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marketing hype. The result is a turned off customer. Research suggests that a very dissatisfied customer will be much more active in voicing their unhappiness to other potential customers than happy customers. Auditing the actual customer experience to see how it measures is something an increasing number of firms are doing. Let’s now take a closer look at the points of contact that can be a possible source of competitive advantage.
PRODUCT DIFFERENTIATION
The actual product provides a great degree of latitude when it comes to differentiation. The manufacturer can adjust the form of the product by modifying the shape, size or structure of the product to differentiate it from other products. A second source of product differentiation is to add (or remove) additional features to the product. What an increasing number of firms find is that after several years of adding features they do well by introducing a slimmed down basic product which appeals those with less complex needs and to budget-conscious consumers. Telephone companies are finding this, as they add Call Waiting, Call Answer, Caller ID, etc., that there exists a substantial market which only wants basic phone service, be it landline or cellular. A third would be to attain a consistent level of quality. Fast food is by no means the healthiest of meals, but McDonald’s strategy is to consistently deliver low priced, consistent food. A key part of their value proposition is that it will be very predictable what you will get. Pre-McDonald’s when you travelled you never were sure what surprises, unpleasant or perhaps pleasant, the local ‘greasy spoon’ had in store. When you see a McDonald’s in Peoria, Illinois, Pretoria, South Africa or Perth, Australia you know that it will be a familiar menu, and will remind you of home, regardless of where you are from – and will please the children.
A fourth source of differentiation is to create a product with high durability. These are products that are built with materials that can withstand more than its fair share of wear and tear, yet still continue to work. A fifth source of differentiation is creating a product that is reliable over the product’s life. In this case the vendor positions their product by emphasizing the total cost of