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Case Study - The Intent of the Customer - Student (1) (2)

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Understanding the Intent of the Customer
P. McElligott – 40 pt. assignment
Fall 2020
What happens if I peruse the TJMaxx™ website for purses, but I do not immediately decide to
buy?
Most of you already know what happens: Thanks to those little things called “cookies”,
retargeting begins. The next time I log-on to my Facebook site, I am confronted by online ads for those
purses I viewed earlier, and sometimes the content marketing suggests that I may have forgotten to
complete an order; or, the next time I check email, TJMaxx has reminded me once again that there are
only “5 of that style” left in stock. And, it doesn’t stop there. Nordstrom and Macy’s may also target me
with an online ad for their purses. Or, the official Dooney and Bourke™ website enters my personal,
online channels with its own ads and promotions.
The same probably holds true if I happen to Google and view a Jeep Cherokee. Before the day is
over, I am deluged with messages from local dealers, and I may even be the lucky recipient of one of
those pop-up chat rooms that wants to further personalize the connection between a Jeep vendor and
me.
While TJMaxx and others know that I shopped for purses; and while Jeep knows that I window
shopped for a Jeep Cherokee, they really don’t know my intent. Perhaps I am a bonafide, prospective
customer with the funds to spend on these particular products. Perhaps I was asked by a good friend to
take a look at what he/she is thinking about purchasing, just to get my opinion. Perhaps I have already
purchased, and, I have experienced some sort of buyer’s remorse, cured only by some reassurance that
I did indeed get a good deal on my sunken investment value type purchase.
Fortunately for marketers, the emergence of new technologies (new software) now provides a
much better picture of my intent. According to Tanzena Vega who writes for a fast forward blog called
BITS (Business, Innovation, Technology, Society), marketers – within seconds – now have a better
understanding of one’s intent, thanks to Big Data (those large databases that collect, organize, and
manipulate data). This results is a more prescriptive, custom type of promotion directed at each
individual. If you just purchased a Jeep Cherokee, there is most likely no reason to send you an online
ad about features, colors, benefits of a new 2018 Jeep Cherokee; or, even an ad that differentiates this
particular SUV from the Honda CRV (Vega). However, the marketer may want to send a “thank you”
email with a note about why you made a great choice.
“The amount of information available to advertisers has
increased exponentially, from credit card and telecommunications
companies and even from brands. Instead of using old retargeting
methods, such as showing someone an ad for a car that person just
viewed online, brands are using new technologies to help them decide,
often in advance, whether a consumer should be shown an ad for, say,
a luxury car or an inexpensive car, or any car at all….In milliseconds,
fast technologies can determine whether a person is in the market for
a new car or has bought a car recently, yielding different types of ads.
One ad could focus on a new vehicle that a company is trying to
promote to energy-conscious drivers, while another might focus on
accessories for the car.”(Vega)
Your author introduces you to the traditional “funnel” approach to the
consumer decision making process. This is still widely used today because disruptive
technologies do not necessarily wipe-out a method immediately. It usually takes
several years, and often other external environmental circumstances combined with
new technology trends/forces will also interfere and make the change. With the
funnel approach, the consumer begins with understanding he/she has a problem to
solve, and usually collects information on a set of familiar brands. Then, there is a
process of elimination (without any new brands added to the choices) before settling
on one brand to purchase.
Problem
Recognition
Brands:
Ford Escape
Jeep Cherokee
Hyundai Santa
Fe
Toyota Rav-4
Buick Encore
Create
Evaluation
Criteria
Select
Consideration Set –
usually two or
three brands
Purchase
With a purchase that has a sunken investment value (such as a vehicle), there is usually testdrives and word-of-mouth discussions with family and friends (particularly family). In the traditional
approach, there was seldom any change from the original few brands under consideration. As you can
see by the phone example in the textbook, the consumer will evaluate each brand using a set of
evaluative criteria. Usually two choice emerge toward the end (the Consideration Set), and then the
buyer makes the final choice.
The online shopper’s intent may be different, depending upon his/her current location on the Consumer
Decision Journey (CDJ). Following is a graphic of the CDJ developed by well- known consulting firm,
McKinsey & Company.
ZMOT
1MOT
2MOT
To further explain, the CDJ, Google named the stage of the CDJ cycle where the consumer is
gathering information: the Zero Moment of Truth (ZMOT). This is the active evaluation period where
the consumer may be adding or subtracting brands from his/her consideration set of brands.
Let’s say, for example, a person is shopping for a new SUV. Initially, he is considering the Jeep
Cherokee and the Chevrolet Equinox. However, during the evaluation stage, the Honda CRV becomes a
strong contender, as does the Ford Escape. By the time the shopper decides to buy, the consideration
set may include brands that were not considered in the beginning. The Jeep Cherokee is dropped from
the mix, and now the contenders are Honda CRV, Chevrolet Equinox, and Ford Escape. The convenience
of obtaining quick and reliable information online has changed the way the decision is made. The
marketers for Ford Escape and Honda CRV intentionally and successfully attracted the attention of the
SUV shopper during ZMOT.
Google partnered with an organization known as Shopper Science to gather intel on the shopper
experience during ZMOT Following are some results:

88% of U.S. consumers now engage in the "zero moment of truth" prior to making their final
decision


In 2011 consumers consulted an average of 10.4 new media or traditional sources before
purchasing, 2x the sources consulted just the year before
ZMOT sources like search engines rank high in the degree of influence they have in the
shopper's decision making (Consumer).
Whether you are a B2C marketer or a B2B marketer, it is important to prepare for the ZMOT. How
do you achieve this?

Client/consumer product/service reviews are visible; What do yours tell the buyer?

Prospective buyers can access case studies about your products;

Value and utilize Search Engine Optimization (SEO) as a way to connect with prospects
online (just about every consumer search begins with an online search);

Think “video” because during ZMOT, consumers/clients are also watching videos to help
with their purchase decision (Hanington).

Intel – attach cookies to prospects for SUVs, in general.
Referring to the previous CDJ diagram, the First Moment of Truth (1MOT) occurs when the
marketer experiences conversion. The customer decides to buy the product. The Second Moment of
Truth (2MOT) occurs during the time period that follows fulfillment of an order.
In today’s fast-paced marketing world, it is instrumental to understand the intent of the online
consumer; but also the “value” of that intent.
Mr. Sheldon Gilbert, founder and chief executive of Proclivity Media, a company that specializes
in advertising technologies explains that the data collected today assist marketers with determining the
value of one customer compared with another. “If a consumer has a 10 percent chance of making a $50
purchase, that consumer can be valued at $5, Mr. Gilbert said. If a person’s dollar value is lower than the
cost of marketing, an advertiser may opt not to show an ad to that person, he said“(Vega).
Consumer Insights, Micro-Moments. “The Zero-Moment of Truth Macro Study”. Google and Shopper
Science. 11 April 2011.
Hanington, Jenna. “The Zero-Moment of Truth: What is it and Why You Should Care” . Salesforce Pardot.
6 November 2012.
Retrieved online 31 July 2017.
Vega, Tanzania. BITS
1. After reviewing the very important chart by McKinsey, how does the CDJ for online
purchases differ from the traditional consumer decision making process developed by
your textbook authors? (10 points)
2. What are the pros and cons of using tools that offer a more prescriptive solution to a
consumer’s needs? (5 points)
Pros
Cons
3. If you are a manufacturer of professional wireless hand tools (such as drills or electric
saws used by skilled tradesmen in commercial construction work) (1) how do you
Where will you
show-up online
for these
buyers
prepare your marketing efforts so that you show-up in the ZMOT stage for construction
company procurement officers (the buyer) who are ordering a sizeable quantity of tools
for various building projects? (2) What marketing efforts are you likely to engage in?
(3) What media channels are important? (20 points)
4. In the case study, Mr. Sheldon Gilbert talked about the “cost of marketing”. In your own
words, explain what he means by this term, and provide an example of how he uses it to
provide prospects online ads. (5 points)
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