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What Have We Learned from Marketing MANAGEMENT?

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Added on  2019-12-28

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Marketing MANAGEMENT | MARKETING MANAGEMENT1 1.0Introduction 3 Definitions 3 2.0Customer Perceive Value of Banking Sector 3 Perceived Benefits 4 Economic Benefits4 Emotional Benefits 5 Social Benefits 5 Relationship Benefit5 Sacrifices 6 Price, Time and Effort Sacrifices 6 Risk and Inconvenience 6 2. The purpose of this paper is to identify the customer perceived value in the banking sector using Sanchez model to measure the value proposition of Hong Leong Bank Berhad and the leading competitor, Public Bank Berhad according to the list of

What Have We Learned from Marketing MANAGEMENT?

   Added on 2019-12-28

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What Have We Learned from Marketing MANAGEMENT?_1
Table of ContentsMARKETING MANAGEMENT....................................................................................................11.0Introduction.................................................................................................................................3Definitions...................................................................................................................................32.0Customer Perceive Value of Banking Sector..............................................................................3Perceived Benefits.......................................................................................................................4Economic Benefits...................................................................................................4Emotional Benefits............................................................................................................5Social Benefits...................................................................................................................5Relationship Benefit..........................................................................................................5Sacrifices.....................................................................................................................................6Price, Time and Effort Sacrifices ......................................................................................6Risk and Inconvenience.....................................................................................................62. Contrast the value proposition of Hong Leong Bank..............................................................63. Benchmark the two value propositions comparing and contrasting.......................................84. what had been learnt from the module....................................................................................85. Plan to implement the value chain..........................................................................................9CONCLUSION ...............................................................................................................................9REFERENCES..............................................................................................................................10
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IntroductionTo meet the potential customer needs and keep the early adopters loyal by just meeting theirneeds are insufficient nowadays. Because of the external factors that may disrupt the habits ofcustomers such as technology and competition, the customers are expecting more than theirexpectations. Therefore, the use of the concept of perceived value has gradually become apriority for business sustainability as well as the key of success in the high market competition(Septa et al., 2016). The purpose of this paper is to identify the customer perceived value in the banking sector usingSanchez model to measure the value proposition of Hong Leong Bank Berhad and the leadingcompetitor, Public Bank Berhad according to the list of top banks in Malaysia relbanks (n.d.)based on total assets. Through to end of this research, the new value of proposition will beproposed to meet the value criteria of the customers and provided with the implementation plan.DefinitionsAuthorModelDefinitionWoodruff (1997)Value Hierachy ModelHe defined perceived value as “customer‟s perceived preference for an evaluation of those product attributes, attribute performances, and consequences arising from use that facilitate (or block) achieving the customer‟s goals and purpose in use situations.Holbrook and Hirschman (1982)Utilitarian and Hedonic ModelThey had a notion that value should not only viewed from utilitarian perspective in which the product is valued based on its performance or functions, but also include the experiential perspective inwhich the product is valued based on the experience or the feeling arouse from consumption, including the symbolicand hedonic aspectSheth et al (1991)Consumption Value TheoryThey suggested five dimensions of value namely functional value which is related to the utilitarian or functional purpose of the product, social value which is related to the image obtained from the society, emotional value which is related to the feeling arouse from using the product, epistemic value which is related to the curiosity or desire for knowledge or novelty seeking, and conditional value which is derived due to specific situation or circumstances that faced by the consumers.Holbrook (1996)Holbrook Typology of Consumer ValueHis perceived value can be defined as “an interactive relativistic preference experience.” By interactive He meant that value entails the relationship between the customer and the product, it is comparative, subjective, and specific to the context. He claimed that the customer perceived the value not in the purchase stage however during the consumption stage.(Source: Septa et al., 2016)Customer Perceive Value of Banking SectorIn the recent years, the banking sector was changing remarkably due to several of externalfactors. Karin (2011) has identified 5 notable factors below:1)Competitors in the same industry such as foreign and local banks. 2)Competitors in different industry such as leasing and money lender companies.
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3)Change of IT technologies4)Change of customer service channel5)Marketing strategy developmentDespite most of the banks have taken initiative in generating perceived value for the customers,the customer’s dissatisfaction level was not improved (Johnston, 1997). (Juan et al., 2006)highlighted that majority of the banks are defining the “customer value” as the value that thecustomer generates for them, instead of the value that the Banks can offer their customers. Dueto this misperception, this paper will use Sanchez model to examine and analyze the customerperceived value for banking sector. Since in the previous study such as Juan et al. (2006) wasusing the Sanchez model to analyze the customer perceived value in banking sector, hence this isthe suitable model. According to Sanchez et al. (2006), there are two main components inSanchez model which are benefits and sacrifices. Table 1 below is showing the two maincomponents in banking sector:Perceived BenefitsPerceived SacrificesEconomic Benefits1)Lowerfinancialcost2)Higher return of investmentPrice Sacrifice1)Costoftravellingtobranches2)Cost of purchasing the smartphone3)Cost of internet subscriptionEmotional Benefits1)Personalized and customised productsTime Sacrifice1)Queuetime2)Processing timeSocial Benefits1)Servicequality2)ConvenienceEffort Sacrifice1)Adoption of new technologyRelationship Benefits1)Service prior availing it2)Post serviceRisk1)Wrongly made transactions due to no training is provided.2)Transaction is unsuccessful due to poor connection.Inconvenience1)Websiteisnotuser-friendly2)Limited of ATMTable 1Perceived BenefitsEconomic BenefitsIn the previous study, Reichheld (1993) highlighted that customers are exploring the lowerfinancial cost with more services by comparing the different banks in the market. Therefore,customers are usually looking for more variety of customized products and personalized services
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