Strategic Risk Management and Customer Satisfaction: Nura Case

This report analyzes the strategic risks faced by Nura Headphones, particularly concerning customer satisfaction. It identifies the problem as a disconnect between the company's personalized sound technology and customer expectations, exacerbated by premium pricing and unique product design. The report explores various options for improving customer satisfaction, including developing customer service communities, providing multichannel support, prioritizing employee satisfaction, conducting customer surveys, and leveraging customer reviews. The recommended solution focuses on utilizing customer reviews to refine product offerings and pricing strategies. By analyzing customer feedback, Nura Headphones can better understand customer needs and adapt its products and services to meet those demands, ultimately enhancing customer satisfaction and fostering sustainable growth. The report concludes that a data-driven approach, centered on customer reviews, is crucial for Nura Headphones to address its strategic risks and improve its market position.

Running head: MANAGEMENT OF STRATEGIC RISKS
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Name of the Student
Name of the University
Author Note

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Executive Summary
The report is based on the analysis of an issue that is being faced by an organization and the
methods that can be implemented in order to provide solutions. The company that has been
taken into consideration for analysis is Nura Headphones. Nura Headphones has faced major
issues related to satisfaction of the customers in the industry. The options that are offered to
the organization have also been analysed in the report in detail. The best option that has been
selected in order to provide solutions based on the issue is based on proper analysis of the
reviews that are provided by the customers. This process is considered to be helpful in order
to analyse their demands and needs. The recommendations are provided in the report based
on the proper usage of customer reviews in order to develop the product of Nura Headphones.

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Table of Contents
Introduction....................................................................................................................3
Statement of the problem...............................................................................................3
Analysis of the issue.......................................................................................................4
Discussion of the possible options.................................................................................4
Recommendations..........................................................................................................6
Details of the chosen option...........................................................................................6
Conclusion......................................................................................................................7
References......................................................................................................................8

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Introduction
Nura Headphones is a consumer electronics based organization that operates in
Melbourne, Australia. The company mainly operates in the designing and manufacturing of
headphones that offer personalised sound based technology. The technology that is used by
Nura Headphones is able to measure the hearing sensitivities of the users in order to develop
the sound based on different frequencies. The process of hearing measurement mainly takes
around one to two minutes and the headphones are then able to adapt to the frequency in
response to the hearing abilities of the users (Nuraphone.com. 2019).
The report will be based on the analysis of the problems that are being faced by Nura
Headphones due to lack of proper customer satisfaction. The methods that can be
implemented to improve the services that are provided to the customers by Nura Headphones
will be an important part of the analysis that will be made in the report.
Statement of the problem
Nura Headphones has been recently facing customer satisfaction based issues in
providing the perfect pair product based on their needs. The customers also seem to be highly
reluctant of buying the products offered by the company due to a lack of proper brand name
and premium prices as well. The development of a huge customer base has not been possible
as the organization has not been able to attract them with the help of its products (Bowen &
Chen McCain, 2015). The company has aimed at providing headphones that are based on the
hearing capabilities of the consumers. However, the premium prices have not been helpful for
attracting the customers towards the products that are provided by the company (Agnihotri et
al., 2016).

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Analysis of the issue
The products offered by Nura Headphones are considered to be quite different from
those which are provided by other organizations in the industry. The organization has thereby
failed to compete with the major organizations in the industry like, Bose and Sennheiser. The
premium pricing of products has been a major reason behind the lack of proper customer
satisfaction. Customers are thereby not willing to purchase the products from Nura
Headphones due to the strange design of the products as well (Cossío-Silva et al., 2016). The
design of the products has been able to play a major role in reduction of the customer
satisfaction levels. The customers are sometimes reluctant to get a trial of the products by
making a huge investment of 399 Dollars.
Discussion of the possible options
The satisfaction of customers is considered to be the most important part of the ways
by which an organization is able to maintain its operations in the industry for a long period of
time. The sustainable operations of an organization are based on the number of satisfied
customers that it is able to maintain. Nura Headphones also needs to ensure that the
customers are satisfied with the products that are the organization offers to the customers
(Hassan et al., 2015). The different methods that can be implemented by Nura Headphones in
order to maintain satisfaction of the customers are as follows,
Development of the customer service based communities – The development
of communities based on customer service is a process that is being used by
many organizations currently. The customers who are a part of the community
can provide their ideas and opinions related to the products to the
organization. The new features can also be developed by an organization with
the help of ideas that are offered by the customers (Hur, Moon & Jung, 2015).

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The customers need to be treated in the way they wish and the staff of the
organization has to be trained in such a manner so that they are able to
understand them. The difficult customers need to be handled by the staff so
that the organization does not face major issues.
Providing multichannel support – The communication channels that are
developed by an organization are considered to be an important part of the
customer satisfaction process. Different channels that are currently being used
by the organizations in order to communicate with the customers include,
mobile, social media, email and web chat. The omni-channel approach is also
used by the organizations in order to communicate with the customers (Kaura,
Durga Prasad & Sharma, 2015).
Employee satisfaction needs to be provided with maximum levels of
importance by the organizations. The employees who are happy in the
organization tend to provide the best levels of services to the customers. The
appreciation that is provided to the employees is considered to be an important
aspect of the successful operations of organizations (Larivière et al., 2016).
The organizations operating in the modern business environment need to
consider customer survey in order to analyse the types of products that can be
offered to them. The proper development of satisfaction levels is considered to
be possible with the help of analysis of the demands and needs of the
consumers (Ramanathan, Subramanian & Parrott, 2017).
The culture that has been developed in the organization also influences the
levels of customer satisfaction. Training programs will be able to play a major
role in formation of a positive culture and satisfying the customers as well.
The values that are demonstrated by the employees can have a major impact

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on the ways by which they are able to satisfy the customers (McColl-Kennedy
et al., 2015).
The reviews that are provided by the customers have to be taken into
consideration by the organization for the purpose of deciding the types of
products that can be offered to them. Proper improvement of the services and
products are possible with the support that is provided by the customer
reviews (Saeidi et al., 2015).
Recommendations
Nura Headphones can be provided with the following recommendations in order to
improve the levels of customer satisfaction,
 Nura Headphones needs to understand the demands and needs of the
customers in order to develop the products accordingly.
 The communication needs to be developed with the customers in order to
understand the current trends and apply them in the operations.
 The management of Nura Headphones needs to ensure that the customers are
aware of the features that are offered by the products.
Details of the chosen option
The option that can be chosen by Nura Headphones in order to satisfy the customers
is the ways by which the current reviews provided by them can be taken into consideration in
order to maintain the products and services. The organization will analyse the opinions and
the reviews that are offered by the customers in order to understand the changes that can be
made to the products in order to attract them. The prices of products are considered to be a
major factor behind the lack of huge number of customers (Sengupta, Balaji & Krishnan,
2015). The organization thereby needs to think of methods that can be implemented in order

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to provide them with the products at costs that are affordable for the customers. Nura has
recently developed a subscription facility in order to attract the customers by offering them
with the products at monthly instalments (Kaura, Durga Prasad & Sharma, 2015). However,
the products can be kept by the customers only if they continue the subscription. The
cancellation of subscriptions before the mentioned time can lead to a loss of money for the
consumers. Nura Headphones needs to develop the subscription facility in such a manner that
can provide the customers with an ownership of the products. The monthly payment facilities
can help the company to gain more number of customers (Hur, Moon & Jung, 2015).
Conclusion
The report can be concluded by stating that Nura Headphones can solve the issues and
problems that are being faced by them with the help of proper analysis of the reviews and
their data as well. The analysis of opinions of the customers and their reviews is able to play
a major role in the ways by which Nura Headphones can enhance the levels of customer
satisfaction. The premium priced products that are offered by the organization can attract the
customers with the support that is provided by the analysis of their needs and demands.

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References
Agnihotri, R., Dingus, R., Hu, M. Y., & Krush, M. T. (2016). Social media: Influencing
customer satisfaction in B2B sales. Industrial Marketing Management, 53, 172-180.
Bowen, J. T., & Chen McCain, S. L. (2015). Transitioning loyalty programs: A commentary
on “the relationship between customer loyalty and customer
satisfaction”. International Journal of Contemporary Hospitality Management, 27(3),
415-430.
Cossío-Silva, F. J., Revilla-Camacho, M. Á., Vega-Vázquez, M., & Palacios-Florencio, B.
(2016). Value co-creation and customer loyalty. Journal of Business Research, 69(5),
1621-1625.
Hassan, R. S., Nawaz, A., Lashari, M. N., & Zafar, F. (2015). Effect of customer relationship
management on customer satisfaction. Procedia economics and finance, 23, 563-567.
Hur, W. M., Moon, T. W., & Jung, Y. S. (2015). Customer response to employee emotional
labor: the structural relationship between emotional labor, job satisfaction, and
customer satisfaction. Journal of Services Marketing, 29(1), 71-80.
Kaura, V., Durga Prasad, C. S., & Sharma, S. (2015). Service quality, service convenience,
price and fairness, customer loyalty, and the mediating role of customer
satisfaction. International Journal of Bank Marketing, 33(4), 404-422.
Larivière, B., Keiningham, T. L., Aksoy, L., Yalçin, A., Morgeson III, F. V., & Mithas, S.
(2016). Modeling heterogeneity in the satisfaction, loyalty intention, and shareholder
value linkage: a cross-industry analysis at the customer and firm levels. Journal of
Marketing Research, 53(1), 91-109.

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McColl-Kennedy, J. R., Gustafsson, A., Jaakkola, E., Klaus, P., Radnor, Z. J., Perks, H., &
Friman, M. (2015). Fresh perspectives on customer experience. Journal of Services
Marketing, 29(6/7), 430-435.
Nuraphone.com. (2019). nuraphone - Music in Full Colour™ | Personalized sound. Retrieved
7 August 2019, from https://www.nuraphone.com/
Ramanathan, U., Subramanian, N., & Parrott, G. (2017). Role of social media in retail
network operations and marketing to enhance customer satisfaction. International
Journal of Operations & Production Management, 37(1), 105-123.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate
social responsibility contribute to firm financial performance? The mediating role of
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Sengupta, A. S., Balaji, M. S., & Krishnan, B. C. (2015). How customers cope with service
failure? A study of brand reputation and customer satisfaction. Journal of Business
Research, 68(3), 665-674.