Value of the Product for the Customer - Case Study Example

BlackBerry Bold Insert Date BlackBerry Bold Introduction Customer value is an important practical reason if not the real reason why firms come up with value chain management systems. Bidgoli (2010) defines the value chain management as the synchronization of competencies with the entire supply chain in order to create unique, inventive, and individualized sources of consumer value. Simchi-Levi and Kaminsky (2003) on the other hand, define consumer value as the manner in which the customer views the company’s entire offerings inclusive of services, products, together with other tangibles. Consumer awareness is divided down into a number of dimensions which are; conformity to the requirements of the customer, price and make, product selection, valued services, and relationship and familiarity with products. The product BlackBerry Bold is a Smartphone family that was developed by Research in Motion (Shelly, Vermaat and Cashman, 2009). This product family was launched in 2008 with the initial model 9000, and followed by subsequent models like the 9700 and the Tour 9630; which were released in 2009. The 9780 and 9650 were released in 2010, and 2011 saw the release of the models, 9788, 9790, and the touch-screen model, 9900/9930. This product and other Smartphone families have become common in today’s information and innovation-frenzy generation. This paper is report on the consumer value portfolio of the product, BlackBerry Bold. Value of the Product for the Customer 1. Name of the Company The BlackBerry Bold Smartphone family is a product of the Canadian multinational company, Research in Motion Limited (Shelly, Vermaat, & Cashman, 2009). This telecommunications company; which is an international leader in wireless innovation, is headquartered in Waterloo, Ontario in Canada. This company majorly invents, manufactures, and sells wireless solution for the international telecommunications and mobile market (Sweeny, 2009). 2. Name/Description of Product The product name is BlackBerry Bold Smartphone. This Smartphone family was launched in 2008 with the Model 9000 (Sweeny, 2009). Subsequent models like the shrunken BlackBerry Bold 9700 and the Tour 9630 were released in 2009. The 9650 and 9780 Models, refreshed with OS 6 were released in 2010. The current flagship, BlackBerry Bold 9900/9930 was released in 2009 together with the 9788 and 9790. The 9900/9930 and the 9790 Smartphone have touch-screen capabilities. 3. Key Product Attributes The BlackBerry Bold is a Smartphone line that includes models like the; 9000, 9700, Tour 9630, 9650, 9780, 9788, and the touch-screen models, 9790 and 9900/9930. Though these models have slightly different features from one another, they all have common features like; the effective, finger-friendly QWERTY keyboard, a long-lasting removable battery, 3G network support, brilliant and high resolution screens, share and go media capabilities, instant messaging, Wi-Fi capabilities, GPS satellite, Bluetooth, camera and video recording, media player that can play both video and audio formats, expandable memory, and tethered modem, among others. 4. Type of Research Undertaken The main purpose of this report was to discover the basic consumer values for the BlackBerry Bold Smartphone product in relation to conformance to the customer needs, product assortment, price and make, valued services, and relationships and product familiarity. In this respect, a qualitative research was carried out that involved in-depth interviews, participant observation, and use of focus groups. This research was carried out by the use of these three methods; participant observation, intensive or in-depth interviewing, and the use of focus groups. Schutt (2006) defines participant observation as a qualitative method of data collection that involves coming up with sustainable relationships with the individuals from whom data is being collected, while they carry out their daily activities. In-depth interviewing on the other hand involves using fairly unstructured questions in which case the interviewer seeks comprehensive information about the interviewees’ opinions, perceptions and experiences (Yates, 2004). Focus group involves making use of free group interviews where the focus group head encourages discussion among the participating customers on issues pertaining to customer value (Silverman, 2004). The sample size that was used were London consumers of the BlackBerry Bold Smartphone in which case six retail outlets were visited. Theses retail outlets are; expansys UK, Clove Technology, Tom Tom, HTE Electronics, Shop.co.uk, and Mobile Fun. Customer visiting these outlets together with the staff and suppliers were subjected to intensive interviewing, and participant observation for over a period of five days and findings were recorded and used in developing this report. This London sample was selected given that it is central, busy, and expansive and most of human traffic takes place in it. In addition, it is filled with consumers from different parts of England, whom were assumed to represent the opinions of consumers from their localities. Furthermore, this sample population was taken due its flexibility of access and the ability to reach large group of consumers within a very short time period. 5. Purpose of Research The purpose of this research was to discover the basic consumer values for the BlackBerry Bold Smartphone product in relation to selection of products, conformity customer needs, price and trade name, value-added services, product selection, and relationship and familiarity with products. 6. Conclusion from Research From the research carried out on the basic consumer values for the BlackBerry Bold Smartphone, a number of issues were realised. First of all, customers often go for what fulfils their wants and needs and what is easily accessible within their purchase channels. In this respect most of them bought the BlackBerry Bold Smartphone, since it fulfilled their need for mobile working. This need is enhanced by its mobile broadband connectivity feature which enables them to work even from their phones. Furthermore, this product is easily accessible within the retail outlets scattered all over London’s Streets. Moreover, the BlackBerry Bold Smartphone comes in a wide selection of options or models, colours, and styles to suit the various tastes of the large consumer base. These models are; the BlackBerry Bold 9000, 9700, Tour 9630, 9650, 9780, 9788, and the touch-screen models 9790 and 9900/9790. This research additionally revealed that, most of the retailers and distributors have stocked large numbers of BlackBerry Bold models since it is difficult for them to predict which model is in great demand. Most of them have the latest versions of the BlackBerry Bold which is the touch-screen 9900/9790 series. This model is a great preference for the techno-savy young teenagers and the business class markets. In respect to prices, brand, value-added services, and relationship and experiences, this research revealed that most of the experienced users of the BlackBerry Bold would prefer selling it for another brand like the Apple iPod. This is due to the negative experiences they have had with it, for example; one user complained that his BlackBerry Bold 9000 has problems with its charging and switching on systems. This client claimed that his Smartphone often refuses to charge and sometimes when he switches it off it refuses to switch on next time when he attempts to switch it on. In addition, another client claimed that her phone’s light indicator blinks with a red light whenever plugged in to a laptop or computer, indicating that it cannot be detected by the computer or laptop. A third consumer complained of the power IC which easily breaks down and is extremely expensive to replace. Other clients have complained that; this high-tech phone is prone to infection by viruses which severely affects its performance; it has a poor battery life that requires frequent charging, it has poor network reception from the available network services, and has a poor browser. Other complaints were concerning the bulkiness and the expensive nature of this product in terms of purchase and repair. 7. Post Research Review A review of this research shows that the research purpose was met. First of all, this research obtained a lot of information from consumers through; interviews, participant observation, focus groups and through other suitable means. This research used three approaches in getting information from the customers. These approaches are; intensive interviewing, focus groups, and participant observation. This is in line with research requirements for qualitative research types. Secondly, in these three approaches the right questions were asked; this indicated by the fact that both the negative and positive perceptions and experiences were captured in the report. Thirdly, this research was carried out using a relevant sample which is the busy streets of London. Additionally, the relevant stores, which are known to have customers frequenting them in search for new phones, were visited. The only drawback in this research is that the sample used, though relevant, was small and cannot be used to determine the value trends in the whole of England. Rather, this sample can only represents London’s consumer value trends since it only majored on the retail outlets and consumers in London. The other drawback is that this research majored on qualitative research to identify what the customers consider as value. Qualitative research can produce better results if it is combined with quantitative research methodology in its design. 8. List of Customer Values Baker, Marn and Zawada (2010) define a customer value as the amount of benefit that the consumer derives from a product or service relative to its cost. Perreault, Cannon and McCarthy (2008) define it as “realization in relation to sacrifice”, in which case realization refers to what customers get from their purchases, and sacrifice is what they pay or give in return for the product or service. From the research conducted the following were discovered to be the customer values in relation to the BlackBerry Bold Smartphone; Reliability in terms of longer battery life of at least three days, even when music and web are turned on. Distinctive features like amazing multimedia features for example; capability of playing music through stereo Bluetooth headset, multitasking on the phone like browsing, texting, or using the instant messenger. Added functionality like, expandable memory capabilities, true push email, MMS and SMS functions with no delays. Quality for example Great 3G and Wi-Fi capabilities that enables faster browsing and high speed networks. Affordable prices Flexibility with work schedules for example mobile working and mobile broadband connectivity speed. Modern Technology, for example the Microsoft Office mobile capabilities, GPS satellite capabilities and QWERTY Keyboard for easy messaging and emailing Reliability for example Better network reception and ability to use both GSM and CDMA/EVDO SIM cards Beautiful and easy to carry, not bulky 9. Prioritising Customer Values In prioritising these customer values, the product provider; Research in Motion designed the BlackBerry Bold and ensured that it has factored in all these values. For example this high-tech mobile phone has been designed with a QWERTY keyboard for easy messaging, has a number of multimedia features and applications, has GPS satellite capabilities, a longer battery life, and enables multi-tasking capabilities. Furthermore its Microsoft Office mobile capabilities are good for business and mobile working. In this respect, these features have ensured that reliability, distinctive features, added functionality, quality, flexibility, modern technology, and beauty have been considered. How Customer Value is Understood and Met by Product Provider Customer value in the perception of the product provider tends to be different from the way the customer perceives it. The customer will try to see if what he has bought is worth the amount of money he has spend on it (Kandampully, 2012). According to the utility theory; this is a basis of the customer value concept, consumers often buy products bundles of attributes that provide them utility or benefits. Producers or service providers on the other hand, view customer value as delivering what the customer needs and wants (Stone, 2004). In this respect, most marketers and producers have developed strategies of retaining customers for life by calculating their lifetime value. According to Lantos (2011), this life time consumer value estimation is carried out to project the customer’s financial worth over the entire period in which he is in a relationship with the company. Another strategy of delivering customer value is through conducting a research into the market to identify customer needs and requirements. The purpose of this research is to produce products tailor-made to fulfil the customer requirements and hence deliver value to them (Soman and Marandi, 2009). 1. Basic Customer Requirements Noticed by Product Provider From the research conducted it is clear that Research in Motion did not factor in all the customer requirements. This is evidenced by the numerous negative reports that were reported during the research. For example, the customers wanted a phone with longer battery life, easy to use, have faster internet browser and better network reception wherever the client is. Unfortunately, these aspects were not considered in the manufacture of the BlackBerry Bold Smartphone. All the same, Research in Motion considered other customer requirements like; multimedia features that enhance the ability to play music and multitask using the phone, expandable media features, 3G and WI-FI features, GPS satellite features, and the QWERTY keyboard which makes texting and emailing easier. 2. Customer Value Considered in Product Material Elements The product provider considered customer value in the product material elements while producing the subsequent models of the blackberry Bold. The initial model; BlackBerry Bold 9000 was larger in size, and consumers complained that it was bulky and had poor web browsing navigation. In the subsequent models, the BlackBerry Bold used two basic kinds of premium materials like metal, carbon fibre, and soft touch. The earlier Smartphone version used plastic and glossy materials, which had low quality specs and was unfavourable to many consumers. 3. Customer Value Considered in Product Package Presentation Customer value is also considered in the packaging of the BlackBerry Bold Smartphone. For example, this product is packaged together with a variety of accessories which include a wireless headset that uses the Bluetooth technology, a travel charger that can be used even in vehicles, a PC suite which enables it to function as modem, a free 2GB micro-card, and Near Field Communication accessories among others. These features are what most people search for in a phone given that they add value to the phone. 4. Mechanism Used By Product Provider to Measure Consumer Satisfaction Research in Motion; the providers of the BlackBerry Bold, have their own mechanism of measuring customer satisfaction. According to Lantos (2011), customer satisfaction is very critical to all organizations that have a generic goal of satisfying their consumers. Customer satisfaction has been defined as a function of the consumer’s expectations and desires. It is required that the satisfaction a customer derives from consumption, should be met and preferably exceeded by the product’s performance (Denove and Power, 2007). Blanchard (2010) asserts that companies that reach the exalted best-in-class status in customer satisfaction, often do three things. First of all, they collect the right information from their customers; especially feedback and comments concerning their products. Secondly, they carry out a proper analysis of the information they have received from the customers. They additionally ensure that this information gets into the hands of those who are in a position to use it. Thirdly, they properly act on this information. Naik and Venugopal (2005) assert that most companies obtain this consumer feedback information through using web-based surveys and call centres. In most instances business analytical and CRM programs are usually installed within the company’s system to crunch through the mountain of consumer information that comes in. This system then converts this data into some kind of actionable context. Research in Motion limited makes use of these three steps outlined above but in addition it calculates the differences between what the customers’ expect on performance, and their perceived experiences of performance. This difference is known as the satisfaction gap, and it measures both perception and expectations by the consumer (Hougaard & Bjerre, 2003). The information about the consumer perception and expectation, used in calculating the customer satisfaction is found through carrying customer satisfaction surveys. In addition, this company takes into account the perception of non-consumers of its products and carries out a competitor analysis in order to determine the measure of customer satisfaction. Some of this company’s competitors are Apple’s iPhone and other gadgets that make use of Google’s Android OS. 5. Any Other Aspect of Customer Value Not Considered The only aspect of customer value that the BlackBerry Bold product provider did not consider is the price or cost of purchase. From the research conducted, most of the consumers were complaining that this product is extremely expensive and not worth the cost. Clients argued that the cost could have been commensurate with the value of the product, if its network connectivity could have been faster or if its battery had a true long life. The Impact on Value Chain Activities Baldwin et al. (2001) defines the value chain as a description of the full range of activities that workers and firms carry out to bring a product from its conception stage to its end use state. The value chain activities include; designing, production, distribution, marketing, and offering support to the final consumer. According to Porter (2008) these activities can be contained within a single firm or they can be divided among different firms. In the earlier years, only divisions like the sales and marketing departments of organizations were the ones concerned with customer satisfaction. But this trend has since changed in that the value chain has incorporated customer satisfaction in all its steps. The aim of the value chain is to design and manufacture a product that is tailor-made to fully satisfy the customer and encourage customer loyalty tendencies. The customer value for the BlackBerry Bold will affect the operations of the value chain in the following ways; 1. Sales Activities There is bound to be a change in the sales activities in such away that the aspect of customer value is reflected. According to Woodside (2008), the generation in which companies used to transfer their values to their customer in order to meet their needs has passed. Every company today has to factor in the needs of their customer from the moment go in order to increase their competitiveness. In this respect, the sales force of Research in Motion will have to undergo an intensive training, on issues like; effectively informing buyers and potential consumes about their products; availing to them information about the prices and the benefits among others earlier in advance. In addition they will need training on how to influence the consumer to buy goods through channel selection, pricing, advertising, all being carried out with the customer at heart (Lamb 2011). According to Hills and Jones (2010), the marketing and sales department of the organisation can be transformed in order to help create value. This can be done through avenues like brand positioning and advertising, which increases the value that the customer perceives to be contained in the firm’s products. 2. Accounts, Billing and Receivables The accounting, billing, and receivables aspects of the value chain, form part of the operations department. According to Kordupleski (2003), the billing process of a company has the main function of getting money more quickly and keeping the cash position of the company positive. In this respect, a 30-60-90 day accounts receivable metrics is usually kept in line with the company’s desires. Customer value influences the billing process of this product provider, in the sense that it has to reflect the customers’ desires. This desire will require the billing centre to focus on three key measures, which are; time to collection, calls handling per person per day, and talk time per call. In this respect new accounting software, new accounting and billing systems and the available payment methods will have to be changed to reflect customer value (Kordupleski, 2003). Furthermore, a review of the existing codes with an aim of transforming them in to ones that the customer can easily understand should be preferred. 3. Customer/Materials/Information Processing Operation The processing operations refer to the value-creating activities that changes inputs of production into final products. These operations entail acquiring new customers, processes to service their needs and procedures to retain them over a longer term (Barnes, 2001). Customer values in this product provider will entailing changing the operations to reflect, the consumer value. These changes could include a transformation of the data interrogation and analysis suites to reflect customer value. 4. Procurement of Goods/Services and Distribution The procurement department has the main function of purchasing new raw materials together with other inputs to be used in the value-creating activities. Distribution on the other hand deals with delivering the value to the consumer. According to Sople (2007) integrating the process of procurement and distribution, is a best strategy of increasing a company’s competitiveness. Customer value will cause the BlackBerry product provider to change its procurement and distribution strategies in three logistical phases. These three logistical phases are; the inbound logistics, process logistics, and outbound logistics (Sople, 2007). The inbound logistic refer to the operations that precede manufacturing in the supply chain. These activities include the movement of raw materials from the processing to the suppliers (Sople, 2007). Process logistics on the other hand deals with operations that directly relate to processing like storage and movement of raw materials within the manufacturing premises in line with manufacturing schedules. Outbound logistics are those that follow production process and include transportation, warehousing, and inventory management of finished products. Changes in this level will include continual monitoring of both physical flow of products from raw materials at the supplier, to the customer in forward flow and reverse flow to ensure delivery of customer satisfaction. 5. Retail stock and Stores Management According to Shillito and De Marle (2002), retailers will often stock items that best benefits them, in relation to factors like; shelf space, inventory investments, and the need of continual adjustment of inventories. To the retailer, factors like the attractiveness of a product, its packaging and display, and its aesthetic appeal are very important since they attract more customers. In this respect the retail value is often different from the customer value. Customer value will force the BlackBerry product provider to consider changes in its retail and management stores like; carrying out changes in the activities that support third party retail operations. These changes include designing the products in such away that they can be sold quickly at a good profit. They also include ensuring higher product attractiveness and better aesthetic appeal. 6. Recruitment of Additional/Temporary Resources Some special types of goods often require the recruitment of special staff to manage them effectively. Others require part-time or shift workers to enhance the products value to the customers. According to Dinitzen and Bohlbro (2010), delivering customer satisfaction would to increase the costs. Customer value in BlackBerry product provider requires that these costs to optimise the customer’s experience, especially at the time when he meets the staff face-to-face. In this respect, a lot has to be done in line with professional recruitment, staff motivation, staff training, administration, and the conception of a consumer-oriented organisational way of life within the company. 7. Design In achieving customer satisfaction, a lot of redesigning is needed, since design of BlackBerry influences the customer value. In this respect the service provider has been forced to explore options like customisation of existing products or the internal operations, and redesigning customer support functions. This redesigning required; setting up of a new business direction, identifying core service processes, developing deep business process knowledge, learning from world-class standards, and designing and implementing a new service process (Duchessi, 2002). Other redesign patterns that had been embraced as a strategy to increase customer value include; reengineering, simplification, gaps and disconnects, and value-added analysis (Allen & Higgins, 2006). Reengineering involved the introduction of new technologies to achieve major breakthroughs in efficiency and productivity. Value-added analysis involved the elimination of non-value adding activities in this product provider’s value chain. 8. Order Fulfilment Customer value also impacts the way a customer order is handled through to the point in which it is delivered. In the case of our research, the product is not made under special order specifications and thereof this section does not have any influence in the company as such. 9. Customer Service Support Customer value is bound to change the customer service support methods given that this department is the one that actually comes into face-to-face contact with the customer. Customer value forced this department to embrace changes like; transforming customer service, operation training, implementing new methods of contact and increasing contract among others (Heijden, 2005). Conclusion In conclusion, the product BlackBerry Bold is a Smartphone family product developed by Research in Motion. This product family was launched in 2008 with the model 9000 followed by subsequent models like the 9700, the Tour 9630, the 9780, the 9650, the 9788, the 9790, and the touch-screen model, 9900/9930. Ever since this product was released into the English consumer market, it has drawn mixed reactions from the consumers and non-consumers alike. From the research reported in this paper, a number of consumers bought this Smartphone since it; fulfils their needs for mobile working that is facilitated by the phones mobile broadband connectivity features. Furthermore, it is easily accessible within the retail outlets scattered all over London’s streets among others. Nevertheless, other consumers were dissatisfied with it and argued that it did not add any value to their lives given that; it has charging and battery problems, it is extremely expensive, it has network connectivity problems, and is susceptible to virus attacks. Some of the consumer values identified in this research include; reliability, distinctiveness, added functionality, higher quality, flexibility with work schedules, and reliability among others. In light of the benefits consumers have derived from the BlackBerry Bold, it is certain that this product is here to stay. The time duration in which this product will continue to exist in the market, only depends on whether the product provider will factor in the complaints from the customers and produce new models that lack the specified defects. It has always been said tat consumer is the king, and every good organization will endeavour to meet its customer requirements in their goods. 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What could the product providers do to make it better? Q8. Would you recommend this phone to someone? Why? Q.9 Would buy a new version or model of this phone? Why? Q.10 What would you say concerning those who have experienced problems with this phone? Q.11 What advice can you give to Research in Motion the producers of this phone? Read More