Organising haute-cuisine service processes : a case study

One of the essential aims of service process organisation is to increase the added value for the customer, thereby increasing customer satisfaction and stimulating consumption. In a haute-cuisine context, customers typically have a higher degree of uncertainty as they often lack the experience of receiving and judging quality in a haute-cuisine setting. This article reports on the application of service process organisation in a haute-cuisine restaurant. The case study shows that there is a significant need to reduce back office activities so that interaction with the customer or customer-facing processes can be increased. This can increase the added value for the customer and can result in higher profits for the restaurants as the customer is either willing to pay higher prices or to consume more. Routines should be implemented that align with segmentation and customer data, while undergoing a retraditionalisation of the service through know-how and interaction. Only interaction with, and integration of, the customer adds significant value that can be further expanded by providing an atmosphere where customer and co-customer have the chance to interact

Structural Equation Modeling and simultaneous clustering through the Partial Least Squares algorithm

The identification of different homogeneous groups of observations and their appropriate analysis in PLS-SEM has become a critical issue in many appli- cation fields. Usually, both SEM and PLS-SEM assume the homogeneity of all units on which the model is estimated, and approaches of segmentation present in literature, consist in estimating separate models for each segments of statistical units, which have been obtained either by assigning the units to segments a priori defined. However, these approaches are not fully accept- able because no causal structure among the variables is postulated. In other words, a modeling approach should be used, where the obtained clusters are homogeneous with respect to the structural causal relationships. In this paper, a new methodology for simultaneous non-hierarchical clus- tering and PLS-SEM is proposed. This methodology is motivated by the fact that the sequential approach of applying first SEM or PLS-SEM and second the clustering algorithm such as K-means on the latent scores of the SEM/PLS-SEM may fail to find the correct clustering structure existing in the data. A simulation study and an application on real data are included to evaluate the performance of the proposed methodology

Using segmentation to compete in the age of the sharing economy: testing a core-periphery framework

Airbnb has emerged as a credible competitive threat to the hotel industry. Consequently, hotel brands are having to rethink the experiences they provide to customer in an increasingly competitive environment. Despite these trends in the industry, experience-related research that examines and informs these developments remains under-represented in the hospitality and tourism literature. The present study offers a systematic approach to examine the potential differences in experiential consumption in the accommodations industry. Using a multiple-group analysis approach, it examines the moderating effects of individual characteristics and situational factors on the nature and dynamics of experiential consumption in the accommodations industry. The findings of the study culminate in the core-periphery framework of the hospitality consumption experience that can provide a relevant theoretical lens for future research into the different sectors and types of experiences within the hospitality and tourism industry. The study also outlines important implications for the hotel industry’s strategic experience design initiatives, from the standpoint of product development, the segmentation, targeting and positioning (STP) process, and marketing communications.Accepted manuscrip

A new model to support the personalised management of a quality e-commerce service

The paper presents an aiding model to support the management of a high quality e-commerce service. The approach focuses on the service quality aspects related to customer relationship management (CRM). Knowing the individual characteristics of a customer, it is possible to supply a personalised and high quality service. A segmentation model, based on the "relationship evolution" between users and Web site, is developed. The method permits the provision of a specific service management for each user segment. Finally, some preliminary experimental results for a sport-clothing industry application are described

Perceived congruence and online loyalty as segmentation variables in multichannel retailing: a comparison between appparel and electronics

As the interest of the literature on congruity between offline and online stores is relatively recent, empirical evidence is required to help marketing managers choose the most effective ways of contributing to the formation of consistent offerings as well as their contribution to generate customer loyalty. This study examines whether congruity can help to identify segments of heterogeneous consumers that differ significantly regarding these variables as well as other constructs related to the customer relationship with the retailer. The study attempts to identify which congruity attribute(s) are most relevant for differentiating customers by their loyalty towards the online store, so that retailers can design strategies for improving congruity between physical and online stores, and ultimately, increase online store loyalty

Fuzzy Recommendations in Marketing Campaigns

The population in Sweden is growing rapidly due to immigration. In this light, the issue of infrastructure upgrades to provide telecommunication services is of importance. New antennas can be installed at hot spots of user demand, which will require an investment, and/or the clientele expansion can be carried out in a planned manner to promote the exploitation of the infrastructure in the less loaded geographical zones. In this paper, we explore the second alternative. Informally speaking, the term Infrastructure-Stressing describes a user who stays in the zones of high demand, which are prone to produce service failures, if further loaded. We have studied the Infrastructure-Stressing population in the light of their correlation with geo-demographic segments. This is motivated by the fact that specific geo-demographic segments can be targeted via marketing campaigns. Fuzzy logic is applied to create an interface between big data, numeric methods for processing big data and a manager.Comment: conferenc

Data Mining to Uncover Heterogeneous Water Use Behaviors From Smart Meter Data

Knowledge on the determinants and patterns of water demand for different consumers supports the design of customized demand management strategies. Smart meters coupled with big data analytics tools create a unique opportunity to support such strategies. Yet, at present, the information content of smart meter data is not fully mined and usually needs to be complemented with water fixture inventory and survey data to achieve detailed customer segmentation based on end use water usage. In this paper, we developed a data‐driven approach that extracts information on heterogeneous water end use routines, main end use components, and temporal characteristics, only via data mining existing smart meter readings at the scale of individual households. We tested our approach on data from 327 households in Australia, each monitored with smart meters logging water use readings every 5 s. As part of the approach, we first disaggregated the household‐level water use time series into different end uses via Autoflow. We then adapted a customer segmentation based on eigenbehavior analysis to discriminate among heterogeneous water end use routines and identify clusters of consumers presenting similar routines. Results revealed three main water end use profile clusters, each characterized by a primary end use: shower, clothes washing, and irrigation. Time‐of‐use and intensity‐of‐use differences exist within each class, as well as different characteristics of regularity and periodicity over time. Our customer segmentation analysis approach provides utilities with a concise snapshot of recurrent water use routines from smart meter data and can be used to support customized demand management strategies.TU Berlin, Open-Access-Mittel - 201

To boardrooms and sustainability: the changing nature of segmentation

Market segmentation is the process by which customers in markets with some heterogeneity are grouped into smaller homogeneous segments of more ‘similar’ customers. A market segment is a group of individuals, groups or organisations sharing similar characteristics and buying behaviour that cause them to have relatively similar needs and purchasing behaviour. Segmentation is not a new concept: for six decades marketers have, in various guises, sought to break-down a market into sub-groups of users, each sharing common needs, buying behavior and marketing requirements. However, this approach to target market strategy development has been rejuvenated in the past few years. Various reasons account for this upsurge in the usage of segmentation, examination of which forms the focus of this white paper. Ready access to data enables faster creation of a segmentation and the testing of propositions to take to market. ‘Big data’ has made the re-thinking of target market segments and value propositions inevitable, desirable, faster and more flexible. The resulting information has presented companies with more topical and consumer-generated insights than ever before. However, many marketers, analytics directors and leadership teams feel over-whelmed by the sheer quantity and immediacy of such data. Analytical prowess in consultants and inside client organisations has benefited from a stepchange, using new heuristics and faster computing power, more topical data and stronger market insights. The approach to segmentation today is much smarter and has stretched well away from the days of limited data explored only with cluster analysis. The coverage and wealth of the solutions are unimaginable when compared to the practices of a few years ago. Then, typically between only six to ten segments were forced into segmentation solutions, so that an organisation could cater for these macro segments operationally as well as understand them intellectually. Now there is the advent of what is commonly recognised as micro segmentation, where the complexity of business operations and customer management requires highly granular thinking. In support of this development, traditional agency/consultancy roles have transitioned into in-house business teams led by data, campaign and business change planners. The challenge has shifted from developing a granular segmentation solution that describes all customers and prospects, into one of enabling an organisation to react to the granularity of the solution, deploying its resources to permit controlled and consistent one-to-one interaction within segments. So whilst the cost of delivering and maintaining the solution has reduced with technology advances, a new set of systems, costs and skills in channel and execution management is required to deliver on this promise. These new capabilities range from rich feature creative and content management solutions, tailored copy design and deployment tools, through to instant messaging middleware solutions that initiate multi-streams of activity in a variety of analytical engines and operational systems. Companies have recruited analytics and insight teams, often headed by senior personnel, such as an Insight Manager or Analytics Director. Indeed, the situations-vacant adverts for such personnel out-weigh posts for brand and marketing managers. Far more companies possess the in-house expertise necessary to help with segmentation analysis. Some organisations are also seeking to monetise one of the most regularly under-used latent business assets… data. Developing the capability and culture to bring data together from all corners of a business, the open market, commercial sources and business partners, is a step-change, often requiring a Chief Data Officer. This emerging role has also driven the professionalism of data exploration, using more varied and sophisticated statistical techniques. CEOs, CFOs and COOs increasingly are the sponsor of segmentation projects as well as the users of the resulting outputs, rather than CMOs. CEOs because recession has forced re-engineering of value propositions and the need to look after core customers; CFOs because segmentation leads to better and more prudent allocation of resources – especially NPD and marketing – around the most important sub-sets of a market; COOs because they need to better look after key customers and improve their satisfaction in service delivery. More and more it is recognised that with a new segmentation comes organisational realignment and change, so most business functions now have an interest in a segmentation project, not only the marketers. Largely as a result of the digital era and the growth of analytics, directors and company leadership teams are becoming used to receiving more extensive market intelligence and quickly updated customer insight, so leading to faster responses to market changes, customer issues, competitor moves and their own performance. This refreshing of insight and a leadership team’s reaction to this intelligence often result in there being more frequent modification of a target market strategy and segmentation decisions. So many projects set up to consider multi-channel strategy and offerings; digital marketing; customer relationship management; brand strategies; new product and service development; the re-thinking of value propositions, and so forth, now routinely commence with a segmentation piece in order to frame the ongoing work. Most organisations have deployed CRM systems and harnessed associated customer data. CRM first requires clarity in segment priorities. The insights from a CRM system help inform the segmentation agenda and steer how they engage with their important customers or prospects. The growth of CRM and its ensuing data have assisted the ongoing deployment of segmentation. One of the biggest changes for segmentation is the extent to which it is now deployed by practitioners in the public and not-for-profit sectors, who are harnessing what is termed social marketing, in order to develop and to execute more shrewdly their targeting, campaigns and messaging. For Marketing per se, the interest in the marketing toolkit from non-profit organisations, has been big news in recent years. At the very heart of the concept of social marketing is the market segmentation process. The extreme rise in the threat to security from global unrest, terrorism and crime has focused the minds of governments, security chiefs and their advisors. As a result, significant resources, intellectual capability, computing and data management have been brought to bear on the problem. The core of this work is the importance of identifying and profiling threats and so mitigating risk. In practice, much of this security and surveillance work harnesses the tools developed for market segmentation and the profiling of different consumer behaviours. This white paper presents the findings from interviews with leading exponents of segmentation and also the insights from a recent study of marketing practitioners relating to their current imperatives and foci. More extensive views of some of these ‘leading lights’ have been sought and are included here in order to showcase the latest developments and to help explain both the ongoing surge of segmentation and the issues under-pinning its practice. The principal trends and developments are thereby presented and discussed in this paper

Alter ego, state of the art on user profiling: an overview of the most relevant organisational and behavioural aspects regarding User Profiling.

This report gives an overview of the most relevant organisational and\ud behavioural aspects regarding user profiling. It discusses not only the\ud most important aims of user profiling from both an organisation’s as\ud well as a user’s perspective, it will also discuss organisational motives\ud and barriers for user profiling and the most important conditions for\ud the success of user profiling. Finally recommendations are made and\ud suggestions for further research are given