Unit 2: Deliver Customer Service in a Business Environment
Task 1.1: Produce a report on explaining what ‘added value’ means in terms of customer service
As the customers of the business are considered as the main stakeholder of that firm, it plays a vitally important role in developing business promotion. Customer service is a very essential factor of business by the marketer that can satisfy the customers with the heartiest responses to the customer’s needs. The customers want their shopping like foods or goods fresh from business and the marketer tries to give proper value to the foods adding standard value. The value addition can incur extra charges for the customers.
The term “added value” was predominantly mentioned in trade publications (e.g. Gremillion, 1998; Johnson, 1996; Schultz, 1989). Far less was found in scholarly journals. We, therefore, investigated the literature about “value” and then considered the implications of “added value”. In the academic literature, value is discussed in relation to pricing, consumer behavior, and strategy. We open with an overview of the definitions of value in these three domains and then consider how these relate to added value.
Pricing literature: Value is defined in the pricing literature as the trade-off between customers’ perceptions of benefits received and sacrifices incurred (e.g. Leszinski and Marn, 1997). Monroe (1990) and Gale (1994) cited quality as customers’ primary benefit. Monroe (1990) proposed that the sacrifice component exerts a greater influence on buyers’ value perceptions. All noted that the role of the price is complex and customers do not buy solely on the basis of low price. The context, customers’ access to information, and past associations also affect price perceptions and consequently customers’ value determination (Monroe, 1990).
Consumer behavior literature: In this literature, value is defined in terms of customer needs and what is desirable. Rokeach (1973, p. 5) suggested that “value is an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence”. The development of the means-end theory (Gutman, 1982) enables laddering techniques to ascertain customer values.
There are many subtle variants of Rokeach’s definition. Some define value in terms of the mental images or cognitive representations underlying customers’ needs and goals (Peter and Olson, 1987; Wilkie, 1994), ultimately affecting customers’ responses, in particular, situations (Schiffman and Kanuk, 1987). Sheth et al. (1991) identified five consumption values of “functional, “social”, “emotional”, “epistemic” and “conditional” which could influence consumers to buy the products served by the consumers. The marketer used to apply this technique of adding value to their foods.
Task 1.2: Recognize the opportunities to add value to a customer interaction
According to McFarlane and Britt (2007), the marketing environment of today has changed dramatically, and companies must effectively devise strategies for responding to, and dealing with this change while ensuring maximum customer value and satisfaction. Key success factors (KSFs) are no longer unique to any company. All businesses today must have a certain and minimum degree of financial well-being, innovation, quality, value, image, customer knowledge, technology, and understanding of their products and markets. What remains unique and becomes an ultimate competitive advantage or factor for market leadership is how companies deliver on their value propositions (Weinstein, 2012). That is, how companies design and deliver customer value (Johnson and Weinstein, 2004; Weinstein, 2012).
Our Recommended Resources:
Adding value to a customer interaction refers to the ability of companies to create and add value to the goods and services, especially to the services they offer to customers, or the service aspects of their business (Johnson and Weinstein, 2004). Essentially, adding value as well as customer value entails extraordinary delivery on these four value-points or components:
- Service: the intangible value offered to customers.
- Quality: customers’ perception of how well a company’s products and services meet expectations.
- Image: customers’ perception of the company or business they interact with.
- Price: the price you can command for your goods and services and that your customers are willing to pay.
The strategic and overall importance of customer value can be summarized in ten (10) salient points made by Professor Art Weinstein in his book, Superior Customer Value: Strategies for Winning and Retaining Customers (Third Edition, 2012)………