LESSON 6: CUSTOMER VALUE Flashcards
What determines the worth of a good or service compared to competitors?
Customer value
What is buyer’s remorse?
A feeling of regret and dissatisfaction when the cost of a product is not worth the benefits
What can buyer’s remorse lead customers to do?
Look for a competitor company that offers a better deal
What is customer service?
The direct, one-on-one interaction between a customer and a company representative
Why is direct communication between businesses and customers essential?
To ensure repeat customers
How does product quality influence customer loyalty?
Helps businesses acquire customers and gain their loyalty
What is an example of customer loyalty based on product quality?
A very satisfied customer from a pair of sports shoes likely buys another athletic gear from the same brand
What should businesses do to understand customer value?
Interact with customers and ask them what they want and need
What is a value proposition?
The brand’s promise, particularly the mix of benefits that satisfies customer needs
What is the purpose of identifying the target market?
To connect with people likely to purchase the product
What must businesses consider when determining the correct price?
Delivering customer value while maximizing revenues
What should businesses do after determining their target audience?
Focus marketing efforts on attracting that specific audience
Why is it important for businesses to invest in growth?
To improve market offerings and serve customers better
What factors influence customer decisions in practice?
Price, customer service, product quality, and product degree
What does creating customer value improve?
Customer satisfaction and experience
What does increased customer value enhance for a business?
Efficiency, customer loyalty, and market share
What are the benefits of cherishing customers?
Increased customer happiness, product performance, market share, and profit
