The library I will examine for this exercise is the Chapel Hill Public Library. The customer segment I will analyze is that of first time customers (as I was recently one of these!). I will attempt to identify the relationship between perceived costs and derived benefits for this customer segment basing the examination on my personal experiences. I will first describe the four types of costs discussed in Philip Kotler's book and which we discussed in class (monetary, time, energy, and psychic), and then will relate these costs to both functional and emotional benefits.
I believe the question to begin with is why someone would want to become a customer of the Chapel Hill Public Library. In my case, there were two main reasons. I wanted to become a member of a library in the area in order to have access to books to read for personal enjoyment for which I did not have to pay, and also I wanted to be able to take out books for research purposes. Other first timers may have similar reasons, or may be looking for internet access, a quiet place to relax, or somewhere where thay can come to read their favorite newspaper. The first cost to examine is monetary cost. When one thinks of a public library, monetary costs don't automatically come to mind as public libaries are supported ny county taxes. However, for a patron who does not reside in Orange County and within Chapel Hill city limits (I do, this is just an aside), the annual fee is $35. The monetary costs I have to consider as a Chapel Hill Public Library patron are transportation by bus as I do not have a car, and do not live close by. Also, late fees are a consideration and reserves for currently checked out items which for each title cost 50 cents. These monetary costs are quite low considering I have a bus pass with unlimited rides until the end of the year, and do not intend to return my books late.
The second cost I will examine is time. I must admit that my trek to the library is quite time consuming. It would not be if I had a car, or if the bus F bus stopped closer and ran more frequently. I know that I can't make a quick trip to this library unless someone gives me a ride, so I plan my visits accordingly. This time question is the main reason I did not become a library patron sooner. The library seems quite out of the way as far as its location, although my perception is probaly skewed due to my lack of car! Also, as I only had a vague idea of where it was after calling the library to ask for directions (somewhere around the intersection of Franklin and Estes), and there are no clear signs from this vantage point, luckily my bus driver told me that I had to follow a path up through the woods to get there. Also, I know that I will not visit the library after dark, as walking that path in the evening would scare me, I have to consider thourougly the time frames for my visits. As far as time spent inside the library as a first time customer, I found the process of establishing my status as a patron by getting my library card quite expedient. I was asked to fill out a form giving my address and phone number, and was asked for a government issued identification card. The kind lady at the circulation desk then explained to me the libraries policies, gave me an information sheet, and issued me my card all within about 15 minutes. I was then free to take out 3 items, and was told that when I return this first round of checkouts that I would then be able to take out 5 items.
Next, I will examine energy and psychic costs. As I have already mentioned, a lot of planning has to go into my visits to the library. Planning can consume energy and time I suppose, and can also cause stress. So in terms of getting to the library, there are some time, energy and psychic costs. Once inside the library, energy can be consumed when one who is not yet familiar with the library is trying to acquaint themselves and actually find what they are looking for. This may be a deterrant for someone wishing to have library access, but not yet willing to dedicate their time and energy to this new place for fear that it will be an inconvenience.
As you have mentioned "exchange theory" suggests that a customer will accept costs in order to derive benefits that they perceive to be equal or greater than the costs. Along these lines, I will assume that for a first time customer of the Chapel Hill Public Library, the functional and emotional benefits must be greater than the costs they endure in order for them to become a library patron. That is, if a customer has made it into the library and has decided not to become a library patron, it is a result of the fact that they perceive the costs to outweigh the possible benefits. Or on the other hand, if they have decided to become a library patron, that they perceive the benefits of this status to outweigh the costs. The question I asked myself before asking for libary membership was if it was worth my while to go out of my way to come to this library. Could I enjoy this library, and the ability to check out books for the 3 week time period alotted even though a lot of time and energy may be spent getting to the library, and also getting to know the libary. I decided that it was. Money was an factor in my decision, as I will be able to read more books without having to consider buying them. Also, the atmosphere of the library was a factor. I found the employees to be very pleasant and helpful, not only at the circulation desk, but also at the information desk. One of the reference librarians pretty much held my hand as he took me through the steps of how to find a book that I wanted, and how to find books/items on a subject which I was researching. He was able to cut down significantly the possible psychic/time/energy costs that may have been relevant had I not been given appropriate help. If I had not been given such a great welcome and useful suggestions, I may have thought otherwise about becoming a library patron. Functional benefits from Chapel Hill Library patronage are many; free access to library items, a place to study/learn/read/research, free internet access, free help. Emotional benefits may include relaxation in a quiet atmosphere, knowing that you're not spending money on books/searching the internet, having access to a wealth of information, knowing that you're taking advantage of the money you pay to the county for taxes which go to supporting the library.
Evaluating the library's costs/benefits in marketing terms, I am quite convinced that costs outwiegh the benefits for first time users, although many improvements could be made. I had concerns about the library's renewal policy and whether or not I could renew by phone. The answer was yes, and this was an absolute benefit for me as I considered the costs that would have resulted from having to make a special trip to do this in person. Also, the library has started a new service of renewing books on line, and also viewing your library record on line. However, a library patron can not reserve a currently checked out item by phone or on line; it must be done in person, and for a minimal fee. This seems quite strange to me as it would certainly be more convenient for patrons to be able to do this without coming in to the library. This would be one way of maximizing the benefits of the library and minimizing the costs at the same time. I'm not sure how this could be accomplished, but I also feel that if it were easier/more convenient for possible patrons to get public transportation directly to the library, it would be of great benefit. One would not have to worry about walking in the dark through the woods to catch the bus on Franklin Street, and would perhaps save time if there was a bus that went directly to the library's door. This would minimize perceived costs for those who have not yet visited the library, and would minimize costs for library patrons without cars. I believe that the Chapel Hill Public Library could benefit from much more public awareness of the library's existance. Considering the incredible amount of Spanish speakers in the area, perhaps the library would consider more advertising to this segment in order to bring them in. Being in a library mostly made up of books where are in a language foreign to you seems to incite a sort of osmosis in the language learning process (at least in my experience), and also the library should consider a larger acquisition of Spanish language books/magazines/newspapers and publicize this acquisition. This would greatly maximize benefits for those concerned as it would be more worth their while and also provide them with a place to come where they could have access to those things important to them.
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