《marketing_management_5》.pdf

Chapter 5 CUSTOMER VALUE, SATISFACTION, AND LOYALTY 1 Key points • Customers are value-maximizers. • They form an expectation of value and act on it. • Buyers will buy from the firm that they perceive to offer the highest customer-delivered value, defined as the difference between total customer value and total customer cost. • A buyer’s satisfaction is a function of the product’s perceived performance and the buyers’ expectations. Key points • Recognizing that high satisfaction leads to high customer loyalty, many companies today are aiming for TCS—total customer satisfaction. • For such companies, customer satisfaction is both a goal and a marketing tool. • Losing profitable customers can dramatically affect a firm’s profits. • The cost of attracting a new customer is estimated to be five times the cost of keeping a current customer happy. The key to retaining customers is relationship marketing. Key points • Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. • Today’s companies have no choice but to implement total quality management programs if they are to remain solvent and profitable. • Marketing managers have two responsibilities in a quality-centered company. • First, they must participate in formulating strategies and policies designed to help the company win through total quality excellence. Key points • Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. • Today’s companies have no choice but to implement total quality management programs if the