This document discusses key concepts for customer value, satisfaction, and loyalty. It defines total customer benefit as the actual benefits of a product or service, and total customer cost as the monetary and non-monetary costs to the customer. Perceived value is determined by comparing the total benefits to total costs. Customer satisfaction results from providing benefits that outweigh costs and offering advantages over competitors. Satisfied customers are likely to become loyal customers, leading to increased company profits.

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