customer dissatisfaction

How does one identify entrepreneurial

opportunity?

Customer Dissatisfaction

Criticality-Discontentment Matrix•Most attractive market opportunity

•Natural pull

•Minimum marketing efforts

Criticality-Discontentment MatrixBarbie

Shattered the cuddly bobby dolls perceptionCritical need: Adult features and existing

discontentment and also no alternatives hence diss.

Re-designed based on researchDomino’s

Critical need: Pizzas-high quality, delicious taste and low price combination

Discontentment: Process involved in their purchaseMarkets can be divided based on levels of criticality

& dissatisfaction Two options to grow:

Focus on less dissatisfied and less critical market segments

Target same segment elsewhere

Criticality-Discontentment MatrixDell

Critical need: Customized configurationDiscontentment: Price and delivery

Harry Porter series: Highly critical need need of the children to

fantasise with excitement in a world full of magic, with a lot of positive suspense built in

Criticality-Discontentment MatrixQuadrant 2: •Eg: Poor public transport•Poor quality of peripheral features•Important to identify niches•Substantial marketing efforts

Quadrant 3: •Least attractive •Considerable marketing efforts

Few more examples• Disney

• Visa/Master Cards

• Gilbert Toys

• Electric cycle

• Ford Edsel

Structure of needs and dissatisfaction Dynamism in needs A function of number of variables like

income habits trends in the society personal likes and dislikes. Elements of discontentment

Key sources of discontentment are

Product features Processes involved in buying and

consumption Intangible external variables

Discontentment - Criticality Tunnel

Dynamic external & internal environmentImpact on customer needs, level of criticality,

maturing of latent needsInnovative products and their relationship

with growing criticality and discontentment with existing products

Travelling through the D-C Tunnel

D-C Tunnel Example

Strategy of deep investment & long wait

• 25 yrs to break even in Mexico & Japan•Product moved through the D-C tunnel•Changing the level of criticality•Higher level of efforts to move from quadrant 3 to 1•Proactively worked•Deep investment and long wait for customer needs to change.•Entre who enter at lower point in quad 3 – high level of efforts

D-C Tunnel Example: Jakks PacificStrategy : grow

through new product introduction in tune with dynamism & criticality

WWF toys Maturing with

changing socio-cultural profile

Online stores

D-C Tunnel continued….Adapting to changing needs, introducing

Harry Potter characters, line of girls fashion accessories based on American Idol

Customers tolerate variation in performanceCustomer perceived risk due to switching brands

Strategic Implications to firmsConstantly identify changes in needs and

modify featuresCreate new needs by terminating existing

product before it completes its PLC Examples of Colour TV, Email

Challenge is to create discontent with existing products with the new product: identify needs

Where to EnterPeak of criticality level and extent of

discontentment

Customer Dissatisfaction Elimination (CDE) chainValue Chain: Series of activities that create

Value in a product

Product Features

Info Collectio

n process

Buying Process

PaymentProcess

Delivery Process

Customer

Google

AmazonBoo.com

Master Card

DHL, FedEx

CDE CHAIN & BUSINESS STRATEGYDOMINO’sEach link formed a source of dissatisfaction,

reflecting the different processes that a customer is involved in the purchase and consumption stages.

Perfected and strengthened all links in the CDE chain.

Built competitive advantage.

IMPORTANT LINKS1. ORDERING PROCESS2. DELIVERY PROCESS3. COST & PRODUCT FEATURES ( quality ,

taste)

CONCLUSIONCustomer dissatisfaction is a source of

opportunity. Customer’s level of criticality and extent of

prevailing / emerging discontentment -useful way to identify entrepreneurial opportunities.

Exploitation of opportunities and elimination of dissatisfaction on every link of the CDE Chain will enable organizations to be entrepreneurial.

Thus will achieve Zero Customer Dissatisfaction.

Thank You