Article 5

Question 1

Who wrote “ Assessing the value of commonly used methods for measuring customer value: a multi-setting empirical study”?

Answer 1

Leroi-Werelds, S., Streukens, S., Brady, M.K. et al. Assessing the value of commonly used methods for measuring customer value: a multi-setting empirical study. J. of the Acad. Mark. Sci. 42, 430–451 (2014). https://doi-org.ru.idm.oclc.org/10.1007/s11747-013-0363-4

Question 2

What is “ Assessing the value of commonly used methods for measuring customer value: a multi-setting empirical study” about?

Answer 2

The article investigates the importance of customer value and the challenges associated with conceptualizing and measuring it effectively. Despite being a critical concept in marketing, there is no consensus on the best way to measure customer value. This paper compares four commonly used methods for measuring customer value: Dodds et al. (1991), Gale (1994), Holbrook (1999), and Woodruff and Gardial (1996). The comparison is based on the psychometric properties, predictive ability, practicality, and actionability of these methods, offering guidance for selecting the most appropriate measurement approach

Question 3

What is Zeithaml’s definition of “customer value”, in Leroi et al.?

Answer 3

the consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given,

Question 4

What is customer value according to Dodds, in Leroi et al?

Answer 4

a cognitive tradeoff between perceived quality and sacrifice

Question 5

How is customer value measured in the Dodds method, in Leroi et al?

Answer 5

they measure customer value by asking respondents five summary questions concerning the overall value of the product or service. this approach focuses on
the monetary exchange and the overall price-quality relationship

Question 6

What is the “means-end theory” in Leori et al?

Answer 6

Means-end theory
provides the theoretical background of how customers view products It states that the way products are related to customers can be represented by attributes (physical characteristics), consequences (subjective experiences resulting from product use), and desired end-states (core values, purposes, and goals in life)

Question 7

What is the difference between the “attribute-based view” and the “consequence-based view”, in Leroi et al?

Answer 7

The key difference is whether the items refer to qualities the product possesses (attributes) versus qualities the product delivers (consequences).

Question 8

What does Gale define “customer value” as, in Leroi et al.?

Answer 8

market perceived quality adjusted for the relative price of your product. customer value equals the difference between a weighted quality score (termed market-perceived quality) and a weighted price score (termed market-perceived price); attribute focus

Question 9

How do you get the Gale’s method “market perceived quality score”, in Leroi et al.?

Answer 9

1. Make a list of the product attributes that customers/
   competitor’s customers find important. These are known by the company or elicited from in-depth or focus group interviews, and they cover all relevant aspects
   related to perceived quality.
2. Establish how the various quality attributes are weighted in the customer’s decision. This can be done by asking customers to evaluate the importance of the various
   attributes.
3. Ask customers to rate the performance of the product and competing products on each of the attributes.
4. Multiply the performance score on each attribute by the weight of that attribute, and add the results to get the market-perceived quality score

Question 10

What does Woodruff and Gardial define “customer value” as, in Leroi et al.?

Answer 10

the result of the trade-off between the positive and
negative consequences of product use as perceived by the
customer (they argue value creation takes place at the consequence level)

Question 11

What does Holbrook define “customer value” as, in Leroi et al.?

Answer 11

an interactive relativistic preference experience; consequence focus

Question 12

What are the Holbrook dimensions of “customer value”, in Leroi et al.?

Answer 12

(1) extrinsic value versus intrinsic
value (i.e., an offering appreciated for its functional, utilitarian
ability to achieve something versus an offering appreciated as
an end-in-itself), (2) self-oriented value versus other-oriented
value (i.e., an offering prized for the effect it has on oneself
versus the effect it has on others), and (3) active value versus
reactive value (i.e., the customer acts on the object versus the
object acts on the customer).

Question 13

What are the 8 types of customer value Holbrook developed, referenced in Leroi et al?

Answer 13

efficiency, excellence, status, esteem, play, aesthetics, ethics, and
spirituality.

Question 14

What are the three outcome variables in Leroi et al?

Answer 14

satisfaction, WOM, and repurchase intention

Question 15

What is “value in use”, in Leroi et al?

Answer 15

“there is no value until an offering is used—experience and perception are essential to value determination

Question 16

In Leroi et al, customer purchase decisions are classified on which two dimensions?

Answer 16

• involvement (high/low)
• type of offering (think/feel)

Question 17

Which methods are the best choices for measuring customer value, in Leroi et al?

Answer 17

Woodruff and Gardial and Holbrook for feel, Holbrook is best for low involvement think, and Woodruff and Gardiel is best for high involvement think

Question 18

Which method is the least time consuming for respondents?

Answer 18

Dodds; although the other three methods were more complicated, there was not a significant difference in perceived effort and time

Question 19

Which methods are actionable, in Leroi et al?

Answer 19

All methods, save for Dodds, provide actionable insights.

Question 20

Which methods are best for predictive ability, in Leroi et al?

Answer 20

Holbrook and Woodruff & Gardial, Gale method does not have predictive abilities

Question 21

Where does Leroi et al fall on the Katsikeas roadmap?

Answer 21

Customer mindset

Question 22

What four characteristics were the dour methods in Leroi et al measured on?

Answer 22

• Psychometric properties (dimensionality, reliability, validity, etc.)
• Predictive ability (note: their formal hypotheses are only about this)
• Practicality (ease of use, questionnaire length  data collection)
• Actionability (can measurement results easily be translated into actionable guidelines?)