BUAD 332 Exam 1: What Is Customer Value? Questions and Answers

Questions Managers Ask - What is important to cust? How do we know if we are delivering value? How do i judge whether we are offering superior value relative to our customers? Satisfied customer relationships are more likely to be ____ and ______ - loyal and give larger share of business Customer Value - customer's perception of what they want to have happen in a specific use situation, with the help of a product or service, in order to accomplish a desired purpose or goal. customer value = - importance customer satisfaction = - performance (meeting expectations) example of expectation - motel 6 vs. 4 seasons 5 aspects of customer value - tradeoff, interaction, relative, goal-driven, dynamic what makes a customer's perception of value change? - environment and life-changing customer's world = - consumer goals and purposes (peace of mind) + consumer's desired consequences (what I want to happen) (positive (benefits)& negative (sacrifices)) market's world = - product attributes (physical product/service characteristics) flow of goal-driven - attributes -> consequences -> end stateconsequences - what they want to happen 4 aspects of customer value-oriented firm - customer value cultures, commitment to innovation, organized around delivering customer value, continuous learning about customers customer learning methods - interaction, 3rd party research, analyzing marketing trends consumer learning forms - value hierarchies, value maps, analytical tools sources of consumer learning - interaction, research, 3rd party, secondary reports, analyze market trends, complaints. mining databases (trends, patterns, changes in buying patterns) exampling of mining database - Harrah's Casino steps of customer value strategy process - identify value, choose, value, provide value, communicate value, assess the delivered value example of customer value strategy - volvo completing strategy means that - customers will stay and bring new customers, providing finances for innovation and more opportunities to create values for customers The Bottom line - satisfy and retain customers, acqure new customers, and differetiate from competitros