Page 50 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 2: Customer Value

 It has been difficult to use this construct in either practice or marketing research, however, Notes
because of competing definitions and competing conceptualizations, frameworks, and
typologies of customer value—none of which fully capture the domain of the construct or
are particularly well suited for either making marketing strategy decisions or for
operationalising the construct. These issues need to be resolved before empirical studies
can properly address key customer value research questions and improve early attempts
at measurement. For example, we attempt to address these issues by integrating and
extending previous works in a more comprehensive and useful typology of customer
value creation. In doing so, we adopt the marketing manager’s perspective of customer
value: what kinds of value can be created, and how this value can be created by an
organization.

2.5 Keywords

Competitive Advantage: An advantage that a firm has over its competitors, allowing it to
generate greater sales or margins and/or retain more customers than its competition. There can
be many types of competitive advantages including the firm’s cost structure, product offerings,
distribution network and customer support.
Corporate Social Responsibility: Corporate Social Responsibility is the continuing commitment
by business to behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local community and society
at large
Customer Value Framework: The framework identifies five major sources of value—information,
products, interactions, environment, and ownership—that are associated with central value-chain
processes.
Customer Value: It is defined as the difference between what a customer gets from a product, and
what he or she has to give in order to get it. It helps people and companies unlock their inner
creative power and achieve amazing results.
Marketing Research: It is the systematic gathering, recording, and analysis of qualitative and
quantitative data about issues relating to marketing products and services. The goal of marketing
research is to identify and assess how changing elements of the marketing mix impacts customer
behaviour.
Marketing Strategy: Marketing strategy is a process that can allow an organization to concentrate
its resources on the optimal opportunities with the goals of increasing sales and achieving a
sustainable competitive advantage.
Technology Components: The CRM technology components combine the functions of CRM
engine, Front-office solutions, Enterprise Application Integrations (EAIs) for CRM.

2.6 Review Questions

1. Write short note on customer value.
2. How customer value is important to business?
3. Explain the framework of customer value creation.

4. What are the technological components of CRM?
5. How is value creation significant in enhancing brand loyalty?

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