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Submitted By prathiksha1990
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MM – HW3 PRATHIKSHA SHETTY 161005193 1. Download the Loyalty Index from the Blackboard site (along with this HW) and find brand loyalty measures among Automobile brands. Visit Brand Key’s Loyalty Engagement Index Web site and browse their measurement methods. Is McDonald’s Super Bowl commercial aiming to increase customer loyalty? Do you think the “performance” of the commercial is worth $4.5 million (just for the 30-seconds air time alone)?

Yes, the commercial was aimed to connect with customers and increase the customer loyalty which would lead to increase sales as it has seen a slump over recent quarters. No, don’t think the performance was worth $4.5 million.

2. Most businesses must segment and target their market. Do you think this McDonald’s commercial is “targeted”? If so, who are the intended target audience? If not, is there any other commercial during the game with an apparent target market? (There is no reference page for this question).
I don’t think that McDonald’s commercial is targeted to any specific group. In the commercial, they showed customers from all age groups and it did not seem like it had a specific target market.
The Dove commercial for Men care products targeted the modern men, specifically fathers showing children young and old variously exclaiming "Daddy" or "Dad." 3. What are the components of customer perceived value (benefits and costs) in choosing among fast food restaurants? (Ch5. P.12)

Customer Benefits – quality of food, Location, Services, Value, Image
Customer Costs – Money, time, Energy

4. What are the main value propositions of McDonald’s in this commercial? In other words, what does the Company promise to the consumers? (Ch5, p.17)

The commercial appealed to the consumers on an emotional and personal level this Super Bowl. It does it in a way that taps the powerful emotions inherent in the durable love of family/friends and implicitly (yet legitimately) connects that emotion with the long-term presence the McDonald’s brand has had in each of our lives and communities. It stresses the importance of kindness, family, doing good etc.
It promises that McDonald’s would always do its best to provide the best experience for their customers and that they care for customers 6. In the ACSI site (p. 19), download customer satisfaction results for Restaurants. (If you are inclined to, there is no need to provide accurate email information on the request form.) What are the main factors for customer satisfaction?
Accuracy of food order , quality of beverages , Courtesy and helpfulness of Staff , Layout and cleanliness of the restaurant , Speed of checkout/delivery , Quality of food , Website satisfaction , Variety of items on the menu , Variety of beverages on the menu are all main factors for customer satisfaction

7. How would you derive customer life time value (CLV) for a typical McDonald’s customer? There is no need to be quantitative—only at the conceptual level. (Ch5, p.21)
Customer life time value -
(Average amount spent on every visit) * (average of visits in a month/year) * (Average retention time in months/years for a typical customer)
8. Refer to the “consumer buying process” on PPT Ch 6, p.18. Which stage of the process is the McDonald’s commercial trying to influence and how?
The McDonald’s commercial is trying to influence the purchase decision and the post purchase behavior of the customers through the commercial by showing the customers that they intend to provide the best of experience for their customers and showing that they care for their customers by upholding family values , love and kindness.…...

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