Customer Analysis - III

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Customer Analysis - III

• Alaska Airlines

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Price of Coffee Offerings (Pine Gilmore, 1999)
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Retail Banking Transaction Costs
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Co-production

• Customer as co-producer (hence stakeholder)
• pre-purchase
• production and consumption
• post-purchase

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Go back to Flowcharting

• Where can we create value?

Existing Actions
New Actions


Existing Actors
New Actors
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Co-Production An Illustration
Traditional Approach
Customers-as-Innovators-Approach
advanced development
advanced development
supplier
supplier
interface
design
design
Build (prototypes)
Build (prototypes)
interface
test (feedback)
customer
customer
test (feedback)
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A Closer Look at the Impact of Co-production

• The Fundamental Issue in Alaska Airline
• Use of Technology to alter Consumer Interactions
  with the Firm
• A Benchmarking Comparison
• The Diffusion of Online Banking
• What are the consequences?
• Service Consumption Activities
• Segmentation
• Customer Revenue
• Firms Costs
• Overall Profitability

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Estimated Transaction Cost by Channel
Channel Estimated Cost Per Transaction
Branch 1
Call Center (Live Agent) 0.94
ATM 0.31
Voice Response Unit (VRU) 0.18
Online 0.09

Cost of branch transaction normalized to 1
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Distribution of Transactions by Channel May 2001
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Performance Measures by Online Status