Customer Value Essay Example for Free

guest assess EssayCustomer Value smoke be explained in simple terms by knowing the difference between what the node gets from the product/ operate and what he or she has to ex vary in order to get it (may be money). It is real of import for any telephoner in the mart to catch this difference if failed to do so, this topic be one of the biggest reasons for the product/ dish out failure in the market. According to many researchers, in this ever growing world of technology and favorable media the organizations inability of establishing unique and convincing value to their products/services is the main reason for its failure. property its importance in mind, many companies tries to understand what is their guest valuing. However, this can besides be one of the to the highest degree awkward things to understand. There are many factors causing it to be difficult for the marketers overcome this issue. However, for this task we allow for focus 3 main aspects. Firstly, e genuinely guest values opposite product/service differently. It top executive be situational or poweriness be only for a definite period of time. Secondly, the market itself engine room and economic nature change the pace of the global market. With the competition aggressive as never seen before, it is important for the marketers to change their strategies with the ever changing market. Thirdly, some internal factors which occupy it difficult for organization to bring in guest value. Gist of Customer Value No one has made it clearer of this word Customer Value concisely than Lamb et al. (2008, 2009) who wrote, Customer Value is the relationship between benefits and the sacrifice necessary to obtain those benefits.Which intend if a product is of very good quality and is only obtained by paying a very high price give not be considered as of value by the nodes, just handle a low quality product which can be purchased for cheap price nevertheless a value of a product is on ly seen by a customer when the quality of the product meets their scene at an affordable price. Lets take an example of deep br induce some people get by to drinkable coffee at Starbucks which may monetary value $10 and some people like to drink coffee from a local coffee shop which may only cost $4. in a flash, people who drinks coffee at Starbucks expects them to use premium offee beans (Arabica) which tastes better and so are willing to pay $10 which charge (value) for Starbucks customers. On the same note, people who drink coffee at local coffee shop might just need to satisfy their caffeine addiction and they feel that it is worth for the price they pay. According to Butz and Goodstein (1996), a customer value is the emotional bond between the customer and the company (service/product provider) developed by means of the used service/product. The emotional bond is only developed when the service/product meets the customers expectation.Different researchers have defined custo mer value in different ways but it all revolves around words like benefits, satisfaction, expectation and worth. If a company who wants to understand customer value for their product/service they need to understand more well-nigh these words with jimmy to their customers. But it is not as easy as it seems. Perhaps, even in dictionaries its difficult to take in synonyms for these words because these words depend on situations. Challenges for marketers For companies to operationalize customer value in marketing their product can only be done by aiming their customers and market.These terms can be very challenging to learn or to understand because of its diverse nature. * Customers change is inevitable Customers take or wants can be situational. Different customers can seek same products/service for variety of needs. Vodaphone has a pre-paid mobile conception that allows customers to make international calls at a cheaper rate and also allows making free calls to local Vodaphone cu stomers. As an international student I choose this plan to make international calls at a cheaper rate but my friend who is a local chooses the same plan because most of his friends are Vodaphone users.Further to this, a customers needs may change with change in their circumstances. Just like, if I secure a part-time job which gets me constant income, I will consider changing my mobile plan to post-paid service which has more offers. Customers needs are dynamic and can change over time. We humans have different needs at different age. Products brought by a person from a shopping mall will be different when he was single and when he gets married and more so when hes a father. (Don Peppers Martha Rogers, 2010) It is difficult to predict or to foresee these changes in the same customer with the change in situation.At all(prenominal) crown of time, customers are trying to actually achieve their needs for that point of time (Hultink and Atuahene-Gima, 2000). There is no single system t o understand or to foresee customers need and to categorize them. Marketers should learn their customers needs beforehand to make their product valuable to their customers. To achieve this, organizations needs realise at their products/services through customers point of view (Don Peppers Martha Rogers, 2010). As the changes in customers situation can be quiet fast, organizations needs to be quick in changing their strategies and innovations to meet their ever changing customers.Technological drawbacks Climbing the technological ladder too quick might pull down the organizations efforts in boosting customers value for a service/product. An excellent customer service is very important to maintain or to boost the value of the product/service with regards to customers. handed-down human to human interactions have been replaced by human to machine interactions by the help of technology. These changes force customers to sweep self-service technologies which can create discomfort amon g some low-tech savvy customers (Parasuraman, 2000).There may be customers with limited knowledge in technology or may not be willing hire the technological introduction (Walker, Lees, Hecker and Francis, 2002). Almost everyone has experienced this scenario when they call a customer service center of telecom provider. The call cumbers bouncing to different automated machines and still our problems are not solved until we speak to a customer service executive. Similarly, online banking system with tight security measures some people still prefer to holler banks personally for some services.This is because either the customers are not willing trust these technological services or lack of knowledge to use these services. Secondly, Internet world made it easier for customers to compare the quality, product/service details, and cost of same/similar product from different companies (Bakos, 1997 Lynch Ariely, 2000). Customers can comfortable get study about the various products usin g internet at home without physically going to the market (J. Nielsen, 2000). This increases the competition exponentially and any company is vulnerable to this situation if they do not keep up with the hanging market trends.Companies have to constantly indulge in innovation that meets their customers expectation and introduce strategies to keep the customers excited about their current and upcoming product. Even a speculation of an upcoming product of the competitors can adversely affect the companys current product in the market. Like the speculation of Samsung ternary (latest mobile phone) with more and better specifications tremendously reduced the sales of iphone 4s current product, even to a point that the recently released iphone 5 didnt reach its evaluate sales mark.Barriers within Organizations Every organization has its own culture and employees working will be very comfortable with those culture. This culture may not be aligned with the ever changing customers expectati ons and needs. Using their own employees, organization tries to understand their customers needs by merely guessing it. By doing so, organizations come up with customers needs through employees perspective (or sales point of view) and not customers perspective. Now this guessed customers needs might be exactly opposite to what the organizations actual customers needs.This creates a difference between the customer value and service/product offered, which in turn results in unsatisfied customers (Woodruff, 1997). Example, Kodak Company was reluctant to change with the change in the market and customers needs. Customers were purpose it easier to use a digital camera over a film based camera. However, Kodak Company expected its customers to use film based cameras which are not user friendly. This gradually resulted in Kodak losing its customer base to its competitors those who embraced to this change in era.Now even if the organization decides to move towards the customers needs by pro per findings and learning their customers. It depends on managers to implement these finding in marketing their product and also in future products. Managers might be too busy with their normal duties to implement the learning on customer value. Thus the adapting to change becomes a problem when it is not in line with the introduction of new information on market change and their customers. This can also happen when the organization is reluctant to continuously fix their employees on the market and customer variations.ConclusionThere are many other factors such as market variations, globalization, wide variations in customers psychology, brand image etc. that makes it challenging for a marketer to show value to customers in their products/services. Theodore Leavitt of the Harvard Business School explained this idea by saying that The customer is not interested in a quarter-inch drill. Rather the customer is interested in a quarter-inch sight. By understanding the results preferred by the customer, an organization can invest its marketing and innovation in the right direction for the customers to achieve their desired results.