Using Socially Responsible Product Decisions to Create Customer Value: A Case Study of Tasmanian Walking Company

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Principles of Marketing
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Introduction
How does the Tasmanian Walking Company show that they understand their target
market?
For many companies, creating customer value is increasingly seen as a key source of competitive
advantage including Tasmanian Walking Company. However, despite the growing attention to
this aspect of strategic development, there is considerable disagreement among managers and
researchers about the essence of the concept of “value for the client”, or customer value.
Companies most often do not bother themselves with a detailed determination of what kind of
value they offer to certain customer segments / micro segments and how they offer to convey this
value to the client (Ahmed, 2014).
Finally, maximizing the total profit from the desired customer segments through the skillful
management of the exchange of these values. In sum, this process involves resolving the
following two questions:
1. How can a company create and deliver value to its customers?
2. How can a company increase total profits from customers with whom it wants to deal?
However, most companies emphasize the latter problem. For them, customer value means the
following:
- How much money is the company able to get from the client?
- How do companies sell customers even more of their products and services?
- How to establish a cross-sale of new products and services?

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The main (common). For a consumer or industrial product, this level is represented by the
product in its basic physical quality. For example, the main elements for a product will be the
body, the viewfinder, the shutter, the lens, and other physical components from which the
product is made (Armstrong, Kotler, Harker, and Brennan, 2015).
Building effective customer relationships
Building relationships that add value after developing an effective offer, the company should
focus on building strong relationships with customers. Customers value relationships with a
proven supplier with the best offer. Since relationships are one of the important dimensions of
value, it is necessary to make serious attempts to build and strengthen these relationships.
Experience shows that most companies spend the lion's share of their marketing efforts on
attracting new customers (Armstrong, Adam, Denize, and Kotler, 2014). Although the business
requires it, you should make sure that sufficient attention is paid to existing customers.
Companies that are too focused on attracting new customers often experience a leaky bucket, in
which they lose their customers, because they pay little attention to marketing for them in
general and customer service in particular. Customer loyalty ladder Customer loyalty ladder
shows different stages of relationship development. This model has been used in sales
management and charity marketing for many years (Flint, and Woodruff, 2014). The assignment
shows the steps of this staircase, and the staircase itself is represented as a cliff. Positions on the
stairs, when achieved, do not necessarily remain as such forever. Different models are observed
in different areas. Studies of such industries as retail trade show that the “lawyer” attitude can
reach its peak during the purchase period, and then subside. Customer loyalty ladder customer
with a company.

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How does the Tasmanian Walking Company use socially responsible product decisions to
create and capture customer value
On the other hand, the position of the consumer on the ladder may be formed slowly
during the continuous use of the product or contact with the company. It’s not worth developing
a relationship with every customer (Khotler, and Armstrong, 2014). Some clients / client
segments do not justify the investment required to develop relationships to the level of
“supporter” or “attorney”. Some of the consumers at the “client” level turn out to be a
“mercenary” who is weakly loyal, expensive to attract and quickly runs off to others; others may
be “hostages” - dissatisfied customers who are associated with too high costs when switching to
another company or the monopolistic behavior of the supplier. Therefore, managers need to
figure out the existing and potential full profit from the client and decide whether to enter into
binding relationships with him (Hill, and Alexander, 2017).
While commercial sources usually inform buyers, sources in the face of other buyers give an
assessment and recognize the product worthy of attention. Such recognition makes it easier for a
“potential client” to become a “client” on the ladder of loyalty. Research from scientists at
Harvard Business School of Tom Jones and Earl Sesser found that the main factor in client
loyalty is complete customer satisfaction, that there is a huge difference between loyal customers
and completely satisfied customer. Xerox discovered: it’s six times more likely that products /
services will be bought again within 18 months by completely satisfied clients than simply
satisfied ones. Which companies have a significant number of clients who recommend, support
and act as advocates? Discussion of this issue with consumers and the management of companies
suggests the following names as examples: