"Health Contracts for Buying Puppies"
b65ccfca-15a2-4816-93f5-0cef6fc78645.xls Consider a company's successful attempt to influence your behavior as a customer as you answer Questions 1-3. Consider a company's unsuccessful attempt to influence your behavior as a customer as you answer Questions 4-6. What was the name of the Which behavior was the company trying What was the name of the Which behavior was the company trying company? What product or to influence? What mechanism(s) did it company? What product to influence? What mechanism(s) did it service were you using? use? ______ In your opinion, why was the attempt successful? or service were you using? use? In your opinion, why was the attempt unsuccessful? The company succeeded because I knew I needed the mobile phone service for 2 years anyway so the Company was trying to get me to The company was unsuccessful because the price thought of not having to spend extra to get a phone "upgrade" from a bag of nuts to was too high for what I was getting and the just made the commitment easier to make. Plus, they sandwiches. Availability, price, and stewardess didn't seem that enthusiastic about the Company was trying to get me signed 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. Page 1 of 16 b65ccfca-15a2-4816-93f5-0cef6fc78645.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. Page 2 of 16 b65ccfca-15a2-4816-93f5-0cef6fc78645.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. Page 3 of 16 b65ccfca-15a2-4816-93f5-0cef6fc78645.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? 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 b65ccfca-15a2-4816-93f5-0cef6fc78645.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? 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. Page 5 of 16 b65ccfca-15a2-4816-93f5-0cef6fc78645.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? 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 b65ccfca-15a2-4816-93f5-0cef6fc78645.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? 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 b65ccfca-15a2-4816-93f5-0cef6fc78645.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? 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 b65ccfca-15a2-4816-93f5-0cef6fc78645.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? 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. Page 9 of 16 b65ccfca-15a2-4816-93f5-0cef6fc78645.xls Consider a company's successful attempt to influence your behavior as a customer as you answer Questions 1-3. Consider a company's unsuccessful attempt to influence your behavior as a customer as you answer Questions 4-6. What was the name of the Which behavior was the company trying What was the name of the Which behavior was the company trying company? What product or to influence? What mechanism(s) did it company? What product to influence? What mechanism(s) did it service were you using? use? ______ In your opinion, why was the attempt successful? or service were you using? use? In your opinion, why was the attempt unsuccessful? The company 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 b65ccfca-15a2-4816-93f5-0cef6fc78645.xls Consider a company's successful attempt to influence your behavior as a customer as you answer Questions 1-3. Consider a company's unsuccessful attempt to influence your behavior as a customer as you answer Questions 4-6. What was the name of the Which behavior was the company trying What was the name of the Which behavior was the company trying company? What product or to influence? What mechanism(s) did it company? What product to influence? What mechanism(s) did it service were you using? use? ______ In your opinion, why was the attempt successful? or service were you using? use? In your opinion, why was the attempt unsuccessful? The company 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! Page 11 of 16 b65ccfca-15a2-4816-93f5-0cef6fc78645.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? 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 b65ccfca-15a2-4816-93f5-0cef6fc78645.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? 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). Page 13 of 16 b65ccfca-15a2-4816-93f5-0cef6fc78645.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 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 b65ccfca-15a2-4816-93f5-0cef6fc78645.xls Consider a company's successful attempt to influence your behavior as a customer as you answer Questions 1-3. Consider a company's unsuccessful attempt to influence your behavior as a customer as you answer Questions 4-6. What was the name of the Which behavior was the company trying What was the name of the Which behavior was the company trying company? What product or to influence? What mechanism(s) did it company? What product to influence? What mechanism(s) did it service were you using? use? ______ In your opinion, why was the attempt successful? or service were you using? use? In your opinion, why was the attempt unsuccessful? The company 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. Page 15 of 16 b65ccfca-15a2-4816-93f5-0cef6fc78645.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. Page 16 of 16