Customer-perceived value

A product family is a set of products that are derived from a common platform (Meyer and Lehnerd 1997). Each individual product within the family (i.e., a product family member) is called a product variant. While possessing specific features/functionality to meet a particular set of customer requirements, aU product variants are similar in the sense that they share some common customer-perceived value, common structures, and/or common product technologies that form the platform of the family. A product family targets a certain market segment, whereas each product variant is developed to address a specific set of customer needs of the market segment. 

Customer perceived value of the total service concept (intangibles and other effectiveness aspects of the service). 

The customers perceived value is seen as consultation advice, online or in-store pa5mients, suitable access to their desired service(s), the strength of their relationship, safeguards regarding their personal information, and the way the service delivery is personalized and customerized (or individually targeted) (Hamilton, 2004a). The business determines its customers importance by measuring their success in ... 

Gautam, N. Singh, N. Lean product development Maximizing the customer perceived value through design change (redesign). International Journal of Production Economics, v. 114, p. 313-332,2008. 

Cost The cost of the battery is determined by the materials used in its fabrication and the manufacturing process. The manufacturer must be able to make a profit on the sale to the customer. The selling price must be in keeping with its perceived value (tradeoff of the ability of the user to pay the price and the performance of the battery). Alkaline primary Zn—MnOz is perceived to be the best value in the United States. However, in Europe and Japan the zinc chloride battery still has a significant market share. In developing countries, the lower cost Leclanche carbon—zinc is preferred. Likewise, lead acid batteries are preferred for automobile SLI over Ni—Cd with superior low-temperature performance but with a 10 times higher cost. 

As suggested above, a successful pricer sets price consistent with customers perceived vaiue (Les-zinski and Marn 1997). To understand how customers form value perceptions, it is important to recognize the relative role of price in this process. Because of the difficulty of evaluating the quality of products before and even after the product has been acquired, how customers form their perceptions of the product becomes an important consideration when setting prices. During this perceptual process, buyers make heavy use of information cues, or clues. Some of these cues are price cues and influence buyers judgments of whether the price differences are significant. For example, buyers may use the prices of products or services as indicators of actual product quality. 

This description of value states that value is a function of quality, as perceived by the customer the delivery of the product which could represent the actual lead time, variance in the lead time, or the method of delivery and the firms flexibility. Further, the equation states that customers perceive these benefits of the product in relation to the cost of the product. 

Results could then be compiled, and combined, to gain further insights into services. Roth and Menor (2003) proposed that business-customer service encounters may be considered as combinations of three functional areas— the customer, the service product, and the service delivery system. Hence, enhanced business-customer service encounters could possibly be induced when one or more of these functional areas improved. In particular, an improved business-customer service encounter may arise where the customer perceived improved customer value with the services provided or in the services package being delivered. 

Customer-perceived satisfaction levels are often influenced by the business s response(s). These may include ease of use, degree of customization, intuitive pathways, allowable downloads, value-add offerings, recognition, price, delivery, promotion, after-sales service, and the like. The business is seeking to interpret customer requests, search its possibilities from its available sources, and deliver to the customer its best possible solution(s) in an efficient, effective, and timely manner. 

Customer monitoring visitors/purchasers, sales-per-day, prescriptions-per-day, loyalty, perceived value, revenue-per-sale 1. Customer satisfaction services offered, product ranges, IT information, expectations, innovativeness, new ideas... 

This cluster of literature explores the application of toolkits and mass customization to handle demand heterogeneity and offer individualized products to customers. It includes three studies. Franke et al. (2009) show how the ability of customers to make their preferences and need knowledge explicit impacts the perceived value of customized products. They also find product involvement of consumers to be an antecedent to customer satisfaction with customized products. This finding is shared Ity Fuller et al. (2009), who focus on how users perceive the process of co-creation. Lead usemess, creativity, and involvement are influence factors on enjoyment and customer empowerment Priigl and Schreier (2006) extend these findings by showing that lead users customized designs are also attractive to other users. 

A service business is one where the perceived value of the offering to the customer is determined by the service rendered than the product offered. 

Next, the analysis should confirm that the most valued customers are receiving the most effective attention. That starts with asking some of these customers what value they would like to see added if the firm is going to make such a major investment in CRM. Our research shows the answers to that query are often unexpected. What products should be offered, for example, may vary from those perceived to have the most value. How the products are distributed, through which channels, which partners should be used, what the real delivery cycles should be, and so forth often come under scmtiny and new decision mles emerge. Finding out why some of these customers have defected is equally valuable as it quickly identifies problems needing attention. 

As more and more markets become in effect commodity markets, where the customer perceives little technical difference between competing offers, the need is for the creation of differential advantage through added value. Increasingly a prime source of this added value is through customer service. 

At the centre is the core product, which is the basic product as it leaves the factory. The outer halo represents all the added value that customer service and logistics provide. Clearly it is not only customer service and logistics activity that add value in many cases advertising, branding and the packaging can all enhance the perceived value of the product to the customer. However, it is increasingly evident, as we have seen, that it takes more than branding to differentiate the product. 

The model presented in Subramanian and Ravindran (2014) does not consider customer categories. In this chapter, two customer categories (low-end and high-end) are considered. It is assumed that only a proportion of low-end customers will buy the refurbished products based on their perceived value and price. The perceived value is modeled as a function of the quality perception for the low-end customer. The acceptance rate of high-end customers is modeled using a U-shaped function. 

Let rp be the price offered for refurbished products. As noted earlier, there are quality sensitive high-end customers and price-sensitive low-end customers. A low-end customer will buy the refurbished product only if his own utility is positive, that is, if the refurbished product price is less than or equal to his perceived value. Let q be the quality of the product and v q) be the perceived value for quality level q, where q and v q) are scaled between 0 and 1. Here, q = 0 implies that customers quality perception for the product is zero and v q) = 0. When q = I, v q) = 1, and customers value new and refurbished products the same. Figure 8.2 shows an example of the perceived value curve with respect to its product quality. 

Given the new product price np and perceived value v q), a customer s perceived value for a refurbished product can be calculated as v q) x np). A low-end customer will purchase the refurbished product as long as he/she pays a price that is less than v q) x np). Thus, the customer gets a positive surplus v q) x np) - rp. In the market, a customer s perception of product quality is uncertain and can be characterized to fall between [q - i, q + i, where i is the uncertainty range. The corresponding perceived value of the product falls between [v q - i), v q + i)]. The distribution of perceived value (also referred to as a customer s willingness to pay) is assumed to follow a uniform distribution in the literature (Mitra 2007 Atasu et al. 2008 Ferguson 2009). We will also assume a uniform distribution to model the customer s perceived value. Note that the customer s perceived value for a refurbished product is always less than or equal to a new product price, that is, (v q) x np) < np. 

Let v x) be the perceived value function uniformly distributed between [v q - i), v q + j)]. The fraction of customers whose perceived value is greater than rp, or simply the customer acceptance rate for refurbished products, can be calculated as follows ... 

The customer acceptance rate is illustrated using the following example. Table 8.7 shows data on product quality and its corresponding perceived value. 

Perceived value of the product for customer s perception range [q-i,q + t ... 

Customer value is the customer-perceived benefit gained from a product/service compared with the cost of purchase. In order to measure customer value, we need to understand what aspects of a product or service it is that a customer values Qohnson and Scholes, 2002). Here, we are primarily interested in aspects of customer value which impact on logistics strategy. Two aspects in particular relate to buying behaviours ... 

The benchmark model will be modified by introducing a parameter a on the x variable in the customers utility function. This parameter represents customers perceptions of the preventive efforts undertaken by the railroad. If customers are perfectly informed, as in the benchmark model, the parameter will take the value of one. A value of a of greater than one indicates that customers perceive that railroads undertake more preventive effort than they really do. In other words, customers think that railroads are safer than they are in reality. Conversely, a value of a less than one means that customers underestimate the preventive efforts of railroads and think that railroads are less safe than they are in reality. 

Without having conducted a full elasticity analysis across the entire portfolio, the analysis helps to prove market perceptions such as a higher elasticity exist in one market compared to another market or comparing elasticity between products being perceived to have a different elasticity. The statistical quality of the linear regression analysis in selected months is considered as good in terms of the number of customers involved and the R-squared value proving the applicability of the approach. 

Regulators and customers require assurance in consistency of pharmaceutical and biopharmaceutical manufacturing operations. Today s manufacturing supply chains require multiple sites in varying locations to produce a product. Quality systems must be perceived as an integral part of the value chain. This requires that all sites be compliant in their operations and systems. Strong areas in one location do not make up for weak or absent systems in another location. Fines are levied and business is made or lost based on the individual site or weakest link in the supply chain. Management must have a mechanism to measure its processes, and a comprehensive QMS is the mechanism to demonstrate capability. 

When diagnosing stakeholder value it is important to understand that perceptions can be as important as scientific facts. For example, polyvinyl chloride (PVC) producers defend PVC on the basis of scientific arguments such as energy efficiency, low biomass accumulation, and product safety in normal use. Customers such as Nike, Sony, and Shaw Industries that have committed to eliminating PVC in their products as a precaution for their customers due to perceived health and environmental risks, are unlikely to change their perspective based on additional scientific facts provided by the chemical industry. As in the PVC case, manufacturers are vulnerable to value loss as a result of their customers perceptions of risks. 

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