Itunes Agreement - Excel

Description

Itunes Agreement document sample

Shared by: prl13206

Tags

The Beatles, iTunes Store, iTunes Music Store, Consumer Council, the Consumer, Steve Jobs, consumer ombudsman, Apple's iTunes, Apple claims, Pressure mounts

Stats

views:: 13
posted:: 2/22/2011
language:: English
pages:: 16

Public Domain

Document Sample

df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

Consider a company's successful attempt to influence your behavior as a customer as you answer Questions 1-3. Consider a company's unsuccessful attempt to influence your behavior as a customer as you answer Questions 4-6.

What was the name of the Which behavior was the company trying What was the name of the Which behavior was the company trying
company? What product or to influence? What mechanism(s) did it company? What product to influence? What mechanism(s) did it
service were you using? use? ______ In your opinion, why was the attempt successful? or service were you using? use? In your opinion, why was the attempt unsuccessful?
The company succeeded because I knew I needed
the mobile phone service for 2 years anyway so the Company was trying to get me to The company was unsuccessful because the price
thought of not having to spend extra to get a phone "upgrade" from a bag of nuts to was too high for what I was getting and the
just made the commitment easier to make. Plus, they sandwiches. Availability, price, and stewardess didn't seem that enthusiastic about the
Company was trying to get me signed offered a 15-day trial period which allowed me to personal selling efforts on the part of the sandwiches anyway. Add to that my expectations for
T-Mobile offering mobile up for a full 2 years using free phones as cancel my subscription should my first 15-day United Airlines offering in- stewardess were the main mechanisms the sandwiches to be free in the first place given the
phone subscription service primary mechanism experience prove horrible flight sandwiches for a price used length/duration of my flight
Trying to get me to use their products
instead of other salon brands or drug
store brands. Used promotion through Best Buy - I was The nature of my electronics-purchasing
salons that used their products Because I was able to try the products without purchasing a product and behavior - trying to make me more risk- Because I was willing to assume the risk that they
Bumble and Bumble - hair exclusively and presented those purchasing them, and because the sales tactic used they were asking me to averse by protecting myself in the event were offering to take on for me, their service had little
care products products to me after my hair service. was not pushy. also buy a store warranty. that my purchase broke. value to me - their value proposition was weak.
It was trying to influence my buying
behavior by selling an entire lifestyle
rather than just a particular product. In
this way, you no longer walk into a store Because it was patronizing and felt almost
wanting to buy "something" but rather The company was trying to move me humiliating. One should be able to get a cheap air
wanting all of it. Stores that look like away from conventional to budget air fare without having to be enveloped in an ugly
plush homes and advertising that is travel using catchy slogans, convenient orange color, the company's trademark, and without
Ralph Lauren - clothing and experiential rather than informative help Because it speaks to people's aspirations and makes internet booking, colorful planes and of having to suffer their aggressive demeaning of their
homewares. in this process. them feel like needs. Easyjet. Air travel. course cheap fares. competition.

The company was trying to influence me
to purchase my plane tickets at least 14 The company was trying to influence me This attempt was unsuccessful because the
days before travel. The mechanism that This attempt was successful because I am frugal and to purchase their insurance coverage for probability of me getting into an accident during a
AirTran uses is that the price will I hate to pay extra money for a service unnecessarily, the car rental. They used the scare tactic two day car rental, in my mind, was not very high
increase considerably if a flight is not so I am motivated to purchase my tickets in advance telling me all of the things that could go and therefore was not worth the additional $32. I
AirTran Airways; Air Travel booked at least 14 days in advance. if the planning allows. Avis; Car Rental wrong on the road. was comfortable with taking my chances.

A mix of all of the above. The convenience of the
trying to get me to pay online through a service gave it a leg up to begin with, lack of strong Trying to get me to get me to give up Unsuccessful because I have a strong preference to
simple interface. Used Ubiquitousness competition to make me question the strength of "owning" my music for renting it month owning my music and a dislike for monthly fees.
of channels to make me feel like paypal over others, and the fact that so many by month. Used the allure of "unlimited" The plan felt like music was turning into cable
everyone was doing it, was supported by respectable sites and companies were adopting use and a low monthly fee to try and create television, and the idea of stopping the service and
media and others in the soundness of of the service made it seem safe and useful. I was the hook. Also had to ensure that they having paid in money each month only to not have
security features. Easy to set up and also forced to try it because of its success in finding Yahoo Music -- Unlimited had a robust database to be as attractive any music personally to keep for it just did not sit
ebay--paypal trial. merchant partners. Once I was in, I was hooked. Monthly Music Downloads as others such as iTunes. with me.
Comcast was trying to get me to
upgrade my T.V. subscription to high The attempt was successful because I was already
definition. Comcast partnered with Best spending so much on a T.V. unit, that another $50- Tries to get customers to upgrade order
Buy, such that when I bought a T.V. with $100 did not seem like a big deal at the time. Also, size. When customer places ice cream This attempt would not work on me because I am
Comcast - Upgrade to high h-d capabilities, the Best Buy salesman the Best Buy salesman made me feel that my T.V. order for a given size, server points out making my size decision based on dietary concerns,
definition television tried to sell me an upgraded Comcast purchase would be a waste if I did not upgrade to the Cold Stone Creamery - ice that customer can upgrade to larger size not a price point. If the opposite were true, the
subscription. plan. h-d plan. cream shop for only 50 cents. strategy might work.

Wireless companies attempted to get
consumers to use this service in a
manner similar to text messaging. They
Starbucks successfully attempted to used mechanisms such as marketing
influence the way consumers drink and (most commonly TV commercials),
think about coffee. It turned the habit bundling the pricing of the service with
into a lifestyle statement using Cingular (or any wireless other services (i.e., text messaging), and No. I still rarely send or receive photos by phone,
mechanisms such as premium pricing, company) -- photo providing the hardware (camera included and the service is nowhere nearly as widespread as
Starbucks -- coffee identifiable branding, and fast service. Paying $5 for a coffee regularly? --Absolutely! messaging with phone). text messaging.
As soon as I became a member of their higher
program tier, United provided me with several
incentives to utilize their product (seat upgrades, wait-
list priority) that cost them little or nothing, that provide
Customer loyalty. The company uses a me with significant value. This means I am I had no incentive to return ontime, and strong
customer loyalty program that allows me significantly less price sensitive when booking flights It attempted to try to get me to return the incentive to keep the van longer (the rental included
to earn 'status' as a frequent flyer, using 1) because I'm getting better service and 2) because I van on time. The only mechanism it fixed costs which were being amortized over a
United Airlines. Air travel rewards including free travel and various want to continue being an elite member of the U-Haul. I rented a moving used was strong encouragement (but no longer period, and low variable costs which would be
(domestic and intl.). travel-related perks. program. van. penalties for not doing so). incurred with extra use).

Blockbuster was attempting to
encourage the early return of a high
demand video (within 2 weeks of
release). The organization used an I believe that this was successful because it created GAP was attempting to influence me to
incentive approach to encourage me to the perception of a "cheaper" rental because I spend at least $800 per year on my
return the movie by the next day instead automatically applied the future credit to my current Banana Republic credit card. The
of the waiting until the end of the 2 day rental and felt I was renting the movie for $2.99 mechanism utilized was an upgraded I believe this was inappropriately targeted. I rarely
rental period. I was offered a credit of $1 instead of $3.99. Also, the requested behavior was status on my credit card, providing spend more than $300 year on my Banana Republic
towards my next rental. Blockbuster also very reasonable, and its highly likely that I would have additional benefits. I was invited to a card, so the likelihood of reaching $800 is slim, and
Blockbuster Video- movie derived an added benefit by locking in a returned the movie by the next day anyway- this GAP Inc.- Banana members only event as a preview of one especially in 4 months (since it is based on the
rental second visit from me. simply encouraged me to not be lazy. Republic credit card. of the benefits. calendar year.
Used technology, celebrity placements, beautiful
design to motivate usage and running Combined two Upsell from basic to extended cable and
successful brands, leveraging best of each Offered HD, watch more/different TV Offered Even with promotions, still priced too high - in part
Get me to run more Integrated easy to use product Priced product at <$30 with 3+- convenience, additional features, limited b/c of Comcast's monopoly position in my
Apple Nike+iTunes technology and running apparel year lifecycle Comcast Cable TV price promotions neighborhood
purchasing over the internet and flying
more frequently on their airline; it
provided lower fares on the internet and
usually took a long time to get through if
you decided to try to call; they also trying to get me to not use banking
provided free flights and other privileges centers as much by imposing an no because when it comes to matters as personal as
based on the amount of miles you travel Bank of America; financial account service fee if you exceed a my money I want to transact with an individual not a
delta airlines with them Yes. services certain number of visits/calls. machine
They wanted me to pay my bills online.
This would be much quicker than writing They tried to get me to use one of their
out a check and mailing it through the It was successful because the phone attendant could Visa cards, even though they knew I
post system. They asked me about it set the service up for me on the spot. This happened already had one with through another They could not sign me up on the spot. It seemed
when I was calling them about this summer. If it had been a hassle, I would not have bank. When I was calling about like a procedure, especially since I already have a
something else. They used logic to bothered. Also, I probably would not have asked for it Bank of Nova Scotia. I something else they tried to get me to visa card. In order to get me using their Visa card
Bank of Nova Scotia. I have a convince me as I saw it would save me myself, so it was successful because they proactively have a bank account with sign up for their Visa card. They said I they would have needed to up the cash back
bank account with them. time to pay my bills online. asked me about it. them. would get cash back if I signed up. amount or make it easier to sign up for their card.

I signed up when I was offered it at the time of my
purchase, received free shipping, made subsequent
purchases and then cancelled the subscription
Amazon Prime ($75? fee for the year for before being charged. The $75 / year was too
unlimited 2 day shipping). They used a much for a service I didn't value and wouldn't use.
They had the exclusive ability to provide a product free subscription (with free cancellation) By making it so easy to sign up / opt-out and offering
Sirius Satellite Radio Subscribe. Signed up Howard Stern. that I wanted and was willing to pay for. Amazon.com for 3 months to induce me to sign up. so much free, I fear they made it too easy.
Because the company understood my needs and
my rational choice behavior. Used their product best addressed my needs. The sales
Carphone warehouse. Mobile analytical reasoning and facts and person was knowledgeable and used the product No interaction and flexibility on price. No attempt to
pre paid service in London superior rates herself. Avis car rental in London Price consciousness customize for my needs.

Page 1 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

What was the name of the Which behavior was the company trying What was the name of the Which behavior was the company trying
company? What product or to influence? What mechanism(s) did it company? What product to influence? What mechanism(s) did it
service were you using? use? ______ In your opinion, why was the attempt successful? or service were you using? use? In your opinion, why was the attempt unsuccessful?
Temporarily buy a local phone number in Avoid all types of customer service. They
the country you primarily call to. They gave special offers (credit and prices) if
use both emotional and rational (pricing you made the list of 'good customers'. That the rules are not clear and you have no idea
comparison) advertising and a lot of They would also take a lot of time to the service you will get when opening an account
Lingo. I use their internet promotion through word of mouth (you It is easy to get this number once you are a customer, resolve any issue and you are always with them. Besides credits and prices are not the
phone service, specially get discounts for every new customer and adding this feature makes the pricing of the Bankinter (online banking directed constantly to the FAQ on the best mechanism to avoid having customers asking
international calls. you recommend). overall service much better. in Spain). webpage. questions and requiring services.
It attempted to alter my buying behavior
Attempted to encourage me to leave by trying to convince me to buy four No. I only bought one tire because I desperately
promptly after eating buy dropping off Yes. After I caught on I promptly left. The waitresses tires. Mechanism: misleading pricing needed it. I returned to my trusted tire provider for
Name: La Perilla Restaurant. my check and stopping by frequently to was courteous and justified, as the restaurant was Company Name: American tactics, aggressive selling and suspicious the other tires (Actually it turns out that I really only
Product: Food. make sure everything was OK. very busy. I have been back since. Tires; Product: Tires bundling. needed one additional tire not three).
The attempt was successful because as I continued
to fly AA and gain more status, the shorter the lines I
The company was trying to influence my had to wait in and better service I received from the The company was offering balance
behavior in selecting an airline to use for company. With the increased amount of time needed transfer to increase the amount of credit
my travel. They used both a loyalty for travel through airports, this has become they extend. They use internet The rates were not good and they send too many
American Airlines, air travel. program and tiered service. increasingly important. MBNA credit cards. advertising and mailings. unsolicited offers (particularly through the mail).
Increasing travel productivity; strategic mapping of key customer requirements with intuitive Domestic and international calling customer service; IPO PR campaign and media
Blackberry selling through corporate partnership usage Vonage through VOIP telephony; reports

The program is not well explained and the receipts
When I was late with my payment once I had to pay they hand out which detail the system are too long
this fee for two months and it really made me make Duane Reade gives me points when I and boring to read. I feel the program is not
an effort to always pay my balance on time. I have buy items in its stores which can be used successful not only because it has failed to build any
They try to make me pay my credit card never been late since then so I would consider it for discounts on future items I believe. loyalty in me for DR, but also because I expect
balance by the end of each month. The successful. At the same time, I assume that these late They are trying to influence me to something from the program and yet I haven't ever
mechanism they use is to charge a fees must be a good source of income for AMEX, so continue to shop at their stores by giving seemed to receive a discount, so I feel it is a waste
financing fee if I am even one day late in it could be that they would rather I am late every once me a building balance of points which for me to swipe my card during every purchase.
American Express. Starwood my payment, and then charge the fee in a while. But the large fee is a disincentive for me to Duane Reade. Duane probably expire or would be lost if I were They ought to explain the program better, perhaps
Preferred Guest American again the subsequent month even if I hold a balance so it is structured to discourage late Reade Dollar Rewards to begin shopping at CVS or one of their with a poster board in each store, and then give
Express credit card. pay on time. payments. Club Card. other competitors. more tangible benefits from using the card.

I built up a large reserve of miles with Delta during
my consulting days, and continued to use them
frequently for personal travel. However, once I
stopped traveling regularly and had exhausted my
The time of day when I use my phone, miles, I had no remaining incentive to choose Delta
using a peak/off-peak minute plan where Verizon took advantage of my price sensitivity, over other airlines. After several of my Delta flights
“nighttime” minutes are unlimited, but leading me to shift the majority of my usage to the My airline ticket purchases, using were cancelled or delayed, my preference actually
Verizon Wireless – cell phone “daytime” minutes are restricted. evenings where I wouldn’t be charged. Delta Air Lines – air travel frequent flyer miles. shifted to other airlines over Delta.

Unlike Lufthansa you get no benefits from the
reward scheme that are significant to me. The
Like other airlines they have a frequent purchases collect you points that can be rewarded
flyer program. If the tickets are the same They were also trying to influence my for certain gifts. It takes years to get enough points,
price, I would chose to fly Lufthansa as They are basically offering extra services at no extra Reward scheme for a buying behavior. By giving me award the gifts are not nice and it takes month to redeem
this gives you benefits at check-in, cost to me (obviously only if the tickets are the same grocery chain in Germany points, they were hoping to get me to do them. Unlike US stores (Shwas) you get no instant
Lufthansa airline waitlist priority etc. price as competing airlines). (Karstadt) all my shopping at their stores. monetary benefit at the time of purchase.
Continue use of the service. It used a
combination of making it very difficult to
Increase use of card. It gave points It gave me back something that, even though it was AOL / dial-up internet cancel and annoying operators trying to
Capital One / credit card worth up to 2% of purchases small, didn't cost me anything and provided a benefit. connection convince you not too. Poor product. Expensive.

The company was trying to take my
normal behavior of going to the grocery
store myself and let them take over for a
A company that successfully fee. They explained how easy it was,
influenced me as a customer how anything that went wrong (i.e. - The attempt was very successful because they
was Peapod. Peapod is a melted ice cream or damaged cans) they basically let you try it the first time for free and then
company that provides home could fix through replacement or refunds give you additional coupons for free service at your
delivery for groceries. You easily. The company also showed how first order (I think it was 5 orders of coupons). You The attempt was unsuccessful because when I tried
select what groceries you much time I could save by using their get the opportunity to see for yourself how easy it Procter & Gamble P&G is trying to get consumers to switch to product, I ended up re-dusting the traditional way
would like online and then services and how easy and fast it was for really is and how great the service is for free and then unsuccessfully tried to from a traditional spray and wipe method because the swiffer duster did not do a good
they shop for them and deliver me to order and set up a delivery time you never want to go back to traditional grocery influence my behavior with of dusting to using a one step duster that enough job! The product didn't do what it said it
them right to your kitchen. online. shopping ever again. the Swiffer Duster. is supposed to do both for you. would do and actually cost more time.
It was influencing the very basic need of
Coca cola - started to drink water need. it used very it was successful as at some point you lose control to eliminate the use of paper and pen My low adoption rate of technology. Don’t think it
coke instead of water heavy/cool/tempting advertising and become addicted palm pilot - electric calendar using technology was "their" fault
They were trying to get me to move all
my accounts to HSBC - in the US, UK
and Pakistan - as well as my credit card.
They gave me lots of personal attention,
assigned a specific senior sales member
to my account and arranged a They were trying to sell me a 1 year The person was clearly reading from a note that had
convenient meeting to explain to me their Two things - personal attention and willingness to be AOL. I was using their free subscription. They tried to convince me been prepared for him. Was not at all listening to
HSBC. None at the time different products. flexible (directly catering to my needs as a customer). online 30 day internet trial when I called them to cancel my service. what I was saying.

The company wants you to renew
membership and make frequent
purchases. The mechanisms used: 1) The benefits and service level are better than other
you accumulate points with every dollar credit card companies. Furthermore, the company
purchase so this gives you the incentive makes the card personal. For example, based on my
to spend more 2) the card has many history of purchases, the company sends discounts They want you to fly with their company The service is poor. The planes are old, the flight
American Express. Credit benefits and features that gives you the and promotions for events I may want to attend and American Airlines. Flight and fly often. They offer promotions and attendants are generally rude and prices are high.
Card. incentive to renew membership. stores I want to shop at. service. deals. They treat customers like a number.
Behavior: Calling Sprint's customer
I no longer wait in line to check in at the airlines' service number for questions on my
Behavior: customers waiting in line to airport counters, which no doubt saves money for the account. Mechanism: Sprint
check in at the airport check-in counters. airlines (reduced airport counter staff). This attempt implemented a complex Interactive Voice Unsuccessful because the phone prompt was very
Mechanisms: almost all airlines now was successful because the airlines offered me Response phone prompt (voice of a hard to use, so I just figured out what buttons to
provide online check-in from home, convenience and benefits - such as the ability to grab fictional agent named "Claire"), and press to skip ahead to a live person anyway. But the
Airlines - checking in for a where customers can check in for their my preferred seats before I get to the airport the day Sprint, as a cellular phone made it very hard to actually get to speak frustration led me to eventually change over to
flight. flights up to 48 hours in advance. of the flight. customer. to a live person. Verizon.

The store is trying to influence my (and
others) waiting behavior as well as I flew United Airlines last
create an orderly process through which week and participated in
their clerks can deliver a customized the plane boarding process
service. The mechanism is an easily by group number, which
understood system in which each was printed on my The attempt was unsuccessful because the system
person who walks up to the counter boarding pass. Seeing was not strictly enforced. Since they announced
pulls a number and waits for their that other people were that the flight was full, a sense of scarcity around
While not unique, my local number to be called before placing their The pull-a-number system ensures that both the boarding in advance of By asking customers to board by group overhead compartment space was created. Thus,
grocery store uses the "pull-a- order. The display screen clearly customers and the clerks know in which order to their boarding group, I did number, which was prominently each individual customer had an incentive to board
number" system to determine indicates the number currently being service people. This creates a sense of fairness as the same in order to displayed on my boarding pass, the early and secure a space. With boarding group
when it is my turn to order at serviced, such that approximate wait well as a way to estimate how long the wait will be, ensure that I could put my airline was hoping to get me to wait to numbers visible on boarding passes, I could see that
the deli/prepared foods time can be estimated and the clerk which are both important to the customer, such that bag in an overhead board the plane in a presumably more they were letting others board in advance of their
counter. knows who to help next. they are willing to participate in the system. compartment. efficient manner. group and realized that I should do the same.
purchase behavior using quality to build purchase decision using brand and high
Aveda shampoo up its brand and royal customers yes prada bags price to encourage purchase yes

Page 2 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

The incentive I have to use these lanes is the
Stop & Shop introduced self-checkout promise of saved time. However, due to the design
lanes, where customers can scan their of the new service this promise is not delivered on
Starwood tries to increase its share of own products and pay without a cashier. and in reality I have no incentive to use the new
my total number of hotel stays. Two The primary reason this has been successful at If some customers use these lanes service at all. Although these lanes do have shorter
ways that they do this are by offering increasing my likelihood to stay at a Starwood instead of conventional cashier lanes, lines, most other customers are confused with the
great incentives through a frequent property is that they make their incentives have true Stop & Shop could reduce labor costs. new service and take a long time using it, making
stayer program that rewards you for value. Points are easily redeemed for free nights The only mechanisms used to the line move very slow. Additionally, Stop & Shop
staying, and a credit card through Amex even on short notice, and they are easily transferred encourage customers to try these lanes does not provide bagging in these lanes, so if I am
Starwood Hotels, hotel that ties all purchases back to the to any other frequent flier program or other partner Stop & Shop Supermarket, are signage and talking computer buying more than a bag or two of groceries it may
accommodations frequent stayer program. programs. buying groceries screens providing instructions. take even longer than a conventional lane.

To begin with, the recognition achieved early on (their The first time, I responded to the phone rep that as a
Gold level) provided both bonus points and a higher student I did not have a home phone (only a mobile)
level of service at check in and security - measures and my internet was already free as part of my
that saved me time immediately. It was a good university contract --- yet no kind of information went
enough incentive to make me 'sometimes' prefer the Comcast sent several mailings and had into any data base, and I received the same phone
They were trying to influence me to airline, as my time is pretty important to me. At their someone call me to try to get me to call and at least two pieces of mail in the coming
prefer to purchase their tickets over any higher levels, the added service and double miles upgrade to a higher level of cable service weeks pushing the same product. Had Comcast
other airlines'. They used their frequent made me a very sticky customer, as I saw added and bundle it with a phone and internet been able to demonstrate a value to me in spending
flyer program, which incorporated miles, value beyond getting from point to point. When service. They used milings and a phone more money, I might have been convincible; but
upgrades, bonus miles, service levels, factors did affect the basic service (point to point), my Comcast Cable. Current representative, and attempted to show sending me the same thing multiple times showed
American Airlines. I was and sometimes special prices to help 'level' aided me in getting to my place as quickly as basic user of digital cable me how much I would save by bundling me that they really didn't care about my desires or
purchasing their flight tickets. influence me. possible and ahead of other travelers. with a DVR Box. my services. interests.
Renting a DVD to watch a movie.
Offered an alternative where I can watch
BWCinema. Rent and watch the same movie online - eliminating the Because it offered similar quality product with Offered promotions and discounts to Because it was always important for me to try the
regional movies online. need to rent DVD. convenient procurement. Banana Republic. Clothes. encourage me to buy clothes online. clothes before buying.

The company provided a significant They used punch cards where you
number of frequent flyer points to Wanting to go on a vacation, I was flexible on my Better Burger, a local would get a free meal with every 10
I was flying on Delta's Song encourage me to try their new route from travel dates and destination, and was interested in burger chain in NYC. I was purchases. They were trying to increase The product was not good enough to warrant me
airline. NY to Seattle. saving for a free ticket in the future. purchasing their food. my consumption and generate loyalty. changing my behavior to earn a free meal.

Although the mechanism is exactly the same as
ANA, collecting mileage points was not attractive as
their core service (flight related) was not good (bad
in-flight service/ frequent lost baggage and awful
service in processing lost baggage claims etc.). I
have heard that their mileage program is most easy
It was successful as it used the mileage system to to accumulate mileage and that their mileage can be
make the consumers feel that they are getting a bought/sold at certain price even when expired
better bargain than buying the cheapest airflight (which is a service ANA doesn't offer), all leading to
ticket. It definitely stopped a lot of travelers to shop better bargain but since their service was of poor
around for cheap airflight tickets as they knew that level, and not aligned w/ their mileage program, it
they would be accumulating mileage that will refrained me (and probably many other customers)
contribute to free flights/ great services such as from choosing UA whenever there was another
ANA (Japanese airline It was trying to influence the decision express check-in, lounge usage (although United Airlines. I was using It was trying to influence the decision choice of airlines despite the mileage program and
company). I was using their making of consumers which airline to economically it might not make sense unlike Zipcars their flight service and making of consumers which airline to cheap ticket price. Whatever mechanism a company
flight service and enrolled in use for traveling and business trips. It model where they show in exact dollar amounts how enrolled in their mileage use for traveling and business trips. It has for giving customers a discount/a good bargain,
their mileage program. used the mileage award mechanism. much you will be saving by using Zipcar). program. used the mileage award mechanism. it has to be aligned with their core service.
Behavior: responsible use of firm's
resources (i.e. not using the free
headphones if I have my own; cleaning
my seat area after myself instead of
relying on the flight attendants to do so). The attempt was unsuccessful because the value
The mechanism: they honestly say This was successful because they drew the honest Making free (or almost free) long- proposition is incomplete. The phone calls are free
something to the effect, "conserve our and open parallel between the conservation of distance phone calls over IP using the only if the other party is also using Skype and is
resources and we'll give you cheap ticket jetBlue's resources on my part, and the cheap flights Skype.com. Online phone Skype software client. Mechanism: actually logged into the Skype network when you
Firm: jetBlue; service: air travel prices". on theirs. calling. word-of-mouth marketing. attempt to call them.

How much I book through them (flights
only, or also hotels, car, etc). It made
offers to book a hotel and a car as I was Writing checks connected to my credit I have no need for getting cash out of a credit card
planning flights and offered savings if the The service expected my needs and highlighted how I card. MBNA sends me checks in the and the fact that I do not max out my credit card limit
Travelocity. Planning a trip. whole trip was booked as a bundle. could save some money. MBNA. Credit card. mail every month. should have suggested this to the company.
Flatter my ego to entice me to buy the
clothes. Overly attentive and almost on I don't like to be bothered like that once I am trying
top of you every time you try on clothes on the clothes. I like the attentiveness of getting me
Influence my purchase behavior, by at the store. Also, the mirror is outside a dressing room and retrieving the appropriate size,
suggesting other books based on my the dressing room, forcing you to walk but not to the point of fake flattery. Its to the point
tastes or what other customers have outside so the saleswomen can try to that I don't like going into the store. Instead of
bought in addition to my purchase, with attempt to flatter you with the clothes on. influencing me to purchase something, it actually
editorials. In addition, the easibility of the It catered to my tastes and gave me access to Than it becomes uncomfortable when turns me away from the store in fear of not being
search engine and the free shipping with information and many more choices versus simply you have to walkaway without a able to be able to try things on with out the
Amazon.com, buying books purchase over $25. walking into Barnes and Nobles. Searle, clothing store. purchase. saleswomen hassle.
Amazon was trying to get me to buy
more often from them. They offered me
a 3 month free trial of a service called I now check to see if Amazon stocks something They wanted me to purchase more at
"Prime" that gives you free 2nd-day air before I order it elsewhere because I know I can get Brooks Brothers and to give them Because even though I would have saved enough
shipping on Amazon's products. At the faster and cheaper delivery with them. I have ordered information about me. They offered me money to make it worth my time to fill out the form, I
end of the trial I paid $70 to retain the a couple more things through them that I otherwise 20% off of the price of my purchase if I assumed that their benefit was somehow coming at
Amazon.com. service. would have ordered elsewhere. Brooks Brothers. would open a charge account. my expense and chose not to participate.
The Coca-Cola company
The company was trying to enhance the tried to influence my
quality of my television viewing and to behavior by offering The company was trying to influence my
The cable company, make it more worthwhile for me to pay variations of its Diet Coke beverage purchasing habits by
Comcast, has influenced my for additional cable channels. The The attempt was highly successful because the new product offering. It expanding the range of diet coke The attempt was unsuccessful for me because the
behavior as a customer mechanism it used was the digital video product offering enhances the underlying service introduced various new offerings. I think the aim of the company new product offerings did not in any way enhance
through the digital video recording service, which enables me to offering. I am more willing to pay for additional cable "diet coke" products such was to capture a greater share of current the current offering and, because I continued to
recording service offering record and then watch television shows channels now because I know that I can better take as diet coke with lime, diet diet coke customers' beverage spending prefer the regular diet coke, I had no incentive to
(DVR). based on my individual preferences. advantage of the programming on those channels. coke with lemon, etc. by offering them more variety. purchase the new varieties.
Early/prior purchasing of airline tickets.
JetBlue had a sale in the middle of the
summer, which they notified me of by They made it very easy/convenient and the prices are Trying to get me to purchase additional
email, and thus I booked quite a few were very cheap. In addition, I like flying with JetBlue services for a fee, by offering me these I don't believe the service is worthwhile and if
tickets for this semester since my and I get nervous about waiting too long to book Capital One credit cards - services when I called in to change my something goes wrong, I feel there will be some kind
JetBlue - booking airline husband lives in Virginia and I travel tickets that the prices will increase, so this was good consumer/identity theft name on my card after I got married last of "fine print" that includes me from coverage for
tickets online quite a bit. impetus to make the purchases. protection services summer. some reason.
Buying insurance was influenced.
Employees discussed a doomsday Forcing insurance on customers is very successful
scenario of potential liabilities for since most customer don't understand the specific
customers without proper insurance and uses of insurance package while the employee puts (1) No direct (monetary) penalty was associated with
increased pressure by requiring the fear in the customers about the potential liabilities. Racking the weights. Signs returning the weights to their storage areas. (2) Due
customer to sign a waiver stating he/she Although I reduced my insurance purchase through Bally's Fitness - health encouraging the racking of weights were to the low cost image, most people didn't feel
Alamo Car Rental - car rentals refused insurance. the use of my AMEX card, I still purchased insurance. clubs services posted everywhere. compelled to rack the weights.

Page 3 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

I originally had a plan with 1000 minutes for $49.99.
But I would go over this plan, and each time I did they
T-Mobile was influencing me to optimize charged me something like $0.99 a minute, which Not a company, but a
my service plan (ie upgrade my plan to quickly adds up. They offer a 1500 minute plan for Democratic Political Action The organization used telemarketing
more minutes) and extend my contract only $10 more. It made sense for me to upgrade, but Committee. I am a (since I had volunteered for them before) The person who called me was completely
T-Mobile - cell phone service with the company. It used pricing to it required me to extend my contract for one year, Democrat and I contribute to contact me to try to get me to donate uninformed about the organization and unable to
calling plan affect my behavior. which I wouldn't have otherwise done. financially. $100. answer my questions.

behavior - make customer show up on
time for the appointment mechanism -
they set up segregated price for people
who show up late more than 1 time or
cancel appointment on the day of the
treatment. (33% higher price from next Yes. At first, since the service level of this salon is
treatment) For customers who show up great, most of the customers become repeat visitor of
on time every time, they make gradual this salon. These loyal customers try seriously not to
discount based on how many times they show up late to make the price of the treatment
company -One of a local come. For customers who show up late, cheaper and to get treatment for whole time. I'm sorry I have no idea
Japanese esthetic salon they reduce the treatment time not to Through this mechanism, this system succeed to about unsuccessful
service - esthetic treatment make next customer waiting. encourage customer show up on time. attempt... n/r n/r
For me it was easy to use, transferred liability of
payment timing to bank (e.g., if payment did not arrive
to recipient by certain date, bank assumed
responsibility of delay), free (saved on stamps and
time), instantaneous deduction from account, kept a
Behavior: Method of paying bills and record of transactions, replaced the hassle and time In comparison to eBay, Yahoo Auctions did not have
managing accounts. Mechanisms spent of writing checks, stamping envelopes and Through online advertising and targeted enough customers and listings, and the auction had
used: Online and print (brochures at the mailing payments. I have been using this system for 9 emails tried to offer incentives (e.g., a soft ending. High switching costs (hassle to learn
Bank of America's Bill Payer branch) advertising, word-of-mouth, years now and I hope to never go back to the old discounts, reduced fees) to list my new auction system and also lose my positive
system (Phone and Online) employee recommendation method of paying my bills! Yahoo Auctions auctions on their site. feedback I had accumulated on eBay).

The company tries to influence couples' Their attempt was unsuccessful because of their
vacation destination decision making by customer service. We were ignored upon entering
making the vacation package extremely the store, although there were two salesmen
appealing and hassle free. There is standing in the front of the store that appeared to be
minimal planning that is required--all you The attempt was successful because the resorts live greeters and were not assisting other customers.
need to do is book the length of stay and up to their advertising-they are truly "all-inclusive". Furthermore, we stood by a case for about 5
airfare and all other activities and meals There are no additional fees or spending that Although the store's objective is to sell minutes waiting to be assisted, before realizing that
are planned for you. Furthermore, they consumers must worry about after getting off the jewelry, the customer service we the sales person ignored us to help someone else
limit guests to adult couples, so you do plane. They live up to all of the expectations one has experienced was extremely poor. It who entered the store and approached the case
Sandals Resorts, which is an not have to worry about kids running when looking for a package vacation. Furthermore, Bailey Banks & Biddle. My seemed that they were not using ANY after we did. Rather than ask for help, we decided
all-inclusive, couples resort around the resort. They also include in once you arrive, they cater to your every need. It is boyfriend and I went into mechanisms to get us to buy something to leave. The store was not busy at the time and we
located throughout the the cost of the trip transfers, taxes and obvious that all of the employees place a high value the store one day to look at and we will never return to the store to felt that the behavior of the sales people was
Caribbean. tips. on customer service. jewelry. make a purchase in the future. inexcusable.
Implementing self service. When
McDonalds entered Mexico about 20
years ago, self service was a very very
uncommon practice, especially the part Because they are not consistent, so after 5 years of
that consists in picking up after yourself. not paying and seeing how your debt to the
They "educated" people through company rises and they never cut your water supply,
making it seem "cool" to pick up your Because they established it as a norm from the very Trying to make on time payment a they publish "Extraordinary discounts" eliminating all
own mess and by acting as if it was beginning so nobody dared to defy it because you common habit. It uses the "terror" the late payment fees and even cutting a discount,
super obvious that that is what you would be looked over by everyone else in the rest. as The Water service mechanism, adding late payment fees if because they are desperate for people to pay
McDonalds. Fast food should do. a person who just "didn't get the concept" company in Mexico. you don't pay on time "anything"

Northwest intends to influence
customers to choose NWA (over their
competitors) for their air travel needs,
through a customer service plan that
includes: Offer the Lowest Fare
Notification of Known Delays,
Cancellations and Diversions On-Time
Baggage Delivery Increase Baggage
Liability Limits Cancel Reservations
Ticket Refunds Accommodate
Passengers with Disabilities and Special
Needs Meet Customers' Essential
Needs during long delays Handle
"Bumped" Passengers with Fairness
and Consistency Disclose Travel If NWA's primary concern is customer satisfaction,
Itinerary, Cancellation Policies, Frequent then they are currently concentrating on the wrong
Habitual purchasing of Nordstrom's Yes - I'm a habitual Nordstrom's customer, because I Flyer Rules, and Aircraft Configuration mechanisms. They should be fixated more on
merchandise, through a consistent can rely on the quality of merchandises and the in- Ensure Customers First Standards from mechanisms such as on-time departures/arrivals,
Company: Nordstrom's offering of high quality merchandise and store and post-sale service levels to be superior to Company: Northwest Code Share Partners Respond to consistent in-flight service, and enhancing or
Product: Men's Clothing service. other clothing stores. Airlines Service: Air travel customer complaints maintaining a consistent awards program.

I may be a major outlier here, but I am a bit of a
music purist and don't believe Apple's files are of the
I believe Insight was successful, because they same quality as CD recordings (which are similarly
The company was attempting to appealed to my desire to efficiently utilize time and not of the same quality as vinyl, of course...).
influence my choice of money, two highly valued resources. By offering Although I appreciate the ability to purchase
entertainment/leisure experiences-- unlimited OnDemand HBO programming along with individual songs (rather than whole albums), I would
hoping I would choose their proprietary monthly HBS subscription, for example, I was able to rather have the song in its complete, unadulterated
Insight Communications-- OnDemand television services over watch the occasional movie and keep up (or catch The company was trying to influence the form. Not only is the quality better, but it is also in a
cable television services, renting, TiVo, or out-of-home options. up) with the Sopranos and Six Feet Under at my way I purchase and use music standard audio format, while iTunes music is in
specifically OnDemand They primarily utilized convenience and convenience and with very little cost compared to Apple--iTunes music recordings. Like Apple, iTunes appeals Apple's proprietary format, which limits the ways in
programming cost mechanisms. other options. service. to convenience and cost, primarily. which I can use the music I own.

Method of accessing company for iPod
service -- instead of traditional phone Ease of use and accessibility of going to store for help Still needed to call because info not available on
support getting me to bring it into the -- real person, no cost, easy to reserve online ahead web. Difficulty of finding phone number just made
store. They made it very difficult (maybe of time so don't waste time, easier to fix problem in me more frustrated and more determined then ever
Apple Computer, Inc. iPod -- impossible) to find a phone number (and person, etc. (Plus, creates a purchase opportunity -- Use web for order info -- don't call in to find it. Had to make multiple calls into service to
needed technical very restrictive terms) -- but easy to find almost bought new accessory -- and generates Amazon.com Purchase order. Make the phone number hard to get answer to question (Saturday delivery possible?)
service/troubleshooting on store locations and make a service consumer goodwill --fixed my problem easily and very digital camera online -- find; little additional info in service reps -- and ended up canceling order because of
setup reservation online. helpful.) shipping questions hands. inflexibility (not available). Bad service experience.

Page 4 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

The company wanted me to choose
American for my business and personal
travel needs. I actually did not have any
control over my business travel plans, This attempt was successful in that it generated
but as a result of American's free additional significant business for the airline. Over the
upgrades plan, I ended up not only using last year, I have traveled for vacation on American to
American for all my personal travel India, China, and Chile. I paid the full economy fares The company did not have enough salespeople and
needs but actually INCREASING THE for these tickets but used my free upgrades to travel the salespeople gave equal attention to all
AMOUNT OF PERSONAL TRAVEL in business. I would not have made these trips (on customers with regard to neither the probability of
that I decided to take by air (all of it with American or any other airline) but for these upgrades. The company wanted to ensure that their buying something nor the size of their potential
American). As a top tier business While this did increase my personal spend with the each customer had the opportunity to purchase. Thus, I received no attention for nearly an
customer with American, the airline gave airline, it may not have been successful in terms of engage in an in-depth discussion with a hour when I was committed to making a major
me unlimited national and eight generating high margin business travel to American Ski Market...I planned to knowledge salesperson in the hope that purchase while the salespeople worked with other
American Airlines. Flights for international upgrades (which expired in as I, who benefited from the upgrades, did not decide buy new skis and this would build long-term relationships customers who made no/lower margin purchases. I
business and personal travel. one year). on when and on which airline I would fly for business. accessories. between consumers and the business. left the store frustrated and without buying anything.
They were trying to reach customers'
appealing for tech-savvy solutions, love
of nice design and easy of use. They Young customers appealing for music
leveraged their brand name and and sport, who want to have something Their product is not differentiated enough. Coke is
reputation for high-end product and their different or take risks. Created young still the absolute reference in my mind who is
music download website (I-tune) to They were able to create a consensus of "this is the image and use young celebrities (britney dedicated to everybody not only to young kids who
Apple, I-Pod create a new reference reference product to have". Pepsi, Pepsi cola spears,...) to build their brand name. like britney spears.

Encourage neighborhood women to use Jay After I realized that choosing the option they wanted
exclusively instead of rotating between Jay and the me to choose put me on the phone with a voice
other nail salons nearby. Frequent visitor card makes US Airways wanted me to check recognition machine, I called back and chose the
BEHAVIORS: 1) Frequency of Visits 2) me feel like I am a "regular" somewhere. The whether my flight was on time either option for purchasing a ticket right now, with a credit
Purchase of Additional Services manicurists write their names in the little check boxes, online or through the automated call line. card at the ready. Therefore, USAirways did not cut
MECHANISMS: 1) Frequent visitor card so if you have a particularly good manicure, you can The automated message at the 800 the costs it had hoped to save by servicing me
(buy 10 manicures, get 1 free) 2) Free ask for that technician the next time you visit. The number suggested that I could check through the automated phone line. By pretending I
sample of chair massage while nails are free sample of the massage is a great sales tool. The online "for faster service", then gave was about to buy a new ticket, I got a live agent on
filed. Then a 10-minute chair massage 1-minute taste at the beginning of the manicure "check flight arrival/departure times" as a the phone who could help me figure out that my
(for $13)is offered at the end of certainly makes customers more likely to buy the menu choice on the phone line. flight was, indeed, delayed two hours. I also asked
manicure, while you have to stick around chair massage later than if they had not been (choosing this option kicks you over to her to help me select my seats, which I did not have
Jay Nails Manicure to dry anyway... exposed to the delightful service earlier. US Airways Phone center another automated system) the option to do online.
They are attempting to make me show
loyalty to the airline when purchasing
tickets and be willing to possibly pay a
little more to fly American in some cases.
It uses a loyalty program - frequent flyer It makes using their product more enjoyable and
miles that provide free tickets and first gives me flexibility I value as a frequent traveler.
class upgrades. Becoming a Platinum Inherent in the program is that if I find using their The attempt is unsuccessful because they send out
or Executive Platinum member of the product more enjoyable, I will get in the cycle of using The company sends out catalogs at a so many catalogs that you just ignore them and they
program also gives me priority on it more and getting more rewards. As long as the rate of approximately one per week in an do not use the information they have regarding their
American Airlines - airplane standby lists, allows me to board early, profit from my additional use outweighs the cost of attempt to get you to purchase sale customer previous purchases to target their catalogs
tickets etc. providing the rewards, American is more profitable. Victoria's Secret – cloths items. to drive specific purchases.
their methods (suing the pants off selected
I was downloading the show illegally, scapegoats) were not perceived by me as a
stripped of commercials. It presented a Well, the RIAA. I was significant threat, and made me less guilty about
new, slick, online website that streams the website ended up being an easier way to access listening to music stealing. Also the process of downloading was a
Comedy central. (Viacom). I the videos, with some associated visual the show than the illegal downloading, and the ads produced by its member once again, I was illegally downloading much more satisfying way of getting my music vs. all
was watching the Daily Show. and video commercials. were presented in a way that were not obstructive. companies. stuff, this time music. options (including iTunes)

Trying to get me to buy an IBM/Lenovo
laptop. Used ease of purchase,
increased tech support, linked through Yes, very successful. I was swayed by the ease of Trying to influence purchasing decision.
IBM/Lenovo. Laptop Harvard, overdelivered on the order in purchase, the cost, delivery and service, where I Verizon. Cell phone Used deals and discounts to increase Too confusing and too much fine-print. I felt a lack
computers. terms of cost and delivery times. wouldn't have bought an IBM otherwise. plan/phone. the size/type of purchase. of trust and a distain for Verizon on the whole.
Macy's was trying to influence me to
purchase the more expensive designer
selections instead of the discounted
clothing. The designer selection was The clothes not only looked more appealing, but by The restaurant was trying to get me to I had read an article about the high margins
better lit and clothes were pleasingly putting the discount clothing in a separate section, it purchase the high margin bottled water restaurants make on bottled water. It was then
Macy's. Shopping in the arranged instead of thrown around in the was easy to identify the "discount shoppers". They Lucca (Italian restaurant). over tap. The waiter server made the tap obvious what the server was trying to do. Besides, I
women's department. discount section. made it a bad thing to look for bargains. Water for the table. option seem unsanitary or cheap. drink tap water at home so I know that it is quite safe.
The attempt was successful because in addition to
winning contracts to be installed in computers at
teaching hospitals, they sold their service, a web
based account in addition to CDs to download the
Up to Date was trying to be the one information, to medical students for a low price. Their
source med students and residents use emphasis on continuously updating the information is By making it extremely difficult to
Up to Date On-line, to quickly access comprehensive consistent with the theme of practicing evidence process the insurance claim, UPS was The attempt was not successful because I was
comprehensive and current, information, incorporating recent results based medicine and it results in subscription deterring me from following through with diligent and was able to dedicate some time to follow
clinical medical information from clinical trials revenues for the company. UPS insurance claim the claim through the claim
Key was trying to keep me as a
customer although I no longer lived in an The product (meal) was clearly more than enough to
area serviced by Key Bank (Boston and, satisfy my hunger-- typically leftover soda and fries
prior to that, Minneapolis), and to make made this clear [as a disclaimer, I only eat at
sure an adequate balance was McDonald's once a month maximum, although I do
maintained. The bank accomplished this The fact that the bank would not only waive 'non-Key admit to enjoying it]. In addition to this, the size of
goal via a policy to charge no ATM fees Bank ATM' surcharges but also re-imburse other the "Super" soda and fries bordered on obscene
AND to re-imburse other banks' fees up banks' surcharges seemed an 'above the crowd' and I would feel the guilt of low will-power and clear
to $4.00/month as long as a balance of attempt at customer service and that they were The company was attempting to gain excess. Also, aware of the sky high margins on
$2,000 was kept in the checking committed to maintaining a relationship. The inherent incremental margin dollars by offering McDonald's food products, the fact that the extra
Key Bank. Preferred Checking account and $5,000 kept in a 'linked' hassle of closing an account and switching to a new more product (Super Size) via a 'small' $.50-$.75 was going 50%+ directly to their bottom
Account. savings account. one factored in to my decision as well. McDonald's. Value Meal. upcharge on their Value Meal. line would make me feel like I was being 'had.'

The automatic monthly shipment theoretically forces
BMG / Columbia House you to buy because you're too lazy to return the CD.
Music Clubs Back when I was NOT too lazy, and I would always return CDs
CDs still mattered, buying at the company's expense. Required purchases
music as a "club member." was not bad (usually 1-2 CDs only), after which I
Basically, get 10 or 12 CDs was free to quit. The fine print says that you are not
McDonalds wants me to (1) decide for "free" and then commit Music clubs tried to get you signed up supposed to quit and rejoin or have multiple
quickly; (2) order more; (3) order Successful because I'm a sucker for a "complete to buying a certain number and buying overpriced CDs regularly memberships at one address, but that didn't seem
McDonald's. Terrible, terrible something standardized; (4) choose meal" - not just the burger, but I need the fries AND as a member. Usually through (1) required purchases as a enforced. So I have hundreds of CDs from quitting
fast food that somehow I am high-margin items (i.e. drinks). They do drink. "Value" meal makes it such a simple thing. ended up coming to about member; (2) automatic monthly and rejoining. It's possible - but doubtful - they
compelled to eat on occasion. it through easy-to-choose "value meals" Also, I'm greedy, especially when I'm hungry... why $30 for 10-12 CDs... pretty shipment of a selected CD if you did not broke even or made money off me through shipping
They do have the best fries, and the much missed "super size" have the medium size fries when you can get the good for a poor high respond in time; (3) "tailored" catalog to & handling charges (which seemed a bit high), but
after all. option, may it rest in peace. JUMBO size? school kid. suit my music tastes. that doesn't seem like a particularly good model.

Page 5 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

It was unsuccessful for three reasons: 1. Clarity of
There are several reasons why they are continuously the offer. By using vague and often unclear
successful: 1. Significance. The dollar value of the terminology, it was unclear whether the rate per
In all cases, the airline has implemented penalty or fee is significant enough to influence minute would be truly local (e.g., UK to UK) or equal
various tactics and policies designed to behavior. 2. Demand. with so few options to fly to to the long distance rate from the local market (e.g.,
discourage me from making changes to Canadian cities, AC has the "monopolistic" luxury of UK to Sweden). This created confusion. 2.
my flight plans. With cash tickets, there getting away with more than in a more competitive Transparency. After trying the service once and
are significant fees for changing dates scenario 3. Industry. Customers (myself included) watching 50 pounds disappear within days, I was
and times for the flight, along with strict have come to accept these types of restrictions as a By creating an international calling plan certain that the plan was either not in effect or not a
non-refund policies or large penalties for normal part of an economy fare ticket, and have available only to registering "members" it good deal. When I was back in the UK, I tried to get
cancellation. While "points" tickets have modified behavior accordingly. 4. Up-selling. From Vodophone UK, pre-paid was trying to influence me to make more a detailed summary of my cost per call, but was told
smaller fees to give the impression of AC's point of view, this also creates the opportunity to mobile phone service for long distance calls in the Uk when that it cannot be furnished for a prepaid phone. This
Air Canada; personal flights flexibility, there are often much fewer sell the benefit of flexibility as an added feature (or the summer. Specifically, outside of my home market and pay lack of transparency made me certain that the deal
over many years, purchased flights/seats available to "points" next tier) for customers who value the ability to long distance calls when "local rates." It used a pricing plan of could not be a good one - otherwise the details of
either at discounted fares or customers, reducing the number of change at the last minute, and are willing to pay more outside of the home one initial "connection fee" plus minutely my own calls and money spent would have been
by using frequent flyer miles. passengers who make changes. for it. market (UK). rates based on the local calling plan. made available to me.

The company was trying to sell its 'credit
protection' program to its credit card
holders, with a 30-day free trial period.
Credit card frauds and payment disputes
The company was trying to influence The attempt was successful because of my heavy might have cost Citibank dearly each
customers' ordering behavior to water consumption and the lack of storage space in year. Through selling the credit
minimize the cost of delivery for the my dorm room. With Poland Spring's delivery policy protection program to customers, the
company. Its mechanisms include a in mind, I would adjust my water consumption bank earns additional income from the The attempt was unsuccessful because I have not
Poland Spring -- Water fixed delivery schedule and the according to the 'stock' of water in my room and the insurance policy and lowers the risk of encountered enough credit card frauds to justify the
delivery. unavailability of same-day service. delivery date set by Poland Spring. Citibank -- Credit Card. bad credit card debts. cost of the program.
Upgrading my willingness to pay for an
average cup of coffee. Mechanisms for Similar to Starbucks, a premium for
the higher price include premium I pay on average $1-2 more per Starbucks drink standard product by ways of upgraded
Starbucks, hot coffee-related branding, atmosphere, Starbucks because of the emotional experience I affiliate with Panera Breads, atmosphere, premium branding and In addition to being more expensive, food quality
drinks. experience and affiliation. Starbucks as opposed to buying for taste. breads/soups more "knowledgeable" varieties of bread. was below par and wait time much longer.

There were many reasons: - I want to
I would like to give two see/smell/touch a product before I buy it. I order
examples. 1. Skype: They from Internet only from trustworthy sources and only
changed the way I make long- products I used before. Buying things I just see in a
distance calls. Before I was catalogue does not work for me -The household
introduced to their services I products were actually good (I tried) but it was much
used prepaid cards or the easier to go to supermarket around the corner than
normal phone service. Now I to order and wait. In addition, the fact that they were
use mostly Skype. 2. Veet: In very economical was not a strong point for me as I
Romania I used to go to Amway. I was approached did not need that much anyway. - The cosmetics: I
cosmetics saloon for hair Skype tried to influence how I make several time by Amway The company was trying to make me just did not trust them. I do not think I was their
removal. After I moved to phone calls. They offered me a free representatives both in change the way I buy cosmetics, target audience. For example, the sales
Greece these services were samples and I was hooked! Veet tried to Both attempts were successful because the Greece and Romania, I household products, etc: instead of representative told me that one of their cleaning
more expensive and once I change the way I remove the unwanted products/services satisfied my needs, my budget and was given samples and going to the normal shops I could order products was good for everything from kitchen and
discovered Veet I switched to hair and they had a good advertising they were of good quality. They pure and simple catalogues. But I did not from home from one of their bathroom to washing my hair (!). This really made
Veet's products. campaign. worked! become their customer. representatives. my mind. Not to become a customer.

a) my quantity of use of the product and a) the proposed alternative uses genuinely addressed
my re-purchase rate as a result; used an under-served need of mine(coating baking Impulse purchases. The companies
television adverts to highlight alternative pans/dishes with the foil to facilitate clean up after place their small, low price products at
uses of their product b) my travel baking--I have no dishwasher) b) offer of lower prices the cash register to try to get me to add I hadn't sought those products out in the store in the
a) Reynold's Wrap (aluminum plans/flying habits; yield management in instances when I would experience no or little Candy, magazine and them to my shopping cart on a whim at first place so seeing them at the checkout counter
foil) b) Any U.S. airline (plane pricing of tickets and ability to compare cost/inconvenience from flying during non-peak purveyors of various small the very last minute, circumventing my makes no difference for me. (I'm a "Seek and
tickets) prices relatively easily across itineraries times/dates knick-knacks usual buying thought processes. Destroy"-type shopper.)

Amex was trying to get me to use my It failed because I got an Amex card for the charge
The company was trying to influence my card as a credit card rather than a feature, not a credit card (roll the balance from
payment behavior. If I switched to auto- It was successful because when students are both in charge card, by offering me a 'flex-pay' month-to-month) feature. I have credit cards with
Granite State Student Loan payment (linked to my checking debt and lazy, an auto-payment system that provides option for larger purchases (hotels, lower APRs for that. By trying to be both types of
Management. The service account) then I could get a reduced lower pricing is a win-win. They are more likely to get airline flights, etc.). They positioned it as card, they failed to convince me why I should use
was managing my undergrad interest rate (0.25% lower) after 2-years their funds on-time and the student is getting a better a more flexible, consumer-tailored option them for credit and not just charge. In other words, I
student loan of on-time auto-payments. They were rate. I liked the convenience and ease and lower American Express; charge vs. the pay-off-your-balance-every- didn't see the benefit for me, only the increased fees
servicing/payment. using a pricing mechanism. price. card month charge card. and interest paid to Amex.
Trying to cross-sell hotels, flights,
Wanted to limit usage of labor intensive insurance etc (ie, trying to get me to buy Because I don't like being hassled by vendors, even
services (in person visits or phone calls). Hefty charges on overusage of teller services coupled Expedia (online travel more). Used website layout and cross on the internet, and I thought pricing was
TD Bank (banking services) Used pricing to deter me. with a usable alternative (online banking) services) promotions. uncompetitive.

short-term goal: choose their bank over They tried to convince me that the bank
competitors' for this loan service. Long- makes no expectations to its standard
term goal: transfer all of my transactions operating procedures (no way for them
into their bank. mechanism - They I did not have to do a lot of product research on my to speed up the loan process, hence I They were not responsive to my requests as a client
offered a whole array of different loan own. Instead, they dedicated a lot of personal should not complain about the service). – speed of service, variety of product options. Also,
options + more favorable financial terms attention to my problem + were knowledgeable about Mechanisms – citing personal anecdotes they did not provide me with high enough priority
PBZ - Privredna Banka + excellent service (24-7 accessibility, product portfolio + willing to compromise on deal when they could not make exceptions which I believed I deserved considering the amount
Zagreb. Loan. knowledge of product portfolio, etc). terms. Zagreb Bank. Loan. even for VIPs. of money I had with them.

Safeway. Developed a Because I was indifferent between this grocery store The company wanted customers to buy
partnership with Alaska Increase customer base and increase and the one across the street as both were more than one bottle and hopefully
Airlines to provide frequent purchases once in the store. equidistant from my house and had comparable Bath and Body Works. increase revenue per customer.
Mechanisms: in-store advertisements,
flier miles for all purchases at prices, selection, quality, and service. Also, it helped Purchasing lotion. The Mechanisms: large brightly colored signs
Safeway grocery stores. flyers in the mail, and checkout clerks that they made it easy for the customer (I just had to company priced each throughout the store, sales associates I didn't want that much lotion and didn't really want
Further, if you used your Visa asking if you wanted to add your link the frequent flyer number to my rewards card bottle at $12.50 each but coming up to you and telling you about to be spending that much on it. On that particular
card to make the purchase, frequent flyer number to your rewards number once, and then everything else was done for would sell you 2 for $20 or the offer, flyers in the mail, and email trip, I was shopping for something specific and
you received double miles. account. me). 4 for $30. advertisements. nothing additional.
It was successful because they created value for me,
Ease of use and convenience. Made the the customer, by being first to market with a product Convenience, ease of use and a must I saw a better product on the market that was more
phone multi-function, light weight and that met my three needs to have a portable music have item. Made the player ultra thin for than a music player plus for only an additional $150 I
Sony Ericsson. Walkman cell small. Advertised the phone online as a player, reasonable camera and a up to date cell portability coupled with a user friendly was getting a decent camera and phone all in one
phone. 3 in 1 option. phone. Apple-IPod. software. instrument maximizing convenience.
Essentially they were trying to change
my behavior to be more of a self-serve
customer through online applications
such as bill-pay, customer service, faq's,
and statement information. I switched to Arthur Murray was trying to influence our
online banking because they offered a continued relationship as a paying By going for the hard sell and trying to hit a home
monetary incentive of about $25 for customer during our move from Los run with a huge financial commitment through a
switching to online banking, but they Incentives were provided which heavily influenced my Angeles to Cambridge just this summer. down payment, Arthur Murray lost a potential long-
also provided a simpler and superior decision to make the switch and try the online Arthur Murray dance Rather than emphasizing the service term satisfied customer. They basically stopped
Bank of America - switching to customer service interaction online. I banking, but at the end of the day the attempt was instruction - my fiance they provide - outstanding dance listening to what we were saying and lost any sense
use online banking from a find online transactions easier and successful because the new format provided a more (now wife) and I were lessons - they emphasized the sale and of customer focus, while making us feel like walking
traditional atm and branch therefore call the 800 numbers much valuable experience for me than the phone and taking dance lessons for down-payment commitment necessary dollar bills rather than moderately lousy but rapidly
banking relationship less frequently. branch alternatives. our wedding to continue. improving dancers.

Page 6 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

The product actually worked Also because I was buying because you don't want to
The desire to have your hair looking already in the salon I was already in a frame of mind damage an already expensive shoe the no demonstration with old shoes so no guarantee
great. There was women in the salon where I was thinking about the look of my hair and nine west. leather protector sales women asked me if I wanted the that it would work also the women was not forceful
Bed Head. Anti-frizze cream who tried the cream on my hair. was therefore more likely to buy a product like this. liquid product enough
The company was trying to upsell me on
my digital cable package to add a Cingular was trying to get me to renew Cingular did not offer enough discounts or rebates
premium movie channel package. They service after my 1-year contract term for the new phone that I wanted. Since my contract
used a mechanism of a promotional The discounted price was low enough ($5 per month was over. It tried to use a customer term was over I was free to switch to a new provider
Comcast and their digital discounted price for a 6 month time out of a $70 bill) to induce me to trial the additional Cingular Wireless cell retention discount to help offset the cost and be treated as a new customer with all of the
cable service. frame. channels. phone service. of a new phone to stay as a customer. perks and discounts.

This challenge encourages me to fly AA more so AA
wins and in return for Platinum status I get the
Increase use of AA by building loyalty benefits of a Platinum member sooner (more miles, United Airlines. Ameniti
and offering incentives. Loyalty program preboarding, upgrades, etc.). AA wins in the long run Membership/Service. Increase my usage of UA and build If a person is a frequent traveler, they can earn the
offers a "Platinum Challenge" which too because they are building more loyalty because Basically UA allows you to loyalty. Also seeking to increase revenue elite status without paying. If a person is an
rewards a user who flies 15K miles in 3 once I get status, I'm even MORE likely to continue buy elite status plus various by charging a fee. Mechanism:Pay for infrequent traveler, they really won't benefit from
American Airlines - air travel months with Platinum status. using AA instead of other airlines. other benefits. the loyalty program with added benefits. paying for the product/service.

Trying to increase repeated use by
customer. Had a clear value proposition Tried to change customer behavior in
as a "hip" airline, and designed every buying life insurance from agent based Though most people would imagine that by buying
part of the experience in line with it: the sales to online sales. Provided online online, they would be able to get discount prices, the
cabin attendants, in-flight entertainment, Turned flying, which is more or less a commodity, into DIY Insurance / life sales site, and advertised over related pricing for DIY was not much cheaper than agent-
JetBlue / airline service food sold at terminal, etc. an experience. insurance internet sites. based insurance companies

-because the message didn't appeal to me either
emotionally or rationally. I didn't see why the product
was necessary and didn't see value in being able to
#NAME? #NAME? #NAME? #NAME? #NAME? have my pictures with my music player.

First - friendliness of sales person. Second -
extensive knowledge of the product along with First - although nice, our waitress was disorganized
Behavior: Purchase decision process. personal experience with the product/similar products Behavior: Choice and amount of and rushed, which gave a feeling of incompetence.
Mechanisms: information offering, Third - Relating to the customer and asking food/drink ordered, amount of tip, desire Second - the room was large with high ceilings and
EMS (Eastern Mountain personal experience/personal questions to learn what I wanted/how he could most Many Glacier Lodge to come back/recommend place to not much intimacy at the table; although the view
Sports). Shopping for hiking connection (sales people), displays of help me. Fourth - Not putting pressure to buy, make Restaurant. Restaurant others. Ambiance (piano playing, view), was great and the piano playing nice, it sort of felt
boots. items for purchase. a decision quickly, but focuses in points 1-3. services for dinner. waiter/waitress service, quality of food. like a big dining hall.

Was unsuccessful because I was offered the
promotion when I was purchasing $120 of stuff, and
Company was trying to encourage I asked the cashier to ring in each group of $20
Company was trying to influence interest It has been successful because both HD tv and PVR shoppers to return to the store so separately so that I could get the 5 stamps in 1 visit.
in high definition channels and PVR are addictive! They know they have a great product offered promotion where you collected a I then invited my husband and 4 friends to come
(personal video recorder - like TiVo). and that if you just try it you won't be able to live stamp every time you had a purchase shopping with me when I used the 50% off (there
The offered 6 months free of high without it and will then pay $40 to get what you had occasion of >$20 and when you was no cap of the amount spent) and we saved
definition channels and PVR when I been getting for free. Rogers is also great at offering collected 5 stamps you received 50% off hundreds of dollars. It did not encourage any
purchased an HDTV - they got you telecom bundles (they do cable TV, internet, cell your next purchase. This is a version of additional shopping at full price (although did
Rogers Cable -- digital cable hooked on the service when it was free phones and home phones and offer discounts for the a loyalty program, where repeat usage potentially win additional business from my friends
package and then made you pay for it. more products/service of theirs that you use). H&M - clothes store. gets you discounts or free stuff. but probably at a cost to H&M given 50% discount).
American Express wanted me to 1)
spend a greater share of my credit card
spending on my AMEX card and 2) to This program was very successful for me - I have JetBlue wanted me to check my bags in
continually renew my annual renewed my membership for the past 3 years. In my online (i.e. receive a bag claim number Jetblue failed because it was unable to execute its
membership fee. The mechanisms it opinion, the key success factors are: 1) linking the and answer security questions about my plan and exacerbated this failure by raising customer
employed to achieve these goals were 1) card to the existing Starwood Preferred Guests loyalty bags) instead of starting and finishing expectations with a promise the company could not
offering the first year of card program with an already loyal customer base, and 2) the process with a live representative at deliver. More specifically, the two check-in line plan
membership free, 2) creating the 1:1 great execution – The Starwood and AMEX websites the airport. The mechanisms it used actually increased wait time since so many
dollar to hotel point credit card such that work together seamlessly in transferring points, and were 1) separating airport check-in lines customers tried to adopt the option and inflated the
I was rewarded in “points” for spending reporting point totals and rewards to customers. into “full check-in” and “bag drop only” “bag drop only” queue to many times the length of
AMEX dollars 3) providing extra Further, Starwood continually upgraded the variety check in, and 2) highlighting the option the “full check-in” queue. JetBlue struggled to
American Express. Starwood incentives (e.g., gifts at hotel, extra and quality of its hotel offerings, increasing the in ads and on its website, claiming it rebalance either its staff or the customers in line to
Platinum American Express points for free hotel stays) for all dollars perceived value of the “hotel points” AMEX customers JetBlue. Online bag check- would simplify the check-in process for better match customers with available
Card. spent at a Starwood hotels were able to accrue. in. customers and reduce check in times. representatives to minimize wait time.
The company was trying to persuade me
to use an ATM machine for all deposits
instead of a bank teller, given the lower
transaction costs per ATM transaction.
The attempt was successful because I could observe The company used a customer service
the economic benefit of the price discount on the representative who approached
larger sized bottle, however, it is more difficult to customers waiting on line and
observe the extra amount of the product I use during encouraged them to use the ATM
The company was trying to encourage each shampoo. However, upon reflection I realized machines for deposits. I also suspect
me to purchase shampoo in larger that I use a greater amount of the product per that the company employs less tellers Although I use ATM machines for small deposits, I
The company is Proctor & volumes and consume larger amounts of shampoo when I use a larger bottle and make more The company is Bank of than it previously did to use longer lines prefer to conduct transactions with large deposits
Gamble and the product is the product. It used price promotions on of an effort to use less per shampoo when using a America and the product is as an additional incentive to use ATM with a teller because I feel greater comfort that an
Pantene shampoo. its larger-sized bottle to accomplish this. smaller bottle. a checking account. machines. error will not occur with the transaction.

The company is trying to balance/level Because I was an internet junkie, I was always on,
the utilization on its network by providing regardless of time of day. I guess the attempt was
a bundled peak/off-peak monthly unsuccessful largely because my demand for the
package, with the off-peak minutes free, service was higher than the number of hours in a
while the peak minutes charged. In day, coupled with my relative price insensitivity for
essence, it is a price differentiation the service. I think at that time I was willing to pay
mechanism that serves to both isolate Pricing is a powerful mechanism. I shifted much of my Similar mechanism for load balancing as double the dayrate amount for the service and so I
out business users as well as to talk patterns to off-peak hours (although not all of it). EUNet was a dial-up well as differentiation against business was seeing the night rate as a convenient "benefit"
"persuade" non-business users (such as Where I am indifferent between hours (such as call internet provider I was usage. The company was charging (when it happened that I was online at night) but was
T-Mobile; wireless myself) to shift their calling patterns to for various customer service centers for items I using in Romania in the double rates during the day as opposed not sensitive enough to the monetary incentive to
communication services non-peak hours bought) - I am ok with calling after 9pm / off-peak late 90's to night time. shift my sleep hours/behavior patterns
HRES apparently is sick of me
perpetually paying my rent late. I usually They have been trying to get me to
pay every 2-3 months, instead of Vanguard. I have an switch to electronic statements for a long I declined because the offer of a very small amount
monthly, as I am billed. To change my account with them, and I time, which would save them on paper of money wasn't enough to overcome my desire to
Harvard Real Estate behavior, they sent me a warning of the threat of substantial financial penalties was more receive paper statements and postage costs. they have offered a have paper records (even though I rarely use them
Company. Product/service $100 penalty that I'll be forced to pay if I than sufficient for me to stop being lazy and to pay every month showing $5 or $10 reward for switching to given the ease of accessing the information
was the use of my apartment. don't start paying on time the bill on time. activity for that account. electronic based statements electronically)
Making me carry and assemble my
furniture. They achieve it by making their
warehouse part of the store and having Because the separate charges for delivery and
customers pick up their packed furniture, assembly make the furniture cheaper, and because Espresso (a newspaper).
Ikea. Buying, carrying and and by charging separately for delivery the furniture itself is easy to access in the store and Reading an online The online newspaper was free and Because I had so many free alternatives, I just
assembling furniture. and assembly. easy to assemble. newspaper. started charging for access. stopped reading that newspaper altogether.

Page 7 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

BMW was trying to influence having your
oil changes and routine maintenance
done at the dealership. To do this it
provided free maintenance up to 30,000 The company was trying to increase the
miles, sent reminders, provided a loaner number of CDs I purchased. To do this The attempt was unsuccessful because you could
car, had food and beverages in waiting The attempt was successful for me because it was so it would send a card with the CD of the just put return to sender and return the CD with no
room, personalized service, followed up easy and efficient. I could stop on my way to work month, if you did not reply to the card it cost to me. If I forgot to send in the card, I was not
BMW, service department (oil afterwards, and was always fast and and be in and out with my loaner car in 15 minutes Columbia House, mail- would automatically send you and bill punished for it and the company had to pay for
change) efficient. and grab coffee and a muffin. order CD purchasing. you for the CD. shipping the CD.

The company was attempting to get me The attempt was successful because Verizon
to switch carriers. The mechanisms it developed a buzz that the company had the best The attempt was unsuccessful because I never used
The name of the company used included the company's large coverage in this area. Even though Verizon did not Apple tried to influence me to buy a new an Apple computer in my previous professional
was Verizon Wireless. The network, the free mobile-to-mobile have the best phone selection and was most The name of the company Apple laptop. The company's main push experiences and I did not want a laptop that would
product and service was my minutes, and the perception that it has expensive, I still chose to go with the carrier with the was Apple and the product was that Apple laptops were "cool" to be different or incompatible with something I would
cell phone and a mobile plan. the best coverage in the Boston area. best coverage. offering was a laptop. own and also protected from viruses. probably use in my future jobs.

They were trying to get me to buy more
books. They a) had books on a 3-for-2
offer, and so I bought 3 books when I
only needed one; and b) got me to sign
up for their rewards program by giving
me an instant reward and promising no They were trying to get me in the door by
junk mail or phone calls. I also returned offering me a "one day only" sale. This
to the store to buy another book later sale was not good on all items, so they
that month, because they sent me a They didn't force it on me, they made it extremely fast hoped that in the hunt for a 20% off It's a well-established fact that Macy's is constantly
"thank you for signing up" 20% off to sign up for, and they didn't require a phone Cuisinart I would buy some fashion having a "one day only" sale. Things are never NOT
Borders. I was buying books. coupon that was only good for a week. number or require me to receive junk email. Macy's - department store. jewelry for absurdly high markups. on sale at Macy's, so why bother going today?
Musicmatch is similar to
iTunes and it came
preloaded on my dell The company was attempting to get me
desktop. I initially used it to to use their product more through pop Musicmatch was much too pushy with their product
Returning movies on time. Blockbuster store my music library and up advertising and preventing me from asking me every time I opened the program if I
Name: Blockbuster Service: used a late fee system to encourage started to use it to buy using certain "premium" services such wanted to upgrade. Also, their product did not work
Video Rental return of movies on time Because I did not want to pay late fees music as printing song lists for CDs all that well, so I was not inclined to purchase it

Amex is trying to get me to put all of my
spending on my Amex Blue Card. Amex
provides different cash back
percentages depending on how much I
spend in a given year. This encourages I have frequent flyer accounts for all of the airlines I
me to first make sure that my spending fly and do not feel compelled to be loyal. I am driven
qualifies me for the highest return, and by convenience and price more than any other
then to maximize my return (1.5% cash Very successful. I have stopped using other cards Frequent Flyer Miles, which aim to factors (and the ability to use frequent flyer miles is
back) by using credit whenever possible, and use credit all of the time, even for everyday convince me to use Delta for all of my not compelling enough, in terms of the price
American Express Blue Card rather than debit or cash. smaller purchases. Delta Airlines flights. argument) for me.
(Same as above)Behavior: Returning the
Behavior: Returning the car on time for car on time for the next customer.
the next customer. Intended Intended Mechanisms: Threat of late
Mechanisms: Threat of late fees, phone It was. I was late and knew it, but there was not fees, phone calls once you are late, No. About 6 months later, I was late again, and after
calls once you are late, threat to revoke much I could do about it. The worst part was threat to revoke driving privileges after the second late fee, I decided I would be better off
driving privileges after multiple offences. meeting my section-mate waiting for the car. After multiple offences. Unintended: Social boxing errands that required a car together and
Unintended: Social awkwardness of that experience, I took extra steps to avoid being late, awkwardness of having to meet the doing a one-day rental from Enterprise or Budget.
having to meet the person waiting for the such as adding extra time to initial reservations to Zip Car - Car rental (same person waiting for the car when you are Zip Car lost me as a customer. However, they no
Zip Car - Car rental car when you are late! avoid being late. as above) late! longer have to deal with me returning cars late!

The company name was The company was trying to influence my The attempt was successful since the company went
Fantagraphics Comics. The buying behavior and ensure customer beyond the contract terms and conditions to satisfy a The attempt was unsuccessful since there were
product I had purchased was retention. It used the mechanism of customer. I purchased the book 3 months ago and it riders attached to the compensation - it was not
a hardcover collection of offering to send me a brand new copy of was delivered to the student mail center while I was in The name of the company The company was trying to influence redeemable online! I found it an insincere attempt at
Krazy Kat (a newspaper the book that had arrived in damaged Philadelphia. I opened it for the first time 3 months was JetBlue Airways. The customer satisfaction. It offered a $25 compensation and would have preferred a simple
comic strip) reprints from condition. It also did not want me to after delivery despite which the company offered me a service I was using was Air compensation towards future flights to apology. I came away with the feeling that the
1925-1934. send them the old book back. new replacement copy. Travel. make up for a 4 hour delay. compensation was designed to never be used.
They were encouraging me to trade up
to the more expensive items on the Nars was encouraging me to buy more
menu. Used the limited time only Clear description of why the suggested dish was product than what I was planning on.
"specials" story--saying the ingredients "better" than all the rest. Waiter provided his own Tried to convince me that I "needed" the
Frank. Restaurant in New were fresher, and that it wouldn't last personal testimonial on the dish. It felt more like a Nars. High-end makeup product and that they knew what was
York City for dinner. long. reference than a sell. brand. best for me because they were "experts." The sale felt too pushy and almost condescending.
Behaviors being influenced: likelihood of
drinking coffee, frequency of purchase, Behavior: Using investment The attempt was unsuccessful because they did not
Company: Starbucks. willingness to spend $3+ on a coffee. The product is of a consistently good quality, and the Company: Fidelity professionals to manage my portfolio. offer a compelling value proposition for me to use
Product: drinking coffees and Mechanisms: Convenience, atmosphere cafes are generally conveniently located (which Investments. Product: Mechanisms: They sent a letter their service - the service seemed expensive and I
frapuccinos created in the cafes. attracts both repeat purchases and impulse buys). Brokerage account advertising the service. didn't think it was worth it.
Tried to copy the Western pharmacy Tried to convince me, through use of
store model (ie a one-stop convenience search engines and good advertising,
shop for all needs, not just a place Good service from smiling, young staff (as opposed that it was better to purchase tickets
where sick people go - traditional to traditional, grim pharmacist sitting behind lab-glass through intermediaries than directly from In case anything goes wrong (ie paper ticket is lost)
Russian pharmacies only sold medicine window). Also, name "36-6" stands for a good, airlines as they had access to many their after-sales service is extremely poor and ends
and looked and felt grim and depressing healthy temperature (Celcius) makes customers feel Expedia - online flights airlines and basically "did the search for up costing you much more stress and money than
36-6 (Russian pharmacy store) places to visit) that they are in a health store rather than pharmacy bookings you". purchasing tickets directly from airline.
Company was perhaps trying to have
people used recycled products and be
Buying organic products over non- willing to pay for them. I didn't really
organic. It used/uses pamphlets, etc to People understood what the company was explaining have a clear mechanism other than to
educate consumers about the positive in a very clear way, and the literature is everywhere. sell notebooks that said the paper was Lacked the education/communication that Whole
aspects of organic products over non- Plus, their stores have an aura/aesthetic about them recycled, with an earthy aesthetic on the Foods used. People don't feel compelled to pay
Whole Foods. Organic Milk. organic. that make you feel good about buying organic. Mead. Recycled paper. cover. more for recycled paper.
Did not feel comfortable with the reliability of the
Influencing increased product purchases product being provided for that price. Miles are not
from their department store vs. other I was happy to get discounts on otherwise full retail- as secure and useful as they once were, especially
dept. stores or other retailers by offering priced items and to continue to get discounts and Trying to charge $140 annual fee in with so many airline companies going bankrupt and
significant discounts on the first information on new items that arrive throughout the order to use the Platinum card for which applying black-out dates and other restrictions on
purchase and recurring discount year. They provided discounts on products I was I would earn 2 miles for every dollar using miles. Plus, I already have enough miles to
Bloomingdale's (retail coupons sent with new product mailers going to buy anyway and information that I would not Visa - United Platinum spent and a free companion ticket on purchase free tickets for me and a companion using
shopping) throughout the year. have otherwise had. Card. United. the basic United Visa card.
Trying to influence many different
behaviors because cosmetics are an
emotional, aspirational, and
creative/artistic buy. The Laura Mercier
rep knew exactly how to play up to those Trying to influence buying behavior. Trying to upsell an untested and flawed product.
emotions but spending a lot of time Used price as the sole basis for why the The sales reps on the phone were clearly out for a
showing how each product is properly customer should switch to the digital commission and neglecting to consider the
used, what colors go well with your Her knowledge and passion for the product- you can phone. There's a quote somewhere on experience of the customer. This initiative came
Neiman Marcus - Laura skin/coloration, and what will enhance tell she believed in it. Plus, she used it herself and Time Warner Cable - trying being weary of the cheapest provider.... from the top of the company, so all along the way,
Mercier the health of your own skin. could see firsthand it was great. to upsell digital phone this is such a case. incentives were not properly aligned.

Page 8 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

Customer loyalty on what is otherwise a
completely price-sensitive route and
complete usage of the website over the
phone service. The website is quite They gave me a credit on the airline due
helpful, while the phone service seems to a canceled flight. However, I then
almost intentionally slow. That one's learned that I couldn't use the credit if I
simple. The Rapid Reward system is booked online and would have to call to
more relevant, in that they give a single redeem it. Calling in limited me only to
credit for each leg and then reward free flights that were double the price of the
tickets at 12 credits, as opposed to the flights booked online. It was then
earned mileage system. Because I fly actually less expensive for me to throw
frequently from San Francisco to Los the credit away and book online than
Angeles, I appreciate the consideration 9 times out of 10, this system makes more sense for redeem a $100 airline credit. I'm sure
this suggests for their short route me as a customer trying to earn free tickets. this smoothes their accounting
Southwest Airlines, Rapid passengers and book with them However, as I mentioned above, I fall for it even when expectations and means they can give The frustration and ridiculousness of the scheme
Reward Frequent Flier consistently, even when other airlines it's less economical because it suggests they Airtran Airlines - use of away credits left and right to satisfy made me annoyed enough that I know refuse to fly
Program are on sale. understand people in my situation. credit voucher. inconvenienced customers. with them.
Trying to encourage you to service your
new vehicle frequently. The normal This warranty would replace your mp3 player if
warranty was for 4 years. They were broken for virtually any reason during the first 2 years
selling an additional warranty that covers So far, it seems to be a pretty good plan. The hope is of the products life. Encourages you to use the
the vehicle in years 4-7. If you do not use that you don't have to use the warranty in years 4-7 player for 2 years (normal operational life for mp3
the warranty in years 4-7, they refund and can get the refund. However, for large players), then replace with a new and most likely
Honda Motor Corporation you the original warranty price at that breakdowns, you have the option. Either way, they Warranty again, this time on consumer upgraded model. I would not recommend this as a
(Automobiles) time. get more money out of you at POS. Best Buy products (ie, mp3 player) successful model.
Purchases of their hamburgers and
Flight purchases. Advertising that sandwiches. Advertising that featured The commercials were just plain disgusting. All the
highlighted low prices and quality The company convinced me I was getting a lot of multiple patty meat cheeseburgers with characters chewing sounds could be heard and
customer service (unlimited snacks, value for my money, especially when compared to people eating them and getting burger messy burger was all over the place. No appeal at
Jetblue. Air travel. leather seats, and personal televisions). other carriers. Carl's Jr. Fast Food. stuff all over themselves. all!

because the discounts did not apply to products that
increase my use of that particular credit They were trying to increase my I usually buy. Additionally, the coupons must be
card vs. the other ones that I have by Because it benefited me and did not require any extra purchases by offering discounts on brought in the store and nothing that I buy I buy
offering cashback bonuses for certain work on my part (I already owned the card and had CVS drugs and beauty certain products as my spending there warranties the extra effort or is so expensive
Discover credit card types of use no preference for the other cards) products increases that I would switch products based on price.

I found the service did not function properly because
Because I found the online interface to be extremely it was at the whim of the internet connection.
Wells Fargo converted me to online intuitive. It was an improvement on the usual service However, the bigger issue is that I felt like I was
banking. First, they involved me in a in that I could see all my account activity whenever I The company was trying to create a sending my emails down a black hole. I did not get
Wells Fargo - I had a focus group that allowed me to have a wanted instead of waiting for monthly statements. consumer base that all relied upon IP confirmation emails when I submitted a complaint
checking and savings sense of ownership over the process. This made it worth it to use this as opposed to based phone service. They also tried to and I did not receive responses on many of my
account, that offered online They offered me features such as online traditional banking. The focus group also increased Vonage - internet-based make all their customer service virtual emails. As a result, I felt powerless as a customer
banking bill pay to incent me to use the system. my positivity around the process. phone line through email. and discontinued the service.
Drive higher sales (average revenue per
passenger); mechanism used to Successful because maximizes value from both price- No limit on how long or frequently would have to use
maximize revenue and profit per sensitive and price-insensitive customer segments; the card to receive promotional miles. Many took
passenger through charging higher serves to drive high initial volume for price-sensitive Visa -- Credit card Want customers to sign up for and use advantage of the offer by signing up for the card,
Southwest Airlines -- prices to last-minute travelers higher customers who benefit from low initial prices and partnership with Southwest Southwest Visa. Offered 10,000 miles making a small purchase, and then closing the
Commercial air travel prices charges higher prices to price insensitive customers airlines for signing up and making first purchase. account.

Starbucks was successful because it converted my I think that JetBlue was initially successful.
attitude towards its product. Initially, I would not have Customers not only took advantage of the reduced
considered paying $3+ for a cup of coffee. fares but the company seemed to have the feeling of
Starbucks was trying to influence my Additionally, Starbucks coffee seemed too strong for being an "alternative", more new age company
behavior as a frequent buyer of its my American palate. However, because I enjoyed (funny stewards, brochures for doing yoga on the
product. Mechanisms used include the experience of purchasing the coffee from the plane, etc.). However, I have discovered that service
widespread penetration of the market Starbucks store, I accepted paying this premium, and has declined, and its differentiated, low-fare model
(i.e., a store on every other block of the my taste/palate for coffee actually shifted to preferring JetBlue was trying to convert me to has been copied by some of the larger airlines. I no
city) , samples distributed outside its Starbucks'. Lastly, I knew that no matter what become a dedicated consumer of its longer feel incentivized to fly with JetBlue because
stores, friendly and quick service, and Starbucks I was in around the world, I would get the airlines through its low prices and high they cannot offer me a service that other airlines do
Starbucks' Coffee consistently high quality. same coffee and the same level of quality. JetBlue Airlines quality service. not.

switching to online banking services using my cell phone for more services
Bank of America, retail (online bill payments, online statements they clearly conveyed the benefit to me and the than just a phone (camera, music I didn't see the need in these services in my phone
banking (checking account ) etc.) , advertisement and email messages environment Verizon, cell phone listening etc. ), advertisements when I get better quality from my camera, IPod etc.

Citibank gave extra "bonus
dollars" in cash back if I used
its credit card at grocery
stores. Lo and behold, I Delta tried to get me to buy
started using the credit card car rental services when I They were using "bundling" to try to
more than any other when I Citibank used using financial incentives Because I 1) noticed the policy, and 2) wanted the bought a plane ticket from convince me to adjust my buying
shopped at grocery stores. to influence my buying behavior. extra money. them. behavior. I knew I could get a better deal elsewhere.
Use of cell phone and Palm pilot. It used It simplifies my life, I no longer need to use two
a product that merges both of these products because their product consolidates both of How I transport myself. It used on I thought that that the process was complicated and
Palm Treo Cell phone products. these functions. Zipcar, car rental campus advertising. that they asked for extra paperwork for foreigners.

It was definitely successful. By giving me quick
It was trying to influence my choice of access to an increasing number of benefits,
the hotel whenever I was visiting a city. It Starwood influenced my choice of hotel whenever I
Starwood Hotels. I was used the membership reward program was traveling, both for business and work. Whenever It was trying to influence my purchasing It was unsuccessful. I never got used to the new
staying at their hotels, initially to influence my decision process. Such possible, I always stay in one of their hotels. I also behavior when selecting an ice-cream, flavors as I found them too rich compared to the
when traveling for work, and program included various benefits switched from one hotel I used to visit quite often for Algida Ice Cream. I used to by discontinuing some old flavors and delicious simple old ones. It became more difficult to
joined their membership connected to the number of stays at the work to a new one, as soon as the old ceased to be be a big fan of their ice- introducing more sophisticated (and find the old types and I ended up switching to other
program. hotels that were part of the group. part of the Starwood Hotels Group. creams. expensive) flavors. brands, whenever buying an ice-cream.

The behavior the company was targeting
was to limit the 'comparison shopping' The reward of free travel accumulated through using The store was attempting to increase the
when looking for air transportation. (to the company airline provided enough value to use the number of times I would frequent the
become the defacto airline that I would airline even when sometimes offering a less store by using a reward loyalty program There were a lot of other lunch choices available and
use) The airline loyalty program provided convenient flight. The reward is tangible, something The soup nutsy, the had a (ie after 10 free soups) I'd get a free I didn't like to eat a spot more than once / week. I
'reward' tickets based distance traveled that I use, and associate positive feelings with (ie variety of different soups soup. I never took a 'loyalty card' as I also didn't care about spending $5 on a soup or a
Air Canada - air transportation. with the airline going on a holiday) offered during lunch rushes didn't think I would frequent that often different lunch so the reward wasn't enticing.
Bloomingdales was trying to increase
consumer spending. They invited me to
their "Private Sale," by giving me
Bloomingdale's was very coupons for $25 off every $100 I spent. I think the goal is to get me to sign up for
successful in influencing my I bought more regularly priced items than Their attempt was successful, because I am a more United Airlines sends me a a credit card to accrue more United
behavior. I began to annually I usually would. They also offered $10 loyal Bloomingdales shopper. I wait for the Private lot of credit card Airlines miles with my mileage account. I am already tied into other credit card award
shop their private sale and gift cards for every $100 I spent, which Sale, but I will also go back afterwards. The Private applications. The service However, their mechanism has not been programs, and I think that airline loyalty is already
return later to buy regularly encouraged me to come back for Sale during the Christmas season is where I do all my that I use is their mileage very effective, since I consistently throw very difficult to redeem. So, continued attempts to
priced items. another visit later. holiday shopping. loyalty program. away all the credit card applications. send me credit card applications are not effective.
company was trying to influence both my
buying and traveling behaviors. Having
the credit card means that I will probably successful because buying things with a credit card is sprint was trying to get me to buy a new
United Airlines. The product is travel more on United than on other something I do anyway and I will be traveling a lot this cell phone by offering great "deals" on I felt it was a hassle to switch to a new cell phone
their credit card that allows airlines to earn miles and also that I will year so free miles are attractive to me. successful new phones and advertising heavily (choose one among the many, exchange the old
customers to earn additional use their credit card more often for the because the company makes it relatively easy for me Sprint. product was a cell about the great features on the new phone for a new one, pay more money etc) and I
miles same reasons to earn the benefits I want without sacrificing much phone phones was already very happy with my current phone.

Page 9 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

They were trying to migrate customers
Behavior: - Trying to influence from the analogue service to the digital
purchasing behavior for t-shirts and network, which came with different
other wardrobe staples - Trying to channel bundles and pricing structure.
influence customer thinking about Used: - direct marketing of the product
products made locally, under fair labor benefits of digital, including more
conditions - People buy it like channels, onscreen programs, menus,
disposable fashion, even though it's not possibility of upgrading to a DVR - also
particularly cheap Mechanisms - Offers repackaged the channel offering, so
a complete lifestyle/image package, with customers would get more channels in
tie-ins to magazines, art, events, staff & each package, but frequently not in the
American Apparel Sells t- marketing that fits a specific "hipster" combination they already had, unless
shirts and other casual profile - Makes shopping accessible & they paid more. - had a deadline date at For the many customers who didn't value the
clothing, accessories etc. I've social, is open extended hours in cool which they were switching off analogue technological benefits of digital, and who wanted to
bought a number of t-shirts neighborhoods (so you can drop in transmission, effectively forcing keep their existing range of channels, the migration
and workout clothes, my between a restaurant and a bar or club) - FOXTEL, the cable & customers onto digital, since they offer was not compelling. Effectively forcing
boyfriend has about a million "Productized" range, can purchase - Buy for the emotional, affective package - To have satellite TV company I penalized you for ending your contract customers to pay more for the same service, by a
of their hoodies. multiple colors in each style the same "look" as the hipsters used to work for. early. given date, raised customer resistance.

The discount is substantial enough and the program
is generously extended for members no longer
Loyalty. Participation in the Patagonia working outdoors. Additionally, Patagonia is working
Pro Program, offering deeply discounted from a solid foundation of high quality products and Because I apparently prefer to drink far less soda
apparel to current and former outdoor customer service, and further connects with its AMC Theaters. The classic pricing scheme to try to get than the average customer and was not swayed by
Patagonia. Outdoor apparel. professionals. customers through its corporate mission. Concessions. customers to purchase larger sizes. the pricing scheme.
The flier had restricted times and dates that it could
Trying to get me to be a loyal consumer. Company tried to encourage customers be used. So, you had to save it for next week
Its rewards card offers a gift certificate to purchase other products. Used fliers somewhere you wouldn't lose it and remember to
once a consumer spends a certain The attempt was successful because you often wind giving away free products for the bring it in. Plus, if you already really liked a product,
DSW. Purchased shoes amount and it costs nothing to sign up. up spending more with the perception that you will be Pump. Purchased energy following week. I got one each time I chances are you weren't going to go with another
there. I'd never seen this in a shoe store before. getting some of the $ back. shakes daily. made a purchase. one.

Company: Netflix Service: 2- The company was trying to get me to • I did not feel like my behavior was being modified; I
at-a-time rental plan Other rate its movies using the rating toolbar. could avoid rating movies easily if I felt like • The
such companies: - This would ostensibly make their movie user interface was well designed and easy to use, Use the phone banking service for
Starbucks – describe the drink purchases more accurate. The rating similar to the iTunes rating system of 5 stars. • Did questions and clarifications not found on - The waiting time on the phone was too high -
exactly to help the Barista at toolbar was prominently displayed below not interfere with website navigation (no unwanted the website, instead of visiting the The service seemed to assume that I needed a lot of
the counter - Wholefoods – all the movies, rented or not. Also, the redirections or popups) • Results were there to be branch. The mechanisms were the handholding - “real” branch was close to my
increase average pickup – homepage sidebar had prompts that seen – the quality of recommendations improved as I Company: Bank of advertisements on the website and residence - No easy interface between, say, the
browse store more because of asked the user to rate movies to get rated more movies (though its still does not pick up America Service: marketing outreach through e-mail and website and phone banking (like a one-click VoIP
the layout better recommendations. my love for Jackie Chan actions flicks) Checking Account mail-ins. service
The company tried to limit my calls
The company was trying to ensure that I during peak hours by letting me use only The attempt was unsuccessful because I could
would not return the device to the store This attempt was effective because I needed to a certain number of minutes during the change my plan after the fact. That is, when I
for a refund or exchange. They did this remove the packaging to transport the unit home and day and charging higher rates for any realized I had used too many daytime minutes, I
Best Buy. I purchased a by requiring that the unit be returned in thus could not put it back together to return it to the minutes over that amount ("overage could call customer service to increase the number
portable Air Conditioning unit. its complete packaging at the store. store (when the device did not work). Verizon cell phone service. charges"). of minutes and avoid paying "overage charges".
Rather than gradually increasing the fare as the travel
date approaches, which would have allowed me to Car companies seem to have over-used incentives
Tries to get customers to purchase delay the purchase (keeping flexibility) a few more to get customers to purchase at certain times. Since
tickets in advance by increasing fares days with minimal financial impact, the drastic Tries to sell extra models at the end of I could buy a car at a discount at nearly any time, my
dramatically if purchased within two increase in price forces me to make a decision earlier the year by offering deals such as zero needs, not the advertising of specials is what drives
US Airways - flights weeks of travel. than two weeks before the Ford cars. percent financing. my purchasing decision.

I believe that Yahoo! wanted to capitalize YES! I love Yahoo and currently use it for a large
Yahoo! I was using Yahoo! on my use of its Finance section to sell portion of my internet needs, including email, search They tried to sell me on the importance
finance on a daily basis to me on other products/services. The engine, music player, live sport updates, national of 'protecting' my computer and the
collect recent articles on my most powerful mechanism Yahoo! news across a variety of topics, fantasy sports, Best Buy tried to sell me an many benefits, such as peace of mind,
former company, track employed was the design of their pages, games, etc. I'm even willing to pay for some of these extended warranty for a lower costs in the event of a problem, My background knowledge about warranties and my
company performance, etc. which included links to other services. services. computer. etc, by using scare tactics. lack of trust in the sales person.
The company offered a bundled
pedicure/manicure combination Mon-
The company was trying to make me Wed, where you could get a pedicure
buy more chocolate. It offered a free 12 and manicure for what amounted to the
pack for every 2 12 packs I bought. So The attempt was successful because I love the Nestle price of a pedicure on other days. They It was unsuccessful because I never had time to go
where I might normally just have bought version of Kit Kat which I don't have access to in the were trying to encourage people to buy get pedicures or manicures during the week, and
Heathrow Duty Free. Kit Kat 1 12 pack, I wound up having to lug 3 States, and the Duty Free folks were able to more of their services and attract more also because I am not a huge fan of manicures, and
(Nestle). around. successfully tap into and take advantage of my greed. Top Nails. Pedicure. clientele. so the bundled offering wasn't really that appealing.

The way in which I purchase gasoline.
They positioned their swipeless card as
It's in both my and Continental's best interest - faster faster and ambiguously 'superior' to
The way in which I check in for flights. for me, cheaper for Continental. Ultimately, it is standard credit cards. I believe they also The product/service wasn't materially better than
Continental Airlines online Continental offered free headsets and simply a superior alternative to checking in at the offered discounts (perhaps a couple of using a standard credit card, so it wasn't worth the
check-in advertised the service fairly heavily. airport. Exxon Mobil's 'Speedpass' cents per gallon) for a short period. switch.

My online purchasing was infrequent in The company never asked me what was important
the past, especially for clothing. The Wanted me to consider Virgin Atlantic to me, and what my criteria for choosing a carrier
company sent emails focusing more on The company understood what issues to address in for transatlantic airplane tickets instead were. They focused on price and did not provide me
the ease of the buying process than on order to change my behavior, i.e. they understood my Virgin Atlantic, airplane of other carriers. I had never flown with an opportunity to customize the product to my
Bluefly - online clothing store specific items they offer. decision making process. tickets Virgin Atlantic before. needs, for which I was prepared to pay a premium.

Because you know you are already paying for the Davivienda (Colombian
Instead of charging for each movie you service and therefore, you choose a movie to watch Bank) and other major Forcing people to maintain their credit Because you finally find your way to do so and then
rent, they offer a fixed subscription per at home rather than going to the movies or other banks that try to enroll you card by making it hard for you to you don't want to have anything to do with the bank
Netflix. Rented Movies month entertainment alternatives in a Credit Card with no fee. terminate the contract. afterwards.
The company was trying to influence my
recurrent purchasing behavior. The
company used incrementally improved The company was trying to increase its
Electronic Arts. Madden products year over year combined with a The attempt was successful because of its strong share of wallet from me by advertising
video game franchise for barrage of marketing to influence my brand and the network effects associated with the Verizon. Cellular phone additional phones and calling plan There were too many stipulations involved, including
Playstation 2. behavior. numerous users of the product. plan. features, with some discounts included. being locked into a contract for 2+ years.

Starbucks was trying to influence my
visits to the store even though I am not a
coffee drinker. Through innovative
products that can customized, It was successful because Starbucks created an The attempt is unsuccessful because my primary
successful marketing and omnipresence image of a beverage/breakfast/snack cool place The company is trying to get me to make criterion when I plan a vacation is price and then the
of its stores, it effectively created a need rather than a place for coffee connoisseurs only. Also, hotel reservations with Marriott with location of the hotel: I would rather pay less or select
Starbucks for non-coffee for chai lattes and blendes creams on a their campaign for free trade made me think that at special weekend promotions (via email) a hotel with a better location in spite of any points I
products daily basis. least part of my money was used for a good cause. Marriott for hotel stays. and bonus reward points would have collected by staying at a Marriott.
I consider American to be my airline of choice &
AA was encouraging travelers to frequently search aa.com first for tickets before using
purchase their tickets via aa.com. They the larger travel sites. If I am on a travel site like Sprint's service level was so poor in customer
rewarded travelers with additional air Orbitz and find that American offers the lowest fare, I Repeat service; prevent customers from interactions and their reception was poor - so they
American Airlines Online miles for every ticket purchased thru will switch to aa.com to purchase via their site and Sprint PCS wireless phone switching. New phone rebates & couldn't retain me as a customer even after their
reservation system aa.com. earn the extra air miles. service discounts for returning customers. attempts.

Trying to get me to enroll in a account Unsuccessful because the rep was extremely pushy
trying to attract new customers to the higher interest rate offered during a period of low Citibank, I was using their protection program for a small monthly and was obviously reading from a script. Seemed
ING Direct, online savings transfer their savings accounts to ING interest rates was very attractive, and online account customer services over the fee that would be debited from my like just another sales push and I was eager to get
account service Direct in return for a higher interest rate management was becoming increasingly easy to use phone account. off the phone after refusing several times.

Page 10 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

The attempt was unsuccessful for a couple of
They were trying to get me to buy "liquid reasons. First, I am a part of the "healthy revolution"
My entire outlook on leadership, life, and refreshment" through television that leans now toward fruit juice or water rather than
how they relate to business. It used the advertising. The particular ad campaign carbonated beverages. Second, Sprite is caffeine
brand equity of its name, the promised First, I came to the school. Second I recommend it to shows one yellow and one green sumo free, so if I was going to drink soda, that wouldn't
access to talented professors and other people. Third, I pay my tuition. Fourth, I now wrestler colliding on a man sitting on a give me what I need out of it. Third, I am not a part
students, a residential campus with think about problems through an entirely new series tree stump in a darkened forest. There of the cohort that ad is trying to reach, although I do
Harvard Business School. proximity to a major city, and finally it's of lenses. Therefore, the company has effectively was another ad with a guy watering think that it is a brilliant ad because it is so arresting
Their educational services. barriers to entry. changed my outlook on leadership and life. Coca Cola: Sprite. plants out of minority report. and "DVR" compatible.

Their simple solicitations are ineffective because they
come off as pushy and I generally know what I need
already. Their high costs per minute for exceeding
my minutes, however, are objectively influential
Verizon wants me to simply buy and/or because I can see it might cost me more but
To get me to use United for all my airline use more minutes or add-on services subjectively it makes me very angry because the
travel by providing me longer-term than I currently do through a variety of cost seems unfair. At the end of the day, I tolerate
United Airlines. Mileage Plus incentives to combat my short-term Mostly because I understand what the rewards can Verizon Wireless monthly methods, from simple solicitations to Verizon for the lowest cost I possibly can, mostly
frequent flyer program. pricing concerns. be used for and I consider them to be valuable. cell phone service. tiered pricing. because their coverage is the best in the area.

The company successfully persuaded me to This was unsuccessful because, in my opinion,
subscribe to digital phone service by bundling this Citibank is clearly saving money if I drop paper
service with the other two services (TV and internet). The company has been trying for years statements. However, I don't get much more than
The company was trying to influence me Before this, I did not have a land-line phone for to get me to stop getting paper bank less hassle and some satisfaction for saving trees (I
Comcast. I was originally to (1) subscribe to more cable channels almost 5 years. They were successful because the Citibank. Online banking statements. The only mechanism they already use online statements). So, I refuse to drop
using just cable and high- and (2) subscribe to digital phone bundled price was only a few dollars more than I paid and paper bank have used is repeatedly badgering me to paper statements until they offer me something - like
speed internet. service. previously. statements. do this. a coupon or rebate. Maybe I am just being spiteful?

Influencing buying patterns through Trying to lock me in to only using their Not enough incentive: I had to use them 10 times
J Crew: online clothes incentive mechanism ($25 off any dry cleaning services through a frequent with no regard to how many items I had dry-cleaned
shopping purchase over $100) Yes - I am a sucker for the "free" $25 Lucky Dry Cleaners use card. in order to get a discount on my 11th order.
The company was trying to persuade me
to "trade up" either the current Tide
product I was using or to switch from When my Cingular wireless
another detergent. And they were trying The attempt was successful because it appealed to phone expired, Cingular The company was trying to retain me as Cingular was unsuccessful because I had
Just yesterday, while buying to convince me to buy the Downey fabric my desire to buy a premium product to better treat my tried to convince me to get a customer. They used direct mail trying encountered a number of service problems (both
laundry detergent, I decided to softener to go with it. The mechanism somewhat expensive clothes. The product is directly a new phone and sign a to entice me with discounts on a new with geographic coverage and customer support
buy this new Tide product with was through print ads and T.V. targeted at me -- a female consumer that is not new contract. But I phone. Also, they tried to talk me into service). In addition, many friends said that Verizon
a new scent. I think P&G sells commercials. The T.V. commercials particularly price sensitive on most products and is decided to switch to staying with them when I called to cancel was a much better carrier so I was determined to
Tide. had piqued my interest. willing to trade up for premium value. Verizon Wireless instead. my contract. switch.
Behavior while playing soccer Used Used some of the best professional players and they Behavior while playing soccer Used I simply do not believe Nike can make better soccer
Adidas soccer shoes professional players make the tricks look easy Nike soccer shoes professional players shoes than Adidas

Radio Shack. I was going My choice of cell phone provider. He did
in to buy an earpiece for this by focusing on price - he showed
my cell phone, and the me the plans and where I could save
sales person tried to money. He also said Verizon tends to The salesperson didn't even ask me if I was satisfied
Starbucks was trying to get me to pay up persuade me to switch view themselves as too high class to with Verizon, or if I would be interested in changing.
Starbucks. A Starbucks card front for coffee, and to keep me coming carriers from Verizon to lower their prices - he said they charge He just went into the sale. I also am happy with my
/ coffee. in. It worked. #NAME? Sprint or Cingular. too high a premium for their service. service (even though I do wish it was cheaper).
The company was Esso, and I The attempt was unsuccessful because of my
would fill-up my car with gas at The company wanted me to always buy skepticism towards Air Canada's seat sales. I have
an Esso station if it was the my gas at Esso. They did this by The company was Air They were trying to get me to fly more, rarely had success getting the price advertised in
closest station when I needed aligning themselves with Aeroplan, Air This attempt was successful, as it offered me Canada, and I frequently by offering good prices on many of the one of their seat sales, and now I ignore any seat
gas. Canada's air miles rewards program. something more valuable than any other gas station. travel with them. locations I travel to. sale info I see.
Instead of writing checks to pay my bills
Bank of America wanted me to use their Target offers private label facial products Target was unsuccessful in getting me to switch to
on-line bill payment service. They through it's own brand, Market Pantry. their face cleansers because I think the quality of
offered this as a free service and To try and get me to use their products their products is poor. As a result of purchasing a
demonstrated how through using this they offer Market Pantry products at a Market Pantry face cleanser that did not meet my
service my bill payment history will be Bank of America was successful because they were Company -- Target significant discount to other major standards of quality and was not comparable to the
Company -- Bank of America stored, which helps me manage my able to convince me that I saved time and money in Product -- Target brand brands and on their products will say normal face wash that I use, I will not buy any Market
Service -- Bill payment on-line budget. using their service. facial products "Compare to XXX". Pantry toiletries.

Purchase pattern: buy cheaper by
buying soon. (EasyJet proposes low air I'm naturally not inclined to plan trips well in advance,
Its convenience changed my shopping and almost fares for customers who buy their tickets and certainly not willing to risk losing my ticket if I
Fidelization of the customer by eating behavior: I rarely go to the supermarket, and well in advance). Tries to create an can't finally fly. Tickets are not always cheaper: it's
proposing shopping through the Internet frequently buy the same set of products from my image of consistently low prices to steal easy to compare actual prices with other regular
Peapod: grocery shopping. and home delivery. previous lists of purchases. EasyJet, for plane tickets. customers from regular airlines. companies.
The attempt has been unsuccessful because
Amtrak's rates are much higher than Greyhound's
rates, which means that the 15% off is not enough
to make it worth it for me to take the train. Also,
students need to go online and apply for the
The company needed to incentivize discount card, which I keep forgetting to do. I think
customers to use their online channel The attempt was successful because it made the that if they came to campus and provided the card
rather than calling its customer transition a "no brainer" for customer. Why would I on the spot (like Zipcar does), that would allow
representatives for things such as buying want to pay a fee if I can do everything online and get students to give it a try right away rather than just
tickets, getting upgrades, redeeming bonus miles? The customer would tend to see the Amtrak is trying to influence my decision waiting until they have time to fill out the online
miles, etc. To achieve this, AA started booking fee as an annoyance more than a penalty to take the train rather than the bus for application. Also, discounts are not valid on the fast
Company: American Airlines charging a fee for booking tickets online and is happy to go online to get the extra miles. Plus weekly trips to New York to see my train, so there's less incentive to take the train and
Product: Airline tickets, while awarding bonus miles to they provided an online site that can answer a lot of husband while attending school. The pay more when it would take the same amount of
upgrades, mile redemption, customers that went online to complete the questions people tend to ask, so that customers Company: Amtrak company provides a 15% discount for time taking the bus, for which you only pay 1/5 of the
etc. these transactions. can find answers to questions anytime. Product: Rail transportation students and has a rewards program. cost.
Trying to get me to communicate more
often through text messages so I could
Changing how I drank wine. Conducts spend additional fees per month on text-
wine tours where guides spend time messaging charges. Mechanism used Unsuccessful because I received spam text
Jackson Triggs Winery in teaching you how to hold a glass, swish included: Service already on phone messages all month and was charged for messages
Niagara-On-The-Lake, the wine, smell the wine, and enjoy it when I bought it Certain number of free I received from people I didn't know. It turned me off
Ontario. Product was wine. more. I now drink more wine because I enjoy it more. Cingular. Text-messaging. text-messages of text-messaging and I disabled the service.
Not tailored to me and what my needs are -- I don't
need the services of Gold & Platinum at this point in
Trying to ensure/increase product Came to be expected by me -- deal was inevitable so my life. For me, the products have attributes which
General Mills -- Honey Nut purchasing by using trade dollars (e.g. 2 I became a consistent purchaser. If deal wasn't on in American Express -- credit Wanted to upsell me from Amex Blue to aren't relevant (but this could certainly change in
Cheerios cereal boxes for $5, etc.) one week, came to expect that it would be in the next. cards Amex Gold and Amex Platinum time)

Perhaps for many customers, it is successful
because most customers may see Dunkin as a
Shaws tries to influence repeat business place to get donuts and coffee to go. However, their
and customer loyalty thru its Shaw's Dunkin provides minimal seating which attempt is not successful for me because it is one of
Rewards Card. The card provides Yes. The discounts provided by the card make me Dunkin Donuts. is generally uncomfortable to discourage the few places near my home that provides a
Shaws Supermarket. Grocery substantial discounts on a wide variety prefer shopping at Shaws over other comparable Coffee/donuts and seating customers from sitting around for too relatively quiet atmosphere for me to study and read
shopping at Shaws. on grocery items. supermarkets. area. long. my HBS cases - which can take many hours.
The company influenced me to stay at
Starwood hotels, even when other hotels Discover card is not accepted by many merchants.
with better location or lower rates were The benefits of the customer loyalty program were The company was trying to prevent me The card had one of the best cash back programs in
available. It used an effective customer superior compared to the competition. Frequent from cancelling my credit card. It used the past, but other card companies (w/ the
loyalty program and high level of service stays allowed me to earn status that gave me even lower interest rates and other nominal ubiquitous Visa/Mastercard brands) now offer
Starwood, hotels for frequent guests. more benefits and services. Discover, credit card financial incentives. comparable programs.

Page 11 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

Bank of America
introduced a "Keep the
Change" program to
encourage its customers to BofA was attempting to have its
use their debit cards more customers get used to using their debit
Vegas casinos are known to influence often. It would round up cards for ALL purchases - even the
their customers by encouraging them to any purchase to the smallest ones. This would cut back on Despite the fact that I said I would use my debit card
stay longer than they might want to on nearest dollar (ie, a $2.12 people coming to the bank for cash and for every purchase, that plan only lasted for about a
their own. By not having any windows or purchase would become be easier for the bank to administer. week. I think that even though I knew the total
clocks, offering free drinks, and Combined, all of the mechanisms make it seem $3.00) and deposit the The mechanism used was purely matched amount could end up being significant,
otherwise stimulating their customer's foolish to leave a casino when you are winning, and $0.88 in your savings financial - the company match could add each individual reward (only a few cents sometimes)
senses, gamblers forget the time and difficult to leave when you are losing..... so I always account, and the bank up to a few hundred dollars by the end was not worth the embarrassment I felt when paying
Las Vegas casinos. stay all night. end up staying too long! would match the $0.88. of the program. for a tiny purchase with a debit card.
The restaurant wants to knew about all
They were trying to fill up their restaurant groups that will be dining there so that They didn't take the time to listen to my specific
during off-peak hours and get rid of the they can plan accordingly. But when needs and their policy didn't allow for flexibility. I
remaining fresh fish at the end of the making a group reservation they asked didn't know the final count, but I had a good guess.
night. To encourage customers to come me to pre-pay for the entire group. I I would have been happy to put down a small
in late, they offer a 50% discount on It was successful because the discount was more wasn't willing to do this because I don't deposit to hold the space, but they did not allow that.
food if you are seated for dinner after valuable to me than eating an early dinner. They Caesars Palace, Las know the exact final count. So instead, I The result is that we will be dissatisfied if we have to
Sansei Restaurant, Maui 10:00pm. The also have free karaoke understood the needs of their business and the Vegas. I was trying to will not make a reservation and our wait while they prepare a table and they will be
Hawaii. I was eating Sushi starting at 10 to keep the atmosphere needs of the customers and developed an incentive book a buffet breakfast for group will just show up for breakfast rushed and unprepared for our arrival. Everyone
and drinking Sake. lively. plan that meets both. a the Las Vegas Trek. unannounced. loses!

Prior to the prevalence of ATMs, I went to the bank
approximately 1/week to either cash a check, or Of course, catfish is more expensive
The company was trying to 1. Minimize withdraw money from an account. Each time I went than hush puppies or bread. The Fish
the amount of time I spent interacting in and spent a few minutes of the teller's time, and Fry believed itself an expert in slow- As stubborn as the good people of The Fish Fry are,
with a teller for minor transactions (like was not charged for the visit. Now, I interact with a playing its succulent catfish while it they met their match with me. As I am wise to the
withdrawing $100 on Friday before a teller only a few times/year (maybe 4 or 5), and use wanted me to fill-up on the cheap stuff. tricks of the all-you-can-eat restaurants, I did not eat
weekend out), so as to reduce their ATMs for my weekly transactions. And, while I try to So, after I ordered the all-you-can-eat any bread or hush puppies (in fact in subsequent
labor costs, or put them to better use. 2. use my bank's ATMs to avoid an extra charge, I still catfish, they would bring a big basket of visits to the restaurant, I told them not to even bring it
Gain extra revenue from my find myself withdrawing money from other bank's bread and some hush puppies to the to the table because it would just be a waste of good
transactions at the bank. The bank put ATMs 1-2/month and paying a small fee each time. table and try to wait me out while I filled food). I know they have piles of fried catfish right on
Regions Bank I had a up ATMs at convenient locations Surely the bank benefited from both my reduced The Fish Fry (restaurant in up. They'd wait about 10 or 15 minutes the other side of the wall and I ask them to just bring
standard checking/savings throughout the city and allowed me to facetime with the teller and the increased revenue in Paris, TX) The all-you-can- before bringing me any fish. And if you me the fish. Wow is it good catfish - and I could
account. use them at no charge. ATM transaction fees. eat catfish dinner. order more, expect to wait. eat at least twice as much of it....

American Express - their
policy of losing points on their
charge cards if the bill is not
paid on time motivates me to J Crew wants its customers to use its
always pay my bill on time. It Their model encourages customers to Because there is a membership fee associated with credit card in order to get the financing
also motivates me to use my pay their bills on time (late payment the credit card, I want to get the most of my charges from late payments. In order to
American Express card more results in forfeiture of points) as well as membership fee; thus, I use my card to get more encourage customers to sign up for the
than cash in order to use their credit card over other forms of points. It is successful because I do not view my card, it offers a discount on first In order to increase the use of its card, it needs to
accumulate points to redeem payment (in order to increase the behavior as making profits for Amex (which it does); purchase but afterwards offers no offer a loyalty/rewards program to its customers to
for products. amount of points a cardmember has). instead, I view it as behavior that benefits me. J Crew - credit card. reason to use the card. encourage ongoing spending on its card.

Trying to influence my buying behavior.
Interested in selling me supplemental
two-year service agreement in case my
How I managed my digital music files purchased product was damaged. Their
and ultimately how I accessed (listened Ease of use, ease of integration between iTunes and Best Buy: purchasing a mechanism was the front-line cashier I was a well-informed customer to know that such
to) them. The utility value of iTunes the iPod. They were yin and ying. I couldn't simply technology product trained to give me the 5-second pitch coverage is generally unnecessary if the
made my purchase of an iPod an have iTunes on my computer without an iPod in my (desktop speaker for my about why I should purchase the manufacturer's warranty covers damage within the
Apple: iTunes and an iPod. inevitability. pocket. laptop). coverage. first X number of years.
Repeat purchase - the site let me know
what books/CDs/etc I would like based Too aggressive - should know that since they have a
on my prior purchases. This was The attempt was successful because it personalized They were trying aggressively to upsell website most people know what they want when
Amazon.com. I use their extremely helpful for me b/c I like to the shopping for me and made me want to buy things FTD/1800FLOWERS. I me. Very forward sales technique where they call. Also I somehow can't get my email
website to purchase browse books based on what genres I that I didn't know I wanted (b/c I didn't know they bought delivery flowers I just kept repeating that I wanted what I address off their distribution and get 20 emails a
books/CDs/etc. enjoy - this did all that for me. were out there) from them once. originally had stated. week from them on specials.

No - service level is still (and perhaps now more than
ever since phones are a commodity) important and
they have both weak coverage in this part of the
repeat purchase - AAdvantage miles country and slow response time to problems. In
earned and "status" acquired to get free Very successful while I lived in Dallas. DFW is the addition, the penalty payment for early termination of
trips, upgrades, priority boarding, etc. to airline hub so there are flights to just about anywhere my contract is less than the amount of money I
drive loyalty (and profitability since I from that location. Now that I live in Boston and there Provider loyalty - discount on purchase saved on the initial phone purchase so the switching
American Airlines - domestic would pay slightly more for the same are fewer (direct) flights to my desired locations, I am of equipment with long-term (2 year) costs is not as high as it could be. I'm now in the
and international air tickets ticket if it meant that I could fly AA) much less loyal. Sprint - cell phone service service agreement. market for a new phone and service provider.

Gmail required users to do a significant
and difficult switch to use gmail as their
account - runs risks of losing contacts,
need to advice contacts of new address
etc. Mechanisms: 1) Distinctive product
features/ benefits - conversation thread-
based filing system, huge space such Shopper discounts and 1) Not a heavy online shopper - even when I do,
that never have to delete mails rewards - Pay a monthly tend to visit sites that are not affiliated 2) Monthly
2)Customer acquisition through 1) Word-of-mouth gave it credibility 2) Beta version - subscription fee of $10 to 1) Commitment to site through monthly subscription even if not using service seems wasteful
Gmail - free, web-based email recommendations - can only get account always expecting new add-ons, users are more get discounts off selected subscription even before knowing the 3) Online deals abound - likely to find better deals
service if recommended by existing user forgiving when service is not up to par online sites (500 sites) exact benefits just by shopping around online
While I am just generally a sucker for loyalty
programs, BR's program seems particularly effective
Banana Republic uses a customer because it doesn't require a lot of effort on the
loyalty program -specifically, it provides customer’s part as well as gives the customer the
loyal customers (those who have perception that he/she is receiving cash (giving her Knowing my predilection for Diet Dr.
accumulated "points" through past the idea that she can afford something that she Pepper, a favorite retailer provided me
purchases) with a credit that can be couldn't have otherwise, thereby creating a wealth coupons to buy the new Diet Dr. Pepper I used one of the coupons to buy the new flavor
applied to future purchases (e.g., a card effect of sorts). Unlike coupons, where a minimum Cherry Vanilla flavor for a drastically soda, but the new soda tasted so bad that I ended
with a $20 balance is sent to you by the amount usually has to be purchased in order to use reduced price. The manufacture’s up throwing half of it away (and therefore not
company) in order to encourage the the coupon, the credit can be applied to any coupons were trying to encourage becoming a convert). The company's strategy
customer to continue shopping at its purchase irrespective of its size. The card is also sent existing cola drinkers to try and continue would have probably been much more effective if the
Banana Republic; buying stores and encourage the customers to to you directly to your home, so does not require any Dr. Pepper (PepsiCo, I consuming its new flavor of Diet Dr. underlying product they had been selling had been
clothes buy more than they might otherwise. extra steps by the customer. believe); Diet Dr. Pepper Pepper. better.
frequent traveling; free upgrade
vouchers to frequent travels and those frequent flying;mileage program and free limited network so mileage usage is restrictive and
Jet Airways in India that have jet airways credit cards yes virgin Atlantic car service from airport. lousy connections from Heathrow airport

Page 12 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

I was supposed to buy a lotion
of one brand at a cosmetic
retail store in Hong Kong (Sha Used good service to change my
Sha), and then ended up previous perception of certain brand, I tried to buy a term
buying a whole new set of and articulated better functions of insurance in China, and
products of another brand. another products to tailor to my needs. the agent tried to sell me
The professionalism and care Then they helped to explore latent Shape opinion and then change behavior. Really general investment backed The agent used complicated way to First, I understand the product, and don't want the
of the sales lady do help me demands by keeping asking questions, attempt to know what I need instead of what I want, insurance, but failed in describe the product, and unrealistically agent to make up something. Second, the agent
spend the money. and making me feel that I knew nothing. e.g., a brand doing both. mentioned its benefits instead of risks. himself is not very objective, and lose my trust.
The company was trying to convince
people into using the Acela train (faster Apple was trying to sell new computers
but more expensive than the normal with the option of switching from a mac
train). Amtrak offered more mileage to a windows platform. The company
points (similar to an airline) for the Acela promised flawless operational
train so that, if you took 2 round trips per It favored heavy users and rewarded them with better capabilities with this computer, Once you actually work with a windows platform on
Amtrak Train Service New month, the Acela service ended up service (faster trains, more comfortable) by reducing regardless of the platform used (mac or the mac computer, many things don't work they way
York - Boston being cheaper. the price. Purely economic reward. Apple. Mac computer windows). they do with a normal windows laptop.
TO reduce costs, the bank was trying to
get me to switch to internet-only bank The company was trying to get me to
statements, to save on the monthly subscribe to another magazine from the
paper-version mailing. The bank decided Magazine WIRED - same media group. It included one
A French bank - product was to start charging me for that service (the Yes, convincing attempt, made easier by my habit to product is a tech-focused release of the other magazine in one of Focus on the ease of distribution through an existing
monthly account statement paper version). manage many other personal things through internet. magazine my monthly issues' packages. channel but wrong customer targeting.

The company was trying to convince me
to not switch to another credit card. It It was unsuccessful because the prices of the books
used my greed to do so -- it bribed me I think they were successful because I am in general were too high compared with what I could get at
with a lot of Blue Points to stay (these very impressed with the customer service of American Amazon. Amazon also has been able to solve the
I was using the Blue Card points enable me to purchase various Express. Over the past 5 years, I have had no problem of instant gratification by allowing me to buy
from American Express. I had items). It also used great customer problems with them, and they have done little things Borders was trying to entice me to buy my books and pick them up the same day at the
called to cancel my credit card service to convince me. The woman which mean a lot to me, such as waiving certain I was browsing in Borders books from them. It had laid out all the Borders bookstore. Most importantly, I had gone
as a result of a bad customer who helped me spent over an hour on account fees, etc. I am not sure if I would have for some books. I ended bestsellers on tables, and there was a into the store to browse, with no idea of what to buy.
service experience. The the phone. I was able to vent my stayed if I had been truly unhappy as a whole with up not purchasing anything coffee shop inside the bookstore. It tried This bookstore hadn't displayed any staff
woman who handled my call frustration to her, which calmed me American Express. As it was, this one bad and instead went home to thus present a relaxing environment recommendations that could interest me in any
eventually persuaded me to down, and she made me feel like she experience was an isolated one, and the agent and ordered my books for me to find something interesting to books, whereas Amazon is able to do so through
stay with American Express. was on "my side." handled it well. from Amazon. buy. user reviews.
Rhapsody wanted me to move from a
free-trial to a paid subscription. At the
Trying to get me to upgrade to business end of the free-trial, I called to cancel,
class. They offered extravagant mileage and they explained the benefits of the
awards for using business class on pay-service and offered me 3 more
transatlantic flights (50K miles per round- The reward was incredibly generous. I was not Real networks. months of free trial. Three months later I I had already tried it for three months. Unclear why
American Airlines. trip) paying for the ticket (my firm picked up the tab). "Rhapsody" music service cancelled it. three more months would change my mind.

The company is trying to influence the
way in which consumers
download/obtain music online. Prior to
Itunes, i almost always downloaded
songs illegally via the internet. Apple
applied several mechanisms to get me to
pay for music rather than getting it
illegally/for free online. They publicly
discussed the potential penalties from
obtaining free music: they were very
public about the legal penalties, they
discussed on their website the dangers it was unsuccessful because the 2 times I've been
such as viruses, etc. from free music. there I've only ended up getting coffee, which takes
They also created an extremely easy to up valuable table space for a low priced/low margin
use service (itunes) which actually had product from them. Their attempt failed because
more centrally available music than other the 2 times I've been there's been a very long delay
online/free sources. This made it easier between when they ask for my drink order (coffee)
for me as a consumer to get music. It was successful for the reasons discussed above. and when they ask for my food/dessert order. In
They also created a product (Ipod) with They made me very aware of the downside of not They want to incent customers to these 2 cases, the coffee arrived and I actually drank
proprietary software and hardware which modifying my behavior (via the discussions of viruses purchase not only coffee but also the more than half of it before they even asked for my
creates switching costs so that once i've etc.). They also made it easy for me to change my high priced desserts that they sell (in dessert order. As a result, by the time they asked for
already downloaded some songs from behavior (high music availability, very intuitive The company is Finale order to drive average bill/table up). my order, I was already over the prospect of getting
The company is Apple. The Itunes, i'm less likely to download songs software). And they created "switching costs" of sorts (restaurant in Cambridge The mechanism they use is primarily the anything else, and as a result, ended up only buying
product/service is "purchased from other sources (as they may not play via the IPod Hardware so that once I began using I- and Boston). The wait service that is delivered by servers a drink, rather than food. The service levels were
songs" from the I-tunes on my Ipod). In this sense, they locked tunes, there were network effects of sorts which product/service is after as well as the host/hostess at the front of not matched with what I needed in order to capture
service. me in. made me more likely to continue using it. dinner drinks and dessert. the restaurant. my full potential spend.

Yes, it was very effective because even though the
customer service on the card is not great and I have
been sincere in my threats to cancel it, I never do No. I still do not fully understand the ramifications of
because I like getting the merchandise credits/points. not returning my movie on time but all the fine print
Long-term buying - allowed you to They make me feel like I got something for free. Also, Blockbuster was trying to match the suggests that there are some, and so rather than try
accumulate points to earn merchandise the free shipping online makes me feel like I am not ease of not worrying about late returns to understand it, I just assumed that something
Banana Republic - the credit. Frequent buying - offered free losing anything by making an online purchase, so I that people enjoy with NetFlix. It ran a would still happen and I should avoid it, so I still liked
"LUXE" credit card shipping online. might buy even if I can't make it to a store. Blockbuster - movie rentals campaign called "No more late fees." the ease of NetFlix.

First Republic was trying to get me to
open an account and then consolidate
my banking business with them. FRB
used a variety of mechanisms, focused
on convenience and customer service.
The most attractive offering of the bank
was that I never had to pay ATM fees for
any transactions from a non-FRB ATM.
This was particularly attractive b/c they
only have branches and ATM's in the
San Francisco Bay Area, around Los
Angeles, Las Vegas, New York, and,
recently, Boston. As a result, many
places I traveled, particularly abroad,
required substantial fees, but not having
to pay them, regardless of the ATM I
visited, was a real selling point. In The offering was unsuccessful because they did not
addition, they place a premium on TravelGuru. TravelGuru is offer a sufficient number of hotel and airline partners
service, with beautifully appointed The premium that they placed on convenience and similar to Orbitz or They were trying to persuade me to and, more importantly, because I could not book
First Republic Bank -- offices, plenty of tellers, and a very customer service, as well as the ability to go to any Expedia, but for people purchase travel through their own less than 3 days in advance. There are only 5 or so
consumer banking services personalized approach (I have my own ATM, were much more important than a large, traveling within India or website in order to generate domestic airlines in India, so it was far more effective
(primarily savings and private banker, despite not being an impersonal branch network, as offered by many of from India abroad (online commissions by offering a wide selection for me to go to their individual sites at the last minute
checking) important/wealthy client). their much larger competitors. travel shopping). of airline and hotel partners. than try to plan in advance and use TravelGuru.
Impulse purchase of a Snickers bar
when hungry. Mars used Absolutely. I was hungry, I saw the Snickers bar, I Family dinner in a casual neighborhood
advertisements with pictures of Snickers remembered the ad, I wanted the Snickers bar, I setting. The used advertisements with No. Because there are so many other casual dining
Mars Inc. I bought a Snickers bars and words such as satisfaction and bought and ate it, and my hunger was indeed Applebee's. Restaurant happy family's and a jingle about eating options that provide better service and better food
bar. satisfy your hunger. satisfied. Dining. good in the neighborhood. than Applebee's. I'd rather eat at Chili's.

Page 13 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

I wanted to mail a couple of check
deposits in to INGDirect because I was The attempt was only unsuccessful because in this
Wanted me to check-in online so I would traveling and didn't have access to my circumstance I really wanted to deposit my checks
not take up their agent's time. I was only The attempt was successful because I had an normal local bank. They much prefer to and wouldn't have been able to do so in their
allowed to choose my seats once I had incentive to check in as early as possible (e.g., before take deposits electronically, so buried preferred manner ... and was willing to overcome
AirTran - taking a flight back checked in (based on the class of ticket I arriving at the airport), given my desire to get a good INGDirect - I have a bank the information on their website as to any inconvenience of calling INGDirect to get the
to Boston had purchased). seat together with my traveling partner. account with them. how to mail deposits to them. information I needed.

Sports Authority offered a discount on
certain running shoes which provided an
incentive for me to go there to buy shoes The attempt was unsuccessful because Sports
The company wanted me to purchase versus another retail outlet. However, Authority could not provide the shoes I wanted (and
the tickets in advance by charging a when I got there they didn't have the they advertised). The lesson seems to be that it is
lower fee for advance purchases versus shoes in stock and attempted to sell me ok to manipulate service to affect consumer behavior
American Airlines - I was a more expensive fee for late bookings. other shoes of less quality. As a result, I as long as the level of service (or product) provided
looking to buy a round-trip The mechanism used was the price of It was very successful - I booked a couple of months Sports Authority - running will not go to Sports Authority again for isn't so poor that it negatively affects consumer
ticket to San Francisco. the ticket. in advance shoes running shoes. behavior/attitudes towards the company.

The Company wanted me to feel that my
identity and credit was in danger of being
stolen and exploited. In order to make its
argument, the company sent me regular
letters about unauthorized attempts to
access my personal information and my
credit score, and they reported how,
each time, they detected the attempt and
The company was trying to convert PC They appealed to a real sense of frustration and a squelched it. They continually wrote to
users to Mac through a powerful add latent disappointment with a lack of style in PC tell me about the things they had done to I felt like they never asked me in person if I wanted
campaign focusing on the friendliness computers. The purchasing decision felt good, the "help me", and all the while the this "help", and while I found the letters convincing,
and ease of use of the Mac juxtaposed experience of buying the computer felt even better, subscription renewed automatically the automatic renewal (and the difficulty in finding
Apple Computer - laptop to the complications and dull image of and the service after the sale made the entire PrivacyGuard - A a credit annually unless I contacted them in their address to send a cancellation letter) made me
computer many PC products. experience a complete success. fraud reporting service. writing to cancel it. distrustful. Henceforth, I cancelled the service.

They failed on several counts: personnel turnover,
order placement and tracking, and delivery times.
First, my orders kept getting lost and I was forced to
The company wanted me to purchase a go into the store to straighten out my order on
lot of food and products, becoming a multiple occasions. Second, my original sales
regular customer of their's (probably to person quit and so I had to form a "new" relationship
the exclusion of other grocery stores). They made grocery shopping enjoyable. Everything with a sales person. My orders were delivered very
They provided delightful sales people that I poor at other stores, they did well. Most stores City Schemes in They wanted me to purchase furniture, late (months late) and the only thing I was credited
(around whom I enjoy shopping), great have grumpy, ignorant sales staff, cramped and/or Cambridge--purchased hopefully multiple times. They used was one shipping charge (but only because they
Whole Foods--grocery store products, and a great physical space. confusing stores, poor produce and empty shelves. furniture sales to allure me. were forced to deliver in multiple shipments).

The attempt was unsuccessful because the fine print
showed that they would share my information with
1) Because their customer service is so great; Their thir party providers which include credit card
salespeople at the luggage store were very companies, insurance companies, etc. Since it's a
knowledgeable and helpful about their product and rental car company, they collect a lot of information,
brand, even though they sold all different types of including driver's license number and age. I felt like
luggage. Their luggage repair service people were They were also trying to influence my they were being sneaky in the way that they were
also great; I've had to use it once and it's amazingly customer loyalty. They wanted me to trying to get me to sign up and felt like my privacy
To purchase their luggage and become easy and convenient. 2) They stand by their product Hertz Rent-A-Car. I was allow them to send me emails with would be invaded if I did. If you don't allow them to
Briggs & Riley. They sell a loyal customer. They used their free and seem to not have any hidden gimmicks. Now, renting a car and was special deals exclusively for club share your information, you don't get any of the loyal
luggage. no-hassles lifetime warranty. I'm fully addicted to the briggs riley line. signing up for the #1 club. members. customer deals. I resented that a lot.

The company was trying to influence my
staying with their cell phone company, They were successful because I was changing my
and not switching to one of their behavior (more minutes on the phone since I dropped
competitors. In order to keep me they my land line and more text messages between The company was trying to get me to They were unsuccessful because I did not go in to
adjusted a bill when I went over my meetings) and I was sensitive to its effect on my purchase additional items to go with my purchase food or a large beverage. I knew exactly
Cingular Wireless. I was minutes and enrolled me in a flat rate pocket book. They succeeded by adjusting one bill Dunkin' Donuts. I was coffee. The cashier reminded me of what I wanted and in my mind there was no benefit
using a monthly cell phone text messaging program after I used and locking me into a higher monthly fee that purchasing a cup of coffee various value meals and the cheap ways to me to spend extra money on something I knew I
plan with text messaging. many many messages in a single month. extended my commitment with their company. before going to work. I could purchase a larger size beverage. wouldn't drink or wouldn't enjoy eating.
They were trying to get us to commit to a
higher level of spending and services. Trying to get me to pay a premium for
Four Seasons Resorts. They used the following mechanisms: ordinary binders. Basing their attempt
Reserving space for wedding Discount total rates with total higher Yes, it provided more goods and services and better Student Ventures trying to on the convenience of having them sized The value-proposition and the urgency of the
and negotiating the prices and spending levels and offered more pricing for the total cost, although more expensive get me to buy binders for and bundled on campus rather than purchase were not a fit. The tradeoff of spending
services. incentives to spend more. overall. school. needing to get them from elsewhere. more vs the perceived benefits of the offering.

The company was trying to make me
choose them as my broker for my home
mortgage. They used a very soft sell.
Made very bold promises, acted very The salesperson's behavior was so different from
authentic, and tried to create trust and other mortgage brokers. They realized that I was a They offered a "buy one, get the other
partnership. They said "You should comparison shopper, and they knew that their rates item 50% off gimmick". They were trying I was totally going to buy more, but couldn't
definitely make your own decision. I'm were more or less comparable to others I was to get me to spend more than I normally immediately find something that I really wanted. I
confident that you'll choose us, but if not, receiving. So he used a tactic of being a nice and Off Saks 5th Retailer in would have at the store. They used a then stepped back and realized that I was totally
we understand". They totally tricked me, trustworthy guy, unlike the other slimy sales guys that Wrentham Outlets. mechanism of scarcity (ie: this sale is allowing myself to by manipulated, so I left the store
Nation Point. Mortgage Broker because they were horrible to work with. I spoke to. Clothing retailer. only available Labor Day Weekend) buying only one item.

Company was trying to influence me to
purchase more make-up products than I
originally intended. To do so, I was
approached by the counter girl who
asked me if I had the necessary
accompanying products to make my
purchased eye-shadow look the best The casino was trying to get me to buy
possible. She then gave me her insurance against a black-jack dealer's The attempt was unsuccessful because 1) my
"personal" advice on how best to match possible hand of 21. The mechanism friends, who were playing with me, advised me not
the eye-shadow with the correct lipstick The attempt was successful because she positioned used was having the dealer personally to buy the insurance and did not do so themselves
"from a friend's perspective". Lastly, she herself as a friendly, trusted advisor who only had my ask each member at the table if he/she 2) the dealer asked if we wanted to buy the
Bobbi Brown in the assured me that I should ignore the best interests at heart. In addition, I believe she was Green Valley Ranch wanted to buy insurance against a hand insurance in a very perfunctory manner and did not
purchasing of various costs of the makeup because "it was a able to discern that I had the ability to spend Casino where I was playing of 21 before the dealer revealed his try to dissuade any of the players when they rejected
cosmetic products. worthy investment". additional funds for my make-up. black-jack with my friends. cards. the insurance offer
The companies identified a customer need, took
advantage of advancements in technology and
designed services that were aligned with the The company is trying to influence the
Two examples of online Both companies are trying to influence customer needs (flexibility and convenience). High way I accomplish my investment Not all processes were aligned with the main value
retailers: "Peapod" in the US the way I accomplish my shopping quality pre sales and after sales support were activities by offering a unique service that proposition of their service. Poor "out of the shelf"
and "Farmacia em Casa" activities by offering a unique service that important factors to guarantee my satisfaction and IG Direct. Online "banking fulfill my needs for flexibility and solutions to my issues were not provided considering
(Pharmacy at home) in Brazil. fulfill my needs. repeated purchases. account". convenience. that I was looking for convenience and flexibility.

Page 14 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

Citibank was trying to stop me from
canceling my Citi MasterCard. After
explaining that I recently opened a
Capital One MasterCard and therefore
no longer needed my Citi MasterCard,
the Citi sales lady thanked me for my
more than 5 years of service with the
company, and then proceeded to offer Hewlett-Packard was trying to charge Hewlett-Packard was unsuccessful in influencing my
to refund the annual fee, give me 5,000 Citibank was successful in influencing my behavior me $30 for over-the-phone technical behavior because it was immediately clear to me
bonus miles or a give me a free because the sales lady found out what was important support. By telling me that if I didn't pay through speaking with their phone support that this
companion airline ticket to stay with to me (i.e. what I found attractive in Capital One over to speak with one of their trained was simply another channel for them to make
Citibank. By providing financial Citibank) and effectively matched some of their technicians who were supposedly the money, even if the solution was quick and simple. I
incentives and free gifts, the sales lady benefits (e.g. no annual fee). She also convinced me The name of the company only people who could help me solve my felt as though the company was more focused on
The name of the company convinced me to keep my Citi that given my tenure as a customer, my business was was Hewlett-Packard. I problem, they tried to scare me into making money off of customer problems than
was Citibank. The product I MasterCard, and if I find that I am not highly valued and I could therefore expect to continue was using my HP paying for an unnecessary service. I providing service to ensure that their customers are
was using was my Citi happy with Capital One, I will likely return to receive additional benefits and a high level of Photosmart 2710 All-In- chose not to pay and ultimately solved satisfied and likely to continue to purchase HP
MasterCard. to Citibank as a full-time customer again. service from the company. One printer. the problem myself. products.

Purchase shoes - casual and work use.
The company focused on advertising its
link to Nike "air" technology. Thus
creating comfortable and functional
shoes for both work and play. * The
company focused on value and durability
- for the most part the shoes are under
$150 and have a good usage life. * The shoe already has a high quality name but they
The company also used brand, Cole succeeded by adding a very "hip and cool" dimension Blockbuster tried to sell me its mailing
Haan is a respected name sold only at to the already durable and high quality shoe. The video rental plan by offering me 3 free
fairly high quality stores and in their own price point is reasonable and I know I can trust the months. They focused on * Price - low The value proposition was not there for me because
retail outlets. * finally, they have made quality. Over years I have increased my purchasing Blockbuster Video - mailing monthly fees, no late fees * I don't think I really rent enough movies to make it
the shoes pretty hip with the combination of this brand and this the spring/summer I purchased rental agreement (like Convenience - videos to your door * useful in the longer term. Perhaps if I were a more
Cole Haan - shoes of technology and design 4 pairs - I will continue to buy. netflix) Availability - movies you want to see hard core watcher of movies I would get it.
The company wanted to encourage
people to come into the store and
thought if they could get people in the Sears wanted to get the customer into
door, they would likely buy something. I was open to this kind of promotion because I the habit of using the card, so that the
The Gap. I would go into the The Gap sent out mailings with stickers already shopped there occasionally and knowing I card did not just sit in the envelope in
store and see what they had for the first Tuesday of the month that could save 10% on a specific day was a compelling Sears. My new Sears which it arrived. They offered this Inundated by mail, I was late paying my first Sears
on the first Tuesday of the you could put on your calendar. The reason to go on that day versus any other day. Plus, I credit card saved me $10 discount as an incentive to use the card bill, the late fee was $10, which completely offset the
month, which they called stickers were meant to remind you to used to live so close by that it was no trouble at all to on my first purchase, if I that first time, which Sears hoped would $10 I saved. I was thoroughly annoyed and never
"10% Tuesdays." stop in. head over. remember correctly. be the first of countless purchases. used the card again.

The company was trying to keep me
flying on their airline as opposed to
competing airlines. They used a loyalty
program (Mileage Plus) to create
incentives for me to use their services. I
would accrue points for each flight I
booked with them, or for using my First, I didn't find their service offerings particularly
Mileage Plus credit card, and these I had quit my service contract with BMG, valuable - the prices they charged for their CDs were
points could be redeemed as part of and they kept trying to get me to not that different from major brick-and-mortar
their loyalty program. The loyalty By building my "loyalty" to a specific airline, I could reactivate as a customer. They sent me retailers. Also, for almost the same price, I could buy
program had several components, focus my points accrual and redeem the points for emails and direct mailers providing the CD at a store and have instant gratification, as
including: free flights (points something that had value to me (e.g., free flights, incentives for me to resubscribe to them opposed to waiting several weeks for my CD to
accrual/redemption), flight upgrades, upgrades on long flights, etc.). They made the (e.g., x # free CDs with resubscription). arrive from BMG. Second, the emails and direct
free drink tickets, priority check-in, better program easy to sign up for, and then the points BMG Music Service - mail The language they used in their mailers they sent to me to get me to resubscribe
United Airlines - Mileage Plus seats, co-promotions/points accrual with accrual and redemption process wasn't overly order catalog company marketing materials tried to emphasize didn't have a compelling reactivation offer. The
(loyalty program) partners like Marriott hotels, etc. burdensome. that sells CDs how valuable of a customer I was, etc. emails and direct mailers also were fairly impersonal.
Yes. Lufthansa's miles were more valuable than those
from other airlines. E.g. Fewer miles were needed to I dislike any pre-paid services. It always makes me
- To buy a free ticket - To have an easier check-in nervous that I haven't used it often enough to make
Lufthansa wanted to increase my flying at major airports One could also use them on flights To subscribe as a monthly user. the true cost acceptable. I also didn't want to use it
frequency, especially long-distance with other airlines. In combination with Lufthansa's air Provided lower monthly fees for fewer while paying for regular cable and on-demand
Lufthansa. Flying to Europe (across the Atlantic). The company network, this provided for a very good network of DVDs to make it more flexible for low- services. Most of my friends who use Netflix use
and back on regular basis. offered a frequent flyer card. airports. Netflix. Monthly rental. usage customers. them instead of TV.
Whole Foods - The products I
purchase there include The company was trying to influence me
produce, flowers, groceries, to buy my food items at their store rather MAC was trying to influence me to
and wine. However, there is than at other grocery stores. To do so, it "upgrade" my makeup collection by
also a service component to has positioned itself through advertising purchasing new colors and textures of
my decision to shop there and word-of-mouth as a healthier, products. To do so, they sent me
because of the cleanliness of fresher, and cleaner source of food. Although the prices at Whole Foods are higher than regular emails and postcards advertising I was not convinced to purchase these new
the store, Within the store, it uses colorful displays, competing grocery stores, I continue to buy my food that certain new colors and products are products. I am happy with the makeup products I
friendliness/helpfulness of the attractive signage, and shelf positioning there. I do view products at Whole Foods as fresher MAC Cosmetics - I use now in fashion, and offered me free already have, and am not convinced that I need to
staff, and wide variety of to influence me to purchase certain and healthier than food from other grocery stores, their line of makeup shipping if I ordered these products on buy new colors every season to keep up with
products. products. even though I have no factual basis to rely upon. exclusively. the internet. fashion trends.

It was successful because the website is easy to use
and offers the same prices as calling the airline, so Wanted me to set up automatic It was unsuccessful because there was no incentive
there is no real incentive to call instead (I also think recurring payments on paperless for me vs. my usual habit of receiving the paper bill
Trying to encourage booking on line they may have cut back on phone agents and statements. Sent many notifications of then paying each time separately on line; however, I
through guaranteeing low prices and increased wait times so calling was less appealing); Comcast - using cable the service via email and with my paper frequently get misbilled so there was a downside of
Jet Blue - buying airline tickets providing financial incentives additionally, there is the upside of a cheaper fare. service statement explaining ease of use. having to argue for a credit after the fact.

Express sent me a $15 Express, the same
coupon in the mail, which wasExpress was trying to just get me to the company, tried to get me
store. I think they knew that once I was
valid during a 2 week period. I to open an Express credit
there, I would buy enough merchandise
went to the store to look at the card, to save 10% on my
clothes, and did not even to make the coupon more than worth purchase. The sales The company was hoping that if I
realize that I was shopping their investment. They might have also person was aggressive opened an Express account, I would The attempt was unsuccessful because the sales
before the period of the known that I would not check the small and I was not interested. I shop at their store more frequently and person was pushy and because I actually already
print of the date of the coupon. The
coupon. I bought clothing that The attempt was successful because it was easy for had opened such cards buy larger purchases because they had had opened an Express account years ago and
I otherwise would not have mechanism was a discount, making the me to use (I received the coupon in the mail) and before and never used extended me credit. They were also never used the card again. I also did this with
purchased and didn't even consumer feel as though they would get because the pictures on the coupon showed them again. They are a hoping to achieve loyalty. The Banana Republic, Saks and other stores. I never
use the coupon. a bargain. fashionable clothing. hassle. mechanism was a branded credit card. end up having those cards in my wallet.
Trying to influence my regular shaving They were trying to influence my
purchases through repeated media purchasing behavior and methods. Used
Gillette (now P&G). The Mach advertisements and in-store product It appealed to the "macho" side and made shaving American Express. Their targeted mailing to try to switch credit Too much marketing can have the reverse effect, a
3 razor. placement. seem enjoyable. I am now a very loyal customer. green/gold cards. cards. negative image of the brand.
Company was trying to induce me to Company was trying to get me to
purchase more product. The primary increase my credit card balance. It did
mechanism was a recommendation This attempt was successful because the this in a couple of ways: Offered checks Its lack of success had to do with my idiosyncratic
Company: Amazon.com function on the website that highlighted recommendations were targeted and relevant. It led Company: Capital One that would be drawn from my credit; belief in the evilness of credit cards. I try to use them
Product: Book similar products. me to products that I had a high probability of wanting. Product: Credit Card balance transfer teasers. only when I have to.

Page 15 of 16
df37a3e8-c1c1-466e-928b-a06f94c060ed.xls

Apple was trying to encourage
consumers to legally purchase digital
music online. The mechanisms used
include: 1. Affordability - at $0.99 per
song, the cost is affordable to a
significant segment of consumers. 2.
Accessibility - the online music store
means that anyone can purchase music
over the internet. More importantly, the
service is available on both Windows In my opinion, the attempt was unsuccessful
and Macintosh platforms, allowing for because: 1. Virgin was competing against an
greater penetration to computer users. established market player that consumers had come
Library of music - critically, songs are The company was trying to provide an to relate just cola-flavored sodas to its name - Coca
available on iTunes almost immediately It was successful in switching customer behavior from alternative to Coca Cola. The Cola. 2. Slight difference in taste to Coca Cola's
after they're released by the label. Also, downloading songs illegally and purchasing physical mechanisms used were: 1. Similar offering meant that even though the packaging was
Apple. iTunes music store on CDs because it fundamentally removed the barriers to
the large library of music serves to attract bottle shape to Coca Cola 2. Similar similar, consumers were highlighted to a
the Internet. a diversified customer base. purchasing music easily and legally online. Virgin. Virgin Cola. marketing "fundamental" difference.
Before the introduction of the card, we were
infrequent renters, and we were living in Cincinnati,
where frankly, there wasn't a lot going on. We
happened to be in the store (which at the time was a
block from our apartment), and we were offered the
card by a friendly clerk. We knew we wanted a copy The program worked very well on us for a while. $5
of Finding Nemo, and I did the math and realized off for $50 in spend seemed great when our average
we'd breakeven by renting five movies. We figured trip was $45. As the coupons increased in value and
we'd be able to rent a movie every week (which spend amount, we converted purchases that would
ultimately we did, over a ten week period.) We were have been made elsewhere, namely at Target, to
thinking about the short term... Renting a movie one Shaws purchases. However, we reached a point
night a week during the summer seemed reasonable. where we couldn't substitute spend from other
Ultimately, we wound up getting used to renting The company was trying to convert us places to spend at Shaws. Our last coupon received
Blockbuster was trying to encourage movies, and we participated in similar programs into loyal customers, and to purchase from Shaws was for $10 off for $120 in spend.
Trisha and I to rent more movies, and to several times. Often we'd rent movies because we more groceries from them. They used a We're back to shopping at Target, Shaws, Stop and
make renting movies a part of our had already paid for them, not have time to watch loyalty program with a loyalty card at the Shop, CVS, Walgreens, or anywhere that our
lifestyle. The mechanism was a pre-paid them, return them late, and pay late fees. What's checkout and coupons that were mailed frequently purchased items are on sale. Shaws failed
rental card that we purchased, that more, we ended up getting copies of free movies that to our home address. The coupons took because they didn't recognize that there was a limit
enabled us to rent a movie a week for we had no interest in (e.g. Spiderman). The into account the amount of money we to our ability to purchase groceries. Had they
ten weeks at a discounted rate. At the madness ended when we moved out of Cincinnati, spent on an average trip to the store, brought the spend value of the coupons back down
end of the 10 weeks, we'd receive a free but Blockbuster definitely wrestled their way into our and sent us coupons that would give us to a reasonable/sustainable level for our budget, they
Blockbuster Video: DVD copy of Finding Nemo (in its first week of lifestyle, and got us to spend a lot more money with discounts if we spent just a little bit more would have captured more of our business for a
rentals release). them than we would have otherwise. Shaws: groceries (e.g. $5 off if you spend $50). longer period of time.

The Company was trying to entice me The attempt was unsuccessful, because I deemed it
It was trying to make me switch to online into living a more highly levered lifestyle to be only beneficial for the Company and not for
use for tracking flights, booking flights, by offering me checks to cash, higher me. SO I felt they were enticing me with things that
Continental and managing my frequent flyer account. Yes Chase credit limits with low interest rates etc. would actually be harmful to my financial position.

The experience was simply incredible. This is perhaps
cliché, but I think a large part has to do with “know The saleslady was over zealous. Everything I picked
your customer. ” The restaurant knew even before we out “was just gorgeous” and everything I tried on
Relaxation, luxury, leisure, feeling came in that we were corporate clients. With expense A sense of feeling attractive, a simple “looked stunning” – I know it might be her job, but I
pampered and serious sensory overload. not being a major factor, the waitress took charge of way of transforming me from “ordinary” (I felt like she was insincere without really being helpful
I think I would summaries it by saying it the ordering while at the same time involving us in the was in jeans and a t-shirt) to at all. She was also trying (too hard) to sell me things
was an overall attempt to perfect the decisions she was making, and explaining every item “glamorous”. In terms of mechanisms, I wasn’t interested in at that point in time – i.e.
“experience of eating.” In terms of she was suggesting we order. The quality of the food the saleslady showered me with accessories before I had even made up my mind
mechanisms, (1) Product excellence - at Nobu speaks for itself, but more impressive was compliments after I tried on each dress. about the dress. Even though the dress was pretty,
The food is fresh, inventive and the near-perfect variety and sequencing of each She then tried to cross-sell other her approach simply rubbed me the wrong way and
The New York City restaurant delectable. (2) Top-class service - course. I am a true foodie and can be critical of Bloomingdales, New York. products (handbag, shoes) saying how all I wanted to do was leave the store. In retrospect I
Nobu, serving high-end waitresses are attentive, polite and restaurants, but Nobu left me wishing I could come I was trying to buy a dress well they complimented the dress (and should have bought the dress, but these things are
Japanese food extremely knowledgeable back more often on my own dime! for a wedding me). sometimes not rational!

Getting me to switch insurance as well
as upgrade coverage. Clearly showed Chase Credit Card - Called
the cost of various policy options and about a charge on my card Tried to sell extra consumer protection I was not in a buying mode and was already
Geico - Buying car insurance allowed you to customized real time and and they tried to sell me services. Once it had me on the phone, annoyed at the company and not looking to buy
on the internet see the cost differential. Easy to use and quick. multiple extra services. offered a free 30 day trial. anything else.
The company wanted to encourage
going to the movies on slower days of The company regularly mails out It failed because they do not stock enough items in
the week. By signing up for the Regal It succeeded because getting free popcorn made it coupons for a free item of underwear, my size and the lines for the cashier are very long. I
card, you get a free small popcorn every more attractive to go to the theater, rather than plus $10 off any bra. They are pick up my free item and leave because I cannot find
Regal Cinemas - the company time you go to the movies on Tuesdays. renting a movie at home. Plus, since popcorn is so encouraging people to enter the store on items that fit and it is frustrating to see something
owns a chain of movie As a side benefit, Regal gets to track expensive at the theater, it felt nice to be rewarded the hope they use the bra discount or cute and then after extensive searching realize it is
theaters. what movies you attend. with something free for being a loyal customer. Victoria's Secret buy other items. not in my size.
They used promotion to buy customer
They have made coffee drinking into a loyalty and cross sell. They tried to Pricing based behavior conversion is not
social behavior. They have shown their They have used customers to educate customers, so convince their salon goers to get facial, sustainable. I found out that it was really not that
customers how this idea can be used by people learn by observing and doing. In a sense, Wang Lei Hair salon massage and manicure all at the same convenient to always get everything together, and
Starbucks creating a space as a demonstration. their way of advertising feels less commercial. (shanghai, China) time through pricing. stopped after first try.
Wanted me to watch more television. It
used advertising during the show to
Harrah's Entertainment. Spend more money. Comps to Disney. Watching cross promote other upcoming shows
Gambling restaurants and comps to gamble more Yes. television (ABC) during the week. Because I have Tivo I skip the advertisements.

Page 16 of 16