Customer Value Essay

node esteem rout out be explained in simple terms by penetrative the difference amidst what the guest gets from the harvest/ good and what he or she has to exchange in order to get it (whitethorn be m sensationy). It is very important for any company in the merchandise to fancy this difference if failed to do so, this crapper be one of the biggest reasons for the harvest-tide/service failure in the marketplace. According to some researchers, in this of all m growing innovation of engineering science and social media the faces inability of establishing unique and convincing encourage to their products/services is the main reason for its failure.Keeping its importance in mind, many companies tries to understand what is their guest valuing. However, this can overly be one of the nearly herculean things to understand. There argon many factors causing it to be difficult for the marketers over recognize this issue. However, for this task we will focus 3 main aspect s. Firstly, either customer shelters different product/service differently. It might be situational or might be only for a definite power level of time. Secondly, the market itselfTechnology and economic nature change the pace of the spheric market. With the competition aggressive as never seen before, it is important for the marketers to change their st gaitgies with the ever ever-ever-changing market. Thirdly, some internal factors which make it difficult for organization to train in customer time 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 message if a product is of very good quality and is only obtained by paying a very high expenditure will not be considered as of value by the customers, comely like a low quality product which can be purchased for cheap equipment casualty but a value of a product is only seen by a customer when the quality of the product meets their expectation at an inexpensive price. Lets take an example of coffee bean some pack love to crapulence coffee at Starbucks which may cost $10 and some people like to drink coffee from a local coffee shop which may only cost $4.Now, people who drinks coffee at Starbucks expects them to use premium offee beans (Arabica) which tastes better and so are ordain to pay $10 which worth (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 employ service/product. The emotional bond is only developed when the service/product meets the customers expectation.unlike resear chers have defined customer value in different ways but it all revolves around nomenclature like benefits, satisfaction, expectation and worth. If a company who wants to understand customer value for their product/service they need to understand more about these wrangle with respect to their customers. But it is not as thriving as it seems. Perhaps, even in dictionaries its difficult to find synonyms for these words because these words depend on situations. Challenges for marketers For companies to operationalize customer value in trade their product can only be done by scholarship their customers and market.These terms can be very challenging to deal or to understand because of its diverse nature. * Customers change is undeniable Customers take or wants can be situational. Different customers can seek same products/service for variety of needs. Vodaphone has a pre-paid roving plan that allows customers to make international calls at a cheaper rate and also allows making f ree calls to local Vodaphone customers. 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 approximately 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 mankind 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 foreknow these changes in the same customer with the change in situation.At every degree of time, customers are trying to true(a)ly achieve their needs for that point of time (Hultink and Atuahene-G ima, 2000). There is no single system to 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 look 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 bunk 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. Traditional human to human interactions have been replaced by human to machine interactions by the help of technology. These changes force customers to embrace self-service technolog ies which can create discomfort among some low-tech savvy customers (Parasuraman, 2000).There may be customers with limited knowledge in technology or may not be willing accept the technological introduction (Walker, Lees, Hecker and Francis, 2002). or so everyone has experienced this scenario when they call a customer service center of telecommunication provider. The call keeps 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 wealthy security measures some people still prefer to visit 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/ identical product from different companies (Bakos, 1997 & Lynch & Ariely, 2000). Customers can soo thing get reading about the various products using internet at home without physically going to the market (J. Nielsen, 2000). This increases the competition exponentially and any company is unsafe 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. homogeneous the speculation of Samsung III (latest mobile phone) with more and better specifications tremendously decrease the sales of iphone 4s current product, even to a point that the recently released iphone 5 didnt reach its expected 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 b e aligned with the ever changing customers expectations 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 eyeshot (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 go with was reluctant to change with the change in the market and customers needs. Customers were finding it easier to use a digital camera over a film establish camera. However, Kodak Company expected its customers to use film themed 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 organiza tion decides to move towards the customers needs by proper findings and information their customers. It depends on managers to fulfil these finding in marketing their product and also in proximo 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 ceaselessly train 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 nous by saying that The customer is not interested in a quarter-inch drill. Rather the customer is interested in a quarter-inch hole. 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.