Saturday, March 10, 2012
Aowanda and Chingjing Farm Trip
Aowanda Forest Park was my first stop in Nantou county on 3/3, 2012. This was one of the most moved and emotional areas I have ever traveled in Taiwan. I spent a few hours in strolling the trail past the Forest Classroom, Strongman Slope, Bird-watching areas and Pine Tree Zones. On that weekend, there are few visitors coming around over there because of that day was a normal working day for most of people in Taiwan. As I was across Aowanda Suspension Bridge, I was excited to see that long and high construction. It was worth visiting the scenery where it was beautiful and magnificent view in a forest park. The nature of Aowanda Forest Park is for relaxing and connecting with fresh atmosphere as friends would like to be there. On the second day, I went to Chingjing Farm which is a natural pasture area. Green Green Grassland is a place for sheeps, goats and horses wandering around. Most of visitors came by to take photos with the herds of sheep gathering on the green slopes or appreciated or watched sheep shearing entertainment show. The host’s name called Mr. Grant from New Zealand can speak funny Mandarin introducing what he was going to do and interacted with the audience more actively and loudly big hands. He picked one sheep for positive bid with one viewer for auction but it was not really that thing, just for fun. After that, he started to sheer that sheep in a short time. The sheep was almost naked without any fleece and audience can even touched or patted on sheep’s fleece. Horse show is also one of popular and welcoming shows in Chingjing Farm. Visitors can have a close watch at special varieties of riding shows performed by horse-riders. Hiking along meandering trails in Chingjing is a relaxing and pleasant way to appreciate the natural beauty of Chingjing Farm. Along the pasture and grassland, enjoy fresh air and feel time-passing.Carton King restaurant was a place for lunch time. I found it interesting on the way to Huang Fruit Accommodation. It combines a restaurant and a gift store in a way of card board. It is very innovative ideas that everything was almost made of cardboard such as plates, cups, bowls or even chairs and walls. In a gift shop, there is a Eiffel Tower made of cardboard. The flavor of food was acceptable and the unique idea made the meal unusual. The small Swiss Garden is famous for its European atmosphere and surroundings. Wind mills and various varieties of plants covering the garden. In addition, there is a shower show performing vividly with classic music.In Feng Chia Night Market, I had shrimp sticks, steamed sandwich and braised food. But the key point was that memory of University Life came out in mind and time passes quickly all the time for every life phase and stage named life circle.
Sunday, December 11, 2011
Seoul Semiconductor LED Marketing Report(The World&Great China)
Executive summary1. Immense Growth for LED market (2011)- $12.8 billion USD vs. $10.28USD in 2010
2. LED Lighting Market Growth (2011)-2.18 billion USD vs.1.36 billion USD in 2010
3. From 2013 onwards, any further significant growth in the LED market must be driven by general lighting application
4. Lighting applications are forecast to grow steadily and strongly. From 2009 to 2010, the forecast revenue CAGR (Compound Annual Growth Rate) in 32% and the unit shipment CAGR 59% shipment will grow from fewer than 1 billion units in 2009 to over 20 billion units in 2016.
5. Market growth will be led by application where a payback period of electricity or maintenance saving are important, particularly street lights and refrigeration, retail and other commercial applications.
6. Nichia was still the leading LED suppliers in 2009 and 2010 by revenue. However, for established suppliers to the merchant market, Cree & Seoul Semiconductor had the most impressive growth.
Total World Market for LEDs (by region)
1. In 2010, the LED’s market grows 60% to USD$10.2 billion (vs. USD$6.1 billion in 2009)
2. Thanks to big penetration in TV (+USD$2 billion), as well as economic recovery and greater LED use in computers (+USD$0.9 billion) and lighting (+USD$0.5 billion)
3. APAC market is dominating nearly 70-80% over the world until 2010.
Total World Market for LEDs (by product type)
1. The fraction of revenues for standard LED’s is steadily falling while that of InGaN is in increase.
2. Reasons of growth: InGaN LEDs are increasingly able to meet demand in applications which require white or brighter light and these applications are growing rapidaly.
World Wide LED Lighting Market Overview
1. Revenue average from market report in 2011: USD$2,175 million
2. CAGR(average):43% (Year,2010-2014)
LED Business Environment in China
1. The China government dominates semiconductor and lighting industry in order to launch varieties of policies and lighting standards2. Global LED enterprises will plan to go into China market, especially Taiwan LED enterprises are developing LED business in China faster.
Marketing Strategies from Seoul Semiconductor in Shenzhen
1. Besides dispatching SSL employees, Daewoo International Corporation has rights to pursue potential LED customers
2. Follow up potential customers
3. To maintain current customers
4. Guandong & Beijing Corporation establishing
5. Certain good products to China Lansheng Daewoo
6. business+ technology
7. To use relationship to develop new channels in China market
8. SSL 100% technology support
Strength: LED needs increase , AC LED develop
Weakness: Lack district management
Threat: LED industry competitive, Localization, Transportation cost
Opportunity: LED needs increase, AC LED lighting benefits increase
Working in Daewoo International Taiwan Branch
Daewoo International is conducting eight major business activities, such as steel, metal, chemical, automotive& components, machinery &industrial plants, media& electronics, textile and commodity& energy division. Eric is in charge of machinery & industrial plants in Daewoo International which operates a global network of over 120 offices to offer clients and traders around the world and I work in Taiwan branch office now. Through the network link, we connect suppliers and purchasers or project owners in 165 nations in more than 4, 000 product items for export and import, tri-lateral, multi-lateral trade or special trade programs. Daewoo Brand fast evolved from domestic Korea's leading traders into a global name as a comprehensive trading organization dedicated to a global trade organization. For now, Daewoo International staff continues to diversify and improve all kinds of programs for smoother and more efficient global business activities and cooperation. As trade projects become intensively sophisticated and complicated, professionals including me are standing by to offer professional programs and projects tailored to meet all types of organization's demand, regardless of volume of trade involved.International Trade Function
1. Information Gathering& Sharing
Daewoo International Taiwan Branch Office, with its highly sensitive trade network, access the latest in all trade information to provide clients with expanded trade and marketing opportunities. The network around the globe includes up-to- minute information as required on everything from the cost of raw materias to trade process and regulations in each nations.
2. Project Organization
As a trade project organizer, we operate domestic and gloabl network and our extensive portfolio of contacts around the world in every area from feasibility and planning to consulting and project financing which augment the efforts of Daewoo professionals who own a solid foundation of extensive experience and expertise. By the use of marketing, finance, project organizing competence and trade experience with technical manufacturers, we have unlimited capabilities.
3. Resource Development
Being aware of the growing prominence of resource development projects such as Australian Whitehaven Coal, we utilize global network and trading capabilities in a host of investment plans around the world regardless of thermal coal, uraniun, natural gas and so on. We have reaped continuing benefits from development investments in gas exploration and coal trading and from development projects in several nations.
4. Division Activities
4.1. Steel Division
The steel division majors in hot-rolled steel, coated steel and pipe. Hot rolled steel products are first stage steel products such as hot-rolled steel coils, pickle& oiled steel, plate and wire rod. The steel division's advantage is the combined efforts of Daewoo International's 54 overseas branches, 40 steel specialists at head office. The system guarantees speed and efficiency in meeting any kinds of requirements in the world.
4.2. Metal Division
The metal division handles a huge range of raw materials including steel scrap, pig iron, slab, bloom, billet, tin plate, galvanized iron, deformed bar, wire rod, round bar and etc. We offer all of these through expert sourcing systems with mills and specialty manufacturers around the world. We maximize synergy effect by expanding and strengthening relations with suppliers in export and import or tri-lateral trading programs.
4.3. Chemical Division
The chemical division offers extensive product including detergent raw materials. It has been long business to pursue long terms relationship with Formosa Plastic Corp in Taiwan. We can provide customized service both to manufacturers and customers when it comes to PVC, PTA, carbon black and pitch, SBR or agrochemicals and pharmaceuticals and so on.
4.4. Automotive &Components division
The Automotive& Components division includes O.E.M clients such as renowned vehicle manufacturers as the Big 3 in the USA, Volkswagen and Fiat in Europe and Suzuki of Japan. We also offer level 1 manufacturer in those areas and other auto makers in China, Southeast Asia and Middle East with highly competitive and high quality products on a regular basis. We operate worldwide system of product development offices, components engineering offices and professionals in order to users with high quality, Just-In-Time system delivery in meeting diverse demands for vehicle components.
4.5. Machinery& Industrial Plant Division
Machinery& Industrial Plant division specialize in plant categories with our wealth of expertise and experience. We function as a project management organizer in power generation, steel and environmental control plant projects, providing technology and financing where required. We participate in direct or indirect investment for project financing in certain programs. Additionally, we have an established reputation in supplying ship-building, railroad cars and port& harbor facilities. In defense industry facilities, we both offer software and hardware. Daewoo International's overseas branch offices play a significant role in conducting feasible studies and marketing programs. We contribute our project organizer capabilities to IT era to guarantee clients' satisfaction.
4.6. Media & Electronics Division
The media& electronics division includes electronic goods as digital satellite receiver, color TV, DVD player, ADSL modem , mobile phone and telecommunication equipments (FAX, DECT, FRS), amplifier &repeater, video phone and so on. In addition to providing products, we are promoting involvement in systems integration as we think ourselves as specialty trade center in telecommunication products and projects.
4.7 Textile Division
The textile division includes men's shirts, pants, ladies blouse and sleepwear and a spectacular spectrum of sewn garments. The global network keeps us abreast of the latest production technology as well as the latest marketing information to pioneering new markets. The goal is to aim at greater sales efficiency and profitability.
4.8. Commodity& Energy Division
The commodity &energy division intend to supply stable and excellent chain systems. The core trade products include rice, corn, other grains; frozen pork; other frozen fishery products, cement and related products such as slag or slag powder. In addition, we have invested in crude oil recently and liquefied natural gas exploration. In the future, we will plan to increase profitability in overseas resource development projects.
5. Daewoo International Experience
I am having project management experience in Daewoo International now. The reason why I am in Daewoo is to learn professional marketing capabilities and project management practice that reflect personal wealth of global vision and prospect. In addition, the global knowledge management system provides partners with total confidence in project management aspects, resource development and international trade. With the spirit of creativity, challenge and trust and cooperation, I am looking forward to positioning me as a trade specialist and project organizer in the coming future.
Monday, November 15, 2010
Social Media and Green Marketing
1.0 IntroductionTraditional media does not lend itself to niche types of marketing trends nor does it support narrow marketing messages. This is why traditional media forms such as television, print and radio are often termed as mass media and also why many industries or market segments have difficulty having their messages heard in mass media channels. However, over the past decades, the development of social media has engendered a new channel for marketing the narrowest of messages such as green marketing. Firms that are concerned about sustainability, social responsibility and environmental balance in one respect or another are those that are involved in green marketing (Pujari & Dangelico, 2010; Lee & Chen, 2010). Social media provides the perfect marketing channel for green marketing because these two phenomena share a set of core values and principles that are sympathetic to one another.
2.0 The Social Media Phenomenon
The social media phenomenon of the last decade is really a phenomenon that has its roots in the underlying principles of the Internet and the World Wide Web (Web). The Internet is really responsible for fracturing the mainstream media and for providing the basis for diluting mass media channels. Essentially, what the Internet accomplished was that it allowed virtually any individual or entity to become a publisher of some type in print, video or voice or even all three (Berners-Lee, 2006). Since the Internet’s earliest inception, a few individuals found that they were able to network with other individuals who were like-minded or were involved in similar industries or with similar interests. As the Internet developed and when the Web became more widespread and accessible in the early 1990s, the tools to publish websites began to democratize beyond the relatively few technophiles that had access to the Internet prior to the Web (Ruotolo, 1998). This democratization of the Web was facilitated by technology which tended to lower the barriers to web publishing and the tools to post text in the form of web content, web-logs or blogs and in chat rooms evolved into the ability to stream voice and video (Blogging, 2008). Once these tools became widely available, the true capacity of the Web as a social and cultural force became apparent.
Social media is really just a continuation of these early and developmental capacities of the Internet and the Web. While the early Internet and the Web comprised what was referred to as the Web 1.0 in which communications tools such as email, chat and web postings allowed for individuals and firms to publish content in a mono-directional manner, social media rests on an Internet and Web platform referred to as the Web 2.0 in which these functionalities are combined with unique Web-based applications that support inter-activity and sharin (Cashmore, 2008; Tyler, 2002). That is, social media not only encourages but facilitates community building. This is community building in which individuals and entities are allowed to identify, contact and interact with others that share their values, opinions or beliefs. Social media platforms are those such as Facebook.com and Orkut.com among many others that are focused on social grouping and communal interaction.
The quality of interactivity and meaningful feedback is one that truly defines social media. In mass media communication, the flow of data and information is primarily outward towards the audience with no opportunity for establishing a feedback loop (Chang & Wang, 2008). However, in social media platforms and through the social media process, feedback loops are critical. Individuals and entities engage with social media because of these feedback loops and information, one type or another, moves constantly back and forth from one party to another. In this respect, social media as a phenomenon is comprised of several different categories. For instance, social media consists of social networking in which various web applications such as Facebook, Myspace or Orkut support the interaction between individuals; social bookmarking is an activity supported by social networking sites as well as sited dedicated to social bookmarking such as Digg in which users constantly share news, websites and similar items of interest with the members of their communities; social gaming where players are able to play online games with others who are actively engaged in the same game simultaneously; and finally there are social wikis in which individuals or groups act in unison to build and maintain some type of publicly accessible database such as Wikipedia (Capel & Johns, 2010; Losinski, 2007). Clearly, social media is a concept that is primarily concerned with removing the boundaries to open communication.
3.0 Green Marketing and Social Media
Green Marketing and social media tend to go hand in hand for a variety of reasons. Primarily though, green marketing and social media are so sympathetic to one another because they share a set of core principles regarding purpose as well as form. For example, companies that are focused on sustainability in some respect and social media platforms are focused on the following: a) achieving transparency in communications between all parties, b) communicating with meaningful but brief messages, and c) sharing a desire for not just interaction but for influence (Scott, 2008; Dimaggio, Hargittai, Neuman & Robinson, 2001). These shared principles empower entities that are focused on green oriented messages with the capacity to develop their message but more importantly to establish a relationship with the members of their shared communities. Sustainability in almost all aspects and across virtually all industries is a concept that requires transparency in order to be successful as well as widely adopted. It is difficult for the members of a community or network to embrace a green message if they lack faith that the entity in question is actually adhering to its own principles.
Yet, social media offers those with green marketing messages and endeavors a set of clear and well-defined strategies to make these efforts heard and accepted. Green marketing messages are not effective if one simply posts them on a website and hopes others to read the message or posts a video of a spokesperson explaining the message. Rather, social media is effective as a green marketing platform because it accomplishes a mix of the following (Blogging, 2008; Chang & Wang, 2008; Capel & Johns, 2010):
· Provides insight into current trends in sustainability and environmentalism by allowing parties to search keywords and terms across social platforms to find out what people are actually saying and thinking regarding an issue
· Provides venues such as blogs, videos and podcasts in which green practices or, alternatively, practices that lack sustainability can be brought to the public’s attention
· Provides a platform upon which entities and individuals can become an advocate for change and improvement by working with other organizations and bureaucracies
· Provides a platform for organizing events and disseminating information such as hosting webinars or seminars that are broadcast across the Web
These and other strategies supported through social media applications and principles have allowed green marketing to flourish in a manner that would otherwise have been deemed impossible. As mentioned previously, in the era of mass media and mass communications, there were significant barriers to developing an audience. Mass media channels are, by definition, large and monolithic in character. Mass media channels are channels of communication in which the stream of information is broadcast to everyone through an architecture that is limited in terms of capacity and size (Montgomery, Rennie, Brennan & Hartley, 2002; Mehta, 2005). For instance, while television may be fragmenting into numerous smaller channels broadcast on cable, digital satellite and even the Web, it was once dominated by several large networks in each major market. Thus, these operators controlled access to mass communication through price-setting as well as in-house censorship disguised as the editing process (Cooper-Chen, 2005). The result was that entities with niche messages that were limited by funding concerns or with messages that were viewed as somewhat controversial were largely ignored by the mass media. Thus, while green marketing can still make effective use of mass media channels, with the rise to prominence of the Web 2.0 and social media, green marketing simply does not require mass media anymore in order to have its message heard and adopted.
The natural symbiosis of the Web and social media in particular and green marketing is apparent by the sheer number and size of the firms that are taking their green messages to social media platforms. The automotive industry has begun to shift most of its green marketing efforts to social media platforms and venues. For instance, in the United States, the automotive firm General Motors developed its own microsite or wiki that it terms “Chevy Voltage” in which it hosts a blog, videos and photographs of its new sustainable electric vehicle, the Chevrolet Volt (Parekh, 2010). What the automotive industry has learned is that consumers rely on each other for information as well as feedback regarding trends, styles, and important social issues. Consumers who share the same values and belief system that the firm’s Chevrolet Volt is eco-friendly and built on a sustainable energy platform but rather will trust the opinions of those who own one and who choose to discuss whether it actually fulfils the manufacturer’s claims.
In other words, green marketing via social media is not structured in the same manner that green marketing would be in traditional media channels or in the way that any marketing would be in traditional media. Traditional media communications are all concerned with structuring and controlling the message whereas green marketing through social media is about creating a topic and then allowing the message to develop among the audience itself as readers comment on blog posts or rate videos or similar activity (Mehta, 2005; Burrows, 2008). Green marketers must be willing to control the message and allow the market to develop and then disseminate that message. There is great risk associated with this type of social media marketing but the potential rewards are so much more powerful. This is because social media is word-of-mouth advertising on an exponential basis and green marketing messages are poised to take advantage of this quality in a way that other general marketing-oriented firms are not. Many firms have realized that formulating green marketing topics are most successful when they are based on real actions such as when a business decides to use sustainable energy sources or to change to green production practices despite added costs to do so (Finora, 2010). By starting a social media conversation regarding this type of business decision, the actual act of the company becomes the topic of the green marketing message as members of its community and their own individual shared communities recognize this act as being legitimate.
4.0 Conclusions
Traditional media used to serve as an effective accountability agent for entities operating in both the public and private sector. As the number of media outlets in traditional media have continued to decline and fallen into ever-larger corporate conglomerates, these outlets serve this purpose less and less (Blethen, 2004). Social media has adopted this character of public accountability of the media in the spirit that traditional media once did. Green marketing and messages that relate to sustainability and corporate social responsibility have found an effective platform for disseminating their message in a fashion that not only amplifies their message but being also extremely cost-effective. Firms, entities and even individuals that are focused on green marketing messages are often limited in terms of resources available that they can commit to their marketing efforts. In this fashion, green marketing and social media are well-suited to each other.
Social media as a communications and marketing platform is itself a sustainable and socially responsible medium. Social media is a communications platform in which the social media firms are fundamentally based upon a sustainable business model that is able to take advantage of economies of scale in which the cost of reaching 1,000s of individuals is virtually the same as the cost of reaching a single individual (Walker, Gountas, Mavondo & Mullins, 2009). Because of this unique quality of social media, green marketers are able to legitimize relationships with each member of their target market. This relates to the approach that green marketing takes with respect to social media which is that green marketing on social media platforms allows green marketers to focus on why they want to establish a relationship with their market rather than on what they want to communicate. Thus, green marketing and social media benefit from their shared core values as well as their emphasis on sustainability.
Sunday, November 14, 2010
Principles of Marketing Epiphany
Marketing has the main responsibility for achieving profitable growth for the company. Marketing needs to identify, evaluate marketing opportunities and lay down strategies for capturing them. One useful device for identifying growth opportunities is the product/market expansion grid. This essay will examine this theory and apply it to Crocs, Inc. that markets those rubbery clogs with Swiss-cheese holes.First, Crocs might consider whether the company can achieve deeper market penetration---making more sales without changing its original product. For example, Crocs now offers a rainbow of colors and styles to match any personality or outfit. The company keeps prices of many of its models low, and it is broadening distribution channels to include everything from shoe and department stores to sporting goods stores…, etc.
Second, Crocs management might consider possibilities for marketing development --- identifying and developing new markets for its current products. For instance, managers could review new demographic markets. Perhaps new groups--- such as senior consumers--- could be encouraged to try Crocs shoes, based on their comfort.
Third, management could consider product development--- offering modified or new products to current markets. For example, over the past five years, the Crocs footwear line has grown to more than 30 rubbery styles, including boots and all-terrain shoes. The company has also forged licensing agreements with organizations such as professional sports leagues, cable TV channels and various universities to create sports and entertainment Crocs shoes.
Fourth, Crocs might consider diversification---starting up or buying businesses outside of its current products and markets. For example, Crocs purchased Jibbitz which makes accessories that can be snapped into existing air holes in Crocs shoes.
Companies must not only develop strategies for growing their business portfolios, but also strategies for downsizing them. There are many reasons that a firm might want to abandon products or markets. The market environment might change, making some of the company’s products or markets less profitable.
In conclusion, evaluating current businesses, designing the business portfolio involves finding businesses and products the company should consider in the future. Companies need growth when they compete more effectively and attract top talent. The company’s objective must be to manage profitable growth.
Journal Critics based on Consumer Behavior 4th
Cultural consumption and participationFoote, J.A. (2002). Cultural consumption and participation [CIRCLE-CCRN Round Table 2000]. Canadian journal of communication, 27(2/3), 209-220. Retrieved August 28, 2009, from ProQuest Central. (Document ID: 347596181).
In this article, Foote explains that cultural dissemination, production, reviewing and consumption play an important role in shaping the relationship between culture and consumers. The author uses data on Canadian consumption and statistics in 1992 and1998. The research focuses on demographic variables including age, gender, education and regional distribution, etc. to understand the cultural influence upon Canadian consumers. The article is useful to my topic because I understand the motivation of Canadian consumers is affected by their participation in cultural experience. The main limitation of the article is that some cultural activities are free of charge when compared with the influence of culture on total consumption in Canada before 1996. The author contends that the future of cultural development could be decided by globalization and diversity. This article will be useful for me to realize Canadian consumers in terms of cultural participation.
Communicating locally marketing globally
Muddyman, G.. (2009). Communicating locally marketing
globally. Pharma, 5(1), 46-48. Retrieved September 3, 2009, from ProQuest Health and Medical Complete. (Document ID: 1654427731).
In this article, Muddyman explains that culture difference affects target consumer behavior. The authors use cultural difference data in foreign countries. The author also mentions that localization compromises cultural customization which needs an understanding of the target customers ‘ culture when planning marketing strategy in foreign countries. This research is focusing on communicating locally and marketing globally. The article is useful to my research topic, as the author suggests that there is cultural difference in every global pharmaceutical market. The main limitation of the article is that the survey is restricted to European and Brazilian Portuguese market. The author indicates that communicating across cultures will become difficult because there are many regulations and rules to follow with. So, the companies will develop different messaging material for each market in the world. This article will be useful to understand the effect of local regulation, culture and language on consumer behavior.
Cultural values affect consumer behavior in Taiwan Cafes
Hu, Y. N., C. M. Hsiao and J. F. Yang (2009) Cultural values affect consumer behavior in Taiwan Cafes. The business review, Cambridge, 12(1), 262-266. Retrieved August 31, 2009, from ABI/INFORM Global. (Document ID: 1775872521).
In this article, Hu et al. explains the impact of culture on consumer behavior when buying coffee. One useful idea is that increasing cultural elements such as local, characters, famous products, classical music……etc. is a good marketing strategy to acquire consumers’ favorite. The authors use the Equamax method, the factor analysis method and rotate method by drawing out the seven cultural values. Their research focus on the effect of culture on consumer behavior. The article is useful to culture and trend which are my topic. Hu, et al. suggest that consumer behaviors are affected by culture and self-valued concept. The main limitation of the article is that the survey is focused on practical coffee store interviewers. The authors indicate that universal love, hedonism, self- control and self-actualization, etc. have a direct proportion to consumer behavior. This article arouses that culture is the most important ways to affect consumers’ buying decision in coffee store.
The Study of Subculture and Consumer Behavior: An Example of Taiwanese University Students' Consumption Culture
Chang, L. C. (2005). The Study of Subculture and Consumer Behavior: An Example of Taiwanese University Students' Consumption Culture. Journal of American Academy of Business, Cambridge, 7(2), 258-264. Retrieved August 27, 2009, from ABI/INFORM Global. (Document ID: 850335901).
Chang explains the forming of subculture affecting Taiwanese consumers’ behavior. One useful idea is that culture can be learned and shared. Except biological characteristics, human beings can learn social values, beliefs and customs that constitute our cultural environment. The author also mentions that culture affects three parts---culture, subculture and social class. So, culture plays an important rile on consumers behavior and desire. Compared with the previous generations, Taiwanese university students are affected by peers more. They tend to pursue material enjoyment such as possessing mobile phones because of modern trend is affected by internal value and external culture. The author also compares the consumer behavior of American, Japanese and Korean university students by questionnaires, surveys and life data analyses. The main limitation of the article is that the survey sample was restricted to university students, not all students of different education level. I read the outcomes and think about Taiwanese consumers. Taiwanese consumers have unique culture systems in a mixture of Chinese cultural tradition and western influence. The material will be useful for me to analyze Taiwanese consumers’ preference in buying mobile phones because it provides some ideas about Taiwanese consumer behavior which is differentiated and affected by subculture.
Thursday, October 28, 2010
Services Marketing
IntroductionThe theories to be applied in this paper come from the literature on services marketing. Lovelock and Wirtz (2007) outline a number of these theories in their work and provide a useful insight into the way services marketing is distinguished from traditional product based marketing. Their work is preceded by Zeithaml and Bitner (1996) who similarly provided a number of theoretical frameworks for understanding how services marketing is a branch of study that stands out in the general marketing literature. The theoretical perspectives to be discussed in this report are tangibility and heterogeneity, gap theory and servicescape. The theoretical perspectives provide for an in-depth understanding of the nature of services marketing and how managers can use this understanding to measure customer perceptions and expectations. The theories will be applied to a discussion of personal service experiences contained in the appendices.
Tangibility
One important area of discussion in both theoretical works is tangibility. Physical product marketing is distinguished from services marketing by virtue of the product and service characteristics. Physical products such as hair care products and toothpaste are considered to be tangible, however services like banking and hair dressing are intangible. This has implications for measurement and assessment as physical products are routinely able to be measured against a standard set of criteria or variables (Wakefield et al., 1994). Intangibility of services means that different types of standards and criteria for assessment need to be used. This means that marketing professionals must resort to specific forms of measurement that rely more on the feedback of consumers than what is typically used for assessment of physical products. In applying the theory of tangibility to the service encounter journal, it becomes apparent that the experience of the customer is highly subjective. The experience of the restaurant dining, for example, which is also the most satisfying for the author in the journal entries, is one where the author and fellow diners were very impressed. This could, however, have been a good night for the waiter in question. This could have been a night where he was feeling elated because of good news in his personal life. He could have been in an exceptionally good mood or may have just been offered a raise or even a very generous tip from other diners. To the experience of those at the author’s table, he seemed a very good waiter and one who was highly professional and very skilled in his work. This is, however, a personal judgement held on that night’s dining. The following night or the night before could have been vastly different and so there are a couple of problems with measuring service quality in this way, according to notions of tangibility.
On the first level, there is the problem of consistency (Keillor, Lewison, Hult & Hauser, 2007). Can the waiter in question deliver the same degree of customer satisfaction to every table in the restaurant on the same night and on consistent nights that he is working? Is his quality of service provision dependent on personal mood and feeling that may be different from day to day? This is clearly a challenge for service quality assessment where there is point in time assessment gathering on behalf of those consumers.
One important area of discussion in both theoretical works is tangibility. Physical product marketing is distinguished from services marketing by virtue of the product and service characteristics. Physical products such as hair care products and toothpaste are considered to be tangible, however services like banking and hair dressing are intangible. This has implications for measurement and assessment as physical products are routinely able to be measured against a standard set of criteria or variables (Wakefield et al., 1994). Intangibility of services means that different types of standards and criteria for assessment need to be used. This means that marketing professionals must resort to specific forms of measurement that rely more on the feedback of consumers than what is typically used for assessment of physical products. In applying the theory of tangibility to the service encounter journal, it becomes apparent that the experience of the customer is highly subjective. The experience of the restaurant dining, for example, which is also the most satisfying for the author in the journal entries, is one where the author and fellow diners were very impressed. This could, however, have been a good night for the waiter in question. This could have been a night where he was feeling elated because of good news in his personal life. He could have been in an exceptionally good mood or may have just been offered a raise or even a very generous tip from other diners. To the experience of those at the author’s table, he seemed a very good waiter and one who was highly professional and very skilled in his work. This is, however, a personal judgement held on that night’s dining. The following night or the night before could have been vastly different and so there are a couple of problems with measuring service quality in this way, according to notions of tangibility.
On the first level, there is the problem of consistency (Keillor, Lewison, Hult & Hauser, 2007). Can the waiter in question deliver the same degree of customer satisfaction to every table in the restaurant on the same night and on consistent nights that he is working? Is his quality of service provision dependent on personal mood and feeling that may be different from day to day? This is clearly a challenge for service quality assessment where there is point in time assessment gathering on behalf of those consumers.
On the second level, there is the problem of subjectivity based on the conditions of the moment. This relates to the first point, as there may have been certain factors such as a charming lady at the table who took his attention, and thereby motivated him to increase his professionalism and charm to do a better job. Subjectivity is therefore a challenge in services marketing assessment because the intangibility of services makes it difficult for a consistent standard of measure (Park, Lehto & Park, 2008). Moreover, the problem of subjectivity is not just the service provider but also those of the service recipients. A bad day for either side could result in a harsher and unrealistic assessment of service offering.
Heterogeneity
An additional challenge in services marketing that relates to the concept of tangibility is heterogeneity. Heterogeneity reflects the differences in place, time, conditions and mode of service delivery. Where there are significant geographical differences or differences in culture, language or customs, it is a problem to ensure that the same standard of service delivery is achieved. This is similar to the challenges raised above and there are a range of subjective experiences and judgements that consumers will go through when in receipt of a given service (Myhal et al., 2008, pp.445). This is not always a challenge with some forms of service delivery, however, as the time and place gap can be narrowed by technology.
An additional challenge in services marketing that relates to the concept of tangibility is heterogeneity. Heterogeneity reflects the differences in place, time, conditions and mode of service delivery. Where there are significant geographical differences or differences in culture, language or customs, it is a problem to ensure that the same standard of service delivery is achieved. This is similar to the challenges raised above and there are a range of subjective experiences and judgements that consumers will go through when in receipt of a given service (Myhal et al., 2008, pp.445). This is not always a challenge with some forms of service delivery, however, as the time and place gap can be narrowed by technology.
An experience that contrasts with the pleasant dining one above was the online software purchase. This is a negative experience by comparison as it was amongst the least favoured of the experiences. In this case, the company had the chance to deliver a high quality of service universally. Time and distance can be addressed with the Internet as the medium of service (Theotokis, Vlachos & Pramatari, 2008). The company failed in this case, as service quality was very poor. The Internet-based service – the significance and size of which is growing all the time – has the potential to even out the problem of heterogeneity, but thus requires attention of the online service delivery models that are now becoming more developed and diverse. With the Internet service, however, there is a high degree of risk because of the complex nature of the global web and the differences in national legal jurisdictions that have influence over domestic nodes. This can be explained by the use of the three level of service model used by Dann (2008). In this model, service products are categorized as search goods, experience goods and credence goods (Dann, 2008, p.334). This is a scale along which services can be readily experienced and therefore judgements more easily formed on those services prior to making a decision to consume.
The high certain outcome services are those of the search good category. Consumers can readily seek out information to make judgements about how suitable the service is for their needs. The dining service could fall into this category, as there are food reviews published on the Internet and word of mouth can provide a fair guide as to the suitability of the service. To the author, the popularity of the restaurant was also a key indicator of the quality of the service. The second category – the experience goods – are typically less tangible, more subjective to the consumer but still with a fair degree of predictability of the service experience (Dann, 2008, p.334). An example of this category could be a film or a play; whereby one’s subjective preference has a significant impact on one’s judgement of the service product. Finally, the credence level service products are those that are most intangible and complex to the consumer. This is also due to the fact that there may be professional or technical knowledge for which the consumer does not possess. This is reflective of the experience of the author with the software purchase. This service product was a credence level one, as the technical knowledge of its evaluation, the lack of knowledge of service providers and how to assess them, and the lack of awareness of sources of evaluation for the software were each factors limiting the effective decision making capacity of the consumer.
Gap Theory
Another important theoretical model in the services marketing literature is that of gap theory. Gap theory stresses the gap that may exist between perceptions of service provision and the consumer’s expectation of that service (Webster & Sundaram, 2009). In going to the restaurant, the author and companions had a fair expectation of a good dining experience and service to go with it. However, expectations were exceeded in a number of ways. Thus, gap theory can account for the difference in consumer experience and expectation either way in the positive or the negative. For services marketing professionals, this is a key way of viewing measurement and change techniques in services products delivery.
Another important theoretical model in the services marketing literature is that of gap theory. Gap theory stresses the gap that may exist between perceptions of service provision and the consumer’s expectation of that service (Webster & Sundaram, 2009). In going to the restaurant, the author and companions had a fair expectation of a good dining experience and service to go with it. However, expectations were exceeded in a number of ways. Thus, gap theory can account for the difference in consumer experience and expectation either way in the positive or the negative. For services marketing professionals, this is a key way of viewing measurement and change techniques in services products delivery.
Effective measurement of perceptions of the consumer’s experience against their pre-service expectations is a good way to form a view over time where the service quality is being framed in the eye of the consumer and the market more generally. SERVQUAL is one such measurement technique that has popularly been employed to assess this (Grace & O'Cass, 2004). It is a means of quantifying the expectancy gap that exists between current level of service provision and what customers expect is the ideal level of service. The gap in consumer experience was significant for two of the experiences listed in the journal – namely, the online software purchase and the dining experience. There are factors in the measurement of this gap that are common to both, such as the attention of the service provider to the needs of the consumer and the willingness of the service provider to offer service quality above and beyond the consumer’s expectation.
Servicescapes
The early theoretical work of Bitner (1992) on servicescape is an important one for the study of services marketing. She proposed that the typology of service providers according to the physical properties of the service location can be used for strategic management and marketing. The bank experience in the journal, however, is one instance where the physical properties of the service location was established to enhance consumer experience, but some of the values of the workers were inconsistent with high quality service provision expectations. This contrasts with both the dining and the hair dressing experience; whereby location was essential in contributing to the consumer experience, but the human face to face element was highly essential in leaving the greatest impact on the consumers. O’Cass and Grace (2003, p.453) and Hoffman et al (2003) confirm this view by asserting a combination of word of mouth, servicescape and employee attitudes are highly essential in positive brand reinforcement with service products. The online environment is a unique servicescape in the services marketing and management arena (Ozdemir & Trott, 2009, p.285). It is one in which there is a natural inclination to distrust and suspect online service providers or other hidden third parties with criminal and fraudulent intent. Service providers must therefore strive to rise above this cloud of suspicion on behalf of consumers and attempt to build trust in their service and in the online infrastructure that is so essential in its delivery.
The early theoretical work of Bitner (1992) on servicescape is an important one for the study of services marketing. She proposed that the typology of service providers according to the physical properties of the service location can be used for strategic management and marketing. The bank experience in the journal, however, is one instance where the physical properties of the service location was established to enhance consumer experience, but some of the values of the workers were inconsistent with high quality service provision expectations. This contrasts with both the dining and the hair dressing experience; whereby location was essential in contributing to the consumer experience, but the human face to face element was highly essential in leaving the greatest impact on the consumers. O’Cass and Grace (2003, p.453) and Hoffman et al (2003) confirm this view by asserting a combination of word of mouth, servicescape and employee attitudes are highly essential in positive brand reinforcement with service products. The online environment is a unique servicescape in the services marketing and management arena (Ozdemir & Trott, 2009, p.285). It is one in which there is a natural inclination to distrust and suspect online service providers or other hidden third parties with criminal and fraudulent intent. Service providers must therefore strive to rise above this cloud of suspicion on behalf of consumers and attempt to build trust in their service and in the online infrastructure that is so essential in its delivery.
Conclusion
The services marketing literature provides a wealth of theoretical models, frameworks and perspectives from which to view the nature of service provision and its measurement. Theoretical perspectives reviewed in this report include tangibility and heterogeneity, gap theory and the notion of servicescape. Whilst these are just a handful of the many theoretical perspectives now emerging in this field, they are able to provide a window into the complexity of services marketing and management. The differences between satisfying and unsatisfying services, as discussed in the report, narrow down to the perceptions of consumers as they are formed throughout the consumer experience. The positive experiences are those in which the service provider and its employees gave close attention to the needs and perceptions of the consumer. In contrast, those with poor attention to consumer requirements resulted in poor or sloppy service provision. The result is understandable that the journals reflect a willingness for the author to utilize those services again, or to avoid those services in future, as the case may be with the poor service providers.
The services marketing literature provides a wealth of theoretical models, frameworks and perspectives from which to view the nature of service provision and its measurement. Theoretical perspectives reviewed in this report include tangibility and heterogeneity, gap theory and the notion of servicescape. Whilst these are just a handful of the many theoretical perspectives now emerging in this field, they are able to provide a window into the complexity of services marketing and management. The differences between satisfying and unsatisfying services, as discussed in the report, narrow down to the perceptions of consumers as they are formed throughout the consumer experience. The positive experiences are those in which the service provider and its employees gave close attention to the needs and perceptions of the consumer. In contrast, those with poor attention to consumer requirements resulted in poor or sloppy service provision. The result is understandable that the journals reflect a willingness for the author to utilize those services again, or to avoid those services in future, as the case may be with the poor service providers.
Reference List
Bitner, M. J. (1992). Servicescapes: The Impact of Physical Surroundings on Customers and Employees. Journal of Marketing, 56(2), 57.
Bitner, M. J. (1992). Servicescapes: The Impact of Physical Surroundings on Customers and Employees. Journal of Marketing, 56(2), 57.
Dann, S. (2008). Applying services marketing principles to postgraduate supervision. Quality Assurance in Education, 16(4), 333-346.
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Wakefield, K. L., & Blodgett, J. G. (1994). The importance of servicescapes in leisure service settings. The Journal of Services Marketing, 8(3), 66.
Webster, C., & Sundaram, D.S. (2009). Effect of service provider's communication style on customer satisfaction in professional services setting: the moderating role of criticality and service nature. The Journal of Services Marketing, 23(2), 104-114.
Zeithaml, V.A. and Bitner, M.J. (1996). Services Marketing. New York: McGraw-Hill.
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