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Satisfaction
A customer is satisfied when he gets a high
Customer Delivered Value.
Customer Delivered Value is the difference or a
ratio between Total Customer Value (Benefits)
and Total Customer Costs.
Total Customer Value: Product Value + Services
Value + Personnel Value + Image Value
Total Customer Cost: Monetary Cost + Time Cost
+ Energy Cost + Psychic Cost
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Satisfaction is defined as . . .
“a person’s feelings of pleasure or
disappointment resulting from comparing a
product’s perceived performance (or outcome)
in relation to his or her expectations.”
Ghost Shopping
31
Value Chain: What does it take to
produce & deliver Customer Value?
41
Generic Value Chain – Given by Porter
Activities
S
Firm Infrastructure
U
P Human Resource Management
P
O M
R
Technology Development
A
T
Procurement R
G
P I
R N
I
Inbound Outbound Marketing
M Operations Service
A
Logistics Logistics & sales
R
Y
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•Value Delivery Network: When apart from its
own value chain, the firm tries to influence
the value chain of its suppliers, distributors etc.
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Need for Customer Retention:
Increased Revenue
Decrease in cost of selling
71
Relationship Marketing:
Refersto understanding and responding
to customer needs and preferences to
build more meaningful and long-term
connections with customers
81
Some generic Concepts:
• Concept of a Profitable Customer:
This is a person, household or company that over
time yields a revenue stream that exceed by an
acceptable amount the company’s cost stream of
attracting, selling and servicing that customer.