The role of perceived value in promoting customer satisfaction
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• Compare/contrast the findings of others with your research.
• Compare how the findings of others relate/add to the concepts learned in the required readings.
• Share additional knowledge regarding the key topic that relates to the thread.
Discussion 1: Customer Value
Josh McGuire
Liberty University
BUSI 650-D01
For the discussion I have chosen to use the article: The role of perceived value in promoting customer satisfaction, written by Phineas Mbango, 2019. The key topic that I have chosen for the discussion is Customer Value. The article explains that by definition the idea behind customer value is the perception of what a product or service is worth to that consumer or customer. When the consumer is thinking of worth they have identified to themselves what the product or service that is provided is actually worth the price that was paid. The article uses the South African leafy vegetable market as their source for satisfaction and study. I have chosen customer value because I like to see what the consumer thinks and is influenced by. This article explains that at times, value is a direct result from satisfaction. While there is a basic definition of what customer value is, it was interesting to compare the article that I chose to others that were of the same topic background. The interesting idea that behind customer value is a genuine agreement between the consumer and the producer that everyone is getting a fair deal for the quality of a service or good at a fair price. No producer would ever come out and say that they are providing a subordinate product or service to a competitor and believe that customer value would remain high. In the article however, we can see how value is directly influenced by satisfaction. If the product that is sold makes the consumer happy and satisfied based on physical appearance or taste as example, they are more likely to pay more and still retain a high customer value. That customer value is based on satisfaction since the increase in price is not a direct response for value. The interesting point behind this is the fact that many times a superior product that might cost more than a competitor still has a higher value as well as a higher satisfaction. Concentration solely on the feedback of value might hinder the potential growth and income of the company if satisfaction from the customer is not also considered. The article is written to compare the value and satisfaction of the customer and how they affect one another. Value can be formulated from a high product quality, value for the money, swift communication, or the availability of various products. Customer satisfaction is based on a previous experience. When a consumer decides that they will try another market in the region for their leafy vegetable purchases, the goal is to make the vegetables that are sold by Hawkers better than the consumer has ever had. The appearance, taste, and texture are superior to what the consumer has purchased in the past. When the consumer sees the product that is being offered, in this case by the Hawkers’ markets, their satisfaction goes up. That satisfaction is then an influence on the value that the customer thinks that they are getting in return. Many times there are products or services that are provided that are different in cost from one company, manufacturer, or producer to another. Even though there is a direct competition between these different sectors, very few times are the prices the same. The variance in price is a key factor for customer value. They are getting the same good or service for a cheaper cost. But as the article explains, the increase in cost can be overlooked if the satisfaction of the product is high enough. One can pay a dollar more for a head of lettuce that they love to eat over another market and the farmer can still remain higher in satisfaction and value to the consumer.
The article reminded me of the Garden of Eden when I first read through it. Here is a market that has this pristine vegetables at a cost that is higher than most. Is the vegetable the forbidden fruit to the consumer? In this case the answer is no but many times we find ourselves looking for the next best thing or the shiny apple. We need to be content with what we have around us and trust that God will lead us in the right direction. Is the lettuce in the market really worth the extra money, we will never know. But we do know that lettuce that we had before was good enough. “And immediately Jesus, perceiving in his spirit that they thus questioned within themselves, said to them, “Why do you question these things in your hearts?”(ESV, Mark 2:8) “Trust in the Lord with all your heart, and do not lean on your own understanding.” (ESV, Proverbs 3:5) “Commit your way to the Lord; trust in him, and he will act.” (ESV, Psalm 37:5)
The idea within the article that satisfaction directly impacts value can be used as an example today with the price of gas. As the gas prices continue to go up this summer, there will be price wars for the cheapest gas in your area. In your mind your customer value will go up if you find gas that is even 10 cents cheaper than another store. One thing to remember though is that gas like any other petroleum has different filtering and purification processes for each band. As an example, the gas that you might get from a Circle K is not the same gas that you might get at a Shell. The ethanol, water, that is in the gas can decrease performance and cause damage over time. The satisfaction effect here is that the consumer will pay more for the gas that they know is good for their car or lawn mower over the cheaper gas that can cause more money in repairs over time while still maintaining a high customer value.
Annotated Bibliography
Customer Value
Josh McGuireLiberty University
BUSI 650-D01
Liozu, S. (2017). Customer value is not just created, it is formally managed. Retrieved from https://journals.sagepub.com/doi/abs/10.1177/2394964317728136.
The definition of customer value and its conceptualization can be complex. There is a confusion in the term itself but also in the sequence of creating, quantifying, and capturing value. This article intends to clarify the difference between the three steps of customer value management. It posits that customer value management needs to be a formal process in organizations and that this process needs to be formally managed as well. In order to do so, organizations need to focus on the development of customer value management capabilities across the three stages of the customer value management process: creation, quantification, and capture. Customer value is not just created. It needs to be managed.
Kumar, V., Reinartz, W. (2016). Creating enduring customer value. Retrieved from https://journals.sagepub.com/doi/10.1509/jm.15.0414
One of the most important tasks in marketing is to create and communicate value to customers to drive their satisfaction, loyalty, and profitability. In this study, the authors assume that customer value is a dual concept. First, in order to be successful, firms (and the marketing function) have to create perceived value for customers. Toward that end, marketers have to measure customer perceived value and have to provide customer perceptions of value through marketing-mix elements. Second, customers in return give value through multiple forms of engagement (customer lifetime value, in the widest sense) for the organization. Therefore, marketers need to measure and manage this value of the customer(s) to the firm and have to incorporate this aspect into real-time marketing decisions. The authors integrate and synthesize existing findings, show the best practices of implementation, and highlight future research avenues.
Johansson, H. (2020). Customer benefits in city logistics: Towards viable urban consolidation centers. Retrieved from https://www.researchgate.net/publication/340900175_Customer_Benefits_in_City_Logistics_Towards_Viable_Urban_Consolidation_Centres
IIIAbstract
Urban Consolidation Centre (UCC) is a city logistics initiative that has the potential toincrease the efficiency of urban freight delivery systems while reducing negativeenvironmental and social effects caused by freight vehicles. One important issue that havehindered longevity of this initiative is its viability, both the financial viability and acceptancefrom affected stakeholders (also called UCC customers). The UCC customers in focus inthis thesis are receivers of goods and municipalities. To satisfy both types of stakeholders,their requests and, in particular, the benefits they can gain from using UCCs need to bestudied. The types of benefits to be given priority differ between the stakeholders, wheremunicipalities strive towards more societal benefits, and the main goals of receivers are anincrease in efficiency and financial sustainability. In response, the purpose of this thesis isto deepen the understanding of benefits for customers of UCCs, with a particular focus oncustomer needs and benefits that UCCs can provide.IIIAbstractUrban Consolidation Centre (UCC) is a city logistics initiative that has the potential toincrease the efficiency of urban freight delivery systems while reducing negativeenvironmental and social effects caused by freight vehicles. One important issue that havehindered longevity of this initiative is its viability, both the financial viability and acceptancefrom affected stakeholders (also called UCC customers). The UCC customers in focus inthis thesis are receivers of goods and municipalities. To satisfy both types of stakeholders,their requests and, in particular, the benefits they can gain from using UCCs need to bestudied. The types of benefits to be given priority differ between the stakeholders, wheremunicipalities strive towards more societal benefits, and the main goals of receivers are anincrease in efficiency and financial sustainability. In response, the purpose of this thesis isto deepen the understanding of benefits for customers of UCCs, with a particular focus oncustomer needs and benefits that UCCs can provide.Urban Consolidation Centre (UCC) is a city logistics initiative that has the potential toincrease the efficiency of urban freight delivery systems while reducing negativeenvironmental and social effects caused by freight vehicles. One important issue that havehindered longevity of this initiative is its viability, both the financial viability and acceptancefrom affected stakeholders (also called UCC customers). The UCC customers in focus inthis thesis are receivers of goods and municipalities. To satisfy both types of stakeholders,Their requests and, in particular, the benefits they can gain from using UCCs need to beStudied. The types of benefits to be given priority differ between the stakeholders, whereMunicipalities strive towards more societal benefits, and the main goals of receivers are anIncrease in efficiency and financial sustainability. In response, the purpose of this thesis isTo deepen the understanding of benefits for customers of UCCs, with a particular focus onCustomer needs and benefits that UCCs can provide.Urban Consolidation Centre (UCC) is a city logistics initiative that has the potential toincrease the efficiency of urban freight delivery systems while reducing negativeEnvironmental and social effects caused by freight vehicles. One important issue that haveHindered longevity of this initiative is its viability, both the financial viability and acceptanceFrom affected stakeholders (also called UCC customers). The UCC customers in focus inThis thesis are receivers of goods and municipalities. To satisfy both types of stakeholders,Their requests and, in particular, the benefits they can gain from using UCCs need to beStudied. The types of benefits to be given priority differ between the stakeholders, whereMunicipalities strive towards more societal benefits, and the main goals of receivers are anIncrease in efficiency and financial sustainability. In response, the purpose of this thesis isTo deepen the understanding of benefits for customers of UCCs, with a particular focus onCustomer needs and benefits that UCCs can provide.Urban Consolidation Centre (UCC) is a city logistics initiative that has the potential toincrease the efficiency of urban freight delivery systems while reducing negativeenvironmental and social effects caused by freight vehicles. One important issue that havehindered longevity of this initiative is its viability, both the financial viability and acceptancefrom affected stakeholders (also called UCC customers). The UCC customers in focus inthis thesis are receivers of goods and municipalities. To satisfy both types of stakeholders,their requests and, in particular, the benefits they can gain from using UCCs need to bestudied. The types of benefits to be given priority differ between the stakeholders, wheremunicipalities strive towards more societal benefits, and the main goals of receivers are anincrease in efficiency and financial sustainability. In response, the purpose of this thesis isto deepen the understanding of benefits for customers of UCCs, with a particular focus oncustomer needs and benefits that UCCs can provide.Weinstein, A. (2020). Creating superior customer value in the now economy. Retrieved from https://www.researchgate.net/publication/339996409_Creating_Superior_Customer_Value_in_the_Now_EconomyCompanies today must have a customer value mindset and deliver exceptional value. Solid customer relationships ensure retention and improve business performance. This conceptual article explains how to create and manage customer value in changing global markets. Key business sectors and growth prospects in the Now Economy are described. The Now Economy requires companies to master the 5-S formula. Speed, service, selection, sociability, and solutions. As millennials are a major part of the digital marketplace, their preferences are explored. A framework for introducing and enhancing customer value based on service, quality, image, and price (SQIP) is recommended for marketing managers. Customer centric, strategic implications for relationship management are provided. In addition, a customer value research agenda related to speed, time, segmentation, and product strategy, pricing, and new technologies is offered to scholars.Mbango, P. (2019). The role of perceived value in promoting customer satisfaction: Antecedents and consequences. Retrieved from https://www.tandfonline.com/doi/full/10.1080/23311886.2019.1684229The aim of this study was to investigate the role of perceived customer value in promoting customer satisfaction in the South African leafy vegetable market. The study also examined the antecedents of customer value and the outcomes of customer satisfaction. The study was quantitative in nature, using purposive sampling technique. A self-administered questionnaire was utilized, and 370 questionnaires were completed. The research participants were hawkers on the streets of Johannesburg, Central Business District, South Africa. Data were analyzed using the PLS-SEM analytical techniques. The finding of this study shows that customer value has an influence on customer satisfaction. The academic contribution of this study is that most studies on customer satisfaction concentrate on the predictors of customer satisfaction as being trust, commitment and communication. The managerial implication is that business must place much emphasis on creating a sustainable customer value to achieve customer satisfaction. In so doing, organizations will be able to attain a competitive advantage and achieve organizational objectives.File Discussion Customer Value.docx (16.533 KB)Reply Quote Email Author3 days agoJoshua McNamaraRE: Customer Value AttachmentCOLLAPSEJoshua M. McNamaraDepartment of Business, Liberty UniversityBusiness 650: Operations ManagementDr. Philip ShieldsApril 4, 2021Customer value and customer satisfaction are two areas in any organization that has direct impacts on success measures and the overall perceived value a company has on the business world and society in general. Further research aligns with numerous points in your discussion post citing that customers have various touchpoints across numerous firms and these touchpoints regardless of how minor or major they may be hep decide what the customer decides on for future interactions (Cambra-Fierro, et al., 2021, p. 103). However, with the current pandemic and business shifts to virtual platforms there must be a way for organizations to still get touch points with customers. The initial touchpoint will be during their online platform experience and finally the most important touch point is the delivery of items during the “last mile” of delivery. With e-commerce growing over 25% world wide the last mile plays a massive role in optimizing customer touchpoints and continuously directs business practices worldwide (Vakulenko, et al., 2018). The trend is that more businesses and organizations are improving their online platforms to draw in and create touch points with customers, this is proof that customer satisfaction does impact business operations and will continue to impact businesses worldwide.ReferencesCambra-Fierro, J., Gao, L. (., & Melero-Polo, I. (2021). The power of social influence and customer–firm interactions in predicting non-transactional behaviors, immediate customer profitability, and long-term customer value. Journal of Business Research, 125, 103-119. https://org/10.1016/j.jbusres.2020.12.013Vakulenko, Y., Hellström, D., & Hjort, K. (2018). What\’s in the parcel locker? exploring customer value in e-commerce last mile delivery. Journal of Business Research, 88, 421-427. https://org/10.1016/j.jbusres.2017.11.033File Discussion Board 1 Response 1.docx (21.016 KB)Reply Quote Email AuthorSelect: All None
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