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        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 up 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 phone 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
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 purchasing    The nature of my electronics-purchasing
                               salons that used their products              Because I was able to try the products without                a product and they were        behavior - trying to make me more risk-       Because I was willing to assume the risk that they
Bumble and Bumble - hair care exclusively and presented those products purchasing them, and because the sales tactic used                 asking me to also buy a        averse by protecting myself in the event      were offering to take on for me, their service had little
products                       to me after my hair service.                 was not pushy.                                                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 in Because it speaks to people's aspirations and makes                                          internet booking, colorful planes and of      having to suffer their aggressive demeaning of their
homewares.                     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 I                                     to purchase their insurance coverage for      probability of me getting into an accident during a two
                                AirTran uses is that the price will increase   hate to pay extra money for a service unnecessarily,                                      the car rental. They used the scare tactic    day car rental, in my mind, was not very high and
                                considerably if a flight is not booked at      so I am motivated to purchase my tickets in advance if                                    telling me all of the things that could go    therefore was not worth the additional $32. I was
AirTran Airways; Air Travel     least 14 days in advance.                      the planning allows.                                   Avis; Car Rental                   wrong on the road.                            comfortable with taking my chances.

                                                                               A mix of all of the above. The convenience of the
                                                                               service gave it a leg up to begin with, lack of strong                                    Trying to get me to get me to give up
                                trying to get me to pay online through a       competition to make me question the strength of                                           "owning" my music for renting it month by     Unsuccessful because I have a strong preference to
                                simple interface. Used Ubiquitousness of       paypal over others, and the fact that so many                                             month. Used the allure of "unlimited" and     owning my music and a dislike for monthly fees. The
                                channels to make me feel like everyone         respectable sites and companies were adopting use                                         a low monthly fee to try and create the       plan felt like music was turning into cable television,
                                was doing it, was supported by media           of the service made it seem safe and useful. I was                                        hook. Also had to ensure that they had a      and the idea of stopping the service and having paid
                                and others in the soundness of security        also forced to try it because of its success in finding    Yahoo Music -- Unlimited       robust database to be as attractive as        in money each month only to not have any music
ebay--paypal                    features. Easy to set up and trial.            merchant partners. Once I was in, I was hooked.            Monthly Music Downloads        others such as iTunes.                        personally to keep for it just did not sit with me.

                                Comcast was trying to get me to upgrade        The attempt was successful because I was already
                                my T.V. subscription to high definition.       spending so much on a T.V. unit, that another $50-                                        Tries to get customers to upgrade order
                                Comcast partnered with Best Buy, such          $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       that when I bought a T.V. with h-d             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           capabilities, the Best Buy salesman tried      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.                   to sell me an upgraded Comcast 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 used       fixed costs which were being amortized over a longer
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   was strong encouragement (but no              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 simply GAP Inc.- Banana Republic          members only event as a preview of one        especially in 4 months (since it is based on the
rental                          second visit from me.                          encouraged me to not be lazy.                            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 account no because when it comes to matters as personal as
                                based on the amount of miles you travel                                                                   Bank of America; financial     service fee if you exceed a certain    my money I want to transact with an individual not a
delta airlines                  with them                                      Yes.                                                       services                       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 something        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
                                else. They used logic to convince me as I      bothered. Also, I probably would not have asked for it                                 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   saw it would save me time to pay my bills      myself, so it was successful because they proactively      Bank of Nova Scotia. I have sign up for their Visa card. They said I         they would have needed to up the cash back amount
bank account with them.         online.                                        asked me about it.                                         a bank account with them. would get cash back if I signed up.                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 that                                  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.             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.

                                my rational choice behavior. Used              Because the company understood my needs and their
Carphone warehouse. Mobile      analytical reasoning and facts and             product best addressed my needs. The sales person                                                                                       No interaction and flexibility on price. No attempt to
pre paid service in London      superior rates                                 was knowledgeable and used the product herself.   Avis car rental in London               Price consciousness                           customize for my needs.




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                                                                                                               70fc0422-d307-444d-ad13-0425f2f58608.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?
                                  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 the
                                  comparison) advertising and a lot of                                                                                            They would also take a lot of time to                service you will get when opening an account with
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                 them. Besides credits and prices are not the best
phone service, specially          get discounts for every new customer     and adding this feature makes the pricing of the       Bankinter (online banking in    directed constantly to the FAQ on the                mechanism to avoid having customers asking
international calls.              you recommend).                          overall service much better.                           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 tires.          No. I only bought one tire because I desperately
                                  promptly after eating buy dropping off my Yes. After I caught on I promptly left. The waitresses                                Mechanism: misleading pricing tactics,               needed it. I returned to my trusted tire provider for
Name: La Perilla Restaurant.      check and stopping by frequently to         was courteous and justified, as the restaurant was           Company Name: American 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 had
                                  The company was trying to influence my 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 advertising   The rates were not good and they send too many
American Airlines, air travel.    program and tiered service.                 increasingly important.                                  MBNA credit cards.                 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 an                                        Duane Reade gives me points when I           and boring to read. I feel the program is not
                                                                             effort to always pay my balance on time. I have never                                        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 been late since then so I would consider it successful.                                          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 At the same time, I assume that these late fees must                                              They are trying to influence me to           something from the program and yet I haven't ever
                                  mechanism they use is to charge a          be a good source of income for AMEX, so it could be                                          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 that they would rather I am late every once in a while.                                      me a building balance of points which        for me to swipe my card during every purchase. They
American Express. Starwood        my payment, and then charge the fee        But the large fee is a disincentive for me to hold a    Duane Reade. Duane                   probably expire or would be lost if I were   ought to explain the program better, perhaps with a
Preferred Guest American          again the subsequent month even if I pay balance so it is structured to discourage late            Reade Dollar Rewards Club            to begin shopping at CVS or one of their     poster board in each store, and then give more
Express credit card.              on time.                                   payments.                                               Card.                                other competitors.                           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, leading                                                                                      over other airlines. After several of my Delta flights
                                  “nighttime” minutes are unlimited, but  me to shift the majority of my usage to the evenings                                            My airline ticket purchases, using           were cancelled or delayed, my preference actually
Verizon Wireless – cell phone     “daytime” minutes are restricted.       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 purchases
                                  Like other airlines they have a frequent                                                                                                                                             collect you points that can be rewarded for certain
                                  flyer program. If the tickets are the same                                                                                              They were also trying to influence my        gifts. It takes years to get enough points, the gifts are
                                  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          not nice and it takes month to redeem them. Unlike
                                  this gives you benefits at check-in, waitlist cost to me (obviously only if the tickets are the same     grocery chain in Germany       points, they were hoping to get me to do     US stores (Shwas) you get no instant monetary
Lufthansa airline                 priority etc.                                 price as competing airlines).                              (Karstadt)                     all my shopping at their stores.             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 worth     It gave me back something that, even though it was          AOL / dial-up internet         cancel and annoying operators trying to
Capital One / credit card       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 get                                                                               The attempt was unsuccessful because when I tried
select what groceries you       much time I could save by using their          the opportunity to see for yourself how easy it really is   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 they services and how easy and fast it was for      and how great the service is for free and then you          unsuccessfully tried to        from a traditional spray and wipe method     because the swiffer duster did not do a good enough
shop for them and deliver them me to order and set up a delivery time          never want to go back to traditional grocery shopping       influence my behavior with     of dusting to using a one step duster that   job! The product didn't do what it said it would do
right to your kitchen.          online.                                        ever again.                                                 the Swiffer Duster.            is supposed to do both for you.              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 was
coke instead of water           heavy/cool/tempting advertising                and become addicted                                         palm pilot - electric calendar using technology                             "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' airport                              service number for questions on my
                                  Behavior: customers waiting in line to       counters, which no doubt saves money for the airlines                                      account. Mechanism: Sprint
                                  check in at the airport check-in counters.   (reduced airport counter staff). This attempt was                                          implemented a complex Interactive Voice      Unsuccessful because the phone prompt was very
                                  Mechanisms: almost all airlines now          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 made    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 of Sprint, as a cellular phone      it very hard to actually get to speak to a   frustration led me to eventually change over to
flight.                           flights up to 48 hours in advance.           the flight.                                                   customer.                    live person.                                 Verizon.

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

                                                                               By offering free flights and check-in/boarding                                                                                          Not only did the price exceed my estimated expected
                                                                               advantages as well as convenient ways to accumulate                                        Dell tried to sell an extended service       value of the service contract, it made me question
                                                                               miles (flights, credit cards, bonuses for status), I have                                  contract with the computer by scaring me     Dell's commitment to its products and customers and
                                  United tried to influence loyalty using a    paid premiums to consolidate my travel with United                                         with details of how limited the basic        consider other manufacturers for my next computer
United Airlines, Air travel       frequent flyer mileage program.              when competitors have had equal or lower fares.           Dell, Laptop computer            warranty was.                                purchase.




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                                                                                                                     70fc0422-d307-444d-ad13-0425f2f58608.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 incentive I have to use these lanes is the promise
                                                                                                                                                               Stop & Shop introduced self-checkout                          of saved time. However, due to the design of the
                                                                                                                                                               lanes, where customers can scan their                         new service this promise is not delivered on and in
                                    Starwood tries to increase its share of my                                                                                 own products and pay without a cashier.                       reality I have no incentive to use the new service at
                                    total number of hotel stays. Two ways      The primary reason this has been successful at                                  If some customers use these lanes                             all. Although these lanes do have shorter lines, most
                                    that they do this are by offering great    increasing my likelihood to stay at a Starwood                                  instead of conventional cashier lanes,                        other customers are confused with the new service
                                    incentives through a frequent stayer       property is that they make their incentives have true                           Stop & Shop could reduce labor costs.                         and take a long time using it, making the line move
                                    program that rewards you for staying,      value. Points are easily redeemed for free nights even                          The only mechanisms used to encourage                         very slow. Additionally, Stop & Shop does not
                                    and a credit card through Amex that ties on short notice, and they are easily transferred to any                           customers to try these lanes are signage                      provide bagging in these lanes, so if I am buying
Starwood Hotels, hotel              all purchases back to the frequent stayer other frequent flier program or other partner           Stop & Shop Supermarket, and talking computer screens providing                        more than a bag or two of groceries it may take even
accommodations                      program.                                   programs.                                              buying groceries         instructions.                                                 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 prefer 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
                                    to purchase their tickets over any other   higher levels, the added service and double miles                                               upgrade to a higher level of cable service weeks pushing the same product. Had Comcast
                                    airlines'. They used their frequent flyer  made me a very sticky customer, as I saw added value                                            and bundle it with a phone and internet    been able to demonstrate a value to me in spending
                                    program, which incorporated miles,         beyond getting from point to point. When factors did                                            service. They used milings and a phone more money, I might have been convincible; but
                                    upgrades, bonus miles, service levels,     affect the basic service (point to point), my 'level' aided 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       me in getting to my place as quickly as possible and        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.                              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 the
BWCinema. Rent and watch            same movie online - eliminating the need 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.             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 would
                                    number of frequent flyer points to       Wanting to go on a vacation, I was flexible on my                  Better Burger, a local     get a free meal with every 10 purchases.
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 They were trying to increase my          The product was not good enough to warrant me
airline.                            NY to Seattle.                           saving for a free ticket in the future.                            purchasing their food.     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 to
                                                                               It was successful as it used the mileage system to                                                                              accumulate mileage and that their mileage can be
                                                                               make the consumers feel that they are getting a better                                                                          bought/sold at certain price even when expired
                                                                               bargain than buying the cheapest airflight ticket. It                                                                           (which is a service ANA doesn't offer), all leading to
                                                                               definitely stopped a lot of travelers to shop around for                                                                        better bargain but since their service was of poor
                                                                               cheap airflight tickets as they knew that they would be                                                                         level, and not aligned w/ their mileage program, it
                                                                               accumulating mileage that will contribute to free                                                                               refrained me (and probably many other customers)
                                                                               flights/ great services such as express check-in,                                                                               from choosing UA whenever there was another
ANA (Japanese airline              It was trying to influence the decision     lounge usage (although economically it might not         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 use make sense unlike Zipcars model where they show in their flight service and              making of consumers which airline to use cheap ticket price. Whatever mechanism a company
flight service and enrolled in     for traveling and business trips. It used   exact dollar amounts how much you will be saving by enrolled in their mileage         for traveling and business trips. It used has for giving customers a discount/a good bargain,
their mileage program.             the mileage award mechanism.                using Zipcar).                                           program.                     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: word- actually logged into the Skype network when you
Firm: jetBlue; service: air travel prices".                                    on theirs.                                               calling.                     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
                                                                                                                                                                               top of you every time you try on clothes at   I don't like to be bothered like that once I am trying
                                    Influence my purchase behavior, by                                                                                                         the store. Also, the mirror is outside the    on the clothes. I like the attentiveness of getting me a
                                    suggesting other books based on my                                                                                                         dressing room, forcing you to walk            dressing room and retrieving the appropriate size, but
                                    tastes or what other customers have                                                                                                        outside so the saleswomen can try to          not to the point of fake flattery. Its to the point that I
                                    bought in addition to my purchase, with                                                                                                    attempt to flatter you with the clothes on.   don't like going into the store. Instead of influencing
                                    editorials. In addition, the easibility of the   It catered to my tastes and gave me access to                                             Than it becomes uncomfortable when            me to purchase something, it actually turns me away
                                    search engine and the free shipping with         information and many more choices versus simply                                           you have to walkaway without a                from the store in fear of not being able to be able to
Amazon.com, buying books            purchase over $25.                               walking into Barnes and Nobles.                            Searle, clothing store.        purchase.                                     try things on with out the 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
                                    make it more worthwhile for me to pay for                                                                   variations of its Diet Coke    beverage purchasing habits by
The cable company, Comcast,         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
has influenced my behavior as       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
a customer through the digital      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
video 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 tickets   husband lives in Virginia and I travel quite     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
online                              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 encouraging returning the weights to their storage areas. (2) Due
                                                                           Although I reduced my insurance purchase through
                                    customer to sign a waiver stating he/she                                                                    Bally's Fitness - health       the racking of weights were posted     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                 everywhere.                            compelled to rack the weights.
                                                                           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 it               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 affect required me to extend my contract for one year, which                Democrat and I contribute      to contact me to try to get me to donate uninformed about the organization and unable to
calling plan                   my behavior.                                I wouldn't have otherwise done.                                      financially.                   $100.                                     answer my questions.




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        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?
                                  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
                                                                       Yes. At first, since the service level of this salon is
                                  treatment. (33% higher price from next
                                  treatment) For customers who show up great, most of the customers become repeat visitor of
                                  on time every time, they make gradualthis salon. These loyal customers try seriously not to
                                  discount based on how many times theyshow 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 toThrough 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 used: spent of writing checks, stamping envelopes and                                                     Through online advertising and targeted        enough customers and listings, and the auction had
                                  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'
                                  vacation destination decision making by                                                                                                                                                Their attempt was unsuccessful because of their
                                  making the vacation package extremely                                                                                                                                                  customer service. We were ignored upon entering
                                  appealing and hassle free. There is                                                                                                                                                    the store, although there were two salesmen
                                  minimal planning that is required--all you     The attempt was successful because the resorts live                                                                                     standing in the front of the store that appeared to be
                                  need to do is book the length of stay and      up to their advertising-they are truly "all-inclusive".                                                                                 greeters and were not assisting other customers.
                                  airfare and all other activities and meals     There are no additional fees or spending that                                          Although the store's objective is to sell        Furthermore, we stood by a case for about 5 minutes
                                  are planned for you. Furthermore, they         consumers must worry about after getting off the                                       jewelry, the customer service we                 waiting to be assisted, before realizing that the sales
                                  limit guests to adult couples, so you do       plane. They live up to all of the expectations one has                                 experienced was extremely poor. It               person ignored us to help someone else who
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                 entered the store and approached the case after we
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            did. Rather than ask for help, we decided to leave.
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         The store was not busy at the time and we felt that
Caribbean.                        tips.                                          on customer service.                                      jewelry.                     make a purchase in the future.                   the behavior of the sales people was inexcusable.

                                  Implementing self service. When
                                  McDonalds entered Mexico about 20
                                  years ago, self service was a very very                                                                                                                                                Because they are not consistent, so after 5 years of
                                  uncommon practice, especially the part                                                                                                                                                 not paying and seeing how your debt to the company
                                  that consists in picking up after yourself.                                                                                                                                            rises and they never cut your water supply, they
                                  They "educated" people through making          Because they established it as a norm from the very                                      Trying to make on time payment a               publish "Extraordinary discounts" eliminating all the
                                  it seem "cool" to pick up your own mess        beginning so nobody dared to defy it because you                                         common habit. It uses the "terror"             late payment fees and even cutting a discount,
                                  and by acting as if it was super obvious       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              that that is what you 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         If NWA's primary concern is customer satisfaction,
                                                                                                                                                                          Travel Itinerary, Cancellation Policies,       then they are currently concentrating on the wrong
                                  Habitual purchasing of Nordstrom's             Yes - I'm a habitual Nordstrom's customer, because I                                     Frequent Flyer Rules, and Aircraft             mechanisms. They should be fixated more on
                                  merchandise, through a consistent              can rely on the quality of merchandises and the in-                                      Configuration Ensure Customers First           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             Standards from Code Share Partners             consistent in-flight service, and enhancing or
Product: Men's Clothing           service.                                       other clothing stores.                                    Airlines Service: Air travel   Respond to 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
                                  OnDemand television services over              watch the occasional movie and keep up (or catch up)                                     The company was trying to influence the form. Not only is the quality better, but it is also in a
Insight Communications--cable renting, TiVo, or out-of-home options.             with the Sopranos and Six Feet Under at my                                               way I purchase and use music            standard audio format, while iTunes music is in
television services, specifically 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
OnDemand 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 web.
                                  support getting me to bring it into the        - real person, no cost, easy to reserve online ahead of                                                                                 Difficulty of finding phone number just made me
                                  store. They made it very difficult (maybe      time so don't waste time, easier to fix problem in                                                                                      more frustrated and more determined then ever to
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        find it. Had to make multiple calls into service to get
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           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 inflexibility
setup                             reservation online.                            helpful.)                                                  shipping questions            hands.                                         (not available). Bad service experience.


                                  The company wanted me to choose
                                  American for my business and personal
                                  travel needs. I actually did not have any      This attempt was successful in that it generated
                                  control over my business travel plans, but     additional significant business for the airline. Over the
                                  as a result of American's free upgrades        last year, I have traveled for vacation on American to
                                  plan, I ended up not only using American       India, China, and Chile. I paid the full economy fares                                                                                  The company did not have enough salespeople and
                                  for all my personal travel needs but           for these tickets but used my free upgrades to travel in                                                                                the salespeople gave equal attention to all customers
                                  actually INCREASING THE AMOUNT                 business. I would not have made these trips (on                                                                                         with regard to neither the probability of their buying
                                  OF PERSONAL TRAVEL that I decided              American or any other airline) but for these upgrades.                                   The company wanted to ensure that              something nor the size of their potential purchase.
                                  to take by air (all of it with American). As   While this did increase my personal spend with the                                       each customer had the opportunity to           Thus, I received no attention for nearly an hour when
                                  a top tier business customer with              airline, it may not have been successful in terms of                                     engage in an in-depth discussion with a        I was committed to making a major purchase while
                                  American, the airline gave me unlimited        generating high margin business travel to American as Ski Market...I planned to          knowledge salesperson in the hope that         the salespeople worked with other customers who
American Airlines. Flights for    national and eight international upgrades      I, who benefited from the upgrades, did not decide on buy new skis and                   this would build long-term relationships       made no/lower margin purchases. I left the store
business and personal travel.     (which expired in one year).                   when and on which airline I would fly for business.       accessories.                   between consumers and the business.            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.




                                                                                                                                  Page 4 of 16
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        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?

                                                                            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 whether       recognition machine, I called back and chose the
                                 BEHAVIORS: 1) Frequency of Visits 2) me feel like I am a "regular" somewhere. The                                                          my flight was on time either online or      option for purchasing a ticket right now, with a credit
                                 Purchase of Additional Services            manicurists write their names in the little check boxes,                                        through the automated call line. The        card at the ready. Therefore, USAirways did not cut
                                 MECHANISMS: 1) Frequent visitor card so if you have a particularly good manicure, you can                                                  automated message at the 800 number         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 free                                       suggested that I could check online "for    through the automated phone line. By pretending I
                                 sample of chair massage while nails are sample of the massage is a great sales tool. The 1-                                                faster service", then gave "check flight    was about to buy a new ticket, I got a live agent on
                                 filed. Then a 10-minute chair massage      minute taste at the beginning of the manicure certainly                                         arrival/departure times" as a menu choice   the phone who could help me figure out that my flight
                                 (for $13)is offered at the end of          makes customers more likely to buy the chair                                                    on the phone line. (choosing this option    was, indeed, delayed two hours. I also asked her to
                                 manicure, while you have to stick around massage later than if they had not been exposed to                                                kicks you over to another automated         help me select my seats, which I did not have the
Jay Nails Manicure               to dry anyway...                           the delightful service earlier.                            US Airways Phone center              system)                                     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 gives
                                 miles that provide free tickets and first  me flexibility I value as a frequent traveler. Inherent in
                                 class upgrades. Becoming a Platinum or the program is that if I find using their product more                                                                                          The attempt is unsuccessful because they send out
                                 Executive Platinum member of the           enjoyable, I will get in the cycle of using it more and                                         The company sends out catalogs at a         so many catalogs that you just ignore them and they
                                 program also gives me priority on          getting more rewards. As long as the profit from my                                             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,   additional use outweighs the cost of providing the                                              attempt to get you to purchase sale         customer previous purchases to target their catalogs
tickets                          etc.                                       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                                                                                                                                                significant threat, and made me less guilty about
                                 new, slick, online website that streams       the website ended up being an easier way to access             Well, the RIAA. I was                                                     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             listening to music produced 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.             by its member 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 the Too confusing and too much fine-print. I felt a lack of
computers.                       terms of cost and delivery times.             wouldn't have bought an IBM otherwise.                         plan/phone.                   size/type of purchase.                   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
Up to Date On-line,          to quickly access comprehensive                   consistent with the theme of practicing evidence                                             By making it extremely difficult to process The attempt was not successful because I was
comprehensive and current,   information, incorporating recent results         based medicine and it results in subscription revenues                                       the insurance claim, UPS was deterring diligent and was able to dedicate some time to follow
clinical medical information from clinical trials                              for the company.                                        UPS insurance claim                  me from following through with the claim through the claim
                             Key was trying to keep me as a customer
                             although I no longer lived in an area                                                                                                                                                      The product (meal) was clearly more than enough to
                             serviced by Key Bank (Boston and, prior                                                                                                                                                    satisfy my hunger-- typically leftover soda and fries
                             to that, Minneapolis), and to make sure                                                                                                                                                    made this clear [as a disclaimer, I only eat at
                             an adequate balance was maintained.                                                                                                                                                        McDonald's once a month maximum, although I do
                             The bank accomplished this goal via a             The fact that the bank would not only waive 'non-Key                                                                                     admit to enjoying it]. In addition to this, the size of the
                             policy to charge no ATM fees AND to re-           Bank ATM' surcharges but also re-imburse other                                                                                           "Super" soda and fries bordered on obscene and I
                             imburse other banks' fees up to                   banks' surcharges seemed an 'above the crowd'                                                                                            would feel the guilt of low will-power and clear
                             $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 account           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 and $5,000 kept in a 'linked' savings             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.                     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 at
                                                                                                                                              CDs still mattered, buying                                               the company's expense. Required purchases was
                                                                                                                                              music as a "club member."                                                not bad (usually 1-2 CDs only), after which I was free
                                                                                                                                              Basically, get 10 or 12 CDs                                              to quit. The fine print says that you are not supposed
                                 McDonalds wants me to (1) decide                                                                             for "free" and then commit    Music clubs tried to get you signed up     to quit and rejoin or have multiple memberships at
                                 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        one address, but that didn't seem enforced. So I
McDonald's. Terrible, terrible   something standardized; (4) choose high-      meal" - not just the burger, but I need the fries AND          as a member. Usually          through (1) required purchases as a        have hundreds of CDs from quitting and rejoining.
fast food that somehow I am      margin items (i.e. drinks). They do it        drink. "Value" meal makes it such a simple thing.              ended up coming to about      member; (2) automatic monthly shipment It's possible - but doubtful - they broke even or made
compelled to eat on occasion.    through easy-to-choose "value meals"          Also, I'm greedy, especially when I'm hungry... why            $30 for 10-12 CDs... pretty   of a selected CD if you did not respond in money off me through shipping & handling charges
They do have the best fries,     and the much missed "super size" option,      have the medium size fries when you can get the                good for a poor high school   time; (3) "tailored" catalog to suit my    (which seemed a bit high), but that doesn't seem like
after all.                       may it rest in peace.                         JUMBO size?                                                    kid.                          music tastes.                              a particularly good model.

                                                                                                                                                                                                                      It was unsuccessful for three reasons: 1. Clarity of
                                                                                                                                                                                                                      the offer. By using vague and often unclear
                                                                               There are several reasons why they are continuously                                                                                    terminology, it was unclear whether the rate per
                                 In all cases, the airline has implemented     successful: 1. Significance. The dollar value of the                                                                                   minute would be truly local (e.g., UK to UK) or equal
                                 various tactics and policies designed to      penalty or fee is significant enough to influence                                                                                      to the long distance rate from the local market (e.g.,
                                 discourage me from making changes to          behavior. 2. Demand. with so few options to fly to                                                                                     UK to Sweden). This created confusion. 2.
                                 my flight plans. With cash tickets, there     Canadian cities, AC has the "monopolistic" luxury of                                                                                   Transparency. After trying the service once and
                                 are significant fees for changing dates       getting away with more than in a more competitive                                                                                      watching 50 pounds disappear within days, I was
                                 and times for the flight, along with strict   scenario 3. Industry. Customers (myself included)                                         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    have come to accept these types of restrictions as a                                      available only to registering "members" it good deal. When I was back in the UK, I tried to get
                                 cancellation. While "points" tickets have     normal part of an economy fare ticket, and have                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        modified behavior accordingly. 4. Up-selling. From             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       AC's point of view, this also creates the opportunity to       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"           sell the benefit of flexibility as an added feature (or next   long distance calls when   "local rates." It used a pricing plan of one could not be a good one - otherwise the details of my
either at discounted fares or by customers, reducing the number of             tier) for customers who value the ability to change at         outside of the home market initial "connection fee" plus minutely rates own calls and money spent would have been made
using frequent flyer miles.      passengers who make changes.                  the last minute, and are willing to pay more for it.           (UK).                      based on the local calling plan.             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 minimize      water consumption and the lack of storage space in                                           year. Through selling the credit
                                 the cost of delivery for the company. Its     my dorm room. With Poland Spring's delivery policy                                           protection program to customers, the
                                 mechanisms include a fixed delivery           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           schedule and the unavailability of same-      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.                        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 was
drinks.                          experience and affiliation.                   Starbucks as opposed to buying for taste.                      breads/soups                  more "knowledgeable" varieties of bread. below par and wait time much longer.




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        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?

                                                                                                                                                                                                                 There were many reasons: - I want to
I would like to give two                                                                                                                                                                                         see/smell/touch a product before I buy it. I order from
examples. 1. Skype: They                                                                                                                                                                                         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                                               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   The company was trying to make me         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 was change the way I buy cosmetics,           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         given samples and         household products, etc: instead of going 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 to the normal shops I could order from    bathroom to washing my hair (!). This really made my
Veet's products.                   campaign.                                     worked!                                                     become their customer.    home from one of their representatives. 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 charge     feature, not a credit card (roll the balance from month-
                                   payment behavior. If I switched to auto-      It was successful because when students are both in                                         card, by offering me a 'flex-pay' option for   to-month) feature. I have credit cards with lower
Granite State Student Loan         payment (linked to my checking account)       debt and lazy, an auto-payment system that provides                                         larger purchases (hotels, airline flights,     APRs for that. By trying to be both types of card,
Management. The service            then I could get a reduced interest rate      lower pricing is a win-win. They are more likely to get                                     etc.). They positioned it as a more            they failed to convince me why I should use them for
was managing my undergrad          (0.25% lower) after 2-years of on-time        their funds on-time and the student is getting a better                                     flexible, consumer-tailored option vs. the     credit and not just charge. In other words, I didn't
student loan                       auto-payments. They were using a              rate. I liked the convenience and ease and lower            American Express; charge        pay-off-your-balance-every-month charge        see the benefit for me, only the increased fees and
servicing/payment.                 pricing mechanism.                            price.                                                      card                            card.                                          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 to
                                   into their bank. mechanism - They             I did not have to do a lot of product research on my                                        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                                                                                                                                                         The company wanted customers to buy
partnership with Alaska Airlines                                             Because I was indifferent between this grocery store                                            more than one bottle and hopefully
to provide frequent flier miles    Increase customer base and increase       and the one across the street as both were equidistant          Bath and Body Works.            increase revenue per customer.
for all purchases at Safeway       purchases once in the store.              from my house and had comparable prices, selection,             Purchasing lotion. The          Mechanisms: large brightly colored signs
grocery stores. Further, if you    Mechanisms: in-store advertisements,      quality, and service. Also, it helped that they made it         company priced each bottle      throughout the store, sales associates         I didn't want that much lotion and didn't really want to
used your Visa card to make        flyers in the mail, and checkout clerks   easy for the customer (I just had to link the frequent          at $12.50 each but would        coming up to you and telling you about         be spending that much on it. On that particular trip, I
the purchase, you received         asking if you wanted to add your frequent flyer number to my rewards card number once, and                sell you 2 for $20 or 4 for     the offer, flyers in the mail, and email       was shopping for something specific and nothing
double miles.                      flyer number to your rewards account.     then everything else was done for me).                          $30.                            advertisements.                                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 3 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.                             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,                                                                                                 Arthur Murray was trying to influence our
                               and statement information. I switched to                                                                                                   continued relationship as a paying                By going for the hard sell and trying to hit a home run
                               online banking because they offered a                                                                                                      customer during our move from Los                 with a huge financial commitment through a down
                               monetary incentive of about $25 for               Incentives were provided which heavily influenced my                                     Angeles to Cambridge just this summer.            payment, Arthur Murray lost a potential long-term
                               switching to online banking, but they also        decision to make the switch and try the online              Arthur Murray dance          Rather than emphasizing the service they          satisfied customer. They basically stopped listening
Bank of America - switching to provided a simpler and superior customer          banking, but at the end of the day the attempt was          instruction - my fiance (now provide - outstanding dance lessons -             to what we were saying and lost any sense of
use online banking from a      service interaction online. I find online         successful because the new format provided a more           wife) and I were taking      they emphasized the sale and down-                customer focus, while making us feel like walking
traditional atm and branch     transactions easier and therefore call the        valuable experience for me than the phone and               dance lessons for our        payment commitment necessary to                   dollar bills rather than moderately lousy but rapidly
banking relationship           800 numbers much less frequently.                 branch alternatives.                                        wedding                      continue.                                         improving dancers.
                                                                                 Since I want to save my daytime minutes that Verizon
                                                                                 gives me to make phone calls between 7-9pm for
                                                                                 important-type calls, I'm willing to save my longer,                                        Getting me to come back to the store at a      Since I normally make purchases under $15, I didn't
                                                                                 catch-up with friends & family phone calls for after                                        later date by giving me "cash back." They      think it would be worth my time to go back at the
                                   When to make my phone calls. They             9pm or on the weekend. By giving me something I                                             gave me a "gift certificate" when I used       designated time to save the $5 and buy things I didn't
Verizon Wireless, Cell phone       gave me unlimited calling minutes after       found valuable (free air minutes) I was willing to alter    CVS, purchasing                 my Extra Care card to save $5 on my            really need. Overall, I didn't find their offer valuable
calls                              9pm and on weekends.                          my behavior.                                                merchandise                     next purchase of $20                           enough to alter my behavior.

                                                                                 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 was      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                                           over. It tried to use a customer retention     term was over I was free to switch to a new provider
Comcast and their digital cable discounted price for a 6 month time              out of a $70 bill) to induce me to trial the additional     Cingular Wireless cell          discount to help offset the cost of a new      and be treated as a new customer with all of the
service.                        frame.                                           channels.                                                   phone service.                  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 benefits
                                   Increase use of AA by building loyalty        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 part                                                                                               buying life insurance from agent based         Though most people would imagine that by buying
                                   of the experience in line with it: the cabin                                                                                              sales to online sales. Provided online         online, they would be able to get discount prices, the
                                   attendants, in-flight entertainment, food    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          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.




                                                                                                                                  Page 6 of 16
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        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?

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

                                                                                                                                                                                                                     Was unsuccessful because I was offered the
                                                                                                                                                                                                                     promotion when I was purchasing $120 of stuff, and I
                                                                                                                                                                        Company was trying to encourage              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 offered   separately so that I could get the 5 stamps in 1 visit. I
                                 in high definition channels and PVR             are addictive! They know they have a great product                                     promotion where you collected a stamp        then invited my husband and 4 friends to come
                                 (personal video recorder - like TiVo). The      and that if you just try it you won't be able to live                                  every time you had a purchase occasion       shopping with me when I used the 50% off (there
                                 offered 6 months free of high definition        without it and will then pay $40 to get what you had                                   of >$20 and when you collected 5             was no cap of the amount spent) and we saved
                                 channels and PVR when I purchased an            been getting for free. Rogers is also great at offering                                stamps you received 50% off your next        hundreds of dollars. It did not encourage any
                                 HDTV - they got you hooked on the               telecom bundles (they do cable TV, internet, cell                                      purchase. This is a version of a loyalty     additional shopping at full price (although did
Rogers Cable -- digital cable    service when it was free and then made          phones and home phones and offer discounts for the                                     program, where repeat usage gets you         potentially win additional business from my friends
package                          you pay for it.                                 more products/service of theirs that you use).          H&M - clothes store.           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         This program was very successful for me - I have                             JetBlue wanted me to check my bags in
                                 spending on my AMEX card and 2) to              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
                                 continually renew my annual membership          opinion, the key success factors are: 1) linking the                         and answer security questions about my                 plan and exacerbated this failure by raising customer
                                 fee. The mechanisms it employed to              card to the existing Starwood Preferred Guests loyalty                       bags) instead of starting and finishing the            expectations with a promise the company could not
                                 achieve these goals were 1) offering the        program with an already loyal customer base, and 2)                          process with a live representative at the              deliver. More specifically, the two check-in line plan
                                 first year of card membership free, 2)          great execution – The Starwood and AMEX websites                             airport. The mechanisms it used were 1)                actually increased wait time since so many customers
                                 creating the 1:1 dollar to hotel point credit   work together seamlessly in transferring points, and                         separating airport check-in lines into “full           tried to adopt the option and inflated the “bag drop
                                 card such that I was rewarded in “points”       reporting point totals and rewards to customers.                             check-in” and “bag drop only” check in,                only” queue to many times the length of the “full
                                 for spending AMEX dollars 3) providing          Further, Starwood continually upgraded the variety                           and 2) highlighting the option in ads and              check-in” queue. JetBlue struggled to rebalance
American Express. Starwood       extra incentives (e.g., gifts at hotel, extra   and quality of its hotel offerings, increasing the                           on its website, claiming it would simplify             either its staff or the customers in line to better match
Platinum American Express        points for free hotel stays) for all dollars    perceived value of the “hotel points” AMEX customers JetBlue. Online bag check-
                                                                                                                                                              the check-in process for customers and                 customers with available representatives to minimize
Card.                            spent at a Starwood hotels                      were able to accrue.                                   in.                   reduce check in times.                                 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 that
                                 me to purchase shampoo in larger            that I use a greater amount of the product per                                   the company employs less tellers than it               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 of The company is Bank of             previously did to use longer lines as an               prefer to conduct transactions with large deposits
Gamble and the product is        the product. It used price promotions on an effort to use less per shampoo when using a           America and the product is 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 the
                               essence, it is a price differentiation                                                                                                                                           service. I think at that time I was willing to pay double
                               mechanism that serves to both isolate out         Pricing is a powerful mechanism. I shifted much of my                                 Similar mechanism for load balancing as the dayrate amount for the service and so I was
                               business users as well as to "persuade"           talk patterns to off-peak hours (although not all of it). EUNet was a dial-up         well as differentiation against business seeing the night rate as a convenient "benefit" (when
                               non-business users (such as myself) to            Where I am indifferent between hours (such as call for internet provider I was        usage. The company was charging          it happened that I was online at night) but was not
T-Mobile; wireless             shift their calling patterns to non-peak          various customer service centers for items I bought) - I using in Romania in the late double rates during the day as opposed sensitive enough to the monetary incentive to shift my
communication services         hours                                             am ok with calling after 9pm / off-peak                   90's                        to night time.                           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 of
                               monthly, as I am billed. To change my                                                                      account with them, and I      time, which would save them on paper         money wasn't enough to overcome my desire to
Harvard Real Estate Company. behavior, they sent me a warning of $100            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
Product/service was the use of penalty that I'll be forced to pay if I don't     than sufficient for me to stop being lazy and to pay the every month showing           $5 or $10 reward for switching to            given the ease of accessing the information
my apartment.                  start paying on time                              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.
                                                                                 Ikea offers lower prices than competitors who offer
                                                                                 comparable quality furniture, so I am willing to go out                                Tried to create a successor to the           Insufficient dissatisfaction with the existing
                                                                                 of my way to a store, walk through the winding maze        Sony. Minidisc player (or   walkman (leapfrogging portable cd            alternatives and too high of a price. Was eventually
                                 Successfully changed the way I buy              of showrooms, carry the boxes home, and assemble           more recently the Aibo      players) employing superior technology I     made obsolete by solid-state memory & hard-drive
Ikea. Home furnishings.          furniture primarily through pricing.            the furniture myself.                                      robotic dog).               believe as the primary selling point.        based alternatives.

                                 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 it     The attempt was unsuccessful because you could
                                 car, had food and beverages in waiting          The attempt was successful for me because it was so                                    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 you    punished for it and the company had to pay for
change)                          efficient.                                      and grab coffee and a muffin.                       order CD purchasing.               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 was      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
Verizon Wireless. The product    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 be
and service was my cell phone    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          different or incompatible with something I would
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 that                                                                                            sale was not good on all items, so they
                                 month, because they sent me a "thank        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
                                 you for signing up" 20% off coupon that to sign up for, and they didn't require a phone number                                         Cuisinart I would buy some fashion        having a "one day only" sale. Things are never NOT
Borders. I was buying books.     was only good for a week.                   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 up     Musicmatch was much too pushy with their product
                                 Returning movies on time. Blockbuster                                                               store my music library and         advertising and preventing me from using     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           certain "premium" services such as           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                              printing song lists for CDs                  all that well, so I was not inclined to purchase it




                                                                                                                                    Page 7 of 16
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        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?

                                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 me to first                                                                                                                                               I have frequent flyer accounts for all of the airlines I fly
                                make sure that my spending qualifies me                                                                                                                                               and do not feel compelled to be loyal. I am driven by
                                for the highest return, and then to                                                                                                                                                   convenience and price more than any other factors
                                maximize my return (1.5% cash back) by Very successful. I have stopped using other cards                                              Frequent Flyer Miles, which aim to              (and the ability to use frequent flyer miles is not
                                using credit whenever possible, rather    and use credit all of the time, even for everyday                                           convince me to use Delta for all of my          compelling enough, in terms of the price argument)
American Express Blue Card      than debit or cash.                       smaller purchases.                                            Delta Airlines                flights.                                        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 much                                  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     I could do about it. The worst part was meeting my                                      threat to revoke driving privileges after       the second late fee, I decided I would be better off
                                driving privileges after multiple offences.   section-mate waiting for the car. After that                                            multiple offences. Unintended: Social           boxing errands that required a car together and
                                Unintended: Social awkwardness of             experience, I took extra steps to avoid being late, such                                awkwardness of having to meet the               doing a one-day rental from Enterprise or Budget.
                                having to meet the person waiting for the     as adding extra time to initial reservations to avoid    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!                        being late.                                              as above)                      late!                                           longer have to deal with me returning cars late!

                                The company was trying to influence my        The attempt was successful since the company went
The company name was            buying behavior and ensure customer           beyond the contract terms and conditions to satisfy a                                                                                   The attempt was unsuccessful since there were
Fantagraphics Comics. The       retention. It used the mechanism of           customer. I purchased the book 3 months ago and it                                                                                      riders attached to the compensation - it was not
product I had purchased was a   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
hardcover collection of Krazy   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
Kat (a newspaper comic strip)   condition. It also did not want me to send    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
reprints from 1925-1934.        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                                                                                                 Nars was encouraging me to buy more
                              the more expensive items on the menu.           Clear description of why the suggested dish was                                         product than what I was planning on.
                              Used the limited time only "specials" story-    "better" than all the rest. Waiter provided his own                                     Tried to convince me that I "needed" the
Frank. Restaurant in New      -saying the ingredients were fresher, and       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.         that it wouldn't last 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,                                                                                                                                                 The attempt was unsuccessful because they did not
Company: Starbucks. Product: willingness to spend $3+ on a coffee.            The product is of a consistently good quality, and the    Company: Fidelity             Behavior: Using investment professionals        offer a compelling value proposition for me to use
drinking coffees and          Mechanisms: Convenience, atmosphere             cafes are generally conveniently located (which           Investments. Product:         to manage my portfolio. Mechanisms:             their service - the service seemed expensive and I
frapuccinos                   created in the cafes.                           attracts both repeat purchases and impulse buys).         Brokerage account             They sent a letter 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 where      Good service from smiling, young staff (as opposed to                                   that it was better to purchase tickets
                              sick people go - traditional Russian            traditional, grim pharmacist sitting behind lab-glass                                   through intermediaries than directly from       In case anything goes wrong (ie paper ticket is lost)
                              pharmacies only sold medicine and               window). Also, name "36-6" stands for a good, healthy                                   airlines as they had access to many             their after-sales service is extremely poor and ends
                              looked and felt grim and depressing             temperature (Celcius) makes customers feel that they 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)                                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 have
                                organic. It used/uses pamphlets, etc to       People understood what the company was explaining                                       a clear mechanism other than to sell
                                educate consumers about the positive          in a very clear way, and the literature is everywhere.                                  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
                                                                                                                                                                                                                product being provided for that price. Miles are not
                                Influencing increased product purchases       I was happy to get discounts on otherwise full retail-                                                                            as secure and useful as they once were, especially
                                from their department store vs. other         priced items and to continue to get discounts and                                                                                 with so many airline companies going bankrupt and
                                dept. stores or other retailers by offering   information on new items that arrive throughout the                                     Trying to charge $140 annual fee in order applying black-out dates and other restrictions on
                                significant discounts on the first purchase   year. They provided discounts on products I was                                         to use the Platinum card for which I      using miles. Plus, I already have enough miles to
Bloomingdale's (retail          and recurring discount coupons sent with      going to buy anyway and information that I would not      Visa - United Platinum        would earn 2 miles for every dollar spent purchase free tickets for me and a companion using
shopping)                       new product mailers throughout the year.      have otherwise had.                                       Card.                         and a free companion ticket on 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. The
                                emotions but spending a lot of time                                                                                                Used price as the sole basis for why 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 from
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....           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.
                                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 actually
                                earned mileage system. Because I fly                                                                                                  less expensive for me to throw the credit
                                frequently from San Francisco to Los                                                                                                  away and book online than redeem a
                                Angeles, I appreciate the consideration       9 times out of 10, this system makes more sense for                                     $100 airline credit. I'm sure this
                                this suggests for their short route           me as a customer trying to earn free tickets.                                           smoothes their accounting expectations
Southwest Airlines, Rapid       passengers and book with them                 However, as I mentioned above, I fall for it even when                                  and means they can give away credits left The frustration and ridiculousness of the scheme
Reward Frequent Flier           consistently, even when other airlines are    it's less economical because it suggests they             Airtran Airlines - use of     and right to satisfy inconvenienced         made me annoyed enough that I know refuse to fly
Program                         on sale.                                      understand people in my situation.                        credit voucher.               customers.                                  with them.

                                Trying to encourage you to service your                                                                                                                                               This warranty would replace your mp3 player if
                                new vehicle frequently. The normal                                                                                                                                                    broken for virtually any reason during the first 2 years
                                warranty was for 4 years. They were           So far, it seems to be a pretty good plan. The hope is                                                                                  of the products life. Encourages you to use the
                                selling an additional warranty that covers    that you don't have to use the warranty in years 4-7                                                                                    player for 2 years (normal operational life for mp3
                                the vehicle in years 4-7. If you do not use   and can get the refund. However, for large                                                                                              players), then replace with a new and most likely
Honda Motor Corporation         the warranty in years 4-7, they refund you    breakdowns, you have the option. Either way, they                                       Warranty again, this time on consumer           upgraded model. I would not recommend this as a
(Automobiles)                   the original warranty price at that 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 there
                                offering cashback bonuses for certain         work on my part (I already owned the card and had no CVS drugs and beauty               certain products as my spending                 warranties the extra effort or is so expensive that I
Discover credit card            types of use                                  preference for the other cards)                       products                          increases                                       would switch products based on price.




                                                                                                                                Page 8 of 16
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        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?

                                                                                                                                                                                                                      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
                               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
Wells Fargo - I had a checking 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
and savings account, that      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
offered online 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 the                                                                                    (funny stewards, brochures for doing yoga on the
                                  product. Mechanisms used include              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 to   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.        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 access
                                It was trying to influence my choice of the     to an increasing number of benefits, Starwood
                                hotel whenever I was visiting a city. It        influenced my choice of hotel whenever I was
                                used the membership reward program to           traveling, both for business and work. Whenever                                        It was trying to influence my purchasing       It was unsuccessful. I never got used to the new
Starwood Hotels. I was staying influence my decision process. Such              possible, I always stay in one of their hotels. I also                                 behavior when selecting an ice-cream, by       flavors as I found them too rich compared to the
at their hotels, initially when program included various benefits               switched from one hotel I used to visit quite often for Algida Ice Cream. I used to    discontinuing some old flavors and             delicious simple old ones. It became more difficult to
traveling for work, and joined  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
their membership 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                                                                                             I think the goal is to get me to sign up for
successful in influencing my     bought more regularly priced items than I      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 usually would. They also offered $10 gift         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      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.
                                                                                                                                                                     They were trying to migrate customers
                                 Behavior: - Trying to influence                                                                                                     from the analogue service to the digital
                                 purchasing behavior for t-shirts and other                                                                                          network, which came with different
                                 wardrobe staples - Trying to influence                                                                                              channel bundles and pricing structure.
                                 customer thinking about products made                                                                                               Used: - direct marketing of the product
                                 locally, under fair labor conditions -                                                                                              benefits of digital, including more
                                 People buy it like disposable fashion,                                                                                              channels, onscreen programs, menus,
                                 even though it's not particularly cheap                                                                                             possibility of upgrading to a DVR - also
                                 Mechanisms - Offers a complete                                                                                                      repackaged the channel offering, so
                                 lifestyle/image package, with tie-ins to                                                                                            customers would get more channels in
                                 magazines, art, events, staff & marketing                                                                                           each package, but frequently not in the
American Apparel Sells t-        that fits a specific "hipster" profile -                                                                                            combination they already had, unless
shirts and other casual          Makes shopping accessible & social, is                                                                                              they paid more. - had a deadline date at         For the many customers who didn't value the
clothing, accessories etc. I've 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 of "Productized" range, can purchase          - Buy for the emotional, affective package - To have         satellite TV company I used penalized you for ending your contract           customers to pay more for the same service, by a
their hoodies.                   multiple colors in each style              the same "look" as the hipsters                              to work for.                early.                                           given date, raised customer resistance.

                                                                                The discount is substantial enough and the program is
                                                                                generously extended for members no longer working
                                  Loyalty. Participation in the Patagonia       outdoors. Additionally, Patagonia is working from a
                                  Pro Program, offering deeply discounted       solid foundation of high quality products and customer                                                                                Because I apparently prefer to drink far less soda
                                  apparel to current and former outdoor         service, and further connects with its customers       AMC Theaters.                   The classic pricing scheme to try to get       than the average customer and was not swayed by
Patagonia. Outdoor apparel.       professionals.                                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.




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

                                  I believe that Yahoo! wanted to capitalize
Yahoo! I was using Yahoo!         on my use of its Finance section to sell        YES! I love Yahoo and currently use it for a large                                        They tried to sell me on the importance of
finance on a daily basis to       me on other products/services. The              portion of my internet needs, including email, search                                     'protecting' my computer and the many
collect recent articles on my     most powerful mechanism Yahoo!                  engine, music player, live sport updates, national news Best Buy tried to sell me an      benefits, such as peace of mind, lower
former company, track             employed was the design of their pages,         across a variety of topics, fantasy sports, games, etc. extended warranty for a           costs in the event of a problem, etc, by     My background knowledge about warranties and my
company performance, etc.         which included links to other services.         I'm even willing to pay for some of these services.     computer.                         using scare tactics.                         lack of trust in the sales person.
                                                                                                                                                                            The company offered a bundled
                                                                                                                                                                            pedicure/manicure combination Mon-
                                                                                                                                                                            Wed, where you could get a pedicure
                                  The company was trying to make me buy                                                                                                     and manicure for what amounted to the
                                  more chocolate. It offered a free 12 pack       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
                                  for every 2 12 packs I bought. So where         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       I might normally just have bought 1 12          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).                         pack, I wound up having to lug 3 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
                                                                                                                                                                            faster and ambiguously 'superior' to
                                  The way in which I check in for flights.        It's in both my and Continental's best interest - faster                                  standard credit cards. I believe they also The product/service wasn't materially better than
Continental Airlines online       Continental offered free headsets and           for me, cheaper for Continental. Ultimately, it is simply                                 offered discounts (perhaps a couple of     using a standard credit card, so it wasn't worth the
check-in                          advertised the service fairly heavily.          a superior alternative to checking in at the 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 to
                                  the past, especially for clothing. The                                                                                                    Wanted me to consider Virgin Atlantic for    me, and what my criteria for choosing a carrier were.
                                  company sent emails focusing more on            The company understood what issues to address in                                          transatlantic airplane tickets instead of    They focused on price and did not provide me with
                                  the ease of the buying process than on          order to change my behavior, i.e. they understood my Virgin Atlantic, airplane            other carriers. I had never flown Virgin     an opportunity to customize the product to my needs,
Bluefly - online clothing store   specific items they offer.                      decision making process.                             tickets                              Atlantic before.                             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 at     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          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 video products year over year combined with a             The attempt was successful because of its strong                                          share of wallet from me by advertising
game franchise for Playstation 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
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, successful        It was successful because Starbucks created an                                                                                         The attempt is unsuccessful because my primary
                                  marketing and omnipresence of its               image of a beverage/breakfast/snack cool place rather                                     The company is trying to get me to make      criterion when I plan a vacation is price and then the
                                  stores, it effectively created a need for       than a place for coffee connoisseurs only. Also, their                                    hotel reservations with Marriott with        location of the hotel: I would rather pay less or select
Starbucks for non-coffee          chai lattes and blendes creams on a daily       campaign for free trade made me think that at least                                       special weekend promotions (via email)       a hotel with a better location in spite of any points I
products                          basis.                                          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 Orbitz                                                                          Sprint's service level was so poor in customer
                                  rewarded travelers with additional air          and find that American offers the lowest fare, I will                                     Repeat service; prevent customers from       interactions and their reception was poor - so they
American Airlines Online          miles for every ticket purchased thru           switch to aa.com to purchase via their site and earn          Sprint PCS wireless phone   switching. New phone rebates &               couldn't retain me as a customer even after their
reservation system                aa.com.                                         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 transfer 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        their savings accounts to ING Direct in     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 off
account service                   return for a higher interest rate           management was becoming increasingly easy to use              phone                       account.                                         the phone after refusing several times.
                                                                                                                                                                                                                         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 of
                                  students, a residential campus with             think about problems through an entirely new series of                                    tree stump in a darkened forest. There       the cohort that ad is trying to reach, although I do
Harvard Business School.          proximity to a major city, and finally it's     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 cost
                                  travel by providing me longer-term                                                                                                        than I currently do through a variety of     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 be Verizon Wireless monthly              methods, from simple solicitations to        Verizon for the lowest cost I possibly can, mostly
frequent flyer program.           pricing concerns.                               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 almost                                           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 5 years. They were successful because the bundled 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      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 dry Not enough incentive: I had to use them 10 times
J Crew: online clothes            incentive mechanism ($25 off any                                                                                                          cleaning services through a frequent use 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              card.                                        in order to get a discount on my 11th order.




                                                                                                                                   Page 10 of 16
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        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 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 had             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.                           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 my   this by focusing on price - he showed me
                                                                                                                                           cell phone, and the sales      the plans and where I could save money.
                                                                                                                                           person tried to persuade       He also said Verizon tends to view         The salesperson didn't even ask me if I was satisfied
                                   Starbucks was trying to get me to pay up                                                                me to switch carriers from     themselves as too high class to lower      with Verizon, or if I would be interested in changing.
Starbucks. A Starbucks card /      front for coffee, and to keep me coming                                                                 Verizon to Sprint or           their prices - he said they charge too highHe just went into the sale. I also am happy with my
coffee.                            in. It worked.                                                       #NAME?                             Cingular.                      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 aligning                                                               The company was Air            They were trying to get me to fly more, by rarely had success getting the price advertised in one
closest station when I needed      themselves with Aeroplan, Air Canada's This attempt was successful, as it offered me                    Canada, and I frequently       offering good prices on many of the        of their seat sales, and now I ignore any seat sale info
gas.                               air miles rewards program.                something more valuable than any other gas station.           travel with them.              locations I travel to.                     I see.

                                   Instead of writing checks to pay my bills                                                                                              Target offers private label facial products    Target was unsuccessful in getting me to switch to
                                   Bank of America wanted me to use their                                                                                                 through it's own brand, Market Pantry.         their face cleansers because I think the quality of
                                   on-line bill payment service. They offered                                                                                             To try and get me to use their products        their products is poor. As a result of purchasing a
                                   this as a free service and demonstrated                                                                                                they offer Market Pantry products at a         Market Pantry face cleanser that did not meet my
                                   how through using this service my bill     Bank of America was successful because they were             Company -- Target              significant discount to other major brands     standards of quality and was not comparable to the
Company -- Bank of America         payment history will be stored, which      able to convince me that I saved time and money in           Product -- Target brand        and on their products will say "Compare        normal face wash that I use, I will not buy any Market
Service -- Bill payment on-line    helps me manage my budget.                 using their service.                                         facial products                to XXX".                                       Pantry toiletries.
                                                                                                                                                                          Purchase pattern: buy cheaper by buying
                                                                                                                                                                          soon. (EasyJet proposes low air fares for      I'm naturally not inclined to plan trips well in advance,
                                                                             Its convenience changed my shopping and almost                                               customers who buy their tickets well in        and certainly not willing to risk losing my ticket if I
                                   Fidelization of the customer by proposing eating behavior: I rarely go to the supermarket, and                                         advance). Tries to create an image of          can't finally fly. Tickets are not always cheaper: it's
                                   shopping through the Internet and home frequently buy the same set of products from my                                                 consistently low prices to steal customers     easy to compare actual prices with other regular
Peapod: grocery shopping.          delivery.                                 previous lists of purchases.                                  EasyJet, for plane tickets.    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,
                                   The company needed to incentivize                                                                                                                                                     students need to go online and apply for the discount
                                   customers to use their online channel         The attempt was successful because it made the                                                                                          card, which I keep forgetting to do. I think that if they
                                   rather than calling its customer              transition a "no brainer" for customer. Why would I                                                                                     came to campus and provided the card on the spot
                                   representatives for things such as buying     want to pay a fee if I can do everything online and get                                                                                 (like Zipcar does), that would allow students to give it
                                   tickets, getting upgrades, redeeming          bonus miles? The customer would tend to see the                                        Amtrak is trying to influence my decision        a try right away rather than just waiting until they have
                                   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        time to fill out the online application. Also, discounts
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               are not valid on the fast train, so there's less incentive
Product: Airline tickets,          while awarding bonus miles to customers       they provided an online site that can answer a lot of                                  husband while attending school. The              to take the train and pay more when it would take the
upgrades, mile redemption,         that went online to complete these            the questions people tend to ask, so that customers       Company: Amtrak              company provides a 15% discount for              same amount of time taking the bus, for which you
etc.                               transactions.                                 can find answers to questions anytime.                    Product: Rail transportation students and has a rewards program.              only pay 1/5 of the 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 I
Niagara-On-The-Lake,               the wine, smell the wine, and enjoy it                                                                                               when I bought it Certain number of free          received from people I didn't know. It turned me off of
Ontario. Product was wine.         more.                                         I now drink more wine because I enjoy it more.            Cingular. Text-messaging. text-messages                                       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 I                                                                                   my life. For me, the products have attributes which
General Mills -- Honey Nut         purchasing by using trade dollars (e.g. 2     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 place
                                   Shaws tries to influence repeat business                                                                                                                                        to get donuts and coffee to go. However, their
                                   and customer loyalty thru its Shaw's                                                                                                   Dunkin provides minimal seating which is 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.                 generally uncomfortable to discourage    the few places near my home that provides a
Shaws Supermarket. Grocery         substantial discounts on a wide variety on    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.                 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 stays                                     from cancelling my credit card. It used        the past, but other card companies (w/ the ubiquitous
                                   loyalty program and high level of service     allowed me to earn status that gave me even more                                         lower interest rates and other nominal         Visa/Mastercard brands) now offer comparable
Starwood, hotels                   for frequent guests.                          benefits and services.                               Discover, credit card               financial incentives.                          programs.
                                   UPS tries to affect "trust." By hiring and
                                   training great delivery drivers, customers                                                                                             Sprint tried to influences price sensitivity
                                   get to know their UPS delivery man and        My neighborhood delivery man Ray was always                                              by offering prices and packages that on
UPS - using their delivery and     develops a trusting relationship with         pleasant, always attempted to find me if I had a          Sprint - using their phones    paper seem a lot more attractive than          You pay for what you get - and you don't get any
pick-up service                    them.                                         package.                                                  and telephone service          their competitors'.                            customer service with Sprint!
                                                                                 Yes. I shaved something like 0.125% off my student
                                                                                 loan rate by setting up and using automatic bill pay.                                                                               No. I only use a teller 3-4 times per year and do not
Sallie Mae. Undergraduate          Automatic bill pay. Discounted interest       Providing an incentive was a useful way of directing                                     Stop me from using a teller by limiting my want to pay extra if 2 of those visits happen to fall in
student loan.                      rate.                                         my behavior.                                              Bank One Teller services       "free" visits to one per month.            the same month.

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




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        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?
                                                                                    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 than
                                   The company was trying to 1. Minimize            withdraw money from an account. Each time I went in                                    hush puppies or bread. The Fish Fry
                                   the amount of time I spent interacting           and spent a few minutes of the teller's time, and was                                  believed itself an expert in slow-playing its   As stubborn as the good people of The Fish Fry are,
                                   with a teller for minor transactions (like       not charged for the visit. Now, I interact with a teller                               succulent catfish while it wanted me to fill-   they met their match with me. As I am wise to the
                                   withdrawing $100 on Friday before a              only a few times/year (maybe 4 or 5), and use ATMs                                     up on the cheap stuff. So, after I ordered      tricks of the all-you-can-eat restaurants, I did not eat
                                   weekend out), so as to reduce their labor        for my weekly transactions. And, while I try to use my                                 the all-you-can-eat catfish, they would         any bread or hush puppies (in fact in subsequent
                                   costs, or put them to better use. 2. Gain        bank's ATMs to avoid an extra charge, I still find                                     bring a big basket of bread and some            visits to the restaurant, I told them not to even bring it
                                   extra revenue from my transactions at the        myself withdrawing money from other bank's ATMs 1-                                     hush puppies to the table and try to wait       to the table because it would just be a waste of good
                                   bank. The bank put up ATMs at                    2/month and paying a small fee each time. Surely the                                   me out while I filled up. They'd wait           food). I know they have piles of fried catfish right on
Regions Bank I had a               convenient locations throughout the city         bank benefited from both my reduced facetime with        The Fish Fry (restaurant in   about 10 or 15 minutes before bringing          the other side of the wall and I ask them to just bring
standard checking/savings          and allowed me to use them at no                 the teller and the increased revenue in ATM              Paris, TX) The all-you-can-   me any fish. And if you order more,             me the fish. Wow is it good catfish - and I could eat
account.                           charge.                                          transaction fees.                                        eat catfish dinner.           expect to wait.                                 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 always                                                                                                                                                J Crew wants its customers to use its
pay my bill on time. It also       Their model encourages customers to              Because there is a membership fee associated with                                      credit card in order to get the financing
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 purchase    In order to increase the use of its card, it needs to
accumulate points to redeem        payment (in order to increase the amount         behavior as making profits for Amex (which it does);                                   but afterwards offers no reason to use          offer a loyalty/rewards program to its customers to
for products.                      of points a cardmember has).                     instead, I view it as behavior that benefits me.          J Crew - credit card.        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
                                                                                                                                                                           purchased product was damaged. Their
                                   How I managed my digital music files and         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
                                   ultimately how I accessed (listened to)          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
                                   them. The utility value of iTunes made my        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.         purchase of an iPod an 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 they
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          call. Also I somehow can't get my email address off
website to purchase                browse books based on what genres I              that I didn't know I wanted (b/c I didn't know they were bought delivery flowers       I just kept repeating that I wanted what I      their distribution and get 20 emails a week from them
books/CDs/etc.                     enjoy - this did all that for me.                out there)                                               from them once.               originally had stated.                          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 saved
                                   drive loyalty (and profitability since I would   from that location. Now that I live in Boston and there                                Provider loyalty - discount on purchase of on the initial phone purchase so the switching costs
American Airlines - domestic       pay slightly more for the same ticket if it      are fewer (direct) flights to my desired locations, I am                               equipment with long-term (2 year) service is not as high as it could be. I'm now in the market
and international air tickets      meant that I could fly AA)                       much less loyal.                                         Sprint - cell phone service   agreement.                                 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, tend
                                   that never have to delete mails                                                                            rewards - Pay a monthly                                                      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 loyalty because it doesn't require a lot of effort on the
                                   program -specifically, it provides loyal    customer’s part as well as gives the customer the
                                   customers (those who have accumulated perception that he/she is receiving cash (giving her the                                          Knowing my predilection for Diet Dr.
                                   "points" through past purchases) with a idea that she can afford something that she couldn't                                            Pepper, a favorite retailer provided me
                                   credit that can be applied to future        have otherwise, thereby creating a wealth effect of                                         coupons to buy the new Diet Dr. Pepper          I used one of the coupons to buy the new flavor
                                   purchases (e.g., a card with a $20          sorts). Unlike coupons, where a minimum amount                                              Cherry Vanilla flavor for a drastically         soda, but the new soda tasted so bad that I ended
                                   balance is sent to you by the company) in usually has to be purchased in order to use the                                               reduced price. The manufacture’s                up throwing half of it away (and therefore not
                                   order to encourage the customer to          coupon, the credit can be applied to any purchase                                           coupons were trying to encourage                becoming a convert). The company's strategy would
                                   continue shopping at its stores and         irrespective of its size. The card is also sent to you                                      existing cola drinkers to try and continue      have probably been much more effective if the
Banana Republic; buying            encourage the customers to buy more         directly to your home, so does not require any extra           Dr. Pepper (PepsiCo, I       consuming its new flavor of Diet Dr.            underlying product they had been selling had been
clothes                            than they might otherwise.                  steps by the customer.                                         believe); Diet Dr. Pepper    Pepper.                                         better.
                                   frequent traveling; free upgrade vouchers
                                   to frequent travels and those that have jet                                                                                             frequent flying;mileage program and free limited network so mileage usage is restrictive and
Jet Airways in India               airways credit cards                        yes                                                            virgin Atlantic              car service from airport.                lousy connections from Heathrow airport
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, and                                                                  I tried to buy a term
buying a whole new set of          articulated better functions of another                                                                    insurance in China, and the
products of another brand.         products to tailor to my needs. Then they                                                                  agent tried to sell me
The professionalism and care       helped to explore latent demands by          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       keeping asking questions, and making         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.                   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
                                   but more expensive than the normal                                                                                                      Apple was trying to sell new computers
                                   train). Amtrak offered more mileage                                                                                                     with the option of switching from a mac
                                   points (similar to an airline) for the Acela                                                                                            to a windows platform. The company
                                   train so that, if you took 2 round trips per It favored heavy users and rewarded them with better                                       promised flawless operational capabilities Once you actually work with a windows platform on
Amtrak Train Service New           month, the Acela service ended up being service (faster trains, more comfortable) by reducing                                           with this computer, regardless of the      the mac computer, many things don't work they way
York - Boston                      cheaper.                                     the price. Purely economic reward.                            Apple. Mac computer          platform used (mac or 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 paper-                                                                                             subscribe to another magazine from the
                                   version mailing. The bank decided to                                                                                                  same media group. It included one
A French bank - product was        start charging me for that service (the      Yes, convincing attempt, made easier by my habit to           Magazine WIRED - product 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.           is a tech-focused magazine my monthly issues' packages.                      channel but wrong customer targeting.

                                The company was trying to convince me                                                                                                                                               It was unsuccessful because the prices of the books
                                to not switch to another credit card. It                                                                                                                                            were too high compared with what I could get at
                                used my greed to do so -- it bribed me              I think they were successful because I am in general                                                                            Amazon. Amazon also has been able to solve the
I was using the Blue Card from with a lot of Blue Points to stay (these             very impressed with the customer service of American                                                                            problem of instant gratification by allowing me to buy
American Express. I had         points enable me to purchase various                Express. Over the past 5 years, I have had no                                                                                   my books and pick them up the same day at the
called to cancel my credit card items). It also used great customer                 problems with them, and they have done little things      I was browsing in Borders Borders was trying to entice me to buy      Borders bookstore. Most importantly, I had gone into
as a result of a bad customer service to convince me. The woman who                 which mean a lot to me, such as waiving certain           for some books. I ended    books from them. It had laid out all the   the store to browse, with no idea of what to buy.
service experience. The         helped me spent over an hour on the                 account fees, etc. I am not sure if I would have stayed   up not purchasing anything bestsellers on tables, and there was a     This bookstore hadn't displayed any staff
woman who handled my call       phone. I was able to vent my frustration            if I had been truly unhappy as a whole with American      and instead went home and coffee shop inside the bookstore. It tried recommendations that could interest me in any
eventually persuaded me to      to her, which calmed me down, and she               Express. As it was, this one bad experience was an        ordered my books from      to thus present a relaxing environment for books, whereas Amazon is able to do so through
stay with American Express.     made me feel like she was on "my side."             isolated one, and the agent handled it well.              Amazon.                    me to find something interesting to buy. user reviews.




                                                                                                                                    Page 12 of 16
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        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?
                                                                                                                                                                           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 pay-
                                 awards for using business class on                                                                                                        service and offered me 3 more months of
                                 transatlantic flights (50K miles per round- The reward was incredibly generous. I was not paying Real networks.                           free trial. Three months later I cancelled I had already tried it for three months. Unclear why
American Airlines.               trip)                                       for the ticket (my firm picked up the tab).          "Rhapsody" music service                 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). The 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        mechanism they use is primarily the wait 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                service that is delivered by servers as well a drink, rather than food. The service levels were not
songs" from the I-tunes          on my Ipod). In this sense, they locked        tunes, there were network effects of sorts which made      product/service is after        as the host/hostess at the front of the      matched with what I needed in order to capture my
service.                         me in.                                         me more likely to continue using it.                       dinner drinks and dessert.      restaurant.                                  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 ease       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                                       of not worrying about late returns that        to understand it, I just assumed that something
Banana Republic - the "LUXE" credit. Frequent buying - offered free             losing anything by making an online purchase, so I                                         people enjoy with NetFlix. It ran a            would still happen and I should avoid it, so I still liked
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 offices,   The premium that they placed on convenience and            similar to Orbitz or Expedia,   They were trying to persuade me to             and, more importantly, because I could not book less
First Republic Bank --           plenty of tellers, and a very personalized     customer service, as well as the ability to go to any      but for people traveling        purchase travel through their own              than 3 days in advance. There are only 5 or so
consumer banking services        approach (I have my own private banker,        ATM, were much more important than a large,                within India or from India      website in order to generate                   domestic airlines in India, so it was far more effective
(primarily savings and           despite not being an important/wealthy         impersonal branch network, as offered by many of           abroad (online travel           commissions by offering a wide selection       for me to go to their individual sites at the last minute
checking)                        client).                                       their much larger competitors.                             shopping).                      of airline and hotel partners.                 than try to plan in advance and use TravelGuru.

                                 Impulse purchase of a Snickers bar when        Absolutely. I was hungry, I saw the Snickers bar, I                                        Family dinner in a casual neighborhood
                                 hungry. Mars used advertisements with          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    pictures of Snickers bars and words such       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.                             as satisfaction and satisfy your hunger.       satisfied.                                                 Dining.                         good in the neighborhood.                      than Applebee's. I'd rather eat at Chili's.
                                                                                                                                                                           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 the    preferred manner ... and was willing to overcome any
AirTran - taking a flight back to 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       information on their website as to how to      inconvenience of calling INGDirect to get the
Boston                            had purchased).                               seat together with my traveling partner.                   account with them.              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 ok
                                 lower fee for advance purchases versus                                                                                                    shoes in stock and attempted to sell me        to manipulate service to affect consumer behavior as
American Airlines - I was        a more expensive fee for late bookings.                                                                                                   other shoes of less quality. As a result, I    long as the level of service (or product) provided isn't
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      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 tell
                                 users to Mac through a powerful add            latent disappointment with a lack of style in PC                                           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 to       experience of buying the computer felt even better,                                        subscription renewed automatically             the automatic renewal (and the difficulty in finding
Apple Computer - laptop          the complications and dull image of many       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                         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                               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          City Schemes in Cambridge- hopefully multiple times. They used sales 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.          -purchased furniture       to allure me.                             were forced to deliver in multiple shipments).




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        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 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 a 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       loyal customer. They used their free no- 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.                        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 using minutes and enrolled me in a flat rate text     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 to
a monthly cell phone plan with messaging program after I used many             and locking me into a higher monthly fee that       purchasing a cup of coffee         various value meals and the cheap ways I       me to spend extra money on something I knew I
text messaging.                many messages in a single month.                extended my commitment with their company.          before going to work.              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 on
Reserving space for wedding Discount total rates with total higher             Yes, it provided more goods and services and better       Student Ventures trying to   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 I Wrentham Outlets.            mechanism of scarcity (ie: this sale is only   allowing myself to by manipulated, so I left the store
Nation Point. Mortgage Broker because they were horrible to work with.         spoke to.                                                 Clothing retailer.           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 to
                              the eye-shadow with the correct lipstick         The attempt was successful because she positioned                                     used was having the dealer personally           buy the insurance and did not do so themselves 2)
                              "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          the dealer asked if we wanted to buy the insurance in
                              assured me that I should ignore the costs        best interests at heart. In addition, I believe she was    Green Valley Ranch Casino wanted to buy insurance against a hand           a very perfunctory manner and did not try to dissuade
Bobbi Brown in the purchasing of the makeup because "it was a worthy           able to discern that I had the ability to spend additional where I was playing black- of 21 before the dealer revealed his            any of the players when they rejected the insurance
of various cosmetic products. investment".                                     funds for my make-up.                                      jack with my friends.      cards.                                          offer

                                                                               The companies identified a customer need, took
                                                                               advantage of advancements in technology and
Two examples of online          Both companies are trying to influence         designed services that were aligned with the customer                                  The company is trying to influence the         Not all processes were aligned with the main value
retailers: "Peapod" in the US   the way I accomplish my shopping               needs (flexibility and convenience). High quality pre                                  way I accomplish my investment activities      proposition of their service. Poor "out of the shelf"
and "Farmacia em Casa"          activities by offering a unique service that   sales and after sales support were important factors to IG Direct. Online "banking     by offering a unique service that fulfill my   solutions to my issues were not provided considering
(Pharmacy at home) in Brazil.   fulfill my needs.                              guarantee my satisfaction and repeated purchases.       account".                      needs for flexibility and convenience.         that I was looking for convenience and flexibility.


                              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,                                                                                                                                              Hewlett-Packard was unsuccessful in influencing my
                              and then proceeded to offer to refund the        Citibank was successful in influencing my behavior                                     Hewlett-Packard was trying to charge me        behavior because it was immediately clear to me
                              annual fee, give me 5,000 bonus miles or         because the sales lady found out what was important                                    $30 for over-the-phone technical support.      through speaking with their phone support that this
                              a give me a free companion airline ticket        to me (i.e. what I found attractive in Capital One over                                By telling me that if I didn't pay to speak    was simply another channel for them to make
                              to stay with Citibank. By providing              Citibank) and effectively matched some of their                                        with one of their trained technicians who      money, even if the solution was quick and simple. I
                              financial incentives and free gifts, the         benefits (e.g. no annual fee). She also convinced me      The name of the company      were supposedly the only people who            felt as though the company was more focused on
                              sales lady convinced me to keep my Citi          that given my tenure as a customer, my business was       was Hewlett-Packard. I       could help me solve my problem, they           making money off of customer problems than
The name of the company was MasterCard, and if I find that I am not            highly valued and I could therefore expect to continue    was using my HP              tried to scare me into paying for an           providing service to ensure that their customers are
Citibank. The product I was   happy with Capital One, I will likely return     to receive additional benefits and a high level of        Photosmart 2710 All-In-      unnecessary service. I chose not to pay        satisfied and likely to continue to purchase HP
using was my Citi MasterCard. to Citibank as a full-time customer again.       service from the company.                                 One printer.                 and ultimately solved 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 The shoe already has a high quality name but they
                              company also used brand, Cole Haan is succeeded by adding a very "hip and cool" dimension                                              Blockbuster tried to sell me its mailing
                              a respected name sold only at fairly high to the already durable and high quality shoe. The                                            video rental plan by offering me 3 free
                              quality stores and in their own retail    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 I
                              outlets. * finally, they have made the    quality. Over years I have increased my purchasing of            Blockbuster Video - mailing monthly fees, no late fees * Convenience        don't think I really rent enough movies to make it
                              shoes pretty hip with the combination of this brand and this the spring/summer I purchased 4               rental agreement (like      - videos to your door * Availability -          useful in the longer term. Perhaps if I were a more
Cole Haan - shoes             technology and design                     pairs - I will continue to buy.                                  netflix)                    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.                                                                                                   the habit of using the card, so that the
The Gap. I would go into the  The Gap sent out mailings with stickers   I was open to this kind of promotion because I already                                         card did not just sit in the envelope in
store and see what they had   for the first Tuesday of the month that   shopped there occasionally and knowing I could save              Sears. My new Sears credit 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       10% on a specific day was a compelling reason to go              card saved me $10 on my discount as an incentive to use the card            bill, the late fee was $10, which completely offset the
month, which they called "10% stickers were meant to remind you to      on that day versus any other day. Plus, I used to live           first purchase, if I remember that first time, which Sears hoped would      $10 I saved. I was thoroughly annoyed and never
Tuesdays."                    stop in.                                  so close by that it was no trouble at all to head over.          correctly.                    be the first of countless purchases.          used the card again.




                                                                                                                               Page 14 of 16
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        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 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 their                                                                                            and they kept trying to get me to                not that different from major brick-and-mortar
                                  loyalty program. The loyalty program had       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
                                  several components, including: free            focus my points accrual and redeem the points for                                     emails and direct mailers providing              the CD at a store and have instant gratification, as
                                  flights (points accrual/redemption), flight    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 arrive
                                  upgrades, free drink tickets, priority         upgrades on long flights, etc.). They made the                                        (e.g., x # free CDs with resubscription).        from BMG. Second, the emails and direct mailers
                                  check-in, better seats, co-                    program easy to sign up for, and then the points           BMG Music Service - mail The language they used in their                    they sent to me to get me to resubscribe didn't have
United Airlines - Mileage Plus    promotions/points accrual with partners        accrual and redemption process wasn't overly               order catalog company that marketing materials tried to emphasize           a compelling reactivation offer. The emails and direct
(loyalty program)                 like Marriott hotels, etc.                     burdensome.                                                sells CDs                  how valuable of a customer I was, etc.           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 at                                                                                 nervous that I haven't used it often enough to make
                                  Lufthansa wanted to increase my flying         major airports One could also use them on flights with                                   To subscribe as a monthly user. Provided      the true cost acceptable. I also didn't want to use it
                                  frequency, especially long-distance            other airlines. In combination with Lufthansa's air                                      lower monthly fees for fewer DVDs to          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                                        make it more flexible for low-usage           services. Most of my friends who use Netflix use
and back on regular basis.        offered a frequent flyer card.                 airports.                                               Netflix. Monthly rental.         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
and wine. However, there is       than at other grocery stores. To do so, it                                                                                              MAC was trying to influence me to
also a service component to       has positioned itself through advertising                                                                                               "upgrade" my makeup collection by
my decision to shop there         and word-of-mouth as a healthier,                                                                                                       purchasing new colors and textures of
because of the cleanliness of     fresher, and cleaner source of food.           Although the prices at Whole Foods are higher than                                       products. To do so, they sent me regular      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                                      emails and postcards advertising that         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         certain new colors and products are now       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          in fashion, and offered me free shipping if   buy new colors every season to keep up with fashion
products.                         products.                                      even though I have no factual basis to rely upon.          exclusively.                  I ordered these products on the internet.     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 recurring       It was unsuccessful because there was no incentive
                                                                                 there is no real incentive to call instead (I also think                                 payments on paperless statements. Sent        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                                               many notifications of the service via email   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         and with my paper statement explaining        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                       ease of use.                                  having to argue for a credit after the fact.
Express sent me a $15
coupon in the mail, which was Express was trying to just get me to the                                                                      Express, the same
valid during a 2 week period. I store. I think they knew that once I was                                                                    company, tried to get me to
went to the store to look at the there, I would buy enough merchandise                                                                      open an Express credit
clothes, and did not even         to make the coupon more than worth                                                                        card, to save 10% on my       The company was hoping that if I opened
realize that I was shopping       their investment. They might have also                                                                    purchase. The sales person    an Express account, I would shop at their     The attempt was unsuccessful because the sales
before the period of the          known that I would not check the small                                                                    was aggressive and I was      store more frequently and buy larger          person was pushy and because I actually already
coupon. I bought clothing that I print of the date of the coupon. The            The attempt was successful because it was easy for         not interested. I had         purchases because they had extended           had opened an Express account years ago and
otherwise would not have          mechanism was a discount, making the           me to use (I received the coupon in the mail) and          opened such cards before      me credit. They were also hoping to           never used the card again. I also did this with Banana
purchased and didn't even use consumer feel as though they would get             because the pictures on the coupon showed                  and never used them again.    achieve loyalty. The mechanism was a          Republic, Saks and other stores. I never end up
the coupon.                       a bargain.                                     fashionable clothing.                                      They are a hassle.            branded credit card.                          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.

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




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                                                                                                        70fc0422-d307-444d-ad13-0425f2f58608.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 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                                                                               “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                                      A sense of feeling attractive, a simple way 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                                of transforming me from “ordinary” (I was 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                                    in jeans and a t-shirt) to “glamorous”. In 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                                   terms of mechanisms, the saleslady          accessories before I had even made up my mind
                             mechanisms, (1) Product excellence -       at Nobu speaks for itself, but more impressive was the                                 showered me with compliments after I        about the dress. Even though the dress was pretty,
                             The food is fresh, inventive and           near-perfect variety and sequencing of each course. I                                  tried on each dress. She then tried to      her approach simply rubbed me the wrong way and
The New York City restaurant delectable. (2) Top-class service -        am a true foodie and can be critical of restaurants, but Bloomingdales, New York. I    cross-sell other products (handbag,         all I wanted to do was leave the store. In retrospect I
Nobu, serving high-end       waitresses are attentive, polite and       Nobu left me wishing I could come back more often         was trying to buy a dress    shoes) saying how well they                 should have bought the dress, but these things are
Japanese food                extremely knowledgeable                    on my own dime!                                           for a wedding                complimented the dress (and me).            sometimes not rational!
                             Getting me to switch insurance as well as
                             upgrade coverage. Clearly showed the                                                                 Chase Credit Card - Called
                             cost of various policy options and allowed                                                           about a charge on my card    Tried to sell extra consumer protection
Geico - Buying car insurance you to customized real time and see the                                                              and they tried to sell me    services. Once it had me on the phone,      I was not in a buying mode and was already annoyed
on the internet              cost differential.                         Easy to use and quick.                                    multiple extra services.     offered a free 30 day trial.                at the company and not looking to buy anything else.
                             The company wanted to encourage
                             going to the movies on slower days of the                                                                                         The company regularly mails out             It failed because they do not stock enough items in
                             week. By signing up for the Regal card, 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
                             you get a free small popcorn every time    more attractive to go to the theater, rather than renting                              plus $10 off any bra. They are              pick up my free item and leave because I cannot find
Regal Cinemas - the company you go to the movies on Tuesdays. As a a movie at home. Plus, since popcorn is so expensive                                        encouraging people to enter the store on    items that fit and it is frustrating to see something
owns a chain of movie        side benefit, Regal gets to track what     at the theater, it felt nice to be rewarded with                                       the hope they use the bra discount or       cute and then after extensive searching realize it is
theaters.                    movies you attend.                         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 sustainable.
                               social behavior. They have shown their    They have used customers to educate customers, so                                     convince their salon goers to get facial,   I found out that it was really not that convenient to
                               customers how this idea can be used by    people learn by observing and doing. In a sense, their Wang Lei Hair salon            massage and manicure all at the same        always get everything together, and stopped after first
Starbucks                      creating a space as a demonstration.      way of advertising feels less commercial.              (shanghai, China)              time through pricing.                       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.




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