Re: study plan
Marc Bortz
haha pretty generous...so much info to knowelm = elaboration likelihood model, like central versus peripheralMeeting soon now that we're done with exam? I'm free tomorrow after 8.
On Wed, Apr 6, 2011 at 12:47 PM, Marc Bortz <marc...@gmail.com> wrote:What do we think the curve is gonna be on that test??? I'd be surprised if I got over 25. What the heck is ELM?!?Sent via BlackBerry by AT&T
From: Shana Rusonis <srus...@gmail.com>Date: Tue, 5 Apr 2011 11:34:16 -0400To: Marc Bortz<marc...@gmail.com>Cc: Alina Kim<akim...@gmail.com>; <ac...@wharton.upenn.edu>; Alixandra Kriegsman<alikri...@gmail.com>Subject: Re: study planChapters 2 and 3 of the Tipping Point ... I missed the class where these readings were discussed, and I would say based on our review session that Chapter 2 on the mavens, connectors, and salesmen will be important. The chapter on stickiness actually doesn't include much - just tons of really long anecdotes. The stuff that we covered in class for stickiness is much more explicit and informative than this stuff (as you can see, I could extract little to none about what Gladwell actually says about stickiness).
On Tue, Apr 5, 2011 at 12:07 AM, Shana Rusonis <srus...@gmail.com> wrote:Hey everyone,Sorry my stuff is coming so slow - I got bogged down with other stuff this evening. But here's a start in case anyone's still up - the Schwartz Ch 3 ... and more coming later
On Mon, Apr 4, 2011 at 10:54 PM, Marc Bortz <marc...@gmail.com> wrote:Here are all of my notes on all of the slide decks. If youre on a mac its in the workbook format in word, otherwise i think i just gets converted.--On Mon, Apr 4, 2011 at 7:56 PM, Alina Kim <akim...@gmail.com> wrote:
hey guys,these are the notes that i got for my readingsOn Mon, Apr 4, 2011 at 7:37 PM, Aaron Caulfield <aacau...@gmail.com> wrote:
wooooooaahhhh! i had no idea the readings were this long and in depth...i'm sorry guys, but i'm not gonna be able to get these done. I also have fnce on thursday that i'm studying for like crazy, so i think i'm just gonna do a quick cost benefit analysis of these readings, and conclude that it's not worth it for me to study all the readings...sorry if i let u guys down...i hope you can pick up these amongst urselves...feel free to cut me out of the loop on whatever notes you do come up with. For what it's worth here is the jones and sasser one that i did:Jones and Sasser. Why Satisfied Customers Defect
The company’s 8 divisions operate in diverse markets, including light manufacturing, wholesale distribution, and customer services.
They created a customer satisfaction survey to measure its quality improvements.
82% of customers surveyed were 4 (satisfied) or 5 (completely satisfied).
3 divisions with 4.5 or higher.
1 division manufactures bulk lubricants. Its rating is only 2.7 but company decides that its customers are lost cause and that its rating is equal to or above its competitors, so they won’t do anything about it.
4 remaining divisions are neutral or pleased but not delighted. 2 manufacture large industrial machinery. 2 provide after market service. All ratings between 3.5 and 4.5.
Assumptions
First, as long as customer responds with 4, then the company-customer relationship is strong.
Second, trying to change the customer from satisfied to completely satisfied is not a good use of resources.
Third, each division between 3.5 and 4.5 should focus on its customers who are 1 and 2.
EXTENSIVE RESEARCH, HOWEVER, SHOWS THAT THESE ASSUMPTIONS ARE FLAWED
Except in a few rare instances, complete customer
satisfaction is the key to securing customer
loyalty and generating superior long-term financial
performance.
Any drop in satisfaction from complete satisfaction to just satisfaction has huge implications on loyalty. So totally satisfying members of the targeted customer group should be a top priority.
Even in markets with relatively little competition,
providing customers with outstanding value
may be the only reliable way to achieve sustained
customer satisfaction and loyalty
Very poor service or products are not the only
cause – and may not even be the main cause – of
high dissatisfaction. Often the company has attracted
the wrong customers or has an inadequate
process for turning around the right customers
when they have a bad experience.
Different satisfaction levels reflect different issues
and, therefore, require different actions.
Its totally satisfied customers
were six times more likely to repurchase
Xerox products over the next 18 months than its
satisfied customers. The implications were profound:
Merely satisfying customers who have the
freedom to make choices is not enough to keep
them loyal. The only truly loyal customers are totally
satisfied customers.
To investigate, we scrutinized
more than 30 individual companies and
analyzed data from five markets with different
competitive environments and different types of
customer relationships. The five markets were automobiles,
personal computers purchased by businesses,
hospitals, airlines, and local telephone services.
Look at page 7 of PDF for graph. For automobiles for instance, which is highly competitive, you don’t see a lot of loyalty until the customer is completely satisfied. For local telephone services, on the other hand, which is often a monopoly, there is a false sense of loyalty even when customers are dissatisfied because they have no other options.
5 main ways to listen to customers:
1. Customer satisfaction indices, such as surveys of how they liked the product or service
2. Feedback, such as customer complaints, comments, and questions
3. Marketing Research, how did you hear about us? What experiences influenced your decision to purchase our product?
4. Frontline personnel – employees who have direct contact with the customer
5. Strategic activities, such as Southwest invites frequent flyers to interviews with prospective flight attendants
Look at chart on page 13 and also chart on page 14 for descriptions of loyalty variations
Besides that it is mostly fluff and she will prolly only ask about big concepts from the readings, so just know that this is the main point:
“Except in a few rare instances, complete customer
satisfaction is the key to securing customer
loyalty and generating superior long-term financial
performance.”
On Mon, Apr 4, 2011 at 3:34 PM, Shana Rusonis <srus...@gmail.com> wrote:
Here are two summaries that I found in my notes for Gourville. Why Developers Don't Understand Why Consumers Don't Buy and ECON The Way the Brain BuysAnd I'm coming up with all of the book readings later tonight...Reading – Why Consumers Don’t Buy
- Fundamental consumer bias – tendency to irrationally overvalue the benefits of an entrenched alternative, while undervaluing the benefits of a new alternative
- New products that force lifestyle change are not as easily adopted
- The new product needs to offer “gains” if there is to be any hope of switching … often, they incur “losses”
- Overvalue losses, undervalue gains – the psychological switching costs
- Objective vs. psychological net benefit
- Prospect Theory: responses to changes in monetary and non-monetary wealth
o Psychological losses or gains
o Rule 1: Individuals are sensitive to gains and losses – outcomes are relative to some salient reference point, rather than absolute
o Rule 2: Reference points matter – that salient reference point is usually some status quo; additions to that status quo are gains, whereas giving up something about that existing state will be a loss
o Rule 3: Decreasing marginal sensitivity -
o Rule 4: Aversion to losses – losses cost more than potential for gain (an even-money bet)
- The Endowment Effect – valuing items in your possession more than items not in your posession
- Changes purely in costs or in benefits (decrease in cost, increase in benefits) will be easy adoption scenarios, since they offer pure gain
- In comparison, increased costs and increased benefits is a much more difficult adoption scenario
- Examples of this “fatal” adoption flaw:
o Electric car
o Online groceries
o TiVo
o Netflix
- Certainty of loss, difficulty in quantifying gain (qualitative aspects), while quantifying increase in cost is easy
- The Developer’s Curse
o Innovators believe in the new ideas – self-selecting group that may not foresee the potential for failure; see a new feature as much more valuable than the average consumer
o Clash in Perspectives – innovators have a different reference point
o 9X Problem – innovators think something is up to 9 times as important as a consumer would believe
o The curse of knowledge – perspective of the innovator, once changed, cannot be reversed (losing touch with the consumer perspective)
o Results in a reversal of value for the developer compared to the consumer
o Inside versus outside view – innovator’s familiarity and investment in a product, versus consumer’s first introduction and skepticism of a new product
- Capturing value – behavioral change versus value to be gained
o Tinkering – low behavior, low value
o Strikeout – high bx, low value
o Long haul – high bx, high value
o Home run – low bx, high value
- Options for firms
o Brace for the long haul
o 10X improvement (to outweigh 9X disparity)
o Make it behaviorally compatible
o Seek out unendowed consumers
o Find believers
o Eliminate old, incumbent technology
- Conclusion: over 2/3rds of new products fail in marketplace, most innovations don’t even make it that far
Reading – The Way the Brain Buys
- Store design, greeters, “decompression zones” are all part of a plan by retailers to slow customers down, be psychologically uplifting
- Visual stimulation is typical, but scents can be very effective as well
- Focus groups used to gain insight into how customers make choices – finding out how to invoke emotion and memories
- fMRI can detect physiological reactions to products
- the “moment of truth” – decision-making point
- Philosophies behind organizing retail space – i.e. supermarkets – is eye-level best, or slightly higher? End-caps may have highest visibility
- Using surveillance footage to study consumer actions
o For example, with beer buying, consumers generally already have their minds made up when they enter the store; marketing budget should be spent outside, rather than inside, the store
o Consumers are more satisfied if their choice comes from a categorized selection
- Customer conversion – the rate at which entry into a store becomes a purchase (almost 100 percent of grocery store customers)
o Issues that prevent purchase are typical: long lines, items out of stock, poor service
o Getting a customer to try something is a very promising method for conversion
- Decoy item to make a decision easier and more enjoyable
- Overt methods of tracking consumer attitudes and decision-making processes; EEG or tracking devices, which sound alarming, but would make consumer behavior manipulation more precise
- Persuasion by stealth is less objectionable while it goes undetected – perils of backlash
On Mon, Apr 4, 2011 at 3:29 PM, Aaron Caulfield <aacau...@gmail.com> wrote:
Hey guys,The following are some of the ones i was going to go over...please let me know asap if you have done one of these already so I don't have to do it:Thanks guys, also can you send me ur summaries for the ones you've already done so i can start studying those as well:This was from Alina:
"So... i think shana said she hasn't done
- Jones and Sasser
- Riechheld articles
and some i haven't done are...
- Kahneman, Knetch & Thaler
- Silverstein & Fiske
- Simson "
This was from Ali: "Can you cover Schelling, self command in practice etc etc? And perhaps one more but Ill let you know soon! I do not have the NYT article "Step by Step" so maybe that one too? Thaler article "Mental Accounting and Consumer Choice""
On Mon, Apr 4, 2011 at 12:20 PM, Aaron Caulfield <aacau...@gmail.com> wrote:
hey guys,i will be done with mine by tonight and will email them out to you guysOn Mon, Apr 4, 2011 at 10:53 AM, Alina Kim <akim...@gmail.com> wrote:
hey guys,so sorry for the delay. i'll have my notes by today afternoon
On Sun, Apr 3, 2011 at 7:22 PM, Shana Rusonis <srus...@gmail.com> wrote:
Hey guys,
Thanks for your notes Ali! I'm currently working on a paper due by 9, so I'm going to be getting my summaries out late tonight. They're coming, though!
From: Alixandra Kriegsman <alikri...@gmail.com>Date: Sun, 3 Apr 2011 19:21:19 -0400To: Alina Kim<akim...@gmail.com>; Shana Rusonis<srus...@gmail.com>; Aaron Caulfield<aacau...@gmail.com>Subject: Re: study planHey guysHere is a summary of my assigned readings and lecture slides etc. My readings were pretty straight-forward on the whole and were covered in class.
On Sun, Apr 3, 2011 at 1:08 PM, Alixandra Kriegsman <alikri...@gmail.com> wrote:
Hey Guysso the Thaler article "Mental Accounting and Consumer Choice" is wayyy to econ-y for me to explain to others, let alone fully get myself! Also we did not go over much of it in class and what we did go over is majorly simplified in her powerpoints. Maybe I was not there that day when we went over it, but as of now it seems kind of like an outlier reading. Let me know because it is very possible I missed class...AliOn Sat, Apr 2, 2011 at 9:15 PM, <alikri...@gmail.com> wrote:
You rock! Ill email you tomorrow AM!Sent via BlackBerry by AT&T
From: Alina Kim <akim...@gmail.com>Date: Sat, 2 Apr 2011 20:37:48 -0400To: Shana Rusonis<srus...@gmail.com>Cc: <alikri...@gmail.com>Subject: Re: study planhey Ali,Aaron said he would be able to do some articles, so can you let me know which ones you didn't do so that i can let him know?thanks!On Sat, Apr 2, 2011 at 1:28 PM, Shana Rusonis <srus...@gmail.com> wrote:
it could be, sorry; didn't double check this against the coursepack before i sent itOn Sat, Apr 2, 2011 at 1:19 PM, Alina Kim <akim...@gmail.com> wrote:
heyy~ is the list missing silverstein & fiske?On Fri, Apr 1, 2011 at 2:36 PM, <alikri...@gmail.com> wrote:
Also can't find the baumeister article onlineSent via BlackBerry by AT&T
From: Shanea Rusonis <srus...@gmail.com>Date: Fri, 1 Apr 2011 14:22:09 -0400To: Alina Kim<akim...@gmail.com>; Alixandra Kriegsman<alikri...@gmail.com>Subject: study planHey guys,
Here's what I have for a study plan:
Reading summaries this weekend:
Shana: Ariely, Ch 1, 2, 3, 7, 9, 10 Tipping Point Ch 2, 3, Jones and Sasser, Riechheld articles
Ali: Schwartz Ch 3, Gourville, ECON, Almquist & Wyner, Petty, Cacioppo & Schmann, Cialdini, Schelling, Baumeister, Step by Step, Thaler articles
Alina: Kahneman, Knetch & Thaler, Gladwell (Science of Shopping), Gourville and Soman, Levin & Gaeth, Simonson, Hsee & Hastie, Chase & Dasu articles
Lecture notes/lists of terms to know (also by this weekend)
Shana: 1/19, 1/24, 1/26, 1/31, 2/2, 2/7
Ali: 2/9, 2/14, 2/16, 2/21, 2/23, 2/28
Alina: 3/2, 3/14, 3/16, 3/21, 3/23, 3/28, 3/30
Okay, I think we'll be asked questions about the case studies. I also divvied up the lectures pretty evenly - Alina, you have one more because yours includes the two days we had guest lectures. If one of us was absent for a lecture, we can swap them. Also tried to divide up the readings pretty evenly, but let everyone know if you need someone to take one off your plate. I think we should aim to have some basic outlines and summaries to each other by Sunday evening, and we can review on our own before we come together to study.
Also, if you guys want to meet up to study either Monday after 5 pm and Tuesday after 4:30 pm. Anytime. I'm usually hanging out in the SPEC office in Houston, but more than happy to hit up some study rooms in Van Pelt (the only ones I can reserve!)
--
Shana Rusonis
Candidate for B.A. in English
University of Pennsylvania '12
410.707.1286 | srus...@gmail.com
--
Alina Kim
University of Pennsylvania Class of 2012
akim...@gmail.com
661-373-3523
Philippians 3:7-11
--
Shana Rusonis
Candidate for B.A. in English
University of Pennsylvania '12
410.707.1286 | srus...@gmail.com
--
Alina Kim
University of Pennsylvania Class of 2012
akim...@gmail.com
661-373-3523
Philippians 3:7-11
--
Alina Kim
University of Pennsylvania Class of 2012
akim...@gmail.com
661-373-3523
Philippians 3:7-11
--
Shana Rusonis
Candidate for B.A. in English
University of Pennsylvania '12
410.707.1286 | srus...@gmail.com
--
Alina Kim
University of Pennsylvania Class of 2012
akim...@gmail.com
661-373-3523
Philippians 3:7-11
Marc S. Bortz
Wharton School of Business, Class of 2012
Email - <Bor...@wharton.upenn.edu>
--
Shana Rusonis
Candidate for B.A. in English
University of Pennsylvania '12
410.707.1286 | srus...@gmail.com
--
Shana Rusonis
Candidate for B.A. in English
University of Pennsylvania '12
410.707.1286 | srus...@gmail.com
--
Marc S. Bortz
Wharton School of Business, Class of 2012
Email - <Bor...@wharton.upenn.edu>
Shana Rusonis
Alina Kim
alikri...@gmail.com
Marc Bortz
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Emily Gerard
Marc Bortz
Thursday, April 07, 2011
GSR Reservation
10:00 PM to 11:30 PM262
Aaron Caulfield
Marc Bortz
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Shana Rusonis
When can people meet tomorrow?
Alina Kim
alikri...@gmail.com
Emily Gerard
Marc Bortz
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Alina Kim
Aaron Caulfield
346
Marc Bortz
EVENT DETAIL
Friday, April 08, 2011
GSR Reservation
4:30 PM to 5:30 PM346
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