Creating Customer Value;
We as consumers will make a purchase decision, but our idea of value goes past the product
itself (warranty, maintenance, etc.) (get a 300 dollar 52 inch tv without the warranty, can happen)
Middle management should have goals in line with senior management. Top-down method. The
army follows this upside down pyramid because there needs to be a focus. If there is not
efficiency or control, the planning needs to be very detailed. Everyone is important to be
executed properly. The soldiers aren’t expected to make the decisions, except just execute it.
Now we put customers at the top because they have demands, wants and needs. The
customers not surround this entire strategy.
Social media platforms; these technologies give organizations to hear and listen their
customers, and gives customers the ability to tell companies what exactly their wants and needs
Customer perceived value; we all perceive value differently. “Lies in the eyes of the beholder.”
We look at the cost (not just dollar cost, but effort, psychological, all the effort it takes to do
business with that particular offering) of the offering and then we look at all the perceived
alternatives and benefits.
Value in Tims? (I want a good cup of coffee hot and fast, and I like that I don’t have to put in my
own cream) Starbucks? (costs more money, may be willing to pay more because I enjoy the
flavour more, I like the ability to add my own cream, I like the atmosphere, I like the shorter line,
I like the aroma)
Ryerson Mba vs. Harvard Mba. The delivery, facility, location, networking, are different that add
to the perception of value. Cost has many other attributes other than the money.
Determinants; product value=monetary cost, services value=time cost, personnel
value=energy cost (the Toyota chameleon commercial), image value=psychological cost (all car
dealerships are renovating and given all of them a face-lift, because this image is so important
to the manufacturers)
Loyalty; if we feel like we’re getting real value, we’ll come back (as marketers we want to
measure the repurchase behaviour) (shoppers is trying to influence our quality and qua