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Chapter 5
Customer Value, Satisfaction
       and Loyalty


        Mark Angelo Reyes
           MARKMA
Customers –
marketing is the art of attracting and
   keeping profitable customers
Total Customer Benefit –
the actual benefits afforded by the product
      and/or service to the customer
Total Customer Cost -
   the monetary, time,
energy and psychological
 cost components of the
     product/service
Perceived Value - The total perceived value
  of the customers is determined by the
 difference of the Total Customer Benefit
         and Total Customer Cost
More Benefits than Costs –
Does the benefits out weight the
            costs?
Competitive Advantage –
Are the products/services
that you offer superior to
competitors/alternatives?
Customer Satisfaction –
   Analyze what the customer holds
important to make it easier to meet the
   requirements. Once met, there is
        customer satisfaction.
Customer Satisfaction –
      Quantifiable measurement
methodologies are available to monitor
 satisfaction levels of the customers.
Customer Loyalty –
 Customer satisfaction almost
  always leads to customer
     loyalty (Loyalty is a
commitment to repurchase or
   re-patronize a preferred
           product )
Profits –
with customer loyalty comes
      company profits
Total Customer      Total Customer
                          Benefit               Cost       Perceived Value




               More Benefits           Competitive          Customer
                than Costs              Advantage          Satisfaction




 Customer
Satisfaction      Customer Loyalty          Profits

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Chapter 5 Kotler Customer value, Satisfaction and Loyalty

  • 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