2.1.2EXPERIENTIAL VALUE
This segment of the thesis analyses the review of literature that has been done with reference to experiential value.
Zeithaml (1988) Early approaches to customer value mainly focused on cognitive and utilitarian aspects of it. The author defines the perceived value as “consumer’s overall assessment of the utility of a product or service based on perceptions of what is received and what is given”. While investigating the price dimension, value researchers have come to recognize that how much time and efforts a customer is investing to get desired product or service is also matter with the price of the product.
Mathwick, et al (2001)in their work explained that retailers are starting to position themselves as providers
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The finding of their study shows that perceived value is both uni dimensional and multidimensional both have different role to play in understanding of the concept. The uni-dimensional is simplified in understanding the concept and multidimensional is little complex in understanding the concept. , the perceived value indicates an interaction between a consumer and a product. The concept of perceived value is relative by virtue of its comparative, personal and situational nature. He indicated that the value is preferential and perceptual and cognitive –affective in …show more content…
G., (2011) has highlighted the importance of value in service sector. To gain better understanding the links between quality, satisfaction, and value was studied both conceptually and empirically Consumer behavior has been recognized over the years as one of the areas with the most promising future perspectives for tourism services research so the authors have linked the value with customer satisfaction .The growth of the business depends on customer satisfaction and loyalty, which is influenced by customer perceived value. Positive perception of value leads to satisfied and loyal
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
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.
Soman,D & Marand, S (2009). Managing Customer Value: One Stage at a Time.: World Scientific Publishing. p9-14.
The Gaps Model of Service Quality was originally developed for application in the financial service sector. The model was designed to measure components of customer satisfaction by using five dimensions of real or potential gaps in service quality of a hotel (Saleh & Ryan, 1991). The model has been applied to hotels, as well as a number of service agencies, including banking, hotels, restaurants, and healthcare. Even though the services differ greatly, the model is easily adapted to any service industry (Parasuraman, Zeithaml, & Berry, 1985).
We recommend Vikram to use service quality framework (SERVQUAL) as a scale to measure and manage hotel guest’s perception of service quality in terms of five dimensions (session2 slide#45), which are (i) Reliability – OV employee’s ability to dependably and accurately perform the promised service to consistently delight its guests (ii) Assurance – Knowledge and courtesy of OV employees, and their ability to convey trust and confidence. (iii) Empathy – OV’s individualized attention and customized care it offers to its guests and understanding the customer to anticipate guest needs, wants and desires to enlighten the service. (iv)Tangibles – Refers to OV’s lavish tents and other physical facilities, equipment, pleasant appearance of OV personal, etc. (v) Responsiveness – OV’s willingness to help customers and provide prompt
In the 21st century, global changes in life style, income, ethnic group and age continue to broaden the diversity of customer needs and behaviours (Sheth et al., 2000). Consumers have more knowledge of fashion and brands than at any time in the past. Many fashion brands have to face the fact that their consumers are becoming more knowledgeable and often know more about fashion and brands then they know about their customers. However, greater knowledge is coupled with increased expectations and consumers are more demanding of service and value. Definition of value has changed ...
Weinstein, A. (2012). Superior customer value: strategies for winning and retaining customers (3rd ed.). Boca Raton, FL: CRC Press.
This report, which is from the consumer perspective, will analyze how successful the Value Retail is from three aspects: motivation, consumer decision making as well as culture. Motivation and consumer decision making are individual factors while culture is a social cultural factor(Tao,2013).
Value-added services are to be studied as the services analysed in this paper are an add-in to the product marketing of the company; for this purpose, some articles and academic papers were chosen. For example, “A Value-Added mind-set can revamp your bottom line”. The article goes around the idea that firms must pull themselves from a state of comfort, competing on the basis of price and delivery, by differentiating
Core customer value is the goods and services which the customers are buying at the time (Lucas, 2014). When making the buying decision, most of the consumers also think will there be any benefit after buying the products. On the other hand, we can say that customer value is the difference between benefits and cost (McLaughlin, N.D.). Normally, customers always like to choose to buy the products which have higher customer value.
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.”
Tourists are more dependable on website to get the information and overview of destination. Therefore one of the website of bay of island is www.tourism.net.nz, which gives complete information. In this assignment, we will mainly discuss about marketing mix, customer wants, creating value for the customer, destination location and tangible experience from tourism marketing perspective.
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.
Customer value is an organization’s rating of the value it provides to its customers relative to that provided by its competitors. It is the critical part of relationship marketing, achieve the customer satisfaction is the prime goal of the marketers and organization’s long-term goal is achieving through satisfying customer needs, then make profit for companies. It needs to be seen from the customer’s viewpoint to in terms of the value s/he see in interacting with the organization. Interaction by the definition should be a two way process. However, the choice to interact with an organization rests solely with the customer. Organization must be customer centric. E.g. Food town card is a standard discount care for Food town’s customer.
(1) efforts to improve the quality of their services, and (2) efforts to market themselves more effectively. Both service quality and services marketing have received considerable attention from researchers over the years and the application of these concepts in the service settings is therefore not surprising (Parasuraman et al., 1985; Rust and Oliver 1994; Zeithaml et al., 1990). One evidence of the importance of service quality and service