Role of perceived value in promoting customer satisfaction

Substantive replies, in contrast to perfunctory replies, add value to the discussion, enhance learning, and contain references to any new concepts or ideas presented.The following suggestions will aid you in successfully composing substantive responses:

• Compare/contrast the findings of others with your research.

• Compare how the findings of others relate/add to the concepts learned in the required readings.

• Share additional knowledge regarding the key topic that relates to the thread.

Discussion 1: Customer Value

Josh McGuire

Liberty University

BUSI 650-D01

For the discussion I have chosen to use the article: The role of perceived value in promoting customer satisfaction, written by Phineas Mbango, 2019. The key topic that I have chosen for the discussion is Customer Value. The article explains that by definition the idea behind customer value is the perception of what a product or service is worth to that consumer or customer. When the consumer is thinking of worth they have identified to themselves what the product or service that is provided is actually worth the price that was paid. The article uses the South African leafy vegetable market as their source for satisfaction and study. I have chosen customer value because I like to see what the consumer thinks and is influenced by. This article explains that at times, value is a direct result from satisfaction. While there is a basic definition of what customer value is, it was interesting to compare the article that I chose to others that were of the same topic background. The interesting idea that behind customer value is a genuine agreement between the consumer and the producer that everyone is getting a fair deal for the quality of a service or good at a fair price. No producer would ever come out and say that they are providing a subordinate product or service to a competitor and believe that customer value would remain high. In the article however, we can see how value is directly influenced by satisfaction. If the product that is sold makes the consumer happy and satisfied based on physical appearance or taste as example, they are more likely to pay more and still retain a high customer value. That customer value is based on satisfaction since the increase in price is not a direct response for value. The interesting point behind this is the fact that many times a superior product that might cost more than a competitor still has a higher value as well as a higher satisfaction. Concentration solely on the feedback of value might hinder the potential growth and income of the company if satisfaction from the customer is not also considered. The article is written to compare the value and satisfaction of the customer and how they affect one another. Value can be formulated from a high product quality, value for the money, swift communication, or the availability of various products. Customer satisfaction is based on a previous experience. When a consumer decides that they will try another market in the region for their leafy vegetable purchases, the goal is to make the vegetables that are sold by Hawkers better than the consumer has ever had. The appearance, taste, and texture are superior to what the consumer has purchased in the past. When the consumer sees the product that is being offered, in this case by the Hawkers’ markets, their satisfaction goes up. That satisfaction is then an influence on the value that the customer thinks that they are getting in return. Many times there are products or services that are provided that are different in cost from one company, manufacturer, or producer to another. Even though there is a direct competition between these different sectors, very few times are the prices the same. The variance in price is a key factor for customer value. They are getting the same good or service for a cheaper cost. But as the article explains, the increase in cost can be overlooked if the satisfaction of the product is high enough. One can pay a dollar more for a head of lettuce that they love to eat over another market and the farmer can still remain higher in satisfaction and value to the consumer.

The article reminded me of the Garden of Eden when I first read through it. Here is a market that has this pristine vegetables at a cost that is higher than most. Is the vegetable the forbidden fruit to the consumer? In this case the answer is no but many times we find ourselves looking for the next best thing or the shiny apple. We need to be content with what we have around us and trust that God will lead us in the right direction. Is the lettuce in the market really worth the extra money, we will never know. But we do know that lettuce that we had before was good enough. “And immediately Jesus, perceiving in his spirit that they thus questioned within themselves, said to them, “Why do you question these things in your hearts?”(ESV, Mark 2:8) “Trust in the Lord with all your heart, and do not lean on your own understanding.” (ESV, Proverbs 3:5) “Commit your way to the Lord; trust in him, and he will act.” (ESV, Psalm 37:5)

The idea within the article that satisfaction directly impacts value can be used as an example today with the price of gas. As the gas prices continue to go up this summer, there will be price wars for the cheapest gas in your area. In your mind your customer value will go up if you find gas that is even 10 cents cheaper than another store. One thing to remember though is that gas like any other petroleum has different filtering and purification processes for each band. As an example, the gas that you might get from a Circle K is not the same gas that you might get at a Shell. The ethanol, water, that is in the gas can decrease performance and cause damage over time. The satisfaction effect here is that the consumer will pay more for the gas that they know is good for their car or lawn mower over the cheaper gas that can cause more money in repairs over time while still maintaining a high customer value. Role of perceived value in promoting customer satisfaction