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Figure 5.1 Customer-Orientations

What is
Customer Perceived Value?
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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.

Figure 5.2 Determinants of
Customer Perceived Value
Total customer benefit Total customer cost
Product benefit
Services benefit
Personnel benefit
Image benefit
Monetary cost
Time cost
Energy cost
Psychological cost

Caterpillar Maximizes
Customer Value

What is Loyalty?
Loyalty is a deeply held commitment to rebuy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

Top Brands in Customer Loyalty
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Apple iPhone
Clairol
Samsung
Mary Kay
Grey Goose
Clinique
Avis
Wal-Mart
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Google
Amazon
Bing
J.Crew
AT&T Wireless
Discover Card
Verizon Wireless
Cheerios

What is Customer Satisfaction?
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Customer Satisfaction is the extent to which product’s perceived performance matches a buyer’s expectation.

Measuring Satisfaction
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Periodic surveys
Customer loss rate
Mystery shoppers
Monitor competitive performance

What is Quality?
Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

What is
Total Quality Management?
TQM is an organization-wide approach to continuously improving the quality of all the organization’s processes, products and services.

What is
Customer Lifetime Value?
CLV is the value of entire stream of purchases that the customer would make over a lifetime of patronage.

What is
Customer Equity?
Customer Equity is the total combined customer lifetime values of all of the company’s customer.

What is
Customer Relationship Management?
CRM is the overall process of building and maintaining profitable customer relationship by delivering superior customer value and satisfaction.

What is
Partner Relationship Management?
PRM is working closely with partners in other company departments and outside the company to jointly bring greater value to customer.