1. Explain customer-perceived value.
Customer-perceived value can best be described as the difference between any customer's assessment of the benefits verses the costs associated with any product or a service, along with the perceived substitutes. It is based on this resulting excess benefits that the customer decides to purchase a product. Total customer benefits consists of three things namely Economic benefits, Functional benefits and Psychological benefits.
Simultaneously, the total customer cost comprises of the perceived costs the customers expect to incur in the evaluation, acquiring, usage and disposal of any product or service. The determinants of Customer-perceived value are:
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The top most importance is given to the customers, followed by the front line people, then the middle management and top management. The modern company model is also known as the customer-oriented organization model because of its increased importance given to the customers. LZT is more likely to use a modern company organization model as the company gives a lot of importance and focus to the customers. Handling customer queries, receiving and acting upon negative feedback and all other activities related to the customers strengthens their position in keeping customers as its top priority.
3. Shoe retail chain Bata has noticed an increase in complaints about customer service at its stores and is beginning to lose customers to competitors. The company needs to identify the problems and rectify them. Give two methods Bata can use to discover the problem.
Bata has already figured out that it is losing its customers to competitors owing to poor customer service. Bata can adopt many methods to discover the problem. Two methods that it can adopt could be holding customer surveys and using the help of mystery shoppers.
Customer surveys can help get first hand primary data from the customers directly. The surveys can be designed in a general way but could be a little more focused towards Bata’s customer service to assure that the observation is validated. The questions can vary from quality to speed to effectiveness of the customer service with blank space for comments in the end so that the customer can inform about any other areas of concern. The survey results can be consolidated and a report can be formed to identify the problems.
Mystery shoppers can be hired who can pose as customers and experience the service themselves. These shoppers would also buy a competitor’s product so that...