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January 24-25, 2013 Igsummit.weebly. com Understanding User Expectations & Experiences in Brand/Product Development Ulf Hannelius, PhD, EMBA Aneega AB Stockholm, Sweden [email protected]
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Understanding User Expectations & Experiences in Brand/Product Development

Dec 15, 2014

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Business

Ulf Hannelius

Scientific research shows how imagining a future experience is often more satisfactory than the actual experience, and how the memory of an experience is mostly determined by only a few key events. This feeds into the field of service and relationship marketing where the perceived quality of a service or a brand image should match or preferably exceed the hidden, outspoken and implied expectations of the customer. In this lecture I summarize this research and show how it can be synthesized into a holistic brand and product design framework. I further suggests how to use this framework together with the Innovation Games® platform to analyze customer expectations and perceptions in order to develop brands and products that resonate with customers.
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Page 1: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Understanding User Expectations & Experiences in Brand/Product

Development

Ulf Hannelius, PhD, EMBAAneega AB

Stockholm, [email protected]

Page 2: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

In this presentation I will cover

•The Nordic School of Service Marketing•Research findings relating to expectations, brand image and memory•How Innovation Games can help figure it all out

Page 3: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

The Nordic School

• The customer as a participant• From a customer perspective there are only

services on the market• Marketing is not a separate business function

Page 4: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

A few handy frameworks

Page 5: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

•Marketing communication•Sales & PR•Brand image•Word-of-Mouth•Customer needs, values and learnings

Expected Quality

Experienced Quality

Functional Quality: How

Technical Quality: What

Total Perceived Quality

Brand Image

Brand Image

Adopted from Grönroos C: Service management and marketing. 2008

Page 6: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

•Marketing communication•Sales & PR•Brand image•Word-of-Mouth•Customer needs, values and learnings

Expected Quality

Experienced Quality

Functional Quality: How

Technical Quality: What

Total Perceived Quality

Brand Image

Brand Image

Adopted from Grönroos C: Service management and marketing. 2008

Page 7: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Outspoken expectationsUnclear expectations

Implied expectations

Unrealistic Realistic

Focus and adjust to improve quality

Adopted from Ojasalo, J: Quality Dynamics in Professional Services. 1990

Expected Quality

Page 8: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Outspoken expectationsUnclear expectations

Implied expectations

Unrealistic Realistic

Focus and adjust to improve quality

Adopted from Ojasalo, J: Quality Dynamics in Professional Services. 1990

Expected Quality

Page 9: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Marketing communication

Desired Brand identity

Total Perceived Quality

Brand awareness

Fulfillment of brand promise

Brand image

Adopted from Grönroos C: Service management and marketing. 2008

Page 10: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Expectations

Brand image

Perceived quality

Modified by Cognition, emotions and behavior!

Page 11: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Understanding expectations

Page 12: Understanding User Expectations & Experiences in Brand/Product Development

The time horizon of decisions matter for expectations.

Imminent

Distant

Page 13: Understanding User Expectations & Experiences in Brand/Product Development

We seek consistency in our cognitions.

Page 14: Understanding User Expectations & Experiences in Brand/Product Development

What really matters is below the

surface.

Page 15: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Understanding brand image

Page 16: Understanding User Expectations & Experiences in Brand/Product Development

Sincere brands drive loyalty but are vulnerable to transgressions.

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Customer traits determine how brand personality impressions are formed and updated.

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Perceptions of warmth and competence drive brand admiration.

Page 19: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Understanding total perceived quality

Page 20: Understanding User Expectations & Experiences in Brand/Product Development

We are hard-wired to remember bad experiences and we tend to talk a lot about them.

Page 21: Understanding User Expectations & Experiences in Brand/Product Development

The peak and the end matter more than the duration.

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Mood and context affects how we remember, and may bias our choices.

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In other words, it’s a big mess.

Page 24: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Brand image lens

ContextNeeds

Evaluation Choice Experience Memory

Time

Page 25: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

ContextNeeds

Evaluation Choice Experience Memory

Time

Subject to biases

Page 26: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Innovation Games to the rescue!

Page 27: Understanding User Expectations & Experiences in Brand/Product Development

Online experience: Me and My shadow

Perceived quality: Speed Boat

Expe

ctati

ons

Page 28: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Service and relationship marketingGrönroos C: Adopting a service logic for marketing, 2006 Grönroos C: Service management and marketing. 2008ExpectationsRudd et al: Leave Them Smiling: How Small Acts Create More Happiness than Large Acts. Working paper.Wilson & Mayers: How happy was I anyway? A retrospective impact bias. 2003Mogilner et al: The Shifting Meaning of Happiness. 2011Mogilner et al: How Happiness Affects Choice. 2012Mogilner et al: Time Will Tell: The Distant Appeal of Promotion and Imminent Appeal of Prevention. 2007Wirtz et al: WHAT TO DO ON SPRING BREAK? The Role of Predicted, On-Line, and Remembered Experience in Future Choice. 2003Marketing Metaphoria: What Deep Metaphors Reveal About the Minds of ConsumersBrand imageAaker et al: When Good Brands Do Bad. 2004Aaker et al: Cultivating admiration in brands: Warmth, competence, and landing in the“golden quadrant”. 2011Venkatamarani et al: Two Roads to Updating Brand Personality Impressions: Trait Versus Evaluative Inferencing. 2005Winchester & Winchester: Exploring Negativity Bias in Brand Beliefs and Stated Brand Switching Propensity. 2009MemoryMitchell, T. R. et al:. Temporal Adjustments in the Evaluation of Events: The "Rosy View". 1997Aaker et al: Recalling Mixed Emotions. 2008Pocheptsova & Novemsky: The Effect of Context on Memory-based Judgments of Hedonic Experiences. Working paper.Baumeister et al: Bad Is Stronger Than Good. 2001Kahneman: Thinking fast and slow. 2011Todd et al: Psychophysical and Neural Evidence for Emotion-Enhanced Perceptual Vividness. 2012

Further reading

Page 29: Understanding User Expectations & Experiences in Brand/Product Development

January 24-25, 2013Igsummit.weebly.com

Thank you!

Ulf Hannelius, PhD, EMBAAneega AB

Stockholm, [email protected]