marketing 3
DESCRIPTION
its use full to students of managementTRANSCRIPT
Creating Customer Value
Prof. Kunal GauravDhruva College of Management
Hyderabad
Customer vs. Consumer
Customer: anyone who pays directly or indirectly for the company's goods or services.
Consumer: anyone who enjoys the benefits of the good or service.
Customer Satisfaction
Customer satisfaction or dissatisfaction is the feeling derived by the consumer when he compares the product’s actual performance with the performance that he expects of it.
Customers form their expectations on the basis of past buying experiences, advice of their reference group and the promises of the marketers and their competitors.
When the product performance matches the expected performance, the customer experiences satisfaction; when it falls short of the expectation, he experiences dissatisfaction. And when the performance exceeds expectations, the customer is highly satisfied or delighted.
What is Loyalty?
LoyaltyLoyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.Loyalty status.Loyalty status. Buyers can be divided into four groups according to brand loyalty status: (1)Hard-core loyals (who always buy one brand), (2)Split loyals (who are loyal to two or three brands), (3)Shifting loyals (who shift from one brand to another, and(4)Switchers (who show no loyalty to any brand).
Customer Perceived Value & Value Chain
Customer perceived value is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
Every firm performs a set of activities that helps in designing, producing, marketing, delivering and supporting its products. These activities form a process.
At every stage of the process, the firm adds value. The chain of activities from raw material procurement to the after-sales service is called the value chain. It identifies nine strategic activities, i.e. five primary and four support activities, to create value.
Consumer Buying Process
Problem Recognition
Information Search
Evaluation
Purchase Decision
PostpurchaseBehavior
Problem Recognition
Sources of Information
Personal
ExperientialPublic
Commercial
Successive Sets Involved in Consumer Decision Making
Stages between Evaluation of Alternatives and Purchase
Perceived Risk
FunctionalFunctional
PhysicalPhysical
FinancialFinancial
SocialSocial
PsychologicalPsychological
TimeTime
How Customers Use and Dispose of Products?
What Influences Consumer Behavior?
Cultural FactorsCultural Factors
Social FactorsSocial Factors
Personal FactorsPersonal Factors
Cultural Factors
Culture Sub-culture Social Class
What is Culture?
Culture is the fundamental determinant of a person’s wants and behaviors acquired through socialization processes with family and other key institutions.
SubculturesNationalities Nationalities
ReligionsReligions
Racial groupsRacial groups
Geographic regionsGeographic regions
Social Classes
Upper uppersLower uppersUpper middlesMiddle class
Working classUpper lowersLower lowers
Characteristics of Social Classes
Within a class, people tend to behave alike
Social class conveys perceptions of inferior or superior position
Class may be indicated by a cluster of variables (occupation, income, wealth)
Class designation is mobile over time
Social Factors
Referencegroups
Social roles
Statuses
Family
Reference GroupsMembership groupsMembership groups
Primary groupsPrimary groups
Secondary groupsSecondary groups
Aspirational groupsAspirational groups
Dissociative groupsDissociative groups
Provogue uses teenage icons as brand ambassadors and a youth targeted website to connect to its customers
Roles and Status
What degree of status is associated with various occupational roles?
Personal Factors
Age
Values
Life cyclestage
Occupation
Personality
Self-concept
Wealth
Lifestyle
Customer Lifetime Value (CLV)
Also known as lifetime customer value (LCV), or lifetime value (LTV). is the Present Value of the future cash flows attributed to the customer
relationship. An estimate of customer lifetime value allows a business to determine
the amount of money that can be spent on acquiring and retaining a customer. For example, a high customer lifetime value may convince a credit card company to offer expensive incentives to attract new clients. Also called lifetime customer value.
Use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales.
Thank You!