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Customer Value In Hospitality

943 Words4 Pages

What is the value created by the hospitality organization?

The relationship of Customer Value between costs and benefits conclude into a simple equation:
Benefit ? Cost =Customer Value
The inclination of the customer willing to pay for a product that meets their criteria for the happiness is in direct relation to their level of satisfaction.
By understand the customer?s wants and needs to maximise the potential customers is the challenge. As we expected that the customers are highly susceptible in purchases. Only that surpasses their expectations with the low cost in contrast of purchases that exceed their expectations can attract customers.
The other authors that define Customer Value as an intangible that is create through brand image, …show more content…

The customer value is becoming significant in the hospitality industry, the customer value, which comes from the company perspective is that; the value of the customer is in the central of the provider. The goal of the theory is about the evaluation of how to attractive the individual customers (customer lifetime value) or customer groups (customer equity) are from a company perspective. This approach became a popular topic in the last few years (Reinartz and Kumar, 2003; Rust, Lemon and Zeithaml, 2004; Krafft, Rudolf and Rudolf-Sipo?tz, 2005). This research stream is closely related to relationship marketing, which aims at developing and maintaining profitable business relationships with selected customers.
Customer Value can also be found from the customer perspective, the focus here is on the value generated by the company?s product in hospitality industry such as the service that perceived by the customer or the fulfillment of customer goals and desires by company products and …show more content…

The customer value create by the brand?s image which is also the highest level of the value but it does not fit the situation of Switzerland since the labor cost is too high to provide the hospitality environment.

?The beds go up and down electrically like the hospital bed? ?Plastic all the way? ?Noisy? ?Expensive in a fairy non-urban location? The product itself does not create the surplus to the guest, it also remind the marketer that whenever we going to pull in the new product we might have the challenge of the customer?s acceptance of new products.

?The room for $55 USD which is over our expected.? When the cost is lower than the benefit customer get they success at this point which bring us back to think that either the target market of the Golden Arch hotel is wrong from the beginning.

?The Golden Arch Hotel was immediately associated in the mind with the McDonald?s brand ? Which means that the exist brand image did influence customer value.

?The reception was very quiet with no activity which is different from the McDonald?s restaurant where there was immediate service.? The product itself does not shows that the benefit is a surplus compare to how it cost at this point they fail. ?The receptionist is not very friendly or

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