Customer perceived value and relationship marketing

customer perceived value and relationship marketing

In the relationship marketing literature, affective commitment is a crucial key driver Based on the concepts of customer perceived value, social identity theory. Customer Satisfaction; Customer Perceived Value (CPV); Customer Relationship The theory of Relationship marketing (RM) recommended that customer. However, relationship marketing has also brought a change to the practice of of customer-perceived value of the relationship manager role in long-term.

Additionally, according to Kissmetricscustomers are often apprehensive to give their credit card number to purchase a software or product that they have never used. Giving customers a chance to try the product for free decreases this apprehension and eliminates customer perceived risk.

customer perceived value and relationship marketing

Testimonials Publishing customer testimonials on your website increases customer perceived credibility as it increases trust. If other customers have used a service or product and were happy with the results, then the company is successful in doing its job. Through reading positive testimonials from previous customers, a potential customer can trust that if he also purchases the service or product, he too will be satisfied with the results.

Testimonials are gaining force when approaching increasing customer perceived credibility, as traditional advertising methods fail to engage Generation Y consumers, who are steadily replacing baby boomers in both the workforce and the economic market.

customer perceived value and relationship marketing

Since ads are increasingly perceived as untrustworthy, testimonials are a more palatable way to get your brand out there to prospective customers, who see advocacy as more genuine and weighty than ads. By choosing the wrong companies, partnering could become detrimental. Make sure your potential partner company has a solid reputation.

Pick companies that attract clients similar to yours. Choose to partner with companies who share similar values. Customer perceived Value Approach: The Value of Time It is proven that the human connection with time is very strong. Perceived value of time is higher than perceived value of money. Marketers should take note of this on two levels: Time is more valuable than money The human relationship with time is much more personal than the human relationship with money.

customer perceived value and relationship marketing

Advertisers know this and frame wording to incorporate the benefit of time enjoyed when using a particular product.

This is especially true for SaaS companies. Such features make completing purchases, answering questions, and offering support easy, and, ultimately, expedite any assistance a customer may need.

Conscious capitalism Conscious capitalism is a style of conducting business while also helping those less fortunate. The idea of conscious capitalism comes from a book written by John Mackey. Research seems to corroborate the theory that perceived value is increased when companies altruistically help a cause.

When considering with whom to conduct business, a consumer who is a part of one tech startup is likely to choose to do business with another tech startup. Because customers within the tech world understand the difficulties that go hand-in-hand with starting a tech company, their perceived value of other tech startups is increased. Locality Locality is a huge part of customer perceived credibility as people want to support their own communities.

Doing business with a local company is a small way that a consumer can feel as though he is supporting his community. Using a local number increases perceived credibility.

Additionally, the study will help to analysis the mediating effect of customer relationship management CRM in this relationship. The main reason behind this research is to discover significant measures to positively enhance customer loyalty in service sector.

Currently, limitedresearch exists on relationship of these variables, especially on restaurant sector in Pakistan. This study also intent to examine more manners to strongly enhance customer loyalty.

There was a problem providing the content you requested

The research design is based on quantitative research thus the data was collected through primary data, five Likert-scales and Spss 24 was used to compute results. Convince sampling method was used in order to gather data.

Customer Perceived Value I Determinants of Customer Perceived Value I Perceived Product Cost

Different tests were applied to analyze reliability and validity furthermore it is recommended from this study that customer satisfaction, customer perceived value and CRM is key drivers to build customer loyalty. Lastly, this study discussed further ways which can be useful for future research. Previous research emphasize on the recognition of customer loyalty and factors that participate in customer loyalty [ 4 ].

One of the main reason behind it is the intense increase in the competition in this modern era. Although enormous research has been conducted on customer loyalty, there is still lack of literature that explains influential factors regarding customer loyalty [ 56 ]. Furthermore research is required to identify the mediating factors that enhance customer loyalty [ 67 ]. Previous studies highlighted the positive relationship between customer satisfaction and organizational performance [ 9 ].

Further review of literature suggested that customer satisfaction is positive step towards customer loyalty which leads to gaining more profits by the firms [ 10 - 13 ]. It is believed that customer satisfaction alone is not enough perpetuate for customer loyalty since customer satisfaction is conveniently anticipated whereas customer loyalty is much more complicated on enormous levels [ 1415 ].

Specifically more research is required to predict the variables that plays mediator to improve customer loyalty [ 6 ]. There is existing literature which suggests the simultaneous investigation of the service assessment variables such as customer satisfaction and customer perceived value, on depend variable; loyalty [ 716 ].

Customer Perceived Value: Understanding What Appeals to the Consumer

These service assessment variables are considered significant driver to gain loyalty of customers [ 7 ]. Thus, various researches suggested several key variables that can play a part of mediator among service assessment variables with constant of customer loyalty, the findings are still equivocal for different business sectors [ 16 ].

Moreover, various studies indicated that to promote customer loyalty the quality of customer relationship management CRM should exist to mediate in the relationship of customer loyalty apart from service assessment variables [ 17 ].

Literature Review In the present-day, many researchers speculate that service related component which have immensely prestigious effect on decision-making measures for the customer; these factors could be quality of the service, customer satisfaction and customer value [ 1518 - 20 ].

Nonetheless, by various researchers relationship between customer satisfaction and loyalty has been highlighted questionably that firms should not entirely rely on customer satisfaction as a key factor and exclusive antecedent for customer loyalty [ 2122 ]. However, still more research is required in order to discover the link of customer behavior with customer value. In earlier research, different studies conducted on service and marketing interpretations suggested that customer relationship management has significant role in developing and retaining the long term relationship with the customers.

Additionally, customer satisfaction enhances the element of trust and assurance in the relationship with customers which is also considers the key driver for gaining customer loyalty [ 24 ]. Altogether the connectivity and depth of these variables are still uncertain [ 1525 ]. Customer Satisfaction In definition customer satisfaction is known as key for achievement of goals in service environment, it evolves around meeting and exceeding customer needs and demands [ 26 ]. The past studies have recorded the positive effect of customer satisfaction on dimensions of customer loyalty such as purchasing behavior, service consumption, duration of relationship and customer reference [ 16 ].

Customer Perceived Value Customer value is commonly consider as tradeoff between two parties, one party getting the financial value and the other party receive benefit by the consumption of products or services [ 29 ]. The perception of value is convolute as it is purely evaluated by consumers. Hence, it is a customer who set standard and measure for product and service rather than supplier [ 30 ].

The customer values also rely on many other attributes which includes financial resources, knowledge about the product and location of the outlet or service center [ 23 ]. The development of strategies for creating customer value is a key to attract attention of new customers, develop and maintain a good relationship with them and for gaining customer loyalty [ 431 ].

Therefore, it is a common believe that by creating high customer value among the target customer there is a high possibility of enhancing trust and commitment which leads to gaining high customer loyalty. Another researcher suggested that by improving customer relationship management quality in the firm, it can helps to obtain competitive advantage in the market place by promoting and retaining the element of trust and commitment among the customers [ 31 ]. Customer Relationship Management The theory of Relationship marketing RM recommended that customer relationship management is crucial component to create a sound relationship with customers, it eventually helps to achieve long-term commitment from the customers and assist to develop customer loyalty.

Furthermore the theory stated that loyal customers are proven to be more beneficial for business as compared to non-loyal ones [ 4 ]. The role of CRM is explained as an aspect of managing relationship between businesses and customers which includes various elements such as keeping contacts, positive communication and proactive procedure [ 32 ].

The basic role of CRM is to attract customers, build strong relationship with customers and successfully retaining the relationship for long run [ 33 ] ; planning the accurate customer segmentation and to find the effective mode of communication to target customers at the right moment [ 34 ].

The customer relationship management has quality to increase the chances of more profitability for the company as well as gaining maximum loyalty [ 32 ]. The two fundamental elements of CRM are trust and commitment and are considered exceedingly influential for developing and maintaining the strong connection between the firm and customers [ 18 ].

Different studies indicated the direct positive relationship among customer trust and customer behavioral response [ 36 ].