Customer Value

What is value
● Defines the relationship between what
the customer pays and what he or she
receives in return
● Benefits/Sacrifices (Monetary/Non-
monetary)
● Customer Perceived Value
 Value Delivery Process
● Market assessment
Assessment of needs, wants, market research
● Choosing value
STP/branding
● Designing value
Decisions related to product and the price
● Delivering Value
Distribution and access
● Communicating Value
Promotion
The Value Chain
Achieving customer value
 Value Delivery Strategies
● Customization
Avoiding a ‘one size fits all’ approach
● Providing additional benefits
● Product service bundling
Free warranties
Service Level Agreements
‘At your place’ maintenance
Free returns
● Branding
● Service Quality
 Value FROM customers
● Cultivation of committed relationships with
consumers/customers
Repeat patronage
Cross selling
Brand extensions
● Database marketing efforts
● Regular information sharing
Development of trust
 Satisfaction
● Pleasure or disappointment in comparing the
expectations and outcomes
Expectations not met: Disappointment
Expectations met: Satisfaction
Expectation exceeded: Delight