Customer Value

In: Business and Management

Submitted By skipunk
Words 1294
Pages 6
Explanation Customer value in short is the value a customer places on a product or service. Yu-Qian and Chen (2012) described customer value as “a customer’s overall assessment of the utility of a product (or service) based on perceptions of what is received and what is given” (p. 485). Customer value is made up of a variety of strategies and it can vary from product and service. Customer satisfaction and loyalty are a couple of matrixes used to form what customer value is.
Comparison
The quality of a product or service as explained by Meredith and Shafter (2013) is often associated to products and services from customers (p. 19). The better the value of a product or service to a customer the likelihood that the customer will become loyal to the brand or business, thus leading to the likelihood purchasing add-ons and upgrades. An article by Ming-Tien, Chung-Lin and Han-Chao (2010) continues with this point that as the expectations are met the more likely the customer satisfaction is to grow including increased consumption of the product or service (p. 731). An article by Sukwadi, Yang and Fan discusses that Customer value “is commonly conceptualized as the customer’s perceived trade-off between benefits and sacrifices within relationships” (p. 384). Each person have their own perception on value thus it can become challenging for a business to judge or rate customer value. “Companies are supposed to learn about customer value, create it, and develop delivery processes” (Sukwadi, et al, p. 384). By being able to understand customer value, it can lead to a more effective marketing campaign on services and products. As Meredith and Shafter discuss, not all dimensions that can make up customer value are relevant to product and service. It is up to the organization to find the relevance of customer value (p. 20).
Summary
The article by Schauerte, Johansson and…...

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