I also agree that customer value and customer satisfaction can be interdependent, that there always has to be customer value in order to have customer satisfaction and vice versa in very case.
I also do believe it is possible to have one without the other, but not all the time.
As Katie states, it is true that there must be some sort of customer value in order for a customer to partake in customer value. This being so because a customer is more likely to be satisfied with their purchased good or service if they are more aware of what they are actually going to receive for what they paid. Rather than just purchasing something without analyzing it, then getting something other than what the customer believe they would receive.
However, I do question one point that Katie makes about a customer is more likely to assume a higher value with a product if it is priced higher than if it is priced lower. I do not believe that is always the case.
When looking at different products or services, obviously there will be an understandable difference in price depending on what it is. But when looking at products that are int he same market, but different brands, I do not necessarily believe that higher price is associated with higher quality.
For instance if one person were to buy a 'generic brand' of paper towels over a name brand of paper towels, one would assume you would pay less for the generic rather than a name brand. This price difference though, is not necessarily existent based off of a difference is quality, but rather paying for the design of the package. Both paper towels work the exact same, yet one of them is two dollars more.
Would you agree that when paying for a product of 'name brand' (i.e. Tide, Heinz, Dove) over a 'generic brand' (i.e. Great Value, Shaws, Market Basket) you are paying more for quality, or rather paying for the design?
Wednesday, January 30, 2013
Sunday, January 27, 2013
Customer Satisfaction vs. Customer Value
Customer satisfaction and customer value are two different concepts, however, the two of them can be linked together, but that does not mean one is completely necessary for the other to exist.
In the marketing book, customer satisfaction is defined as customer's evaluation of a good or service in terms of whether it has met their needs and expectations. Customer value on the other hand is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
In more simpler terms, customer satisfaction lies within the customers own feelings of satisfaction in a product or service after they have obtained it, while customer value is prior to the purchase of a product or service where a customer reviews the possible benefits of this product or service, as well as how much they will sacrifice or pay for this product or service.
In a perfect world customer value would be applied to a product or service as a customer analyzes their decision to invest in it, then afterwards the customers satisfaction would be at an all time high after the purchase of their new product or service.
Unfortunately that is not the world in which we live.
Customer satisfaction can be linked to customer value due to the fact that if a customer is partaking in customer value, then that means they are weighing the benefits of their product or service before purchase as well as determining if the cost or sacrifice measures up to it's worth. If the product or service does in fact measure up then the customer's satisfaction level is most likely going to be higher.
If a customer does not partake in customer value and purchases a good or service without weighing it's benefits to it's cost, then it seems there would be a less likely chance of the satisfaction of a customer to be high, seeing as they did not value out what they purchased and their for their expectations may not have been met.
It would also seem that just because a customer partakes in understanding the potential value of their product or service as well as it's cost, does not always mean that a customer's satisfaction will be high after their purchase. It could turn out that the product or service ended up not meeting the value a customer intended on it to meet.
Also, it would seem as though a customer can also be highly satisfied with a product but did not look into the value of what the product or service actually entailed compared to it's cost. It could be the case that a customer just purchased a product or service without really caring about the cost to the benefits, and turns out that the customer was more than satisfied with the outcome of their new product or service than another who may have participated in customer value.
Therefore, customer satisfaction tends to go along with the initial customer value, however it does not seem to be completely necessary to partake in customer value in order to receive a higher customer satisfaction. In turn, having a high customer satisfaction does not necessarily mean that a customer partook in customer value.
Would you consider it more beneficial to a customer if they were to partake in customer value before every purchase? And in doing so, do you believe this will lead to a higher customer satisfaction rate among consumers?
In the marketing book, customer satisfaction is defined as customer's evaluation of a good or service in terms of whether it has met their needs and expectations. Customer value on the other hand is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
In more simpler terms, customer satisfaction lies within the customers own feelings of satisfaction in a product or service after they have obtained it, while customer value is prior to the purchase of a product or service where a customer reviews the possible benefits of this product or service, as well as how much they will sacrifice or pay for this product or service.
In a perfect world customer value would be applied to a product or service as a customer analyzes their decision to invest in it, then afterwards the customers satisfaction would be at an all time high after the purchase of their new product or service.
Unfortunately that is not the world in which we live.
Customer satisfaction can be linked to customer value due to the fact that if a customer is partaking in customer value, then that means they are weighing the benefits of their product or service before purchase as well as determining if the cost or sacrifice measures up to it's worth. If the product or service does in fact measure up then the customer's satisfaction level is most likely going to be higher.
If a customer does not partake in customer value and purchases a good or service without weighing it's benefits to it's cost, then it seems there would be a less likely chance of the satisfaction of a customer to be high, seeing as they did not value out what they purchased and their for their expectations may not have been met.
It would also seem that just because a customer partakes in understanding the potential value of their product or service as well as it's cost, does not always mean that a customer's satisfaction will be high after their purchase. It could turn out that the product or service ended up not meeting the value a customer intended on it to meet.
Also, it would seem as though a customer can also be highly satisfied with a product but did not look into the value of what the product or service actually entailed compared to it's cost. It could be the case that a customer just purchased a product or service without really caring about the cost to the benefits, and turns out that the customer was more than satisfied with the outcome of their new product or service than another who may have participated in customer value.
Therefore, customer satisfaction tends to go along with the initial customer value, however it does not seem to be completely necessary to partake in customer value in order to receive a higher customer satisfaction. In turn, having a high customer satisfaction does not necessarily mean that a customer partook in customer value.
Would you consider it more beneficial to a customer if they were to partake in customer value before every purchase? And in doing so, do you believe this will lead to a higher customer satisfaction rate among consumers?
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