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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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Criticality Discontentment Matrix
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.
Criticality Discontentment Matrix
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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