QUESTIONS 1966

•Write ONE discussion board  post where you show how the company you are researching either creates a perception of value or uses information to retain or lure new customers.   Please be specific in your posts and use some examples from your research.
•This way you will achieve two ends:  you will report your company choice to me (if you haven't already done so)  and you will begin to interact with your research.  Perhaps what you find in this effort will be useful in your paper. At least it will get you going on your research.


Also write a comment for each post.

1. Walgreens is the largest drugstore chain in America and is the first drugstore to open. Walgeens started a customer loyalty rewards program to lure new customers. The rewards progrm has evolved beyontipical reward programs. The rewards program allows its customers to accumilate  points for buying specific items, filling prescriptions, and even participating in fitness programs. For 5,000 points, patrons get a $5 reward; for 40,000 points, they receive a $50 credit. The program differentiates itself by being “easy and simple” to interact with in real time on multiple platforms (physical cards, mobile apps and online) and allowing shoppers “to save and earn points over time to redeem for something meaningful (Alec Foege 1). The collected data   from the new loyalty program will help Walgreens in enhancing the assortment of products available in individual stores based on local purchase preferences.
Foege, Alec. "Walgreens Customer Loyalty Program Key Aspect of Drugstore Chain’s Revamp." Http://data-informed.com/walgreens-customer-loyalty-program-key-aspect-of-drugstore-chains-revamp/. N.p., 19 Dec. 2012. Web. 4 Sept. 2014.
ReplyQuote






2.    The Home Depot is the leading company in the US when it comes to home improvement.  One way in which the Home Depot creates perception is by their commercials with "DIY" (Do it Yourself).  They show not only men but women doing projects empowering women to do things around the house like painting.  The company uses its knowleadgeable staff to create value.  A staff that is knowledgeable creates credibility with the employee and customer and assures the customer that they are getting the correct information.  Home Depot does a good job in getting information because without it they cant give customer service. In home improvement asking questions and getting as much information possible is what is gonna lead to transactions.  


















SERVICE SNAPSHOT Special Service for Best Customers Hertz Car Rental knew they had problems when people were getting upset about having to wait in long lines to get their rental cars. Many businesspeople travel very tight schedules and need to have a car quickly. Hertz knew that unless they took action quickly, they would lose many of their most valu- able and frequent renters. Hertz launched a special service— the #1 Gold Club—for those who needed their rental cars quickly. The #1 Gold Club members can call ahead of time to reserve a car. When the member gets off the plane, a shuttle is waiting for the customer at the curb to take him or her to the car. The shuttle driver can welcome him or her by name and explain the shuttle trip is just two minutes. The shuttle drops off the customer at the reserved car. The engine is running, the trunk lid is open, and today’s issue of the WallStreet Journal is on the front seat. The member gets in the car and drives to the gate where he or she shows his or her driver’s license and #1 Gold Card. No lines. No hassle. The successes of this approach lead other auto rental companies to offer similar accommodations. Some offer the preferred customer the option to pick any car they want. Frequent travelers often get streamlined service on airlines (with special lines for first-class and frequent flyers as well as special security lines) and hotel guests get upgrades and special features. What can your company do to offer special consideration to your very best customers? The future “gold card” customer will expect something more.
A FINAL THOUGHT Insight. That is the key word as we seek to stay abreast of ever-changing customer service realities. Accurately forecasting the future is, of course, a tricky business. Often we are limited by our preconceived ideas or our inability to think, as the cliché goes, “outside the box.” Even our customers may not know what they want. Henry Ford is famous for saying that if he had asked customers what they wanted they would have said a faster horse. Nevertheless, maintain- ing great customer service calls for constant evolution. Today’s service innovation can quickly become tomorrow’s minimum requirement. Being ever-sensitive to possible customer turnoffs and changing industry standards is fundamental. The future looks exciting for people and organizations willing to change to stay competitive. Changes are often driven by technology although some organizations may choose to minimize technological innovation. They may decide to keep doing things the old-fashioned, down-home way as they do now. That’s an alternative strategy that may appeal to people who don’t much care for all this new-fangled techy-stuff. In some business contexts, lo-tech may be fine. But for most organizations, embracing technological capabilities is a logical choice. Having the insight neces- sary to decipher customer wants and needs should be a high priority for service professionals. Companies will need to give some hard thought to their value proposition. What exactly do they want to offer customers? It is possible to do business the old ways, to run the mom ‘n pop store or restaurant just as it’s been run in the past decades. But even among staunch traditionalists, customer demand for change may become a clamor. Even in Ye Olde Gift Shoppe with the 1890s theme, customers expect to be able to use their credit cards and probably even look at inventory online. Unless the shop has another gimmick, they will face a lot of pressure to upgrade to current customer demands.
Some customers are concerned about the impact of technology on privacy and the poten- tial for intrusion into personal lives. For example, a few years ago a failed promotion offered free computers to people so long as the company can gather infinite data about every click of the mouse made on that computer. In a sense, those customer would have been selling their privacy for the price of a PC. These customers may resist some of the techniques we’ve discussed but would be open to friendly, informal personalization found in local, neighborhood stores or shops. Whatever strategy your company employs, from having highly sophisticated intelligent- system databases to jotting down handwritten notes on customer preferences, one-to-one, personalized customer service and relationship building must stand as its cornerstone. Cultivate your insight into the future of customer service.

ANOTHER LOOK Of Wine and Corks and Perceived Value Wine makers know that screw cap bottles are better and cheaper than the traditional cork. Yet it is impossible to change to such caps. It may be because buyers would equate screw caps with inferior wine. It may be because the whole event of wine drinking requires the cork. How can this (perception of value) be changed? 1. It is possible that the transition could be made if the screw caps were very expensive in the first place—for example, enameled. If such caps became collectors’ items, then the transition might be accomplished. Here the changed perception, from seeing screws as less desirable to more desirable, is an example of the direct blocking of the “cheap” image. 2. We might go in exactly the opposite direction. We could sell exactly the same wine at two prices: £12 with the usual cork and £10 with a screw cap. People would now set out to convince themselves that the cork was not that important a part of the event of wine drinking. 3. Another approach would be an education campaign to show that corks could go bad and could leak, whereas screw caps could not. This would be less effective than either of the other two approaches— making screw caps either dearer or cheaper—but could be combined with either. It is almost impossible to delete or block a perception pattern. Another pattern needs to be set up to lead values in a different direction. Source: Edward de Bono, “Perceived Value: When Considering Value, Perception Can Be as Important as Reality,” http:// www.thinkingmanagers.com/management/perceived-value .php . Downloaded March 20, 2006.
panel” and “the back seat that was as uncomfortably firm as a park bench,” among the other nega- tive comments. These criticisms surface despite Nissan’s U.S. general manager asserting that the Versa is “one of our most trouble-free cars.” Even the writer acknowledges later in the article a number of positive characteristics for this intentionally stripped-down model. The challenge for the Versa is probably not competing with other low-cost new cars but rather with comparably priced but better equipped used cars. About a third of the article focused on what it calls “things of importance, rather than indulgence, that you sacrifice” on this vehicle. These “things of importance” are power windows, power locks, power mirrors, and the like. What are today being described as important was not long ago regarded as luxuries. Basic trans- portation is not enough; the expectation bar has been raised and anything lacking these kinds of features is seen as lacking in sufficient value. Companies need to be aware of the constantly raising value bar. People demand and expect good value. The snake oil salesman may sell some product in the short-run, transaction-based business. But the likelihood of an ongoing relationship with customers who receive poor value is nil. Good value is a minimum, enhanced value is a competitive advantage.
CREATE AN ENHANCED SENSE OF INTRINSIC AND ASSOCIATED VALUE Perception of value is based on how customers view both intrinsic and extrinsic or, associated factors. Understanding these factors is the starting point for creating A-plus value experiences for your customers. Intrinsic Value of the Product Itself Intrinsic value arises from the core product or service itself. Does it meet customer needs, do what it’s supposed to do? This form of product value may not be immediately evident in some cases. We may assume a product is adequate because it seems to work, but the true extent of its value— especially its durability—may not be clear for some time. For example, a truck buyer may not fully appreciate the value until the truck has a hundred-thousand care-free miles on it. Similarly, the intrinsic value of a legal document an attorney prepared may not be fully evident until it holds up in court. The intrin- sic value of a house painting job becomes apparent only when it still looks great years later.