Marketing, Customer Value, and the Link

1750 Words7 Pages
MKF1120 ESSAY

TUTOR NAME:
ALEX SCHALL-RIAUCOUR

STUDENT NAME:
CRESSA CORNELIA JAP

STUDENT ID:
24282596

INTRODUCTION
In today’s economy, firms are no longer the center of business. In order to survive, companies need to acknowledge the fact that business now revolves around customers
(Keith, 1960). As a result, marketing becomes one of the most prominent philosophies in business. Therefore, to get a better understanding of today’s business, this essay will be discussing about three important concepts. These concepts are marketing as a business philosophy, the understanding of customer value, followed by the link between marketing and customer value. In addition, this essay will be using the Village “Gold
Class” Cinema
…show more content…
As the pioneer of this concept, Village Cinema has successfully embraced the marketing philosophy where business should focus on the customer and to provide what they want.

2

CUSTOMER VALUE
Zeithaml (1988, as cited in Smith & Colgate, 2007, p. 8) defined customer value as being “what customers get from the purchase and use of a product versus what they pay.” According to Drucker (1999), customer value determines what the business will produce and whether it will prosper or not. Clearly, customers will prefer to consume the product that offers them most benefits with least costs possible.
Based on their researches, Smith and Colgate (2007) proposed four major values of customer that applicable to consumer and to customer value creation strategy.
According to Smith and Colgate (2007), functional value is concerned about the purpose and usefulness of a product. Experiential value is concerned with the customers’ feelings created by the product whereas symbolic value is concerned about the psychological meaning of a product to customers. On the other hand, cost is related to the both direct and indirect costs of using the product.
The following table shows customer value creation strategy with Village “Gold Class”
Cinema as the example.
Functional

Correct

/- Movies, sound systems, and seats has high quality

accurate

-
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