Results
-­‐
Likelihood
to
Recommend
Firms
as
Home
Entertainment
System
Sources
Best
Buy
Amazon.com
Respondent
Score
Why?
Score
Why?
Myuran
(me)
5
High
prices
9
Best
price,
Speed
Chad
8
See
product
6
Skeptical
of
online
purchases
Larry
7
Specialized
products
5
Shipping
cost
w/out
membership
Chrystal
2
Too
expensive
7
Lowest
prices
Marla
9
Convenient
for
small
towns
4
Bad
service
experience
Roushan
7
Like
as
a
showroom,
Expensive
8
Cheaper,
Quick,
Best
support
Detractors:
2
Passives:
3
Promoters:
1
Detractors:
3
Passives:
2
Promoters:
1
Percentages:
33.33%
50%
16.67%
50%
33.33%
16.67%
Final
NPS
Scores:
𝐵𝑒𝑠𝑡 𝐵𝑢𝑦!
𝑠 𝑁𝑃𝑆 = 𝑃𝑟𝑜𝑚𝑜𝑡𝑒𝑟𝑠 − 𝐷𝑒𝑡𝑟𝑎𝑐𝑡𝑜𝑟𝑠
𝐵𝑒𝑠𝑡 𝐵𝑢𝑦!
𝑠 𝑁𝑃𝑆 = 16.67% − 33.33%
𝑩𝒆𝒔𝒕 𝑩𝒖𝒚!
𝒔 𝑵𝑷𝑺 = −𝟏𝟔. 𝟔𝟕%
𝐴𝑚𝑎𝑧𝑜𝑛. 𝑐𝑜𝑚′𝑠 𝑁𝑃𝑆 = 𝑃𝑟𝑜𝑚𝑜𝑡𝑒𝑟𝑠 − 𝐷𝑒𝑡𝑟𝑎𝑐𝑡𝑜𝑟𝑠
𝐴𝑚𝑎𝑧𝑜𝑛. 𝑐𝑜𝑚!
𝑠 𝑁𝑃𝑆 = 16.67% − 50%
𝑨𝒎𝒂𝒛𝒐𝒏. 𝒄𝒐𝒎′𝒔 𝑵𝑷𝑺 = −𝟑𝟑. 𝟑𝟑%
Analyzing
Scores
and
Comparing
Firms:
The
survey
results
were
converted
to
Net
Promoter
Scores
for
each
firm.
The
comments
from
participants,
along
with
the
NPS
values
can
be
interpreted
to
analyze
each
firm’s
customer
relationship
state.
Amazon.com’s
lower
NPS
can
be
explained
by
the
fact
that
Internet
purchasing
venues
are
still
new
to
some
individuals.
These
people
will
remain
skeptical
until
they
build
a
relationship
similar
to
the
one
they
share
with
companies
like
Best
Buy.
People
are
sensitive
to
‘bad
profits’
and
look
for
instances
where
new
and
unfamiliar
companies
break
the
trust
required
for
strong
customer
relationships.
Requiring
membership
fees
(which
were
recently
increased
by
Amazon.com)
just
to
gain
access
to
privileges
and
imposing
excessive
shipping
costs
for
everyone
else
causes
customers
to
feel
like
they
are
being
deceived
or
alienated.
Best
Buy’s
slightly
negative
NPS
may
be
due
to
the
fact
that
Internet
retailers
are
beginning
to
gain
ground
in
the
market
and
taking
loyal
customers
from
the
firm.
Internet
companies
buy
products
directly
from
manufacturers
at
wholesale
prices
and
create
huge
product
price
discrepancies
in
the
market.
This
is
the
major
problem
that
traditional
retailers
must
overcome.
The
margins
have
become
so
small
that
retailers
cannot
compete.
If
this
trend
continues,
Best
Buy’s
NPS
will
continue
to
decline
over
time.
Retail
Stores
Can
Survive
in
the
Face
of
Internet
Competitors
Traditional
retailers
like
Best
Buy
can
survive
in
the
face
of
Internet
competitors
by
leveraging
the
unique
service
outputs
that
they
currently
fulfill.
People
frequently
visit
Best
Buy
because
they
know
they
will
be
guided
through
purchasing
decisions
with
any
questions
or
concerns
answered
onsite.
These
customers
want
the
‘consumer
experience’
environment.
People
will
always
seek
face-­‐to-­‐face
human
interaction.
There
is
no
substitute
for
the
sensory
demonstrations
provided
by
Best
Buy’s
‘showroom’
experience.
The
strategy
of
gaining
trust
and
growing
customer
relationships
with
credibility,
character,
and
respect
will
allow
retailers
to
maintain
customer
loyalty
and
value
in
the
long
run.