Delivering Customer Value and Satisfaction

Delivering Customer Value and Satisfaction

Defining ‘Customer Value’

Today’s companies are operating in a hyper-competitive environment and to succeed, they must offer the right product to their targeted customers at a price that is acceptable to them best on their perception of the value at a cost that allows the company to be profitable. This is known as Customer Value Preposition (CVP) and is the fundamental premise that underpins all marketing activities. Zeithaml (1988) divided value perceived by consumers into four aspects and defined perceived value as the customer’s overall evaluation of a product after perceiving, accepting, and giving. Sheth et al.(1991) mentioned five types of customer value, including functional value, emotional value, social value, knowledge value, and situational value. We must remember that customer has been defined as anyone who receives that which is produced by the individual or organization that has value. Successful companies understand their CVPs and use them to guide their thinking. A CVP expresses what an organization is all about. It should define customer needs that the firm is trying to meet, identify at whom it is targeting its activities, state why the firm is different from the competition, explain the benefit of this difference to customers and indicate how the firm will provide its offerings. Capon and Hulbert (2007) linked the success of firms in the marketplace to the value provided to customers. A CVP serves as a framework within which to orient companies' business. A company offering will be successful if it delivers value and satisfaction to the target buyer. Value can be seen as a combination of quality, service and price (QSP), also the quantum of value offered by the company directly increases with the up-gradation in the quality of the offering and service provided by the company whereas it is inversely related to the increase in the price of the offering. st be studied through its entire value life cycle....