Skip to main content

Delivering high customer value

Consumers have varying degrees of loyalty to specific brands, stores, and companies. Loyalty has been defined as “a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential
to cause switching behavior.”

The value proposition consists of the whole cluster of benefits the company promises to deliver; it is more than  the core positioning of the offering. For example, Volvo’s core positioning has been “safety,” but the buyer is promised more than just a safe car; other benefits include good performance, design, and safety for the environment. 

The value proposition is thus a promise about the experience customers can expect from the company’s market offering and their relationship with the supplier. Whether the promise is kept depends on the company’s ability to manage its value delivery system. 

The value delivery system includes all the experiences the customer will have on 
the way to obtaining and using the offering. At the heart of a good value delivery system is a set of core business 
processes that help deliver distinctive consumer value.
Labels:

Comments

Post a Comment

Popular posts from this blog

Impact of quality

The impact of quality, especially in the context of Total Quality Management (TQM), can be significant and far-reaching. Here are some key impacts: 1. Customer Satisfaction High-quality products and services lead to increased customer satisfaction, loyalty, and positive word-of-mouth, which can result in repeat business and new customers. 2. Competitive Advantage  Consistently delivering high-quality products or services can differentiate an organization from its competitors, leading to a competitive advantage in the market. 3. Cost Reduction  Improving quality often leads to reduced waste, rework, and warranty costs, which can result in overall cost savings for the organization. 4. Employee Morale and Engagement  Involving employees in quality improvement efforts can lead to higher levels of morale, job satisfaction, and engagement, as employees see the impact of their work and contributions to the organization's success. 5. Efficiency and Productivity  Quality impr...
Post a Comment
Read more

Influence of customer satisfaction

Customer satisfaction has a significant influence on various aspects of a business, including: 1. Customer Retention Satisfied customers are more likely to remain loyal to a brand and continue purchasing its products or services. High customer retention rates contribute to long-term profitability by reducing the need to constantly acquire new customers, which can be more costly. 2. Word-of-Mouth Marketing  Satisfied customers are more inclined to share positive experiences with friends, family, and colleagues, leading to positive word-of-mouth marketing. This organic promotion can significantly influence the purchasing decisions of others and contribute to the growth of a business's customer base. 3. Brand Reputation  Customer satisfaction directly impacts a company's reputation. Positive experiences build trust and goodwill, enhancing the brand's reputation and credibility in the marketplace. Conversely, negative experiences can tarnish a brand's image and deter potent...
Post a Comment
Read more

Product and service quality

Product and service quality are crucial for customer satisfaction and loyalty. High-quality products meet or exceed customer expectations, while excellent service ensures a positive experience throughout the customer journey. Businesses that prioritize quality often build strong reputations and gain a competitive edge in the market. Regular feedback and continuous improvement are essential for maintaining and enhancing quality standards over time. Product quality refers to the characteristics and attributes of a product that determine its ability to meet customer needs and expectations. This includes factors such as durability, reliability, performance, safety, and aesthetics. High-quality products typically exhibit consistency in these aspects, providing value to customers and building trust in the brand. Service quality, on the other hand, pertains to the level of satisfaction customers experience when interacting with a company's services. It encompasses factors such as responsi...
Post a Comment
Read more