1ZM11 - course summary
Table of contents
Lecture 1: customer value
Problem 1: identifying value & convincing customers (Gourville 2006)
Problem 2: eliminating value to increase profit
What is value? (Zeithaml 1988)
Tradeoff ‘Get’ and ‘Give’ Components
What is value? (Woodruff 1997)
Methods for understanding customer value
Means-End Chain (MEC) analysis
Customer value learning
Shifting attention
Impact on marketing
Lecture 2: market orientation
Perspectives on Market Orientation (MO)
Cultural perspective (Narver & Slater 1990)
Behavioral perspective (Kohli & Jaworski 1990)
Integrating both perspectives (Homburg & Pflesser 2000)
Impact of MO on performance
Role of the marketing department (Verhoef & Leeflang 2009)
Marketing excellence (Homburg, Theel, & Hohenberg 2020)
Main concepts
Conceptualizations of marketing excellence
Market Orientation vs Customer Orientation
The role of the marketing department: creating & improving MO
Beyond MO: Stakeholder Orientation (SO)
Lecture 3: marketing-R&D interface
Perennial problem: different perspectives between marketin and R&D
Integration mechanisms
Contingencies
Lack of mutual appreciation (Atuahene-Gima and Evangelista 2000)
Role of marketing’s technical knowledge
Lecture 4: markets as dynamic socio-cognitions
Institutional work (Kostova and Roth 2002)
New product category formation
Markets as socio-cognitions
Managerial cognitive representations (Tripsas & Gavetti 2000)
1ZM11 - course summary 1
, Evolution of cognitive structures (Rosa & Spanjol 2005)
Radical innovations entering the market
Abell’s 3D matrix
Lecture 5: adoption and diffusion
Technology Adoption Model
Adoption vs diffusion
Crossing the chasm
Marketing efforts and messages should be adjusted to the different adopter categories.
Risk perceptions (Paluch & Wünderlich 2016) & reduction
Buying as problem solving
Decision Making Unit (DMU)
Adoption intention vs adoption behavior (Arts, Frambach & Bijmolt 2011)
Resistance to innovation
Lecture 6: market research & customer involvement
Customer participation (Chain & Taylor 2015)
Who to involve? (Bonner & Walker 2004)
Market research techniques for radical new products
Lead user research
Customer involvement in small technology firms (Coviello & Joseph 2012)
Method of customer involvement (Cui & Wu 2017)
Lecture 7: conjoint analysis
Qualitative forecasting methods
Biases in judgement
Quantitative forecasting methods
Chain ratio method (decomposition method)
Bass diffusion model
Conjoint Analysis (CA)
Lecture 8: market launch
The impact of newness
Early vs majority market targeting (Schumacher, Kuester, and Hultink 2018)
Decisions involved
Tactical launch decisions
Network products (Lee & O’Conner 2003)
International roll-out
Lecture 9: Customer Relationship Management (CRM) & branding
Customer loyalty
Underlying mechanisms
Criticism on loyalty research
Predictive power of customer reports (Morgan & Rego 2006)
Understanding the customer
Investing in consumer relationships (DeWulff, Odekerken & Lacobucci 2001)
Brands
Creating vs exploiting a brand
Line extensions (Sinapuelas et al. 2015)
Brand equity
B2B vs B2C brands (Mudambi et al. 2002)
Lecture 10: Customer Lifetime Value (CLV)
Marketing accountability
Unobservable/perceptual customer metrics
Customer analytics
Customer Lifetime Value (CLV)
Lectures 11 & 12: servitization & hybrid offerings
Reasons for servitization
1ZM11 - course summary 2
, Transitioning to service provider & overcoming the service paradox
Consequences for marketing
Pricing services
Lecture 1: customer value
Problem 1: identifying value & convincing customers (Gourville
2006)
Loss aversion (prospect theory by Kahneman): the phenomenon where a potential loss is perceived as
psychologically or emotionally more severe than an equivalent gain.
Innovations are a trade-off between gains and losses that both impact customers’ decisions.
Customers overweigh the benefits of current products, while companies overweight the benefits of new products, resulting in
a 9x difference between customers and companies.
“If you realistically present to people what can be achieved in solving a problem,
they will find that completely uninteresting. You can’t get anywhere without some
degree of over-promising.” (Danny Kahneman)
1ZM11 - course summary 3
, The behavioral change of the customer must be considered as well (Rogers diffusion of innovation).
Problem 2: eliminating value to increase profit
Sometimes, eliminating value results in more lower-tier customers, thus increasing profits. However, lower-tier customers are
more likely to exit the relationship with the company.
What is value? (Zeithaml 1988)
Value is low price
Value is whatever I want in a product (subjective effect of product on consumer)
Compared to utility: utility is whatever the product provides (objective effect of product on
environment)
Value is the quality I get for the price I pay
Trade-off: single ‘get’ and ‘give’ components
Value is what I get for what I give
Trade-off: multiple ‘get’ and ‘give’ components
Tradeoff ‘Get’ and ‘Give’ Components
Bundle of benefits:
Product benefits
1ZM11 - course summary 4
Table of contents
Lecture 1: customer value
Problem 1: identifying value & convincing customers (Gourville 2006)
Problem 2: eliminating value to increase profit
What is value? (Zeithaml 1988)
Tradeoff ‘Get’ and ‘Give’ Components
What is value? (Woodruff 1997)
Methods for understanding customer value
Means-End Chain (MEC) analysis
Customer value learning
Shifting attention
Impact on marketing
Lecture 2: market orientation
Perspectives on Market Orientation (MO)
Cultural perspective (Narver & Slater 1990)
Behavioral perspective (Kohli & Jaworski 1990)
Integrating both perspectives (Homburg & Pflesser 2000)
Impact of MO on performance
Role of the marketing department (Verhoef & Leeflang 2009)
Marketing excellence (Homburg, Theel, & Hohenberg 2020)
Main concepts
Conceptualizations of marketing excellence
Market Orientation vs Customer Orientation
The role of the marketing department: creating & improving MO
Beyond MO: Stakeholder Orientation (SO)
Lecture 3: marketing-R&D interface
Perennial problem: different perspectives between marketin and R&D
Integration mechanisms
Contingencies
Lack of mutual appreciation (Atuahene-Gima and Evangelista 2000)
Role of marketing’s technical knowledge
Lecture 4: markets as dynamic socio-cognitions
Institutional work (Kostova and Roth 2002)
New product category formation
Markets as socio-cognitions
Managerial cognitive representations (Tripsas & Gavetti 2000)
1ZM11 - course summary 1
, Evolution of cognitive structures (Rosa & Spanjol 2005)
Radical innovations entering the market
Abell’s 3D matrix
Lecture 5: adoption and diffusion
Technology Adoption Model
Adoption vs diffusion
Crossing the chasm
Marketing efforts and messages should be adjusted to the different adopter categories.
Risk perceptions (Paluch & Wünderlich 2016) & reduction
Buying as problem solving
Decision Making Unit (DMU)
Adoption intention vs adoption behavior (Arts, Frambach & Bijmolt 2011)
Resistance to innovation
Lecture 6: market research & customer involvement
Customer participation (Chain & Taylor 2015)
Who to involve? (Bonner & Walker 2004)
Market research techniques for radical new products
Lead user research
Customer involvement in small technology firms (Coviello & Joseph 2012)
Method of customer involvement (Cui & Wu 2017)
Lecture 7: conjoint analysis
Qualitative forecasting methods
Biases in judgement
Quantitative forecasting methods
Chain ratio method (decomposition method)
Bass diffusion model
Conjoint Analysis (CA)
Lecture 8: market launch
The impact of newness
Early vs majority market targeting (Schumacher, Kuester, and Hultink 2018)
Decisions involved
Tactical launch decisions
Network products (Lee & O’Conner 2003)
International roll-out
Lecture 9: Customer Relationship Management (CRM) & branding
Customer loyalty
Underlying mechanisms
Criticism on loyalty research
Predictive power of customer reports (Morgan & Rego 2006)
Understanding the customer
Investing in consumer relationships (DeWulff, Odekerken & Lacobucci 2001)
Brands
Creating vs exploiting a brand
Line extensions (Sinapuelas et al. 2015)
Brand equity
B2B vs B2C brands (Mudambi et al. 2002)
Lecture 10: Customer Lifetime Value (CLV)
Marketing accountability
Unobservable/perceptual customer metrics
Customer analytics
Customer Lifetime Value (CLV)
Lectures 11 & 12: servitization & hybrid offerings
Reasons for servitization
1ZM11 - course summary 2
, Transitioning to service provider & overcoming the service paradox
Consequences for marketing
Pricing services
Lecture 1: customer value
Problem 1: identifying value & convincing customers (Gourville
2006)
Loss aversion (prospect theory by Kahneman): the phenomenon where a potential loss is perceived as
psychologically or emotionally more severe than an equivalent gain.
Innovations are a trade-off between gains and losses that both impact customers’ decisions.
Customers overweigh the benefits of current products, while companies overweight the benefits of new products, resulting in
a 9x difference between customers and companies.
“If you realistically present to people what can be achieved in solving a problem,
they will find that completely uninteresting. You can’t get anywhere without some
degree of over-promising.” (Danny Kahneman)
1ZM11 - course summary 3
, The behavioral change of the customer must be considered as well (Rogers diffusion of innovation).
Problem 2: eliminating value to increase profit
Sometimes, eliminating value results in more lower-tier customers, thus increasing profits. However, lower-tier customers are
more likely to exit the relationship with the company.
What is value? (Zeithaml 1988)
Value is low price
Value is whatever I want in a product (subjective effect of product on consumer)
Compared to utility: utility is whatever the product provides (objective effect of product on
environment)
Value is the quality I get for the price I pay
Trade-off: single ‘get’ and ‘give’ components
Value is what I get for what I give
Trade-off: multiple ‘get’ and ‘give’ components
Tradeoff ‘Get’ and ‘Give’ Components
Bundle of benefits:
Product benefits
1ZM11 - course summary 4
