Would you being willing to take a chance buying a product or service that has a small shot at exceeding your expectations greatly? What are the determining factors in this decision for you?
Pretty much the only determining factors in a situation such as this would be 1. the price and 2. the product or service itself. If the product or service is relatively cheap, then even if it doesn't meet my expectations, I haven't lost much. Additionally, if the product or service is something that won't have a great affect on me in the long-term, I would be more inclined to take a risk with it. For example, if a product such as trash bags were to be on sale, I would most likely take a chance with them, knowing that there is a possibility that they would rip. Yet if a service such as some required work on my car were cheap, I would be much more hesitant to try it out, due to the fact that I may be putting myself at risk of harm or otherwise.
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?
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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