After reading Joe's post about marketing concepts and diminishing returns, I completely agree with his argument. I believe that having choices when it comes to purchasing products is extremely important because it gives customers the ability to purchase what they want. Allowing customers choices and customized products can improve overall customer satisfaction and value.
In today's market, customers are generally attracted to products that have many options and choices to pick from. You can never have too many choices, because this gives customers a wider range to pick what is attractive to them. Having limited choices when it comes to a product limits customer satisfaction and value. If a customer does not like the choices of a product, they might gravitate towards a product that does provide the type of product that they desire. Consumers love choices when it comes to products they love, which not only benefits the customer, but the company producing that product as well.
Wednesday, January 30, 2013
Monday, January 28, 2013
Customer Value vs. Customer Satisfaction
(2) Are customer satisfaction and customer value interdependent or mutually exclusive? Can satisfaction occur simultaneously with low customer value?
Customer satisfaction and customer value are interdependent. Customer satisfaction is the customers' evaluation of a good or service in terms of whether that good or service as met their needs or expectations. Customer value is the relationship between benefits and the sacrifice necessary to obtain these benefits. Based on these definitions, if a customer buys a product of a quality that they are satisfied with, their customer value will be high, therefore making the overall customer satisfaction be high as well.
If a high quality product is only available at a high price, people will not perceive that as good value, nor will a low quality product selling for a low price. Customers value goods that are of the quality that they expect, and at the prices they are willing to pay. Therefore, if a customer is genuinely satisfied with the quality and price of their product, the customers value will be high, directly effecting their overall customer satisfaction.
What do you think is more important to a business/organization, customer value or customer service?
Customer satisfaction and customer value are interdependent. Customer satisfaction is the customers' evaluation of a good or service in terms of whether that good or service as met their needs or expectations. Customer value is the relationship between benefits and the sacrifice necessary to obtain these benefits. Based on these definitions, if a customer buys a product of a quality that they are satisfied with, their customer value will be high, therefore making the overall customer satisfaction be high as well.
If a high quality product is only available at a high price, people will not perceive that as good value, nor will a low quality product selling for a low price. Customers value goods that are of the quality that they expect, and at the prices they are willing to pay. Therefore, if a customer is genuinely satisfied with the quality and price of their product, the customers value will be high, directly effecting their overall customer satisfaction.
What do you think is more important to a business/organization, customer value or customer service?
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