Customer Analysis - III

1. Customer Analysis - III Alaska Airlines

2. $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 Commodity Service Experience Good Price of Coffee Offerings (Pine & Gilmore, 1999) Services Marketing – Professor V. Padmanabhan

3. Retail Banking: Transaction Costs Services Marketing – Professor V. Padmanabhan

4. Co-production • Customer as co-producer (hence stakeholder) • pre-purchase • production and consumption • post-purchase Services Marketing – Professor V. Padmanabhan

5. Go back to Flowcharting • Where can we create value? Existing Actions New Actions Existing Actors New Actors Services Marketing – Professor V. Padmanabhan

6. Co-Production: An Illustration Traditional Approach Customers-as-Innovators-Approach advanced development advanced development supplier supplier interface design design Build (prototypes) Build (prototypes) interface test (feedback) customer customer test (feedback) Services Marketing – Professor V. Padmanabhan

7. A Closer Look at the Impact of Co-production • The Fundamental Issue in Alaska Airline • Use of Technology to alter Consumer Interactions with the Firm • A Benchmarking Comparison • The Diffusion of Online Banking • What are the consequences? • Service Consumption Activities • Segmentation • Customer Revenue • Firm’s Costs • Overall Profitability Services Marketing – Professor V. Padmanabhan

8. Estimated Transaction Cost by Channel *Cost of branch transaction normalized to 1 Services Marketing – Professor V. Padmanabhan

9. Distribution of Transactions by Channel May 2001 Services Marketing – Professor V. Padmanabhan

10. Performance Measures by Online Status Services Marketing – Professor V. Padmanabhan