PERCEIVED

Customer
value

11/01/2011

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Report on
PERCEIVED CUSTOMER
VALUE

Course Title: Marketing Management

Course Code: MKT-201

Submitted to:
Nigar sultana
Lecturer
Department of Marketing
Jahangirnagar University
Submitted by:

Group
Of
Rising Stars

Department of Marketing
Jahangirnagar University
Date of Submission: January 11, 2011
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WE ARE......

Group of Rising Stars

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S.L

Name

I.D

Sadifa Sultan

1302

Asif Zubair

1326

Asaf Ud Daola

1327

Md. Shariful Islam

1341

Foysal Ahmed

1342

Md. Tanbir Ahmed

1965

Letter of Transmittal
November 03, 2010
Nigar Sultana
Lecturer
Department of Marketing
Jahangirnagar University
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Subject: Submitting the report on PERCEIVED CUSTOMER VALUE

Dear Madam,
We are submitting a well-structured and comprehensive report on Perceived Customer
value of Pan Pacific Sheraton Hotel Dhaka on due time. Despite many constraints like
scope and access to information, we have tried to create something satisfactory.
We have tried to follow your guideline in every aspects of preparing this report. We have
concentrated on the most relevant and logical areas to make our report coherent as well as
practical.
We hope this report will entice your kind appreciation.
Sincerely,

________________
Md. Shariful Islam
(On behalf of the group members)
Roll- 1341
BBA 1st Batch
Department of Marketing
Jahangirnagar University

Acknowledgement

All the praise is for Allah, the most merciful and beneficent, who blesses us
with the knowledge, gave me the courage and allowed me to accomplish
this task.

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As our assigned topic was to prepare the report on Perceived Customer Value for our
course 201 of BBA program, we visited Sheraton hotel as well as websites to complete our
report and its really a great opportunity for us to acquire valuable knowledge for this
interesting subject. At the very beginning, we want to express our profound gratitude to our
respected course teacher Nigar Sultana, to provide us with such a nice opportunity to prepare
this kind of a report on Marketing Management.

We would also like to take this opportunity to express our wholehearted gratitude to our
fellow friends who offered encouragement, information, inspiration and assistance during the
course of preparing this report.

This report suffers from many shortcomings, nevertheless we have exerted our best efforts in
preparing this report. we seek excuse for the errors that might have occurred inspite of our
best effort.

So lastly, we would again like to express our heartfelt thanks to our course teacher for
providing the theoretical knowledge and valuable guidelines related to recruitment process.

Table of Content
Content

Page no

Executive Summary
1.0 Introduction
1.1 Origin of the report
1.2 Scope

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 1.3 Methodology
1.4 Limitations
2.0 Overview of the companyIndustry
2.1 Perceived Customer Value
3.0 Open Discussion

4.0 What is Customer

4.1 Existing Customer
4.2 Former Customer
4.3 Potential Customer
5.0 Customers and the Organization

6.0 Source of information and ideas

7.0 Challenge of Managing Customers
8.0 Customer Relationship Management
9.0 Customer Service Trends: Customer Self-Service
10.0 Conclusion
Appendix

Executive Summary

Customer perceived value is thus based on the differences between what he or she gives for
different possible choices. The customer gets benefits and assumes costs. The marketer can
increase the value of the customer offering by some combination or raising economic,
functional or emotional benefits or reducing one or more of the various types of costs.

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Customer value means different between total customer benefits and total customer cost. The
total customer benefit means the combination of product benefit; service benefit, personnel
benefit, and image benefit on the other hand the total customer cost means the combination
of monetary cost, time cost, energy cost and psychological cost.
Sheraton Hotel provides many facilities to their customer. They provide accommodation,
food, swimming pool, bar, occasionally discount and online booking and many other
facilities. And it is one of the most popular 5 star hotel in Bangladesh. That is why we choose
the Pan Pacific Sheraton Hotel for measuring their customer value. We visited Sheraton hotel
and talk with the customers about the topics of customer perceived value. From this report
we able to know about the customer value of Pan Pacific Sheraton Hotel. From our
consideration, the customer value of Sheraton Hotel is very high and their customers are
satisfied for their service quality and their product quality.

1.0. Introduction
Customer perceived value: Customer perceived value 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 benefit is the perceived monetary value of the bundle
of economic, functional and psychological benefits customers expect from a given market
offering because of the products, services, personnel and image involved. Total customer cost

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is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using and
disposing of the given market offering, including monetary, time, energy and psychological
costs. In a word, customer perceived value is the difference between what the customer is
willing to pay and what he or she is actually paying. Difference between what the customers
gets and what he or she gives for different possible choices. The customer gets benefits and
assumes costs. The marketer can increase the value of the customer offering by some
combination of raising economic, functional or emotional benefits and reducing one or more
of the various types of costs. The customer choosing between two value offerings, V1 and
V2, will examine the ratio V1:V2 and favor V1 if the ratio is larger than one, favor V2 if the
ratio is smaller than one and be indifferent if the ratio equals one. For example, an individual
wants to buy a shirt. After a huge evaluation, he is convinced with a shirt and decided to buy
that one with a price of taka 500 (willing to pay). If the transaction takes place with a cost of
taka 300 (actually paying), the customer will enjoy a perceived value of taka (500-300) =
taka 200. Higher the customer perceived value, more satisfied will be customer.
Probably for the better customer value, Coca-cola is still dominating the soft-drink industry
of bd, even though there are many companies offering cola flavor at a lower price. Marketer
must continue to generate more customer value but not at a cost of loss of course.

1.1 Origin of the Report

This report is generated under the academic supervision of our course teacher Nigar Sultana,
Department of marketing, Jahangirnagar University. This report is prepared for our
Marketing Management course. The topic is PERCEIVED CUSTOMER VALUE.

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1.2 Scope
In this report, at first we cover the preliminary concept of Customer value. Then we go for its
practical maintenance which is the main focus of this report. We explained customer value of
PAN PACIFIC SHERATON HOTEL.

1.3 Research Methodology

At first we prepared a questionnaire about the topics of perceived customer value. We want
know to the customer for their product benefit, service benefit, personnel benefit, and image
benefit and we want know that they pay monitory cost, time cost, energy cost, and
psychological cost for this benefits through the questionnaire. We asked the customer about
the product quality, service quality, another facilities and cost for assuming this kind of
facilities.
We visited the Pan Pacific Sheraton hotel and we asked to the customer of this hotel about
their value. We consider the regular customer of this hotel because that is why we can get real
information about customer value. We also talk with the manger of the Sheraton hotel he help
us very much thats why we done our work very easily. The manager also provides us some
valuable administrative information.
We collecting sample by asking question. At first we go to the customer and ask them some
questions about customer value like about the service, product quality, regular food item,
accommodation system, another service we also ask the cost of this kind of service.
In this report we try to our level best to focus all the point of customer perceived value, we
also describe all the point individually and collecting data very carefully.
For preparing this report we used Microsoft word and for presenting data very beautifully
we used Microsoft excel.

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1.4 Limitations
The major limitations encountered are:
Lack of experience on preparing reports.
Unavailability of the information due to their privacy.
Lack of interest among customers.
Lack of primary and secondary data.

2.0 Overview of the Hotel

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Overview:
The first renowned international five-star hotel in Bangladesh, the Dhaka Sheraton Hotel is in
the citys most prestigious location, just three kilometers from the downtown business district
and close to Dhakas famous Ramna Park, the Prime Minister's office, National Art Museum,
and the Kurmitola Golf Course.
Retreat to our 272 guest rooms and five categories of suites relaxing in the sitting room,
taking in the view, or escaping to a night in front channel surfing and watching your favorite
TV shows.
Splash around in the outdoor pool, play a night game on our lighted tennis courts, relax in the
steam bath, or let our 24-hour concierge arrange a wonderful day out.
Bring friends and colleagues together and savor the best of local and international cuisine at
our five restaurants, or let our banquet staff help you host an event in one of our nine
hospitality spaces.

Sheraton History

For more than 70 years, Sheraton has enjoyed a history as vibrant and spirited as the travelers
we welcome. The world has changed, but one thing hasn't - travel is about bringing people
together.
1937
The origins of Sheraton date back to 1937 when the company's founders, Ernest Henderson
and Robert Moore, acquired their first hotel in Springfield, Massachusetts.
Within two years, they purchased three hotels in Boston and soon expanded their holdings to
include properties from Maine to Florida.
1947
Sheraton Corporation of America becomes the first hotel chain to be listed on the New York
Stock Exchange.

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1949
With the purchase of two Canadian hotel chains Sheraton expands internationally and grows
rapidly around the world.
1958
The company launches "Reservation," the industry's first automatic electronic reservations
system.
1961
The first Sheraton in the Middle East debuts with the opening of the Tel Aviv Sheraton in
Israel.
1963
The Macuto Sheraton Hotel opens in Venezuela, becoming the first Sheraton hotel in Latin
America.
1965
Sheraton opens the doors to its 100th hotel - The Sheraton Boston.
1970
The company is the first hotel chain with a toll-free 800-number for direct guest access
which is still in use today.
1985
Sheraton achieves an important milestone becoming the first international hotel chain to
operate a hotel in the People's Republic of China.
1998
Starwood Hotels & Resorts Worldwide, Inc. acquires Sheraton.
2004
Sheraton introduces the Sweet Sleeper Bed.
2006
The Sheraton experienced with Microsoft debuts at five hotels around the world. The
Sheraton is the connectivity hub of our lobby experience, allowing guests to work, relax,
socialize or grab a snack.
2008
Sheraton Fitness programmed by Core Performance is introduced. Created in partnership
with world-renowned personal training experts Core Performance, our fitness program is
designed to keep guests at their peak at all times.
2008
Sheraton boasts a portfolio of more than 400 hotels in 70 countries, including a stellar
portfolio of more than 60 resorts in stunning destinations worldwide.

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Customer
Perceived
Value

Total
customer
benefit

Total
customer
cost

Product
benefit

Monitory
cost
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Time cost

Service
benefit

Personnel
benefit

Image
benefit
Customer
perceived

Energy
cost

Psychological

cost

value: The value of a product is the mental estimation a

consumer makes of it. Formally it may be conceptualized as the relationship between the
consumer's perceived benefits in relation to the perceived costs of receiving these benefits.
Total customer benefit: A benefit of creating highly satisfied (delighted) customers who
are loyal to the organization is that they also spread positive word-of-mouth by, in essence,
becoming a walking, talking advertisement for the firm. If there are many delighted
customers spreading positive word-of-mouth communication, this then lowers the cost of
promotion to attract new customers. This benefit is particularly important among professional
services firms such as lawyers and accountants where word-of-mouth and reputation are key
sources of information for new clients.

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1)

Product benefit: Actual factor (cost effectiveness, design, performance, etc.) or

perceived factor (image, popularity, reputation, etc.) that satisfies what a customer needs or
wants.

2)

Service benefit: Perhaps the first and biggest benefit people get from
volunteering is the satisfaction of incorporating service into their lives and
making a difference in their community and country. The intangible benefits alone
such as pride, satisfaction and accomplishmentare worthwhile reasons to
serve.

3)

Image benefit : Many firms strive for a competitive advantage, but few truly
understand what it is or how to achieve and keep it. A competitive advantage can
be gained by offering the consumer a greater value than the competitors, such as
by offering lower prices or providing quality services or other benefits that justify
a higher price. The strongest competitive advantage is a strategy that that cannot
be imitated by other companies.

4)

Personnel benefit: The products and services referred to in this directory are
believed to offer good value for money. However, it is the responsibility solely of
each person to decide whether or not to use any such products or services. The
providers of those products and services are responsible for their respective
employee benefits. None of the products or services are provided by or
guaranteed by the company and accordingly the company does not accept any
responsibility or liability for any such products or services.

Total customer cost :Total customer cost is the bundle of costs that customers expect to
incur in evaluating, obtaining, using and disposing of the given market offering.

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1) Monitory Cost: The total amount spends by the customers to get the desired product or
services is called the Monitory Cost.
2) Psychological Cost: Customers have to recognize their problems or wants, evaluate
their alternatives, selects the best alternatives, post purchase behavior to get adapt with
the services. For completing all this steps customers have to make some Psychological
Cost.
3) Time Cost: Total time which is spent by the customers to purchase the desired products
c.
4) Energy Cost: Total energy spends by the customers to get the desired products or
services means Energy Cost.

Survey on Perceived Customer Value of the Dhaka Sheraton Hotel:

I as well as my whole group members visited to the Dhaka Sheraton Hotel. So that we can
deal with some survey on Dhaka Sheraton Hotel. This survey helps us to realize the
customer value practically. Generally Customer value= Total Customer Benefit- Total
Customer Cost. Total customer benefit includes product benefit, service benefit,
personell benefit and image benefit. As well as total customer cost includes
psychological cost, time cost, energy cost, monetory cost. We have met with the
executive manager of the Dhaka Sheraton Hotel. Also, with Chief Marketing Officer to
gain some practical information about the customer value provided by them. Finally we
hand out survey forms to some customers of this hotel. They actively make their
comments about this hotel. To analyze this survey forms filled up by the customers
(participants) we have taken help of microsoft excel. By anlyzing the overall survey
forms we realize the percieved customer value of the Dhaka Sheraton Hotel practically.

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Model of Form provided to the Perceived

Customers:
Dear sir/madam,
We are the students of Jahangirnagar University, Department of Marketing. We will feel
honor if you consider to fulfill the following questionnaire for completing our survey.

Survey on- customer value of

Sheraton Hotel

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Name:

Customer No:

1. What type of product do you expect most from here?

2.
3.
4.
5.
6.
7.
8.
9.

a) Food & service

b) Honeymoon suite
c) Bar
There are very good services (post purchase) available.
a) Yes
b) Not good
c) Miscommunication
Are they too much expensive, comparing with the other five star hotels?
a) Expensive
b) Reasonable
c) Low cost
Do they provide money exchange facilities?
a) Always
b) Sometimes
c) Never
Do they offer their own transport facilities?
a) Always
b) Sometimes
c) Occasionally
Do they offer online service (room booking)?
a) Always
b) Never
c) Sometimes
Do they provide special cultural and traditional foods?
a) Occasionally
b) Regularly
c) weekly
Does their employees conduct any kind of misbehave with you?
a) Sometimes
b) Never
c) Yes
Are they skilled to communicate?
a) Yes
b) No
c) So So

10. Why do you prefer Sheraton Hotel?

a) Service & product are better than others
b) Decoration & accommodation system
c) Offer reasonable price for living/food/recreation
11. Do you recommend staying in this hotel?
a) Yes

b) Obviously

c) Never

12. Do you think they offer possible discounts or value added pricing?
a) Sometimes
b) Always
c) Never
13. Do you think their location is convenience for you?
a) Yes
b) No
c) Dont care
14. Do they take enough time to make the given order?
a) Frequently
b) Sometimes c) Late delivery
15. Are you satisfied to be a customer of the Sheraton Hotel?
a) Obviously
b) Never
c) Sometimes
16. Do they provide sufficient 24 hours room service?
a) Yes
b) No
c) Sometimes
17. Do you get full support from the Reception Desk?
a) Yes
b) No
c) Sometimes

b) 1. Define traditional physical process sequence.

c) 2. What does mean ZERO set up time?
d)
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e) 3. What are the basic differences between supportive activities

and
f) primary activities of generic value chain?
g)

Thank you for providing

this data.
.
This data will be kept confidentially.

Centralized Marketing Channels

Starwood propels business 24/7 through a synergy of state-of-the-art booking technology,

customer contact centers and compelling online vehicles. Count on our branded websites to
showcase your hotel with stunning photography and detailed information. Our skilled call
center agents are always ready to provide the most personalized property and destination
highlights to potential guests, describing everything from room features to weather
conditions to the most enticing area attractions. Starwood Centralized Marketing Channels
propel 45% of total room revenue globally and provide unrivaled cross-sell and up-sell
opportunities.

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Branded Web Channels

Representing every Starwood brand with enticing imagery, exceptional online support and
the welcoming ease of several international languages, these sites are industry-leading
booking agents. For many travelers, our websites are memorable introductions to the style
and personalized hospitality of our brands.

Customer Contact Centres

Helping extend your reach around the globe, Starwood is the only major hotel company to
offer brand-dedicated support at our Customer Contact Centers, which handled over 18
million telephone calls and guest interactions in 2008, providing global, toll-free phone
services 24/7 in 24 languages.

MARS
Minimized Abandoned Reservation Calls (MARS) works around the clock and allows hotels
to seamlessly transfer their property reservation calls to a Customer Contact Center associate
to ensure that every possible booking is realized. Available for franchised hotels.

Field Marketing
Starwood Field Marketing teams work directly with hotels to provide skilled management of
all online marketing channels. Proactively boosts bookings through online promotions and
search engine optimization. Voluntary opt-in program in North America and select
international markets.

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Features & Activities

We have thought of the little and big things you need to have a memorable and relaxing stay.
Revive yourself with a dip in the outdoor pool, play a night game on our lighted tennis
courts, relax in the steam bath, or let our 24-hour concierge arrange a wonderful day out.
Bring friends and colleagues together and savor the best of local and international cuisine at
our five restaurants, or let our banquet staff help you host an event in one of our nine
hospitality spaces.
Treat yourself to Sheratons VIP Lounge at Zia International Airport; it is a great way to start
your onward journey. The VIP lounge is located on the second floor of the main terminal and
for a small fee; you can enjoy a relaxing and pleasant environment, tea/coffee, snacks, cable
TV, bathroom/shower facilities, as well as international and local newspapers and magazine.
Alcoholic drinks are available at a cost.

Customer benefit

Firstly, we have to know about:

4.0 What is a Customer?

As a student of marketing, we should know that companies are giving priority to the
customer, which they desire rather than satisfaction. Customer satisfaction is also the vital
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matter especially in the telecommunication company. In general terms, a customer is a person

or organization that a marketer believes will benefit from the goods and services offered by
the marketers organization. As this definition suggests, a customer is not necessarily
someone who is currently purchasing from the marketer. In fact, customers may fall into one
of three customer groups:

4.1 Existing Customers

Consists of customers who have purchased or otherwise used an organizations goods or
services, typically within a designated period of time. For some organizations the time frame
may be short, for instance, a coffee shop may only consider someone to be an Existing
Customer if they have purchased within the last three months. Other organizations may view
someone as an Existing Customer even though they have not purchased in the last few years
e.g. television manufacturer. Existing Customers are by far the most important of the three
customer groups since they have a current relationship with a company and consequently,
they give a company a reason to remain in contact with them. Getting these Existing
Customers to purchase more is significantly less expensive and time consuming than finding
new customers mainly because they know and hopefully trust the marketer and if managed
correctly, are easy to reach with promotional appeals.

4.2 Former Customers

This group consists of those who have formerly had relations with the marketing organization
typically through a previous purchase. However, the marketer no longer feels the customer is
an Existing Customer either because they have not purchased from the marketer within a
certain time frame or through other indications e.g. a Former Customer just purchased a
similar product from the marketers competitor. The value of this group to a marketer will
depend on whether the customers previous relationship was considered satisfactory to the
customer or the marketer. For instance, a Former Customer who felt they were not treated
well by the marketer will be more difficult to persuade to buy again compared to a Former
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Customer who liked the marketer but decided to buy from someone else who had a similar
product that was priced lower.

4.3 Potential Customers

The third category of customers includes those who have yet to purchase but possess what
the marketer believes are the requirements to eventually become Existing Customers. As we
will see in the Targeting Markets Tutorial, the requirements to become a customer include
such issues as having a need for a product, possessing the financial means to buy, and having
the authority to make a buying decision. Locating Potential Customers is an ongoing process
for two reasons. First, Existing Customers may become Former Customers (e.g., decide to
buy from a competitor) and, thus, must be replaced by new customers. Second, while we
noted above that Existing Customers are the best source for future sales, new customers are
needed in order for a business to significantly expand. For example, a company that sells
only in its own country may see less room for sales growth if a high percentage of people in
the country are already Existing Customers. In order to realize stronger growth the company
may seek to sell their products in other countries where Potential Customers may be quite
high.

5.0 Customers and the Organization

For most organizations understanding customers is the key to success while not
understanding them is a recipe for failure. It is so important that the constant drive to satisfy
customers is not only a concern for those responsible for carrying out marketing tasks;
satisfying customers is a concern of everyone in the entire organization.
Whether someones job involves direct contact with customers (e.g., salespeople, delivery
drivers, telephone customer service representatives) or indirect contact (e.g., production,
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accounting), all members of an organization must appreciate the role customers play in
helping the organization meets its goals. To ensure everyone understands the customers role,
many organizations continually preach a customer is most important message in
department meetings, organizational communication (e.g., internal emails, website postings),
and corporate training programs. To drive home the importance of customers, the message
often contains examples of how customers impact the company.

6.0 Source of Information and Ideas

Satisfying the needs of customers requires organizations maintain close contact with them.
Marketers can get close to customers by conducting marketing research (e.g., surveys) and
other feedback methods (e.g., website comments forms) that encourage customers to share
their thoughts and feelings. With this information marketers are able to learn what people
think of their present marketing efforts and receive suggestions for making improvements.
For instance, research and feedback methods can offer marketers insight into new products
and services sought by their customers.

Affects Activities Throughout Organization

For most organizations customers not only affect decisions made by the marketing team but
they are the key driver for decisions made throughout the organization. For example,
customers reaction to the design of a product may affect the type of raw materials used in
the product manufacturing process. With customers impacting such a significant portion of a
company, creating an environment geared to locating, understanding and satisfying
customers is imperative.

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 Needed to Sustain the Organization

Finally, customers are the reason an organization is in business. Without customers or the
potential to attract customers, a company is not viable. Consequently, customers are not only
key to revenue and profits they are also key to creating and maintaining jobs within the
organization.

7.0 Challenge of Managing Customers

While on the surface the process for managing customers may seem to be intuitive and
straightforward, in reality organizations struggle to accomplish this. One reason for the
struggle is that no two customers are the same. What is appealing to one customer may not
necessarily work for another. For instance, a marketer may change how it issues coupons to
customers by reducing the frequency of issuing coupons by regular mail and instead directing
customers to electronic coupons found on its website. The marketer makes this move to
encourage customers to visit the website more often with the hope it will lead to cost savings
(e.g., sending out traditional coupons by mail requires postage expense), allow the marketer
to acquire more customer information (e.g., monitor their activities when they visit the
website), and give the marketer the opportunity to sell more product to the customer (e.g.,
special promotional messages on the website).

8.0 Customer Relationship Management

In order to overcome the challenges faced as they attempt to cultivate and manage customers
many marketers have turned to a business concept known as Customer Relationship
Management (CRM). CRM is a strategic approach whose goal is to get everyone in an
organization, not just the marketer, to recognize the importance of customers. Under CRM
the key driver for marketing success is to treat "good" customers in a way that will increase
the probability they will stay "good" customers. This is accomplished in part by ensuring that

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a customer receives accurate information and has a consistent and satisfying experience
every time he/she interacts with a company.
While CRM is generally used to manage Existing Customers, it also has application for other
customer groups. For instance, CRM is used to help identify Former Customers that may
hold potential to become customers again. This is often possible due to the amount of
information that is obtained and subsequently retained when Former Customers were
considered Existing Customers. Additionally, CRM can serve an integral role in helping to
locate Potential Customers. As we will explore in the Targeting Markets tutorial, one method
for doing this is to use information contained in CRM to determine important characteristics
that are exhibited by Existing Customer and use this information to pursue new customers in
untapped customer markets who have similar characteristics.
Computer technology plays a key part in carrying out CRM. A proper technology-based
system is needed so that nearly anyone in an organization that comes into contact with a
customer (e.g., sales force, service force, customer service representatives, accounts
receivable, etc.) has access to necessary information and is well prepared to deal with the
customer. But CRM is not only about utilizing high-tech products. CRM requires a strong
organizational commitment that includes extensive training for all employees.
But while maintaining close and consistent relationships with customers through all contact
points makes good business sense, accomplishing this has often been a challenge. Numerous
problems, from technology failures and lack of communication between contact points as
well as lack of adequate employee training or outright employee resistance, have derailed
many CRM efforts.

9.0 Customer Service Trends: Customer Self-Service

Marketers have seen the customer service process evolve from an area that received only
marginal attention into a primary functional area. In response to customers demands for
responsive and reliable service, companies are investing heavily in innovative methods and
processes to strengthen their service level.

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For instance, one major trend in customer service is the move by companies to encourage
customers to be involved in helping solve their own service issues. This can be seen in retail
industries where self-service ranges from customers placing their own grocery products in
shopping bags all the way to having customers do their own checkout including scanning
products and making payment. Also, as we will soon discuss, customers needing information
are being encouraged by companies to first undertake the effort themselves often by visiting
special company-provided information areas. Only after they have explored these options are
customers encouraged to contact customer service.

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