group 2_customer dissatisfaction

7/29/2019 Group 2_Customer Dissatisfaction

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CUSTOMER DISSATISFACTION AS

A SOURCE OF ENTREPRENEURIAL

OPPORTUNITY

GROUP 3G KRISHNAMURTHY - 117M ELIAS ALEX - 133

MANISH MURTHY 139SABOOR AHMED 151SAGAR VORA - 158


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Introduction

Firms do not sell products and services

Firms offer solutions to customers problems

Customers always look for an alternative

Customer needs change due to

Dissatisfaction

Change in needs

Dissatisfaction is not uni dimensional


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Causes of Dissatisfaction

Two Dimensions

Discontent in features and processes involved inits purchase and consumption

Criticality of the features Level of dissatisfaction depends on the importance

of the needs

When needs are not met, entrepreneurialopportunity arises


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Criticality Discontentment Matrix


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Quadrant 1 high dissatisfaction customeris discontented with a product consideredcritical.

Requires minimal marketing efforts.

Quadrant 3 no dissatisfaction with productsthey feel arent critical.

Least attractive Possibility of moving customers to quadrant 1

through Discontent Criticality tunnel


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Barbie

Increased Mattels toy sales

from $9m to $96m in 5 years

Ruth Handler observed her 9-

year old daughter play withpaper dolls.

Critical need dolls thatenabled her to fantasize adultlife

Discontentment lack ofnecessary features in existing

products.


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Quadrant 2 High discontentment withproducts that arent critical to customers.

Substantial marketing efforts required.

Quadrant 4 Highly contented with criticalproducts.

Customers tolerate variations.

Products with higher criticality have narrowertolerance zones.



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Discontentment-CriticalityTunnel

Influence of external& internal factors

High Criticality, High

discontentment Require high

investment. Eg.

Kellogs Failures Iridium

Project, Ford Edsel


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Jakks Pacific

Forbes 200 Best Small Companies in USsince 1999

Novelty in Toys Changes preferred by

children Socio-cultural elements Pro-wrestling era,

Harry potter series

Medium criticality low discontentment to high

criticality and high discontentment No brand loyalty but uncertaintiessatisficing

& tolerance nature of customers

Identify new needs and create needs byshortening life cycle. Eg. Colour Televisions


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Where to enter?

Understanding the dynamism of criticality and discontentment.

Maximum market attractivenesswhere both discontentment andcriticality are high and currently existing.

Promising but not immediate opportunitywhen bothdiscontentment and criticality are emerging.

Opportunity for TomorrowWhen one of the dimension is existing

now and other is only emerging.

Challenges in innovation - Where there is low discontentment andhigh criticality.


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Where are the opportunities?

Criticality and discontentment are not only related toproducts but also to value chain.

Customer Dissatisfaction Elimination (CDE) Chain -

Role of this chain is to eliminate customer dissatisfactionwith few or all of the value links.

An entrepreneur must analyze this chain and find outwhere the link lies on the criticality-discontentment matrix.

The entrepreneur should assess the attractiveness of theopportunity.


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Customer Dissatisfaction Elimination(CDE) Chain

Value Chain : products and services required toconsume products;

Value chain provides satisfaction and eliminates

dissatisfaction i.e. a Customer DissatisfactionElimination (CDE) Chain.

Links of the CDE chain are also the source fordissatisfaction and opportunities for entrepreneurs.


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CDE contd..

The processes and activities linking the firm and thecustomers often become sources of discontentment.

Each one of these or their sub-activities is a possiblenew entrepreneurial opportunity:

Information Collection Process (Google, eBay)

Buying Process (Amazon, Boo.com)

Payment Process (Visa, MasterCard)

Delivery Process (FedEx, DHL)


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CDE Chain and Business Strategy(Dominos)

Ordering Process

Delivery Process

Cost and product

features


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Conclusion

Customer dissatisfaction is a source ofopportunity.

Most human beings are basically selfish, lazy,

prefer to avoid work, like to eat tasty things and

have all possible comforts

CDM & CDE is a tool to evaluate the

appropriateness of their existing strategies

group 2_customer dissatisfaction

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