Impact: What value a product would augment better than the competitors and how a product is facilitating the target market better than the alternatives. Proof: It is the endorsement that a specific product has delivered specific values in the most cost effective manner to gain customer satisfaction. Cost: It is the value a customer is expecting to get from a product paying a certain amount of money. Customer compares the value of the product with the cost that they have to pay and evaluate whether it delivers what is expected or not? Dimensions of Value proposition from company’s perspective are Value Creation: The basic step where the idea of value specification is presented and processed.
a- Marketing is managing customer relationships. Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. Marketing is the process by which companies create value for customers and build strong customer relationships in return b- Marketing management wants to design strategies that will build profitable relationships with target consumers. Different philosophies are: The production philosophy: holds that consumers will favor products that are available and highly affordable. Therefore management should always focus on improving production and distribution efficiency.
Definition: Perceived value” is an important marketing concept. It lies at the heart of marketing and deals solely with the customer 's perception of a product (Walter Johnson, 2015). The perspective as which every customer see things are different from each other. Customer Perceived Value should easily refer to the extent to which a customer believes that a given product will satisfy his or her needs. The satisfaction of customers need based on the product and service offered by a company in relation to their brand and marketing from customers’ point of view is known as perceived valued.
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.
To accomplish those objectives more than 90% reported quality and customer satisfaction to be "vital". The report, in any case, noticed the need to go past customary ways to deal with quality and to receive an "advertising drove way to deal with quality administration". The thoughts being produced in services showcasing see quality from a customer point of view and perceive that the main mediator of quality is the customer. What the customer accepts is quality IS quality. This point of view on quality, a business sector drove methodology, is likewise relevant to assembling organisations where viewpoints on quality have been fairly constrained by its generation and operations genesis (Chitty & Chua, 2007).
This is called building “Guanxi” with customers to achieve company goals. Salespersons provide special customer orientation according to each customer’s characteristic will improve their satisfaction. Although salespersons are important and effective in increase customers’ satisfaction, it brings disadvantages to company too. For example, company might lose their customers once the salesperson is leaving company. Company must aware to prevent this situation to
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.
The profit margin is the value that’s captured and created by a company: Value Captured and Created – Cost of Creating that Value = Margin If a company creates more value, it is likely that the company would be more profitable. By providing more value to the business’s customers, will build a competitive advantage for the business itself. Hergert and Morris (1989) stated the following: “The Fundamental notion in the value chain analysis is that a product gains value as it passes through the vertical stream of production within the firm. When created value exceeds costs a profit is generated.” Primary activities can be directly related to the maintenance and support of a product or service, physical creation, sales and distribution after-sales service. More defined this involves the inbound logistics, operations, outbound logistics, marketing and sales and after-sales service
“What do we mean by value creation? For the customer, it entails making products and providing services that customers find consistently useful. In today's economy, such value creation is based typically on product and process innovation and on understanding unique customer needs with ever increasing speed and precision. But companies can innovate and deliver outstanding service only if they tap the commitment, energy, and imagination of their employees. Value must therefore be created for those employees in order to motivate and enable them.
It is the simplified description of the actual situations as it enables the management to identify quality problems and thus help in planning for the launch of a quality improvement program thereby improving the efficiency, profitability and overall performance. SUSTAINABLE STRUCTURES FOR TQS The SERVQUAL Instrument SERVQUAL is the gap model of service or the instrument of operationalizing service quality. It is used to measure perceptions by the extent of its disparity from customer expectations. Even though customer expectations can be verbally expressed, it is however difficult for this model to capture all the intrigues pertaining consumers’ sentiments about the service delivered. The authors admittedly reported that SERVQUAL model needs improvement in order to viably measure customer satisfaction.