Assignment On Customer Value

Added on - Sep 2019

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Running Head: CUSTOMER VALUE1Enhancing Customer Value
CUSTOMER VALUE2Table of ContentsIntroduction......................................................................................................................................3Literature Review............................................................................................................................3Critical Reflection............................................................................................................................6References........................................................................................................................................8
CUSTOMER VALUE3IntroductionCustomer Value is defined as the incremental benefit which is derived by a customer throughpurchasing a product. The value can be expressed as the difference between the total of tangibleand intangible benefits and the cost of the product. There are three factors, price, quality andservice, which influence the value of a product (Zhang et al., 2017). As the quality and service ofa product increases, its value also increases. On the contrary, when the price of the productincreases without any change in the benefits, the value of a product decreases. The customervalue is categorized into two types-- the desired value and the perceived value. The desired valueindicates the value expected by a customer. On the contrary, the perceived value indicates thevalue of a product expected by the customer after considering the cost. The perceived value ishighly dependent on the tangible benefits received by the customer on payment of the cost. Theactual value or the tangible benefits of a product can be realized after consumption of theproduct. When the product provides actual value which is higher than the perceived value, thecustomer value becomes very high. On the contrary, when the actual value is lower than theperceived value, the customer value decreases.Literature ReviewQuality—The concept of customer value indicates that the value of a product depends upon performance.When purchasing an item, a customer expects some attribute for it. When the attributes are foundin the product, the customer derives value based satisfaction. Enhancing quality of the productsenhances the chance of having the desired attributes as well (Kumar & Reinartz, 2016). From
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