Understanding User Expectations & Experiences in Brand/Product Development
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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
- 4. January 24-25, 2013 Igsummit.weebly.com A few handy frameworks
- 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!
- 11. January 24-25, 2013 Igsummit.weebly.com Understanding expectations
- 12. Imminent The time horizon of decisions Distant matter for expectations.
- 13. We seek consistency in our cognitions.
- 14. What really matters is below the surface.
- 15. January 24-25, 2013 Igsummit.weebly.com Understanding brand image
- 16. Sincere brands drive loyalty but are vulnerable to transgressions.
- 17. Customer traits determine how brand personality impressions are formed and updated.
- 18. Perceptions of warmth and competence drive brand admiration.
- 19. January 24-25, 2013 Igsummit.weebly.com Understanding total perceived quality
- 20. We are hard-wired to remember bad experiences and we tend to talk a lot about them.
- 21. The peak and the end matter more than the duration.
- 22. Mood and context affects how we remember, and may bias our choices.
- 23. In other words, it’s a big mess.
- 24. January 24-25, 2013 Igsummit.weebly.com Brand image lens Evaluation Choice Experience Memory Time Needs Context
- 25. January 24-25, 2013 Igsummit.weebly.com Subject to biases Evaluation Choice Experience Memory Time Needs Context
- 26. January 24-25, 2013 Igsummit.weebly.com Innovation Games to the rescue!
- 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)