Customer Value In Business

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1. Introduction The beginning of the new millennium brings about a lot of dramatic changes in global market. Businesses are becoming more and more globalized, competitive and challenging. The prevailing traditional business approaches therefore need to be adapted to fit with new market environment. Customer satisfaction, loyalty and values are the most crucial elements every business needs to understand in order to survive in today’s complex business environment. According to Anderson (1998), a small but growing number of companies in the markets draw on their knowledge of what Customers Value to gain marketplace advantages over their less knowledgeable competitors. Hence, what is customer value? The customer is most likely an individual (or…show more content…
Epstein & Kristi Yuthas (2007), “customer value” refers to two different concepts. Firstly, it is defined as the value the company provides to the customer and secondly, the value the customer provides to the company. From customer’s perspective, customer value comprises of three components which are the value given by the products and services, the brand, and the relationship with the firm. First of all, the value provided by the products and services takes into account the customer’s perceived opinion on the product’s functionality and quality, along with the cost to use the product. Secondly, the image and reputation of a company‘s products or services are described as the value provided by the brand. The brand embraces the logos, symbols, slogans, signs, and images related to a company or its products (e.g. Nike’s famous ‘Swoosh’). Through these images, customers will experience the feelings of security, pride, or competence. Hence, customers receive value from the products and services generated by brand (Keller, 2000). Finally, customer value also refers to the value provided by ongoing relationship. The relationship between a company and its customers should go beyond economic transactions. The relationship includes the interaction before transaction when customers are aware of necessary information about the product, the interaction when customers purchase and use the product, and the interaction when customers receive post-sales services from…show more content…
A. Narus, “Business Marketing: Understand What Customers Value”, Harvard Business Review, Vol. 76, No: 6, 1998, pp. 53-61. Keller,K. 2000.“The Brand Report Card”, Harvard Business Review, January – February. K Albrecht (1992) The Only Thing That Matters: Bringing the Power of the Customer into the Centre of Your Business Harper: New York. Marc J. Epstein & Kristi Yuthas. (2007). Managing Customer Value. Canada: The Society of Management Accountants of Canada Smith, J. B. and M. Colgate (2007). CUSTOMER VALUE CREATION: A PRACTICAL FRAMEWORK. Journal of Marketing Theory and Practice 15(1): 7‐23. Stawomir CZARNIEWSKI (2014). Building Customer Value in Relationship Marketing. International Journal of Academic Research in Accounting, Finance and Management Sciences, vol 4 (4), pp. 88-94. Woodruff R. B. “Customer Value: The next Source for Competitive Advantage” Journal of The Academy Marketing Science, Vol. 25, No. 2, (spring 1997),

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