Executive Level Analysis About The Case

Summary

The author in this study explores the effectiveness of the digital technology and advanced web tool on the business-customer relationship. The advancement in technology and introduction of different web tools has played a significant role in enhancing the relationship between the customer and the organizations because with the help of digital technology knowledge from the customer side is easily utilized by most of the organization. The traditional production process has been converted because the digitalization has made possible the utilization of both external and internal knowledge in the production process (Paolocci 24). The firms whose production process is still dependent on the internal information and lacks the involvement of the consumer in producing the products makes their products less attractive because in modern world customer demands the product based on their knowledge and need and for this purpose social media websites are playing an important role in connecting the customers to the brands.

Social media enables the organizations to communicate effectively with their target groups and gather the information related to their need and perception regarding the design, quality, features and production process of the product. This has made many organizations in attaining the successful position in the market by producing the successful products involving both the requirements of the customers and also the organization that made the product more effective and successful.

There are different dimensions analyzed by this study that are perceived as the important component of making the customer-business relationship healthy and successful and it includes relationship, engagement, value co-creation and openness (Paolocci 29). All the components are entirely dependent on the effective communication among the customer and the brand that results in successful association, commitments, value creation and openness.

What do you agree with?

The concept from the study that web has totally altered the relationship between the customer and the business is agreeable (Paolocci 22). The communication level and techniques have been altered that has become more efficient and is quite helpful in creating the healthy relationship among the customer and the brand. The adoption of the smart phones and tablets to the digital billboards and attractive television ads, both consumers and brands are trying to hold and utilize the non-stop supply of new technology. This results in the continue change in the way through which customers communicate and interact with the brands and it is perceived that this change in the relationship will be constant with the advancement in the technology and marketing techniques based on the advanced technology.

Social media is the main platform that has altered the relationship between the customers and brands as it has provided open opportunity to both customers and brands to communicate openly and effectively for the most advanced production and innovation and to some level it has also increased the level of risk of the brands.

What not to agree with?

According to the author Consumer Packaged Goods (CPG) are still largely dependent on the traditional techniques like feedback channel, suggestion channel and more traditional market driven channel. Consumer packaged goods sector is more inclined towards the latest marketing techniques rather than traditional and many companies in CGS sector has experienced the marketing shift and their center of attention is more a retail outlet designing the service models and marketing techniques that directly connects them to their consumers.

Almost every sector of the economy is adopting the advanced technological techniques and CPG customers are highly dependent on the advanced research before getting the product and also helping the respective organizations in development of a high quality and effective product with the more organic products. Web has enabled the customers to get the things online and this makes the customers to do a proper research before getting the product and share their experience and demand that helps the company is production of the high quality products based on the customers demand.

What would you change and Why?

Managers of the respective must work hard in creating and maintaining the one-to-one relationship with the respective customers by focusing on and fulfilling their demands because customers are an important asset of the company and the advancement in technology, immense usage of social media and increased competition in the market has also increased the risk and challenges for the brands. The increased use of social media is both useful and risky at the same time for the brands because it has enabled the customers to gather information from other customers regarding the products and a positive feedback can play a significant role in the success of the company and a negative feedback can be risky for the company because of the increased competition.

In the modern world it is quite impossible to ignore the impact of the digitalization on both the company and customer life as both utilizes it and it has also became the major source of communication among the customers and organizations. Effective communication can lead to formation of quality product and service because it enables both the company and customer to understand the wants and needs of each other and with mutual understanding and multi-dimensions of knowledge they successfully produce the good and service that is competitively advantageous and of high quality.

Reference

Paolocci, Eleonora. Digital Strategies of Consumer Involvement and Innovation Dynamics: A Cross-Sector Explorative Study, (2014): pp 21-39.