Value proposition Formal Definition: A value proposition (VP) is a statement that clearly identifies what benefits a customer will receive by purchasing a particular product or service from a particular vendor. Alternative Definitions: A value proposition is a promise of value to be delivered, communicated, and acknowledged. It is a belief from the customer about how value (benefit) will be delivered, experienced and acquired. A value proposition is a statement which identifies clear, measurable and demonstrable benefits consumers get when buying a particular product or service. It is a principle of customer value, with customer insights driving the company’s marketing activities.
Company leaders first need to establish their brand attributes and determine the implications for interaction with customers across all touch points. Companies also need to determine how different customer tiers – from steadfast and highly profitable segments to occasional shoppers – are to be treated. That means training employees thoroughly, steering customers to the appropriate channel, and satisfying customers so well that they become advocates. Establishing a sound CRM foundation is essential for any industry intending to implement a loyalty program – since success depends on achieving a complete view of the customer. This is true for business-to-consumer industries, such as travel, hospitality, and wireless services – as well as for business-tobusiness industries, such as construction and energy, where loyalty programs are becoming increasingly relevant to enhance customer relationships.
CHAPTER – III CONCEPTUAL FRAMEWORK OF THE STUDY 3.1 Introduction Brand loyalty implies that consumer have a good attitude towards a particular brand over other competing brands. Brand loyal consumers may be willing to pay more for a brand because they perceive some unique value in the brand that no alternative can provide (Oliver1993) . Brand loyalty, long a central construct in marketing, is a measure of the attachment that a customer has to a brand. It reflects how likely a customer will be to switch to another brand, especially when that brand makes a changes, either in price or in product features. As brand loyalty increase, the vulnerability of the customer base to competitive action is reduced.
The outcome demonstrated that there is an immediate association amongst correspondence and deals execution and relationship quality positively affects client reliability. Furthermore, live client relationship marketing research entitled: Is consumer loyalty and certainty truly to fill in as puzzling factors? By Ari Warokka et al (2013) was performed. This article analyzes customary marketing to relationship marketing and expressed that conventional marketing is centered around augmenting benefits however relationship marketing to assemble solid relationships and enduring association between the association and the
Purpose: "Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty." "Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold:" "Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company 's goods and services." "Although sales or market share can indicate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention.
(1996) offered a conceptual model of the impact of service quality on particular behaviours that signalled whether customers remain with or defect from a company (loyalty or disloyalty). Their analysis signified the crucial role of satisfaction as an antecedent of loyalty, as satisfaction is based on certain expectations for service quality that, when met, produce satisfaction and, eventually, loyalty. In a later study, Roberts et al. (2003) adapted Zeithaml et al.’s (1996) framework to measure the quality of relationships in consumer services. While there is a widespread belief in the services literature that service quality leads to relationship quality, Roberts et al.
It is an affective or emotional state of feeling reaction in which the consumer’s needs desires and expectations during the course of the service experiences have been met or exceeded (Hunt, 1977; Mizik and Jacobson, 2007; Srinivasan and Hanssens, 2009). The concept of student satisfaction originated from the theory of customer satisfaction which plays an important role to influence consumers to retain and spread good word of mouth. According to Kotler and Clarke (1987) satisfaction is a state felt by a person who has experienced an outcome that fulfil his or her expectation. In other words Satisfaction is a function of relative level of expectations and it perceives performance. Satisfaction is also defined as theone’s purposeful performance which results in self-contentment (Malik &Usman, 2010).
It drives the general public 's plan of action to move toward social needs, there by bringing the interests of business firms and the enthusiasm of society in to harmonious relationship. Hence the third pillory of the advertising idea plans to accomplish great benefits by giving the client authentic esteems in the satisfaction. Customer fulfilment, a business term, is a measure of how items and services supplied by an organization meet or outperform client desire. It is viewed as a key execution pointer inside business and is a piece of the four viewpoints of a Balanced Scorecard. In a focused commercial centre where organizations go after clients, customer satisfaction is viewed as a key differentiator and progressively has turned into a key component of business technique.
This example further clarifies that today customers want an experience not just a product. Another example that display experiential benefit is of, stores such as Nike town and the House of Ralph Lauren which are typical applications of this experiential concept. Schmitt (1999) has coined the term ‘experiential marketing’ to refer to ‘how to get customers to sense, feel, think, act and relate to your company and brands’. 3) Bonding through aspirational values Apart from delivering their main function and giving a great experience to their customer, it is necessary for brands to be ambitious. This is achievable through the intangible value of the brand that the customer derives after using
According to this theory by Oliver, satisfaction level is a result of the difference between expected and perceived performance. Positive disconfirmation or satisfaction occurs when a product or service is better than what is expected. Similarly, negative disconfirmation or dissatisfaction occurs when expectation is not met. Several studies reflect that customer satisfaction may have direct impact on business results and profitability. Many studies have analyzed the relationship between customer behaviour patterns and according to these findings, customer satisfaction influences repurchase decisions, increases loyalty and leads to positive word of mouth.