The Two Main Concepts Of Customer Perceived Value

873 Words2 Pages
bulb-icon

Recommended: Theories on customer loyalty

Customer Perceived Value actually refers to the overall value assigned to the product or service by the customer on the basis of the quality, usability and functions of the good or service acquired.
Moreover, Customer Perceived Value is directly affected by 2 main concepts
1. Customer Perceived Value is the sum total of customer pre purchase (expectation of quality of product or service) or perception during usage of product or service (Comparison between expected perception and usage perception) and post purchase perception (perception of the customer towards product or service after usage) (Oyserman et al., 2002). Only if the sum total of the perception of the product or service is positive, a customer is said to be satisfied with the product …show more content…

Customers that assign high perceived value or price worthiness towards product or service of a particular brand are loyal to that brand.
• Social Value: Customers will always prefer to purchase products or service that will improve their social worth among their friends and family. Hence, customers will highly perceive and be loyal to brand that produce products that improve their Social Value
2.5.2 Brand Trust
While there have been many marketing studies on brand trust; mostly stating brand Trust to be a significant interlinking factor between customer pre and post purchase behaviour, which directly affects customer brand loyalty (Verhagen, Meents, and Tan, 2006). Basically brand trust has been defined as the belief of a customer towards a brand to conclude tasks as per expectation (Kimery and McCard, 2002)
Brand Trust being one of the primary factors directly affecting Brand Loyalty as customers prefer to purchase products or services only from a Brand that they trust (Jayawardhena, Wright and Dennis, 2007). Hence it can be simply concluded that Brand Trust is essential in ensuring Brand Loyalty, ensuring which a Brand can maintain its Market Share and Customer Base
2.5.4 …show more content…

No customer would wish to spend on a product that doesn’t satisfy his/her requirements or perform as per his/her perception efficiently. Thus companies, wishing to be successful, require to continuously analyze customer behavior to ensure their satisfaction while developing methods of improving the level of satisfaction among customers
To ensure that the Product or Service developed by the Company will ensure Satisfaction among the customers, the company needs to understand and implement the needs of its customers while developing products or services, allowing them to have a loyal customer database. Any company can only be successful in a business environment if they have loyal customer base that will continue to purchase from a particular brand as compared to purchasing products or services from competitors as long as it satisfies their requirements and

Show More
Related

  • Dr Thunder: Advertising Scheme

    1235 Words  | 3 Pages

    Mise, J. K., Nair, C., Odera, O., & Ogutu, M. (2013). Determinants of Brand Loyalty and Product Quality of Soft Drink Consumers. Asian Journal of Business and Management , 1 (1), 8-13.

    Read More

  • Sephora Case Analysis

    735 Words  | 2 Pages

    Brand equity goes beyond the financial assets and profitability to incorporate the recognition and loyalty of customers toward the brand. Customers are trust familiar brands in a similar way that they trust people who they have known for a long period of time. This is because familiarity leads to a sense of comfort and emotional attachment that customers often opt to purchase a recognised brand rather than a less familiar brand although the generic product is essentially the same.

    Read More

  • Kevin Keller Brand Equity Model Essay

    1751 Words  | 4 Pages

    A customer’s response falls in two categories, judgment and feelings. Consumers are constantly making judgments about a brand. These judgments fall into four categories: quality, credibility, consideration, and superiority (Keller, 2001). Customers judge a brand based on its actual and perceived quality, and customers judge credibility using the perception of the company’s expertise, trustworthiness, and likability. To what extent is the brand seen as “competent, innovative, and a market leader,” “dependable and sensitive to the interest of customers,” and “fun, interesting, and worth spending time with” (Keller,

    Read More

  • Creating Customer Value Essay

    1412 Words  | 3 Pages

    Customer value is defined as "the perceived benefit of a product, used by customers to determine whether or not to buy the product" (Lussier, 2006). I do believe that most customer's focus on creating customer value. It is an aspect needed in order to sell anything. A customer would not buy something if she or he did not see the benefit in buying it, therefore, organizations strive to create customer value because they need the customer to see a benefit and to buy the product.

    Read More

  • In Search Of Excellence by Peters and Waterman

    832 Words  | 2 Pages

    Close to the Customer: Customer satisfaction is very important throughout all the roles that the business plays. Many companies forget about their customers, whereas successful companies have an obsession with their customers. Excellent product quality and reliability will make a satisfied customer. Great service will keep the customer coming back.

    Read More

  • The Importance Of A True Brand Loyalty

    1033 Words  | 3 Pages

    Many researches also maintain that the higher the brand awareness is, the higher perceived quality is (Monore, 1990; Dodds and Grewal, 1991; Wall, Liefeld, & Heslop, 1991; Lo, 2002; Lin, 2006 ). Kan (2002) further suggest that the higher the brand awareness is, the higher the consumers’ quality evaluation is. Besides, Aaker and Keller (1990) mentioned that a brand with high awareness and good image can promote brand loyalty to consumers, and the higher the brand awareness is, the higher brand trust and purchase intention are to consumers. Peng (2006) indicates that brand awareness has the greatest total effects on brand loyalty. When businesses develop a new products or a new market, they should promote their brand awareness in order to receive the best result because brand awareness is positively related to brand loyalty (Aaker & Keller, 1990; Peng, 2006; Wu, 2002; Chou, 2005). Chang and Wildt (1994) submit that value can facilitate loyalty. Parasuraman and Grewal (2000) propose that the more positive customer transaction perceptions are, the stronger customer loyalty is. Sirdeshmukh, Sigh and Sabol (2002) also deem that value will bring a positive influence toward customers. Wu (2007) identifies that the perception of consumers will increase or reduce brand loyalty. Judith and Richard (2002) further indicate that perceived quality and brand loyalty have a highly connection, they will positively influence purchase intention. Chi, Yeh and Chiou (2009) a new view and evidence to the study of brand loyalty that customer perceived quality will influence brand trust and brand affect, and further to influence brand attitude and purchase behavior. Thus, perceived quality and brand loyalty are positively correlated, and brand loyalty will increase if perceived quality

    Read More

  • Four Eras Of The Marketing Revolution

    1787 Words  | 4 Pages

    Many scholars believe that customer satisfaction has a crucial role in the success of a business, and is pivotal in increasing the overall profitability of the business (Kotier, 1991). Customer value is gained through the experience they receive from the goods or purchases they have obtained from a certain business. Customer value has various definitions and concepts, Holbrook (1999) stated that it is a kind of “interactive, mutual, and preferred experience”; but simply said, “the term customer value has many meanings.”

    Read More

  • Customer Satisfaction Strategies

    1040 Words  | 3 Pages

    Customer satisfaction is a key ingredient to the success of any business.It is the most important factor that creates repeated customers. Some people know it but do not realize its importance. If a customer of yours is satisfied with one of your products or services, chances are this customer will purchase more of your products or services, which will increase your revenue. Therefore, in order to have your new or existing customers buy more from you, you will have to follow techniques that work. Customer satisfaction takes a very important place in Marketing. As much as you think that your marketing strategies should help you generate sales, think about how the same marketing strategies could help you achieve Customer satisfaction. There are a lot of elements involved with Customer satisfaction.

    Read More

  • Brand Image Essay

    1243 Words  | 3 Pages

    According to Hsieh, Pan, and Setiono (2004), "a successful brand image enables consumers to identify the needs that the brand satisfies and to differentiate the brand from its competitors, and consequently increases the likelihood that consumers will purchase the brand". A company or its product services, which constantly holds a favorable image by the public, would definitely gain a better position in the market, sustainable competitive advantage, and increase market share or performance (Park, Jaworski, & MacInnis, 1986). In addition, several empirical findings have confirmed that a favorable image (i.e. brand, store/retail) will lead to loyalty (e.g. Koo, 2003; Kandampully & Suhartanto, 2000; Nguyen & LeBlanc, 1998),

    Read More

  • Tangible or Intangible Value?

    576 Words  | 2 Pages

    According to the customer value triad theory by Earl Naumann, “value is a combination of quality, service and price” (Naumann, 1995). In this case quality could be defined as performance quality, the objective quality of a product (Kotler & Keller, 2012). A product with high performance quality, increases the value of a product. The value of a product is furthermore positively influenced by the service that is delivered (Kotler & Keller, 2012). The price however, can both positively and negatively influence the value of a product. A high price will in most cases decrease the value, but for some exclusive and luxury goods, a high price increases the value. The exclusivity, which is of intangible nature, is than one of the most important determinants of the value of the product. For most normal goods however, the objective quality is the prime determinant of the value. Although intangible benefits can be important in determining the value of a product, in most cases it is still the tangible benefits and costs, the objective quality and the price.

    Read More

  • The Significant Factors To Building Brand Awareness

    337 Words  | 1 Pages

    [2] Aaker, D.A. and Jacobson, R. (2001) The Value Relevance of Brand Attitude In High-Technology Markets. Journal of Marketing Research 38, 485–93.

    Read More

  • Difference Between Brand Image And Channel Image

    835 Words  | 2 Pages

    The source of the brand features is in a connection between customers and companies that sell services or products. Consumers who choose a specific company fundamentally acknowledge to prefer that brand more than other brands rooted from the recognition of the brand’s worth.

    Read More

  • Assignment: Reflection: Analyzing The Business Environment

    1230 Words  | 3 Pages

    Customer loyalty is something businesses strive for, as it is less cost efficient for businesses to gain new customers and loyal customers will only buy from certain brands. Customer loyally also can help the positive spread of word of mouth, thus expanding the businesses’ reputation and status.

    Read More

  • Literature Review: Brand Loyalty

    1452 Words  | 3 Pages

    This research uses four variables on the basis of literature for developing model and hypothesis. The first variable is brand loyalty which is dependent variable and second and third variables are brand trust and perceived quality respectively which are independent variables and forth is brand awareness which is mediator and these are used for development of conceptual model. This literature is based on past studies and conceptual research model and hypothesis are developed after literature review.

    Read More

  • Cost And Consumer Value: The Benefits Of Customer Value

    2044 Words  | 5 Pages

    Customer Value is important to my company. My Company knows who purchase their goods and services and why these consumers view our offerings as having the highest value to them.

    Read More

More about The Two Main Concepts Of Customer Perceived Value

Open Document