Professors on the Go!
Chapter 5
Creating Customer Value, Satisfaction, and Loyalty
Key Concepts:
1) Customer Perceived Value
Have students (in groups or individually) select a local firm in their community, or a
local division of a national firm. Then, request permission to interview their corporate
executives on their corporation’s definition of customer satisfaction, loyalty, and what
their particular firm does to foster such customer relations. This project can be
combined with the project on marketing research and as such, students can create
questionnaires suitable for mailing to these executives. The students can then present
these findings to the class in a group or by individual presentations. This could be a
full semester project or limited to a few weeks of the semester.
2) Delivering High Customer Value
Key retailers emphasize service, customer satisfaction, and loyalty. Retailers such as
Nordstrom, Saturn, Lexus, Infiniti, and others have a reputation for outstanding
customer service and satisfaction. In small groups, have the students visit these key
retailers (and other retailers pertinent to your trading area) and write down their
observations regarding what service quality clues they experienced during their in-
store visits. Secondly, these same students should visit contrasting retailers and look
for similar signs and clues to quality service. In a prepared report, students should note
what elements of customer satisfaction was and was not present at each level of
service provider. Taking the position then of a “shopper” students should comment on
which retailer would most likely retain customers and why.
3) Total Customer Satisfaction
Key manufacturers and others must be concerned with how their customers view their
products (customer satisfaction perceptions) being disseminated throughout the
“electronic world” via the Internet. No longer can one discount the “power of the
mouse” for affecting potential customers. In small groups, students are to select a
particular firm or product and research what is being said on the Internet regarding this
company/product. What affects/effects does this type of dissemination of consumer
opinions via the Internet have on the company’s marketing strategies? What can the
company do to stem the tide of such comments? How does a company defend itself
against blatantly untrue consumer opinions?
4) Customer Expectations
Students who regularly shop at one of the main Internet sites (eBay.com,
Amazon.com, LandsEnd.com, etc.) experience some customer bonding with the
provider. Ask students to comment on their experiences with these providers in terms
of: Does the customization aspect of the provider encourage you to shop more, or is
11
Professors on the Go!
the customization aspect of the provider more of an intrusion or hindrance? Does the
customization provided concern you as to the level of personal information collected
by the company? Do you feel that some of your “right to privacy” is being
compromised for the sake of developing “bonds”?
5) Measuring
You and your class colleagues have decided to start a business upon graduation. Your
expertise is in marketing so you have decided to start a marketing consultant firm. As
one of your basic underlying competitive distinctions, you have decided upon
“exceptional service is our minimum” as your tag line. Now you must define
“exceptional service” and translate that tag line into specifics. Using each of the major
headings contained in this chapter, detail how you plan to communicate “exceptional
service.”
6) Maximizing Customer Lifetime Value
In small groups (five students suggested as the maximum), have the students make
appointments with local insurance agents, financial planners, or other service
professionals in their area to discuss the agent and his company’s philosophy on
customer value, satisfaction and loyalty. Specific questions to ask include How does
your company (and you individually) define customer satisfaction? How do you go
about delivering value to your clients? How do you (and your company) calculate the
lifetime value of a client? Students should prepare a report to be presented either to the
class or as written group paper.
7) Competitive Advantage
The research firm J.D. Power and Associates lists eight categories of products for
consumers to research before purchasing the product or service. Breaking up the class
into eight groups, have the students research the top performers for each category then
share their findings as to which characteristics, policies, procedures, and vision these
top-rated companies have in common. Is there a “common” link among all of the
winners? Are there differences? In terms of the material contained in this chapter, how
would you explain these similarities and differences?
8) Customer Equity
Consider the customer lifetime value (CLV). Choose a business and show how you
would go about developing a quantitative formulation that captures the concept. How
would organizations change if they totally embraced the customer equity concept and
maximized CLV?
12