Customer Perceived Value for Entertainment Industry: A Comparison of MBO Cinemas and GSC Cinemas

Running head: MANAGEMENT 0
MARKETING

MANAGEMENT 1
Table of Contents
Introduction:....................................................................................................................................1
Customer perceived value for entertainment industry:....................................................................1
New value proposition:....................................................................................................................7
Implementation plan:.......................................................................................................................7
Gantt chart:...................................................................................................................................8
Conclusion:......................................................................................................................................9
References:......................................................................................................................................9

MANAGEMENT 2
Introduction:
Customers are the most important aspect of the business and thus it is required to assess their
perception. Most of the marketing activities of the company focus on satisfying the customers
and their satisfaction level. In order to increase the customer’s satisfaction level, it is required by
the companies to identify the customer value and consider it as the major factor (Eggert, Ulaga
and Drapier, 2015). Customer value can be defined as the gap between the total value that the
customers gains and the customer cost. This is the report that examines the perceived value of
the customers in the entertainment industry by the use of Monroe model. This is the model that is
being used to make the comparison between MBO cinemas and GSC cinemas by highlighting
some of the factors.
Customer perceived value can be simply defined as the calculation of the benefits of the products
that the consumer receive on the basis of what the consumer have perceived about the products
and what has been delivered by the company (Carlson, O’Cass and Ahrholdt, 2015). It has been
realised that the value of the products develops for the consumers when the customer receive
more benefits at the cost of less sacrifices.
Customer perceived value for entertainment industry:
For examining the customer perceived value of the customers in the entertainment industry, it is
required to use Monroe model. This model includes two major components that are benefits and
the sacrifices (Yadav, Rai and Srivastava, 2016). The difference between these components
determines the customer’s perceived value. Below table provides the implication of this model
on entertainment industry.
Benefits Sacrifice
Economic benefits:
Customer generally prefers the cinema theatres
that offer them tickets at low prices than others
and thus they look for the theatres or the
cinema with great deals and offers (Platania,
Platania and Santisi, 2016).
Price sacrifice:
It has been analysed that price influence the
customers perception a lot. The price sacrifice
includes the cost of purchasing the tickets, the
cost of purchasing food and parking cost.

MANAGEMENT 3
Emotional benefits:
Customers want that the cinema they visits
frequently provide them customize offers
frequently so that they can avail the same and
develop a loyal relationship with the brand.
Time sacrifice:
Time sacrifice includes waiting in the queue
for buying the tickets, reaching early to get the
favourable seats, queue for buying food items
etc (Nathan, Chiun and Suki, 2017).
Social benefits:
Social benefits are related to social esteem and
high quality. In order to have the social
benefits the customers prefer to go the cinemas
with high brand name that serves with high
quality services.
Effort sacrifice:
The efforts sacrifice involves the efforts to
reach the particular cinema. The customers
also have to make efforts in grabbing the best
seats at the time of purchasing the tickets
(Platania, Platania and Santisi, 2016).
Relationship benefits:
Relationship is the humanistic aspect and thus
can be develop by the staff of the brand. the
customers prefer to go the cinema where the
staff if friendly and help them with the food
delivery inside the movie and finding their
seats etc (Nathan, Chiun and Suki, 2017).
Risk:
Risk involves the stress to reach and stand in
the queue for long and may get spoiled food.
Quality:
It involves comfortable seats, great sound,
great picture quality, food
Inconvenience:
Inconvenience that may be caused at the
cinemas are uncomfortable seats, less staff on
counters, cold food, etc.
The economic benefits that can be achieved by the by the entertainment industry is to have low
prices, vouchers, food combos etc. Entertainment has become the very important part of the
people’s life these days and thus people want to avail the entertainment services at low prices so
that they can save money in this dynamic economy. The cinema halls provide the economic
benefits to the customers by customizing offers for the loyal customers.