Customer-Perceived Value, Total Customer Satisfaction, and Brand Equity

Marketing Management Assignment 4
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Marketing Management Assignment 4
Question 1
Explain customer-perceived value
A client will buy a product if they believe they will get more value from it than he spends for it and that competing products will not provide him with greater value than what he already has. According to Aulia et al. (2016), customer perceived value refers to the consumer's overall opinion of the value of a product based on perceptions of what is received and what is offered. The received components can allude to the benefits obtained from utilizing the product, while the provided element can refer to the customer's financial and non-monetary concessions to get the product. In effect, value includes low prices, whatever the customer wants in a product, quality obtained from the product pricing, and what the client gets versus what is given. The monetary worth of the economic, functional, psychological, and social advantages a client anticipates from a product is the benefits from a product offering. The total cost is the monetary value that a client may pay to evaluate, possess, use, and dispose of a product. In other words, the overall cost spent throughout the product's life cycle, from evaluation to disposal, is the product's perceived cost. Marketers strive to increase the fiscal, operational, psychological, and social value while lowering expenses to optimize the consumer perceived value. Thus, consumer perceived value is the differential element between the benefits of owning a product and the expenses incurred to purchase a product.
Question 2
Explain total customer satisfaction
Satisfaction refers to a person's feelings of happiness or displeasure with something. As such, total customer satisfaction refers to the pleasure or disappointment that arises from comparing a product's perceived performance to expectations (BINUS QMC, 2017). A consumer feels dissatisfied when the service does not meet their expectations. However, if the product meets or exceeds their expectations, a customer feels delighted.  Customer evaluations of the quality of a product are influenced by a variety of factors, most notably the customer's level of brand loyalty. When consumers associate a product with a positive brand, they are more likely to generate favorable impressions. Customer expectations result from prior purchasing experiences, recommendations from friends and acquaintances, and promises from marketers and rivals (BINUS QMC, 2017). A buyer is likely to feel dissatisfied if the marketer sets unrealistic expectations. Most successful businesses today use strategic methods to establish realistic product expectations and ensure they match performance expectations. For instance, KIA emerged successful in the United States by introducing inexpensive and high-quality reliable cars that provide a 10-year, 100,000-mile warranty. Therefore, customer satisfaction is achieved through delivering the expected product performance.
Question 3
What valuable functions can brands perform for a firm?
People identify products using their brand names. Brands make it easy for a company to manage and track its products. It also helps companies manage their inventory conveniently and keep their records and accounting clean. Brands also allow a company to safeguard its trade patents. In other words, a company can prevent competitors from replicating its product features, design, and other factors, thus promoting product differentiation. For instance, Apple differentiates its products from ot...