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Customer Value and Satisfaction

Customer Value and Satisfaction. Retail Marketing & Strategy-PGPRM. Customer Value. “Is the bundle of benefits customer expect from a given product or service” Total Customer Value is the summation of: -Product Value -Services Value -Personnel Value -Image Value. Customer Cost .

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Customer Value and Satisfaction

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  1. Customer Value and Satisfaction Retail Marketing & Strategy-PGPRM

  2. Customer Value • “Is the bundle of benefits customer expect from a given product or service” • Total Customer Value is the summation of: -Product Value -Services Value -Personnel Value -Image Value

  3. Customer Cost • “Is the bundle of costs customers expect to incur in evaluating, obtaining, and using the product or service” • Total Customer Cost is the summation of: -Monetary Cost -Time Cost -Energy Cost -Psychic Cost

  4. Customer Delivered Value • “Is the difference between total customer value and total customer cost”

  5. Customer Satisfaction • “Is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectations”

  6. Value Chain • Michael E. Porter proposed the value chain as a tool for identifying ways to create more customer value • It identifies nine strategically relevant activities that create value and cost in a specific business • They include 5 primary activities & 4 support activities

  7. S U P P O R T A C T Firm infrastructure M a g I n Human resource management Technology development r Procurement Operations Outbound logistics Sales & mkting Service Inbound logistics Primary Activities

  8. Identifying Value Activities Primary activities • Inbound logistics-receiving, storing and disseminating inputs • Operations-machining, packaging,etc. • Outbound logistics-warehousing, order processing,scheduling

  9. Primary Activities • Marketing and sales • Service

  10. Support Activities • Procurement • Human resource management • Firm infrastructure • Technology development

  11. Activity Types • Direct-activities directly involved in creating value • Indirect-activities that make it possible to perform direct activities on a continuous basis • Quality assurance-activities that ensure the quality of other activities

  12. Core Business Processes • New-product realization process-researching, developing and launching • Inventory management process-R.M., semi finished materials,finished goods • Order-to-remittance process-receiving and approving orders,shipping,payments

  13. Customer service process-making it easy for customers to reach within the Co. and receive quick and satisfactory service, answers and resolution of problems

  14. Competitive Advantage • A company has a c.a.when its profitability is greater than the average profitability of all companies in the industry • It has a sustained c.a. when it is able to maintain above-average profitability over a number of years

  15. Building Blocks of Competitive Advantage • Efficiency-input:output • Quality-excellence,reliability • Innovation-product, process • Customer responsiveness-customization, customer response time

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