MKT320F Peloton Reading Check

Questions and Answers

What is meant by maximizing customer perceived value?

Highlighting the unique personalities of trainers

Ensuring customers receive the greatest benefits for minimal costs (correct)

Focusing solely on customer experience

Offering Peloton equipment and service at a low cost

What is the Resonance-Focus Model?

Peloton's strategy to highlight the personalities of their elite trainers based on deep understanding of customer needs.

What does creating the demand landscape involve?

Tracking customer behaviors to group them into categories of goals, activities, and priorities.

What is a touch point in the context of Peloton?

The purchase/registration process between Peloton's brand and its customers. Signup and view all the answers

What is customer relationship management?

Collecting and using detailed customer information to guide product and service development. Signup and view all the answers

What is selective relationship management?

Examining the customer base to target fewer, more profitable customers. Signup and view all the answers

Peloton uses net promoter scores to measure customer satisfaction.

True Signup and view all the answers

What does creating a customer-centric culture involve at Peloton?

Rigorous recruiting and training of trainers to provide an outstanding customer experience. Signup and view all the answers

What mistake did Peloton acknowledge regarding customer loyalty?

Measuring loyalty while charging a $500 cancellation fee. Signup and view all the answers

How does Peloton plan brand extensions?

Based on customer needs rather than component similarities. Signup and view all the answers

Study Notes

Maximizing Customer Perceived Value

Peloton prioritizes delivering high total benefits while minimizing costs for key customers despite its high pricing.

Resonance-Focus Model

The company leverages a deep understanding of customer motivations, showcasing the distinct personalities of elite trainers as a competitive advantage.

Creating the Demand Landscape

Peloton conducts extensive tracking of customer behaviors through various methods, including observations and journals, to categorize distinct goals and priorities.

Touch Point

Key customer interaction occurs during the purchase and registration process, highlighting an essential connection between the brand and consumers.

Customer Relationship Management

Detailed customer data collected at touch points informs Peloton's development of tailored product offerings, services, and communications.

Selective Relationship Management

Peloton analyzes customer information for profitability, allowing for a focus on fewer, more profitable customer segments over time.

Net Promoter Score

The company measures customer satisfaction through a survey asking about the likelihood of recommending Peloton to others after product use.

Creating a Customer-Centric Culture

Peloton invests in a rigorous recruitment and training process for trainers to enhance customer experience, ensuring trainers are multifaceted entertainers and coaches.

Creating False Loyalty, rather than True Loyalty

Peloton acknowledges the mistake of using cancellation fees to gauge loyalty, recognizing that it fostered a false sense of commitment among customers.

Plan Brand Extensions Based on Customer Needs, not Component Similarities

Instead of just developing new exercise machines, Peloton focuses on expanding into non-machine-based exercises like Yoga, guided by customer needs and preferences.

Description

Test your knowledge on key concepts from the MKT320F course related to Peloton. This reading check focuses on maximizing customer value and understanding the resonance-focus model. Perfect for students wanting to reinforce their learning.