Marketing

12. What are customer value, satisfaction, and loyalty, and how can companies deliver them?

Customer Value: The level of priority the customer gives to a product.

Customer Satisfaction: When the customer perceives expected value from the product is called customer satisfaction.

Customer Loyalty: The totality of feelings or attitudes that would incline a customer to consider the re-purchase of a particular product, service or brand or re-visit a particular company, shop or website.

Customer Perceived Value

CPV is the difference between the prospective customers evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

* Total customer value is the perceived monetary value of the bundle of economic, functional & psychological benefits customers expect from a given market offering. Includes: product benefit, services benefit, personal benefit and image benefit.

* Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining, using, disposing of the given market offering, including monetary, time, energy & psychic costs. Include: Monetary cost, time cost, energy cost, and Psychological cost

Customer Value Analysis Steps

* Identify the major attributes and benefits that customers value

* Assess the quantitative importance of the different attributes and benefits

* Assess the company’s and competitor’s performances on the different customer values against their rated importance

* Examine how customers in a specific segment rate the company’s performance against a specific major competitor on an individual attribute or benefit basis

* Monitor customer values over time

Delivering the consumer and satisfaction value:

*The Value Proposition: The cluster of benefits the company promises to deliver

* Customer Value & Satisfaction

Value delivery system includes all the experiences the customer will have on the way to obtaining & using the offering....