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

This report examines the perceived value of the customers in the entertainment industry by the use of Monroe model. It compares the value proposition of MBO cinemas with GSC cinemas and suggests a new value proposition to bridge the gap between the value proposition and the customers’ perceived value.

Running head: MANAGEMENT 0
MARKETING

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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

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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.

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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.

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As far as emotional benefits are considered, it has been realised that emotional benefits can be
achieved when the cinema provides customized offers to the customers. This makes them even
more loyal for the brand.
Social benefits are related to the class associated with the brand and the customers these days are
becoming more and more sophisticated in order to choose the brand to avail the service.
Therefore, it is very important for the cinema halls to provide sophisticated and high quality
services.
Relationship benefits are the benefits that can be achieved when the staffs of the brand shows
interest in serving the customers. In case of cinema halls, it is required by the brand to serve the
customers with full efforts and interest (Nathan, Chiun and Suki, 2017).
Sacrifices involve different types of sacrifices such as price sacrifices that include cost of tickets,
cost of food items, cost of parking etc. The next sacrifice related to time that includes waiting
time in the queue for buying the tickets, reaching early to get the favourable seats, queue for
buying food items etc. Efforts sacrifice includes efforts to reach the cinema hall.
Risk is the next part that includes the risk of stress to reach and stand in the queue for long and
may get spoiled food.
The last part is of inconvenience that includes the inconvenience caused due to seats, staff, bad
food, bad quality of services etc.
Another method that can be used here is Holbrook’s model. This model includes intrinsic as well
as extrinsic value:
Extrinsic Intrinsic
Self-
orientated
Active
Efficiency:
Various type of screens
Various types of seats
Different types of food
Play
The ability to purchase the
tickets
Reactive Excellence
Comfortable seats
Aesthetics
Clean and tidy cinema

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Food with big brand names
(Solomon, Russell-Bennett and
Previte, 2012).
Other-
orientated
Active Status
Self-esteem for buying higher
quality services
Ethics
Watching the movies that are
ethical
Reactive
Esteem
Social esteems that is linked with
the brand name
Spirituality
The desire to get better services
As far as the intrinsic value is considered, it is related to the ability of the people to purchase the
tickets as per their requirement of the leisure they want. The aesthetics part deals with the tidy
and clean environment of the cinema hall for which the customer pays a high amount. Ethics is
about watching the movies that are ethical and the last section of spirituality section deals with
the desire to get better services.
Comparison of value proposition of MBO cinemas with GSC cinemas:
Value proposition can be defined as the value that is expected by the company to be delivered to
the customers (De los Santos, Hortaçsu and Wildenbeest, 2012). It is the major asset for the
company to be differentiated from the competitors. Piercy model can be used to identify the
value proposition of the company.
When the comparison between the two companies needs to be made, it is required to analyse its
business and the marketing mix. This is required because identifying the products and the
services offered by the company allows proper identification of the value proposition of the

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ocmpay. Both the cinemas that are MBO and GSC have similar target market
(Cinemaintelligence.com. 2018). This is because both the companies deals with entertainment
industry and provide almost similar services to the market. Thus, it becomes highly competitive
for both the companies to attain and retain the customers.

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As far as the marketing mission and the vision of the company is considered, it has been realised
that the major mission of marketing of MBO cinemas is to attain larges market and provide great
experience to the customers. As the company is third largest in the country thus it is required to
compete more to reach the first place (Mbocinemas.com. 2018).
The second section of the model explains about the marketing assets of the company. The
company used to collaborate with some of the big brands like coca cola so that it can market its
brand along with Coca cola. Associating with such a great brand attracts the customers to take
the services from MBO (Cinemaintelligence.com. 2018). It has been analysed that the company
make investment in designing an environment with a particular theme that also attracts the
customers. Vouchers and offers are the most obvious things that can attract the customers to
avail the services from the cinema.
The next section of the model is about the competitive positioning of the company (De los
Santos, Hortaçsu and Wildenbeest, 2012). This section describes about the position of the
company in the market and it has been realised that MBO Cinemas is the third largest cinema in
Malaysia.it serve the customers with around 27 outlets at different areas of Malaysia (De Mooij,
2010). As far as the customers experience are considered, it has been analysed that the company
believes in providing experience that differentiates the company from other competitors.
The last section is the most important section of the model that is about competitive
differentiation. This is the section that justifies the value proposition of the company. It has been
realised that the impressive loyalty programs of the company provides plenty of rewards to the
customers (Cinema.com.my. 2018). MBO claims to be the only cinema that does not charge the
fee for purchasing the tickets online. Initially, very low charges were applied but later on the
company removed the same. For some of the blockbuster movies, the company plays the shows
every 20minutes.this make it very convenient for the people or the customers to manage their
time to watch the particular movie. This suggests that the company believes in serving the
customers with their convenience. It has been analysed that later on the company introduced
packs. These packs are for tickets and combo offers for food that can be purchased in a go from
box office only (Facebook.com. 2018). The last but not the least, the company also offers
identical prices tickets for 3D and 2D. The cinema also sells 3D glasses that can be reused again

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and again by the customers in their next visit for the 3D movie. This becomes cheaper for the
customers as well as hygienic for them as they are using their own glasses.
Everything that has been discussed here is about the positioning of the company. The company
ranked number 3 because of its locations and the screens along with its marketing strategies and
value that it generates in the minds of the customers.
The first section describes the mission and the vision of the company. It has been realised that
the company wants to retain the customers as it has the market leadership already. It also wants
to serve the customers with great cinemas experiences and understands its responsibilities
towards other stakeholders (Cinema.com.my. 2018). The next section is about collaboration with
the other brands, it has been suggested that GSC also collaborated with Coca Cola like MBO for
purpose of marketing. Other than this, the company also deals with the membership and birthday
rewards for the customers. The company has launched a site or the application that can be used

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for booking of the tickets online. The next section is about the competitive positioning which
suggests that the company is the market leader in Malaysia. The major point in this section other
than mobile application is gold class. Gold classis the very premium class facility of seats and
comfort that helps the customers to avail extra luxury. It is considered as the only boutique
cinema hall at the place that grabs the attraction of the people. The most important thing is that
the company enter the production section along with distribution section. The company also has
the great social media presence.
Benchmarking value proposition:
As per the above analysis, it has been analysed that the company has to make the changes in
some of its strategies and also needs to develop the process to gain the market share and to
provide better returns to their stakeholders (Wang, 2010). The customer centric approach needs
to be balanced with other stakeholders approach as well. It is required by the company to set it
targets differently and implement the approach that allows the company to make more revenue
and generate returns for the stakeholders.
New value proposition:
Actual MBO cinemas Required
Price Competitive Premium-competitive
Quality Average Excellent- Average
Service Customized Customized
Ambient Good Very good
Location Good Good
Availability Selective Selective
Convenience Standard Above standard
Status Average Average to high
Operating hours Full Full
(Edward and Sahadev, 2011).
It has been analysed that there are certain value propositions that the company like to propose in
order to make the improvement in the old one. The major things that need to be involved by the
company in order to develop the new value proposition are to enter the new areas of distribution

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and production. This helps the company to earn more revenue and get better opportunities to
target the commercial market along with the individual customers. It has been realised that it is
very important for the company to compete with the players like GSC cinemas. Thus, it is
required to bridge the gap between the value proposition and the customers’ perceived value.
The new value proposition will helps the company to attain better opportunities to explore the
market and penetrate the same. As per the gap is analysed, it has been suggested that the
company need to make more efforts in improving the quality and the convenience standards for
the serving the customers (Li and Green, 2011). It is required to fulfil the expectations of the
customers and thus the company has to make efforts in getting the customers feel attracted
towards the services by rewards, offers and more exotic and eye catching themes.
Implementation plan:
In order to implement the new value proposition, it is required by the company to develop a plan
at the internal as well as at the external level.it is required to develop the plan that supports the
company to easily absorb the new values and fulfil the needs of the customers.
External implementation Internal implementation
At external level, the customers are the one
who needs to be aware about the changes as
the changes are being done because of their
expectation and the perceived value from the
company. It is required to make the priority list
of the customers and the plan needs to be
implemented (Osterwalder, Pigneur, Bernarda
and Smith, 2014).
The company has to convince its employees so
that the change that needs to be implemented
the process can be managed easily. If the
employees resist the changes then it becomes
very difficult for the company to make the
changes and implant the new value proposition
plan. For this, it is required to develop some
objectives of the overall plan and needs to
circulate the same in the organisation (Payne,
Frow and Eggert, 2017).
Premium pricing strategy will helps the
company to gain the premium customers to
avail the services. As the company keep the
prices at both the level thus it serves the
customers with two types of services.
As far as the price are considered, the company
is in competitive pricing but as the company is
planning to give premium services to the
customers thus it is required to keep the prices
premium. This gives brand value to the

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company and also makes it more luxurious.
Attracting the commercial customers by
entering into the section of production helps
the company to earn more revenue and thus
allow the customers to make better deals with
the company (Hassan, 2012).
Entering the new area require the company to
make the hiring in the similar comtext.it is
required to hire the expert candidates firth
commercial clients that needs to be handles by
them.
Gantt chart:
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
Development
of objectives
Suggesting the
changes and
business
activities
Training of the
employees
Preparation for
marketing
Launch of the
new activities
Evaluation and
monitoring
Corrections
It has been realised from the above plan that it is required to develop objectives first in order take
any of the change in the company. After developing the objectives, the business activities need to
be planned so that they can be perfumed one by one to achieve the gaols. The implementation
these activities require new skills by the employees and thus they ends the training. After
training, the marketing strikes needs to be developed and the activities need to be launched to

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attain the new value proposition (Tan, et al. 2018). The implementation process does not ends
here as evaluation of the implantations also very much required. Evaluation helps in performing
the last step that is of making the corrections or taking he corrective actions.
Conclusion:
It has been conclude from the report that, 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. the models in the first
section the report suggest that MBO cinemas is the customers oriented company that deals with
strategies that helps the customers to have better experience in hall. If comparing the value
proposition of MOB with GSC, it has-been analysed that GSC is better than MBO and MBO
thus have to make the changes to fill the gap between the value proposition and the customers
perceived value. A final plan has been developed to be implanted so that the new value
proposition can be developed and implanted efficiently.
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