Customer Value Measurement Essay Example | Topics and Well Written Essays - 2000 words

Customer Value Measurement - Essay ExampleNew ways argon needed to achieve an pungency and to stand unmatchable step ahead of others (Keller 2003).In the phase of increasing competition, many corporate mission statements set customers as the focus of an organisations business activities, and reveal thinkers have defined the quality of goods and services with reference to how well they satisfy needs and expectations of the customer base (Johnson et al 2005). At the other end, some companies are paying performance premiums. According to Aaker & Keller (1990) delivering superior value to carefully targeted customers seems to be the generally accepted path to sustained profit cleverness (Keller 2003).In the light of the above, this judge essay is an attempt to clarify how developing a customer orientation affects the profitability of firms by referring to the fundamental elements of a customer driven marketing strategy segmentation, targeting and positioning. It also presents a com prehensive understanding of the customer and the customer value imperative by using relevant examples.As competition grows bigger, more than and more organisations try to maximize customer value in order to achieve their full potential and get a competitive edge. There are some(prenominal) reasons for this awakening and change in perception (Porter 1990). Realizing the role of customers and customers equity, companies strive at satisfying their customers through the creation of brand equity (Aaker 1990). Customers are important stakeholders of a company. According to Sacconi, (2004), customers need quality products and services as well as increased customer value and customer satis featureion (Sacconi 2004). A customer is one who buys and uses goods and services. They are individuals who are affected by or who affect the product and service supplied, and bear the value and cost of a companys activities (Sacconi 2004). In most companies, customers are seen as the most important ass ets. For example, Berry & Parasuraman (1991) argue that, It is easier - and much cheaper - to keep existing customers than to get new ones. To Berry et al. (1990), the benefit from achieving satisfied and loyal customers stems from the fact that, the willingness for future repurchases will be much higher for satisfied and loyal customers than for dissatisfied and indifferent ones. Despite this awareness concerning the importance of customer satisfaction, it is beyond the ability of many of todays companies to maintain satisfied customers (Aaker 1989).To fully understand the meaning of customer value and customers value creation, Aaker (1990) argues that this should be approached from the customers perspective. Today, most companies have realized the importance of satisfied custome