工商管理专业英语unit10.ppt

Unit 10 Unit 10 Defining Customer Value and Defining Customer Value and SatisfactionSatisfaction作者作者 南开大学南开大学 商学院商学院 李桂华李桂华Business School of Nankai UniversityGlossaryGlossaryarray:n.An impressively large number,as of persons or objects:大量，令人瞩目的大数量，如人或物mobility:n.The quality or state of being mobile.易动性易动的性质或状态bulldozer:n.A heavy,driver-operated machine for clearing and grading land,usually having continuous treads and a broad hydraulic blade in front.推土机用来清除和平整土方的重型的，驾驶操作的机器，常有连续的履带，前部有宽的液压铲刀accompanying:adj.陪伴的,附随的offset:v.To counterbalance,counteract,or compensate for:平衡、中和或补偿：nonmonetary:adj.非货币的,非金融的assessment:n.The act of assessing;appraisal.评估，估价,估价的行为；评估Business School of Nankai UniversityGlossaryGlossaryapparent:adj.Readily understood;clear or obvious.显然的；明明白白的augment:v.To make(something already developed or well under way)greater,as in size,extent,or quantity:扩大，增加，加强使（已经发展的或稳妥进行的事物）在尺寸、程度或数量方面增大：dissatisfied:adj.Feeling or exhibiting a lack of contentment or satisfaction.不满意的，不高兴的感觉或流露不满意或不满足的consistently:adv.一贯地，一向，始终如一地vow:v.To declare or assert:宣称或断言：switch:v.To shift,transfer,or divert 改变转变、转移或改换affinity:n.A natural attraction or feeling of kinship.共鸣，吸引自然的吸引或亲密的感情monitor:v.To test or sample on a regular or ongoing basis:测试，取样定期和持续地监测并进行抽样调查compare:v.To draw comparisons.比较，区别durable:adj.Lasting;stable:持久的；稳定的anticipated:adj.预先的Business School of Nankai UniversityKey Terms and ConceptsKey Terms and ConceptsCustomer delivered value:The consumers assessment of the products overall capacity to satisfy his or her needs.The difference between total customer value and total customer cost of a marketing offer“profit”to the customer.Total customer value:The total of all of the product,services,personnel,and image values that a buyer receives from a marketing offer.Total customer cost:The total of all the monetary,time,energy,and psychic costs associated with a marketing offer.Business School of Nankai UniversityTextTextlMore than 35 years ago,Peter Drunker insightfully observed that a companys first task is“to create customers.”However,creating customers can be a difficult task.Todays customers face a vast array of product and brand choices,price,and suppliers.The company must answer a key question:How do customers make their choices?lThe answer is that customers choose the marketing offer that gives them the most value.Customers are value-maximizers,within the bounds of search costs and limited knowledge,mobility,and income.They form expectations of value and act upon them.Then they compare the actual value they receive in consuming the product to the value expected,and this affects their satisfaction and repurchases behavior.We will now examine the concepts of customer value and customer satisfaction more carefully.Business School of Nankai UniversityTextText Customer ValuelTotal customer value(Product,services,personnel,and image values)MinusTotal customer cost(Monetary,time,energy,and psychic costs)EqualsCustomer delivered value(“Profit”to the consumer)lConsumers buy from the firm that they believe offers the highest customer delivered valuethe difference between total customer value and total customer cost(see Figure below).For example,suppose that a large construction firm wants to buy a bulldozer to use in residential construction work.It wants a reliable,durable bulldozer that performs well.It can buy the bulldozer from either Caterpillar or Komatsu.The salespeople for the two companies carefully describe their respective offers to the buyer.Business School of Nankai UniversityTextTextTotal customer value(Product,services,personnel,and image values)MinusTotal customer cost(Monetary,time,energy,and psychic costs)EqualsCustomer delivered value(“Profit”to the consumer)FIGURE Customer delivered valueBusiness School of Nankai UniversityTextTextlThe construction firm now evaluates the two competing bulldozer offers to assess which one offers the greatest value.It adds all the values from four sourcesproduct,services,personnel,and image.First,it judges that Caterpillars bulldozer provides higher reliability,durability,and performance.It also decides that Caterpillar has better accompanying servicesdelivery,training,and maintenance.The customer views Caterpillar personnel as more knowledgeable and responsive.Finally,it places higher value on Caterpillars reputation.Thus,the customer decides that Caterpillar offers more total customer value than does Komatsu.Business School of Nankai UniversityTextTextl Does the construction firm buy the Caterpillar bulldozer?Not necessarily.The firm also will examine the total customer cost of buying Caterpillars bulldozer versus Komatsus.First,the buyer will compare the prices it must pay for each of the competitors products.If Caterpillars bulldozer costs a lot more than Komatsus does,the higher price might offset the higher total customer value.Moreover,total customer cost consists of more than just monetary costs.As Adam Smith observed more than two centuries ago,“The real price of anything is the toil and trouble of acquiring it.”Total customer cost also includes the buyers anticipated time,energy,and psychic costs.The construction firm will evaluate these costs along with monetary costs to form a complete estimate of its costs.Business School of Nankai UniversityTextTextlThe buying firm now compares total customer value to total customer cost and determines the total delivered value associated with Caterpillars bulldozer.In the same way,it assesses the total delivered value for the Komatsu bulldozer.The firm then will buy from the competitor that offers the highest delivered value.lHow can Caterpillar use this concept of buyer decision making to help it succeed in selling its bulldozer to this buyer?Caterpillar can improve its offer in three ways.First,Caterpillar can increase total customer value by improving product,services,personnel,or image benefits.Second,Caterpillar can reduce the buyers nonmonetary costs by lessening the buyers time,energy,and psychic costs.Third,Caterpillar can reduce the buyers monetary costs by lowering its price,providing easier terms of sale,or,in the longer term,lowering its bulldozers operating or maintenance costs.Business School of Nankai UniversityTextTextlSuppose Caterpillar carries out a customer value assessment and concludes that buyers see Caterpillars offer as worth$200,000.Further suppose that it costs Caterpillar$140,000 to produce the bulldozer.This means that Caterpillars offer potentially generates$60,000($200,000 minus$140,000)of total added value.Caterpillar needs to price its bulldozer between$140,000 and$200,000.If it charges less than$140,000,it wont cover its costs.If it charges more than$200,000,the price will exceed the total customer value,The price Caterpillar charges will determine how much of the total added value will be delivered to the buyer and how much will flow to Caterpillar charges$190,000,it will grant only$10,000 of total added value to the customer and keep$50,000 for itself as profit.Naturally,the lower Caterpillars price,the higher the delivered value of its offer will be and,therefore,the higher the customers incentive to purchase from Caterpillar.Delivered value should be viewed as“profit to the customer.”Given that Caterpillar wants to win the sale,it must offer more delivered value than Komatsu does.Business School of Nankai UniversityTextTextlSome marketers might rightly argue that this concept of how buyers choose among product alternatives is too rational.They might cite examples in which buyers did not choose the offer with an objectively measured highest delivered value.For example,suppose that the Caterpillar salesperson convinces the construction firm that,considering the benefits relative to the purchase price,Caterpillars bulldozer offer with an objectively measured highest delivered value.For example,suppose that the Caterpillar salesperson convinces the construction firm that,considering the benefits relative to the purchase price,Caterpillars bulldozer offers a higher delivered value.The customer still might decide to buy the Komatsu bulldozer.Why would the buyer make this apparent nonvalue-maximizing purchase?There are many possible explanations.For example,perhaps the construction firms buyers enjoy a long-term friendship with the Komatsu salesperson.Or the firms buyers might be under strict company orders to buy at the lowest price.Or perhaps the construction firm rewards its buyers for short-term performance,causing them to choose the less expensive Komatsu bulldozer,even though the Caterpillar machine will perform better and be less expensive to operate in the long run.Business School of Nankai UniversityTextTextlClearly,buyers operate under various constraints and sometimes make choices that give more weight to their personal benefit than to company benefit.However,the customer-delivered-value framework applies to many situations and yields rich insights.The framework suggests that sellers must first assess the total customer value and total customer cost associated with their own and competing marketing offers to determine how their own offers measure up in terms of customer delivered value.If a seller finds that competitors deliver greater value,it has two alternatives.It can try to increase total customer value by strengthening or augmenting the product,services,personnel,or image benefits of the offer.Or it can decrease total customer cost by reducing its price and simplifying the ordering and delivery process.Business School of Nankai UniversityTextTextCustomer SatisfactionlThus,consumers form judgments about the value of marketing offers and make their buying decisions based upon these judgments.Customer satisfaction with a purchase depends on the products performance relative to a buyers expectations.A customer might experience various degrees of satisfaction.If the products performance falls short of expectations,the customer is dissatisfied.If performance matches expectations,the customer is satisfied.If performance exceeds expectations,the customer is highly satisfied or delighted.Business School of Nankai UniversityTextTextlBut how do buyers form their expectation?Expectations are based on the customers past buying experiences,the opinions of friends and associates,and marketer and competitor information and promises.Marketers must be careful to set the right level of expectations.If they set expectations too low,they may satisfy those who buy but fail to attract enough buyers.In contrast,if they raise expectations too high,buyers are likely to be disappointed.For example,Holiday Inn ran a campaign a few years ago called“No Surprises,”which promised consistently trouble-free accommodations and service.However,Holiday Inn guests still encountered a lost of problems,and the expectations created by the campaign only made customers more dissatisfied.Holiday Inn had to withdraw the campaign.Business School of Nankai UniversityTextTextlStill,some of todays most successful companies are raising expectationsand delivering performance to match.These companies embrace total customer satisfaction.For example,Honda claims,“One reason our customers are so satisfied is that we arent.”And Cigna vows“Well never be 100 percent satisfied until you are,too.”These companies aim high because they know that customers who are only satisfied will still find it easy to switch suppliers when a better offer comes along.For example,a study by AT&T showed that 70 percent of customers who say they are satisfied with a product or service would still be willing to switch to a competitor.In contrast,customers who are highly satisfied are much less ready to switch.One study showed that 75 percent of Toyota buyers were highly satisfied and about 75 percent said they intended to buy a Toyota again.Thus,customer delight creates an emotional affinity for a product or service,not just a rational preference,and this creates high customer loyalty.Business School of Nankai UniversityTextTextlTodays winning companies track their customers expectations,perceived company performance,and customer satisfaction.However,customer satisfaction measures are meaningful only in a competitive context.For example,a company might be pleased to find that 80 percent of its customers say they are satisfied with its products.However,if a competitor is attaining 90 percent customer satisfaction and aiming for 100 percent,the company may find that it is losing customers to the competitor.Thus,companies must monitor both their own and competitors customer satisfaction performance.Marketing Highlight the FIGURE describes the ways in which companies can track customer satisfaction.Business School of Nankai UniversityBusiness School of Nankai University