1. Chapter 5
Customer Value, Satisfaction
and Loyalty
Mark Angelo Reyes
MARKMA

2. Customers –
marketing is the art of attracting and
keeping profitable customers

3. Total Customer Benefit –
the actual benefits afforded by the product
and/or service to the customer

4. Total Customer Cost -
the monetary, time,
energy and psychological
cost components of the
product/service

5. Perceived Value - The total perceived value
of the customers is determined by the
difference of the Total Customer Benefit
and Total Customer Cost

6. More Benefits than Costs –
Does the benefits out weight the
costs?

7. Competitive Advantage –
Are the products/services
that you offer superior to
competitors/alternatives?

8. Customer Satisfaction –
Analyze what the customer holds
important to make it easier to meet the
requirements. Once met, there is
customer satisfaction.

9. Customer Satisfaction –
Quantifiable measurement
methodologies are available to monitor
satisfaction levels of the customers.

10. Customer Loyalty –
Customer satisfaction almost
always leads to customer
loyalty (Loyalty is a
commitment to repurchase or
re-patronize a preferred
product )

11. Profits –
with customer loyalty comes
company profits

12. Total Customer Total Customer
Benefit Cost Perceived Value
More Benefits Competitive Customer
than Costs Advantage Satisfaction
Customer
Satisfaction Customer Loyalty Profits