MOD004160TRI CONTEMPORARY ISSUES IN INTERNATIONAL MANAGEMENT SAMPLE
Introduction
Nowadays, businesses are facing some of problems in order to deal with the expectation of customers and this factor tends to affect the growth of the business. In this following report, the lack of understanding of customer’s needs along with the factors that lead to the change in the behaviors and the impact of this factor on the business. The issues that are faced by the business are referred to as the issues in the retailing sector. In order to increase the sale as well as for the growth of the business, the business is needed to make strategic plans for targeting the right customers in order to enhance the rate of sales.
Lack of consumer understanding as a contemporary issue in retailing
The customers of today’s world are mainly getting distracted by the pieces of information that are present on online platforms and tend to decide the factor of liking or disliking the brand, along with this the customers often tend to find various options in order to find the best offers as well as deals that are beneficial for the customer. This refers to switching them in the online platform for finding the best options that will be beneficial for the customer itself (de Oliveira Santini et al. 2020). The other problem that tends to influence the mind of the customers is a misunderstanding or not being able to provide the correct information from the side of the staff of the organization. Therefore, customers tend to use the online platform in order to find various offers as well as deals that are favorable for the customer.
The NBO program tends to help the business in order to gather information for the business then after understanding the needs as well as requirements of the customers in order to enhance the quality of the business along with finding the best as well as most appropriate ways in order to attract customers through convenient channels (Li et al. 2020). The mentioned benefits of the NBO program, whereas in the mentioned article of the Harvard Business Review the NBO program is not so appropriate as well as not able to understand the need of the customers. The business has to understand the needs of the customers along with the location of the customers in order to understand or at least get an acknowledgment about the requirement of the customers.
It is studied that every company tends to do research about the need of the customers as per the programs of NBO, also it is commonly said that a business can get a rise in the factor of sales as well as the business can also influence the demand in the market place by understanding the needs as well as the requirement of the customers (Islam et al. 2019). Also, knowing the correct customers for the business depends on various factors such as age, gender, residential address, and income of consumers, these all factors can influence the business to understand the necessary planning required for the next offer or the deals that can be offered to the customers. Along with this the business also gets information about the behavior of the customer’s interests by the use of the voting pole the post on social media.
The business can also get information regarding the behavior of the customers from the present data of the purchases done previously by the customers. The business also tries to introduce the facility of feedback in order to get the perspective of customers thinking as well as in order to understand the modification that the customers want (Prentice et al. 2019). In order to provide the best and the most appropriate deals for consumers, the business can refer to the information that is available regarding the purchase that was made previously, also the business can introduce the program loyalty, the program is likely the same as the loyalty program of Tesco, this loyalty program will tend to provide benefit to the business by the number of a loyalty card is been used by the number of customers.
This will tends to show the business about the loyal customers along with this the program of loyalty tends to offer rewards, discounts on the price of the products, as well as other incentives regarding the product in order to attract more customers. The program of loyalty is made in such a way that tends to encourage the customers to get different rewards from the brand. Along with this, the loyalty program allows the business to understand the pattern of buying products from the customers (Hoyer et al. 2020). The business is required to know the offerings, it can be done the business after the business is having the correct information about the customers in order to attract the number of customers for the benefit of the business, the business is required to gather all the information regarding its own product or service, in order to understand the type of customers that the business can target for attracting more number of customers. In the industry of retail, the factors that tend to influence the growth of the business are apparel and groceries, and “compiling product attributes is much more difficult”.
The next step that the business is required to follow in order to influence the factor of sales as well as the demand for the product in the market (McLean and Wilson, 2019). In accordance with the program NBO, the business should take some of the points into consideration such as creating a channel in order to make the process of connecting with the customers to be easier and this will allow the business to get more appropriate information about the needs as well as the requirement of the customers. It can be done by various processes such as face-to-face, by the use of phone, via email, or many other options. This process of communication will tend to show the factor of the satisfaction level of the customers.
Among the factors which can give impact the behaviour of the consumer are personal factors and economic factors. There are some factors of personal factors, some of which are age, income, occupation, lifestyle, and many more. Age is one of the primary factors that can effects the behaviour of customers (Scavone et al. 2020). Income is the most important factor which drives the behaviour of customers; the lifestyle of the customers is more over-dependents on the income of the customers.
Factors that impacted consumer behaviors and its impact on business
The growth of the organization majorly depends on the behavior of the consumer, the factors that tend to influence the behavior of the customers, it also refers to the satisfaction of the customers by the use of a product or service, in general, the factors which tend to mainly affect the business are the psychology, social, cultural, personal, and economic (Lee et al. 2019). The factors of psychology refer to influencing the mind of the consumers through motivation, and the element of motivation refers to the various aspects of the customers which can lead to affect the business in a positive manner as well as in a negative manner. The theory of motivation includes 4 different levels that help the business to understand the needs of the customers. Those 4 levels are the need for safety, the need for social aspects, the need for esteem, and lastly, the need for self-actualization.
The most important needs among these 4 needs are the need of safety while using the product or the service, as well as the need of security while using the product or the service. The second element of psychology is perception, perception refers to the structure of the information as well as the reputation of a brand and product that is gathered by the organization (Tso et al. 2020). The time when consumers observe the advertisement of a product, review of the product, feedback regarding the product, or the promotion of the product. A business tries to create a better image in the eyes of customers in order to attract more customers. The third element of psychological factors is learning which tends to influence the growth of the business.
Every time consumers make a purchase of a product, it lets the customer gain some pieces of information regarding the product and tends to influence the satisfaction of the customers (Petrescu et al. 2020). Referring to example, the amazon company seeks to gather information via feedback from the customers in order to enhance the quality of the products as well as any necessary changes in the process of assembling the products. The last element that tends to influence the factors of the psychology of customers is “attitudes and beliefs”, it refers to the process of changing the decision of the customers by influencing beliefs as well as attitudes of the customers.
The 2nd factor that tends to influence the behavior of consumers is the social factor, the factor of social refers to the decision of the consumers that is changed according to the surrounding of the customer. It consists of various elements such as family, the group of reference, and the element of roles and attitudes (Eriksson et al. 2021). The element of family leads influences the decision of purchasing a product or a service. The family tends to purchase those things which are mainly necessities for the household. The second element is the group of reference, these groups are generally those to whom the customers are tending to meet every day.
This can be in various groups such as groups of friends, schools, offices, and many other places. The pattern of the reference group is likely similar, the group of people gets influenced by the feedback or the opinion of the groups and tends to make a purchase of the products as well as the service (Eriksson et al. 2021). The element of roles and status refers to the person who tends to hold a higher position in society, and this tends to influence the decisions of the common people to buy things by following the persons who are influencing the common people.
The 3rd factor is a culture that tends to influence the decision of purchasing a product as well as a service. Every person has their own values as well as ideologies regarding society. The element of culture refers to the general requirements, wants, values, and preferences, these all are the elements that every common people tends to observe as well as adopt in their daily lives. The element of subculture is also an aspect that tends to influence the behavior of the people in order to make a purchase (Eriksson et al. 2021). The subculture tends to share common sets of beliefs as well as values, along with this it also consists of various people’s “nationalities, religions, caste, and geographies”. The subcultures can influence the behavior of purchasing, if case one person becomes the customer for the business and the business can influence the satisfaction of the customers then it will tend to influence more people to be the customer for the business.
NBO, as a strategic way to deliver value to the consumers
The term Next Best Offer (NBO) refers to the learning of the companies through the analytics of the customers as well as knowing the customers at the level of individual and allows the best way to drive revenue, and build loyalty, along with this the company tends to increase the rate of customers retention (Orzan et al. 2018). The company also tries to do predictive analysis in order to move quickly to the solutions by the use of marketing technologies in order to influence the accuracy of the process as well as lead towards the higher value of the customer. The NBO program also allows the business or the organizations to perform predictive analytics that tends to help the marketers as well;l as the organization to have a better judgment about the habit of customers spending as well as tends to guide the marketing efforts in order to connect with the customers in order to close a deal.
The NBO program also tends to the optimization of the process of selecting an offer that is highly customized and beneficial for the customers. The program of NBO also refers to the evaluation as well as a recommendation regarding one or more than one products that will likely provide more satisfaction to the customers (Orzan et al. 2018). The program of NBO tends to more conversion of rates by coordination with the delivery at the correct moment at an attractive price along with the appropriate channel. The marketers as well as the organization were finding solutions for many years. The development according to the personas of the customers was trying to be done by the marketers as well as the organization in order to satisfy the demands as well as the requirement of the customers, but neither of them was successful and the factor of satisfaction did not get influenced by the business as well as the marketers.
Currently, the experience of the customers is measured via various processes such as by implementing the process of interaction with the customers in order to understand the requirement as well as the satisfaction of the customers. Overall, the process that is being used recently as the solution for the experience of the customers is “customer-centric and learn from customer behavior” in order to make the next best offer to be better in comparison to the previous (Hafeez, 2019). In order to influence the sale of the product or the service in an increased manner the marketer tends to use the best strategy for marketing along with retaining the customers, and also determine the value of each and every customer.
In the next step of the process in order to increase the factor of sale for each and every customer of the product or service, the business tries to fulfill all the requirements as well as the demands of their customers, along with trying to fulfill the expectations of each and every customer as much as possible (Hafeez, 2019). The use of marketing tools allows the organization in order to understand the requirement of the customers. The organization is required to be up-to-date in order to have all the information regarding the behavior, needs, as well as trends of the customers in order to influence the factors of the sale as well as the demand for the product or the service that is offered by the business.
It is commonly referred to that the aspect of the next best offer tends to influence the customers in a major way, along with the value of customers tends to get increased for their lifetime. The NBO program is also referred to as the best solution that tends to include the “modeling of the response of individual, individual profitability modeling, and constraint-based optimization”. Also, this tends to cover both “profitability and probability” of the values of the customers for their lifetime (Rzepka et al. 2020). The program of NBO also refers to those mistakes which are made sometimes by the use of NBO in order to sell products in an increased manner in order to proceed with the plan of providing benefits to the organization but sometimes it is not beneficial for the organization for a longer term.
Many organizations need to implement the customer-centric approach in order to make the NBO program better manner in order to understand the target customers (Camacho-Otero et al. 2018). The program of NBO also tends to influence the process of attracting customers as well as satisfying existing customers. The organization has to start thinking regarding the program of NBO in order to make it in a better manner and make the necessary as well as specific changes in order to attract more customers. Organizations can also look forward to compelling events in order to influence the process of satisfying the needs of the customers. Organizations can also implement the process of marketing in a way of inbound as well as outbound processes in order to attract more customers as well as enhance the growth of the organization.
The key aspects of the NBO program are that the program tends to be more relevant for the customers. Along with the consistency of the organization across “touchpoints and time”, the program of NBO refers to the process of reduction of the choices of the customers (Camacho-Otero et al. 2018). The main advantage of the next best offer is that it refers to the process of marketing in a personalized manner as well as is based on the way of doing analysis in a predictive manner, in the simple words, it can be said that the program of next best offer tends to predicts the needs of the customers as well as allows to show the offers to the customers along with the products that are enhanced in the basis of the habits of the customers.
Way to upscale the execution of the best channel for delivering offers
The main propose of this part is to make understand the proper and effective NBO (Next best Offer) of the organizations. There are many kinds of processes and steps for make understanding the channels and delivery processes of the organization, so among those processes, there are some important and basic steps. According to the experts, these know the customer of the particular organization, making a good understanding of the offers of the particular organization, knowing the context of the purchase, and many more (Weng et al. 2018). So these are some basic steps the organizations should be followed, the offers are important6 for the development of the business (Buyya et al. 2018). At the current age, there are many types of competitors in the market already. So the offers of the organization can be a key to the business of the particular organization. Many successful companies use many kinds of rewards, offers, cash back, and many more techniques to attract customers, and also for developing loyal customers for the organization. Loyal customers are a kind asset for any kind of organization; they can promote the name of the organization mouth to mouth, and increase the brand value, the reputation of the particular organization also increased with the help of loyal customers (Buyya et al. 2018). There are some disadvantages also but the advantages are bigger than the disadvantages of the loyal customers.
Understanding the customers is crucial for the organization, A proper creation of an effective NBO needs many kinds of information about the customer and customer base of the organization (Esser et al. 2019). The age of the customers, gender, address, income, number of children, and many more information like that is crucial for making an effective NBO, due to the target of the customers properly. Many successful ‘organizations like Tesco, SoMolo, and much more track the buying pattern of their customers properly. According to those data the organization promotes its products in the market. At the current age, almost every kind of business and organization is joining online platforms for the development of their business. Social media platforms have gained huge importance in the daily life of people. That is the reason social media marketing is gaining importance day by day. It has a direct impact on the mind of the people (Marcus et al. 2020). At this current time organizations like Tesco, and many more using this marketing strategy hugely, and for doing this heavy amount of information and data about the customers are needed.
Understanding the offer of a particular organization among customers is important for the organization, and that is why organizations always try to clarify the offers of their organization to the consumers (Gabler et al. 2020). The making of good NBO is crucial same the proper understanding of those offers among the customers is also crucial, for products like movies and songs, a third party is needed to supply the data and information. The basic meaning of the key offering is nothing but a promotion tool for the organization, according to the experts and reports, there is some process that is followed by the organizations for improving their NBO. Among those some important are reviewing the portfolio of products, expanding the existing offers, encouragement of consumers to leave crucial feedback, developing new channels, and many more (Marcus et al. 2020). Each of those factors is crucial for making new offers. Feedbacks are one of those key factors for satisfying the customers of the organization, which is why many kinds of an organization always take it seriously and modify their customer service according to it (Buyya et al. 2018). The stakeholders, customers, and employees are attracted by the good feedback of the organization. Not only is that but the reputation of the particular organization also impacted by the feedback of the customers.
The next part knows the context of the purchase, according to the study, the information and offers of a particular organization will be affected when the customers know about it through personal phones, e-mails, websites, and channels like it. The purchase context is like a suggestion of the organization that is provided to the customers according to the buying data of the customers. The engagement of the customers is crucial which is why organizations make solid management for developing good strategies (Marcus et al. 2020). Management like the backbone of an organization, employee satisfaction, customer satisfaction, and many more are directly dependent on the management of the organization.
Recommendation
The engagement of the customers should be increased for the success of the organization, with time the needs and thoughts of the customers are changed over time (Buyya et al. 2018). That is why the creation of new strategies and offers is crucial for the survival of the company, according to the studies there are some basic steps for attracting customers, and the organization should follow those strategies. Those are offered to the customers; making recantation with the customers, create a good network, always updating the websites, making good management, taking the advantage of the online platforms, and many more.
The offering is important for satisfying the customers and creating a huge customer base in the market, the company should make better offers from the competitors of the present market. It will increase customer satisfaction and gain positive feedback, and good brand value is a kind of huge asset for the organization. Another crucial step that should follow by the organizations is making reconnection with the old customers; this is one of the most effective ways for making loyal customers for the organization (Buyya et al. 2018). Not only that but proper communication with the customers can make a good relationship between the consumers and the organization.
At the present time, the update of the website is crucial for the development of the business, at the present time the websites are the media by which the whole world is connected with the organization (Buyya et al. 2018). An organization like Tesco sells its product directly on the website of the organization, which can increase the number of customers (Marcus et al. 2020). The online ratings are the overview of the whole organization; the new customers always see the rating first. The importance of management is huge in the organization, the structure, strategies, and rules of the organization are created by the management.
Conclusion
The whole study is basically made about the NBO (Next Best Offers) of the organizations; this part of the study basically clears the significance of the whole study. There are many kinds of studies are done for the development of the project, among those some are the study about the NBO, its importance, and the factors which are essential for, making a good NBO is done for it. The effects of NBO on the customers are also discussed here properly, not only that but the importance of the marketing is also mentioned here. It is concluded that the NBO is hugely effective for gaining new customers and the development of the business.
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