Customer Satisfaction and Value in marketing
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Transcript of Customer Satisfaction and Value in marketing
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Customer Satisfaction and Value In Marketing
Presenter: Ahmad Al-JarahCEO of VW
PhD Candidate Business management
Instructor : Dr. John OlotewoCEO of the Class
Advanced Marketing TheoryGirne American University
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Customer Satisfaction
When we hear or see the word Customer Satisfaction, what comes to our mind?
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A- My boss , support/ Marketing dept and the organization is responsible for that, I am NOT.
B- NO, only I am responsible for my customer, other are not concerned.
C- Customer satisfaction is only in service industries NOT in IT industries
D- Customer satisfaction is to complete the work of customer and he will be satisfied
When we hear or see the word Customer Satisfaction, what comes to our mind?
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Customer Satisfaction
“A measure of HOW product and services supplied by company meet or surpass customer expectation”
If customer expectation are met = customer satisfaction results
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Customer Satisfaction:
“Customer satisfaction is getting what you want by giving others what they wants”
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C. Satisfaction: The Formula for success
Customer Satisfaction= Perception - Expectation
Expectation was 15 M Perception was 30 M Customer is DELIGHTED
Expectation was 40 M Perception was 30 M Customer is DISAPPOINTED
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Do Satisfied Customers Really Pay More?
A Study of the Relationship Between Customer Satisfaction and Willingness to Pay
Christian Hombuurg, Nicole Koshate, & Wayne D.HoyerJournal of Marketing
April 2005
First Article
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Do Satisfied Customers Really Pay More?
Previous Studies:Customer Satisfaction, Productivity, and Profitability: Difference between good and servicesEugene W. Anderson . Claes Fornell . Roland T. Rust - 1997
The Antecedents and Consequences of Customer Satisfaction for Firms,Anderson, Mary W. Sullivan- 1993
The Impact of Personality and Emotion on Post purchase Processes.Mooradian and Olver- 1997.
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Do Satisfied Customers Really Pay More?The Importance of the Study:
The price related outcomes of customer satisfaction and willingness to pay have often been neglected in previous research
According to the researcher knowledge, only one study ( Anderson 1996) focused on the link between CS and price tolerance
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Do Satisfied Customers Really Pay More?The Research Questions:
• Whether the is a positive relationship between CS and WTP at the individual level.First
• Determine whether the relationship ( if it exists) is essentially linear or whether there are significant nonlinear effects
Second
• How the relationship between CS and WTP changes over timeThird
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Customer SatisfactionHypothesis of the Study:
•The price that customers are willing to pay increases with the level of CS.H1
•The relationship between CS and the rice that customers are willing to pay follows an inverse S-shaped function. Which is first concave and the convexH2
•The relationship between CS and the rice that customers are willing to pay follows an inverse S-shaped function. Which is first convex and then concave
H2alt
•The more the CS judgment moves from transaction specific to cumulative, the stronger is the relationship between CS and WTP
H3
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Customer Satisfaction
WTP0
CS0Low CS High CS
WTP
WTP0
CS0Low CS High CS
WTP
- Decrease return at the lower end- Flat in the middle- Increasing returns at higher end
- increasing return at the lower end- Flat in the middle- Decreasing returns at higher end
Inverse S-Shaped Function S-Shaped Function
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Do Satisfied Customers Really Pay More?
•examines how different levels of CS increase the WTP (H1, H2 and H2alt) in a lab experiment.Study
1
•Extends the research to a real consumption experience and captures the dynamic aspects ( cumulative satisfaction) of the situation (H3)Study 2
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Do Satisfied Customers Really Pay More?Results of the Study:
Study 1• The relationship between CS and WTP is statistically significant• The findings support H2, the function is concave for low satisfaction levels and convex for high
satisfaction levels( inverse S-shaped faction)
Study 2• There is a positive and statistically between CS and WTP• The result of study 2 contradict H2alt• The results predicts as the CS judgment moves from T.S to cumulative satisfaction the impact on
WTP is strengthened
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Do Satisfied Customers Really Pay More?Suggests of the Study:
•The customer’s satisfaction level could influence a company’s pricing strategy.
1•Companies could charge higher prices to highly satisfied
customers2
•The approaches to the measurement and enhancement of CS should focus on cumulative satisfaction rather than on transaction specific satisfaction
3
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Do Satisfied Customers Really Pay More?
Discussion……
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Customer ValueThe Next Source for Competitive Advantage
Robert B. WoodruffJournal of the Academy of Marketing Science
Second Article
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Customer Value
Purpose of the Article:“Discussing the operational capabilities for organizations
wanting to improve at competing on superior C.V.D.”
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Customer ValueThe structure of the Article:
•Concept of customer valueSection 1
•What and How the organizations should learn about customer value.Section 2
•Translating customer learning into customer value deliverySection 3
•Discussing the implications of CV for management practice.Section 4
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Customer ValueCustomer value = perceived benefits – perceived cost
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Customer Value: Type of Value Functional Value• Laptop ( Sony)
Social Value• Rolex
Emotional Value• Apple
Epistemic Value• Tablet
Conditional Value • Halloween
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Customer Value
Customer’s goals and purposes
Desired consequences in use situations
Desired product attributes and attribute performances
Goal-based satisfaction
Consequence-based satisfaction
Attribute based satisfaction
Desired customer value Customer satisfaction with received value
Customer Value Hierarchy Model
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Customer ValueThe relationship between customer value and customer satisfaction
goals
consequences
attributes
Desired customer value:
Perceptions of received value on:
ConsequencesAttributes
Comparison standard(s) for : Consequences
Attributes
Disconfirmation on : consequences
Attributes
Overall customer
satisfaction feelings
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Customer Value
Discussion……
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Case Study
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Our NameVolkswagen
Volks = People
Wagen= Car
People’s Car
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Some facts
•The for the VW Beetle was inspired by Adolph Hitler.
•The first produced car by our company is Beetle (Käfer), 1933 – 1938
•Our thee most famous products ( VW Passat, VW Beetle, VW Golf) featured in the list of top 10 selling care of all the time
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Some facts:Did you know that VW makes the fastest car on Earth?!
The Bugatti Veyron
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Our Legend careDo you know how long did VW produce the legendary Beetle?
•From 1938 up to 2003
•21,529,464 cars produced
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OUR Brands
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OUR Brands
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Our Product ( customer) value
Loyalty…..
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Design…
Our Product ( customer) value
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VW CitiZen Hybrid VW's High-Tech Parking Garage
Innovation…
Our Product ( customer) value
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The Case StudyThe Problem:
Volkswagen violating the Clean Air Act by equipping half a million “ Clean Diesel” vehicles with software that would lower the cars’ emissions only when they were undergoing emissions testing
•VW pay the fines which is about $ 7.3 billion The Worse Scenario
•The Vehicles themselves are still safe to drive and no one’s dying because of this.
•Our compotators had more worse issues like GM and Toyota and put their customer in physical dangers
•Yes we lost in the American market but we are still strong in our hug market, China.
•The Germany government is one of our stakeholder! •Our there brands does NOT effected by this issue
The Best Scenario
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The Case Study
Do you think company like VW had a diversity of product with loyal customers
will be effected from this problem?
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The Case Study
Discussion
VW
Consumer
Competitors
Marketing Plan
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Thanks
شكرا
Cпасибо
Iyan
Teşekkürler
Dänke Shöne...
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