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MKTG MGT 1 Week 5

This document discusses how companies can build customer value, satisfaction, and loyalty. It emphasizes that customers should be at the top of the organizational structure and that all levels of management should be focused on knowing, meeting, and serving customers. It also discusses the importance of delivering on the value proposition through an effective value delivery system and how monitoring customer satisfaction through surveys and mystery shoppers helps ensure expectations are met or exceeded. Maintaining high customer satisfaction is especially important today due to the influence of online reviews and word of mouth.

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0% found this document useful (0 votes)
19 views25 pages

MKTG MGT 1 Week 5

This document discusses how companies can build customer value, satisfaction, and loyalty. It emphasizes that customers should be at the top of the organizational structure and that all levels of management should be focused on knowing, meeting, and serving customers. It also discusses the importance of delivering on the value proposition through an effective value delivery system and how monitoring customer satisfaction through surveys and mystery shoppers helps ensure expectations are met or exceeded. Maintaining high customer satisfaction is especially important today due to the influence of online reviews and word of mouth.

Uploaded by

ephesians320lai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Building

Customer value,
Satisfaction and
Loyalty.
How can a company deliver customer value, satisfaction and loyalty?

• To understand the determinants of customer perceived value.


• To effectively establish long term loyalty
• To discuss the importance of Customer Relationship Management
• To effectively interpret the result of measuring customer satisfaction
Creating Long-term Loyalty Relationships
Creating Long-term Loyalty Relationships
• Managers who believe the customer
is the company’s only true “profit
center” consider the traditional
organization chart—

• a pyramid with the president at the


top, management in the middle, and
frontline people and customers at the
bottom—obsolete.
Successful marketing companies invert the
chart as in Figure (b).

At the top are customers; next in importance


are frontline people who meet, serve, and
satisfy customers; under them are the middle
managers, whose job is to support the frontline
people so they can serve customers well;
and at the base is top management, whose job
is to hire and support good middle managers.

We have added customers along the sides of


Figure 5.1(b) to indicate that managers at
every level must be personally involved in
knowing, meeting, and serving customers.
Customer-Perceived Value

(CPV) is the difference between the prospective customer’s


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 product, service, people, and
image.
Total customer cost

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.
LOYA LT Y

As “a deeply held commitment to rebuy or repatronize a preferred


product or service in the future despite situational influences and
marketing efforts having the potential to cause switching
behavior.”
VA LU E P R O P OS IT IO N

• value proposition consists of the whole cluster of benefits the


company promises to deliver

• it is more than the core positioning of the offering.

For example, Volvo’s core positioning has been “safety,” but the
buyer is promised more than just a safe car; other benefits include
good performance, design, and safety for the environment.
VA LU E P R O P OS IT IO N

• The value proposition is thus a promise about the experience


customers can expect from the company’s market offering and
their relationship with the supplier.

• Whether the promise is kept depends on the company’s ability


to manage its value delivery system
value delivery system

• includes all the experiences the customer will have on the way
to obtaining and using the offering. At the heart of a good value
delivery system is a set of core business processes that help
deliver distinctive consumer value.
satisfaction

• is a person’s feelings of pleasure or disappointment that result


from comparing a product’s perceived performance (or
outcome) to expectations.

• If the performance falls short of expectations, the customer is


dissatisfied.
• If it matches expectations, the customer is satisfied. If it
exceeds expectations, the customer is highly satisfied or
delighted.
How can we monitor “customer satisfaction”?
Perio dic Sur veys

• Periodic surveys can track customer satisfaction directly and ask


additional questions to measure repurchase intention and the
respondent’s likelihood or willingness to recommend the
company and brand to others.
Myster y S hopp ers

• companies can hire mystery shoppers to pose as potential


buyers and report on strong and weak points experienced in
buying the company’s and competitors’ products.

• Managers themselves can enter company and competitor sales


situations where they are unknown and experience firsthand
the treatment they receive, or
• they can phone their own company with questions and
complaints to see how employees handle the calls.
Why do companies need to be
especially concerned with their
customer satisfaction level today?
INFLUENCE OF CUSTOMER SAT IS FACTION

• Why do companies need to be especially concerned with their


customer satisfaction level today?

Because the Internet provides a tool for consumers to quickly


spread both good and bad word of mouth to the rest of the world.
Some customers set up their own Web sites to air grievances and
galvanize protest, targeting high-profile brands
When was the last time you made a
complaint for a product or service?

How was it handled


by the company?

How did you feel


after the complaint?

Do you still patronize


them? Why? Why not?
Some companies think they’re getting a sense of customer
satisfaction by tallying complaints, but studies show that
while customers are dissatisfied with their purchases about
25 percent of the time, only about 5 percent complain.

The other 95 percent either feel complaining is not worth


the effort or don’t know how or to whom to complain. They
just stop buying.
• Of the customers who register a complaint, 54 percent to 70
percent will do business with the organization again if their
complaint is resolved.
• The figure goes up to a staggering 95 percent if the
customer feels the complaint was resolved quickly.
• Customers whose complaints are satisfactorily
resolved tell an average of 5 people about the good treatment
they received.
• The average dissatisfied customer, however, gripes to 11
people.
• If each of these tells still other people, the number
exposed to bad word of mouth may grow exponentially.

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