Chapter 5

Customer Value, Satisfaction and Loyalty

Mark Angelo Reyes MARKMA

Customers – marketing is the art of attracting and

keeping profitable customers

Total Customer Benefit – the actual benefits afforded by the product

and/or service to the customer

Total Customer Cost - the monetary, time,

energy and psychological cost components of the

product/service

Perceived Value - The total perceived value of the customers is determined by the

difference of the Total Customer Benefit and Total Customer Cost

More Benefits than Costs – Does the benefits out weight the

costs?

Competitive Advantage – Are the products/services that you offer superior to competitors/alternatives?

Customer Satisfaction – Analyze what the customer holds

important to make it easier to meet the requirements. Once met, there is

customer satisfaction.

Customer Satisfaction – Quantifiable measurement

methodologies are available to monitor satisfaction levels of the customers.

Customer Loyalty – Customer satisfaction almost

always leads to customer loyalty (Loyalty is a

commitment to repurchase or re-patronize a preferred

product )

Profits – with customer loyalty comes

company profits

CustomerSatisfaction Customer Loyalty Profits

Competitive Advantage

More Benefits than Costs

Customer Satisfaction

Perceived ValueTotal Customer

CostTotal Customer

Benefit