Wednesday, January 30, 2013

Customer Satisfaction and Customer Value

Are customer satisfaction and customer value interdependent or mutually exclusive? Can satisfaction occur simultaneously with low customer value?

According to MKTG 6, customer value is "the relationship between benefits and the sacrifice necessary to obtain those benefits," (p. 7). In other words, is the product worth paying for? Meanwhile, "customer satisfaction is the customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations," (p. 9). Obviously, the two hold some interdependence. A part of customer satisfaction, specifically the expectations of the customer, may have a direct connection to customer value, e.g. the price of the product. However, it may still be possible for satisfaction to occur simultaneously with low customer value. A product may deliver the expected result regardless of the price. A great example of this would be a need, rather than a simple want, such as gasoline. No matter how much the price fluctuates, customers will always be getting the same expected result and the same amount of satisfaction; i.e. a working motor vehicle.

Can you think of any other products where satisfaction and low customer value are both present?

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