The Concepts of Value
and Exchange
MKT5000_2016_2 Assignment 1
´ Definition: “A customer perceived preference for and evaluation of those
products attributes, attribute performances, and consequences arising
from use that facilitate (or block) achieving the customer’s goals and
purposes in use situations.” (Woodruff 1997)
´ Or to put it more simply: “Customer value = Perceptions of benefits”
(Christopher 1996)
´ Thus, customer value is created when the perceptions of benefits obtained from
a transaction rise above the costs of ownership.
Source: verasage.com
Value
´ Definition: “Exchange is the act of obtaining a desired object from
someone by offering something in return.“ (Armstrong et al 2009)
´ But exchange is not only happening in terms of tangible objects or services.
In fact it is also about communication with the goal of exchanging
valuable information.
Source: iconfinder.com
Exchange
´ What practical use might the understanding of the concepts of value and
exchange contain?
´ A good example to put these concepts to practical use is to implement a
relationship-based marketing.
´ Definition: “Relationship marketing is an approach to marketing in which a
company endeavours to build continuing relationships with its customers that
promote both the long-term growth of the company and the maximum
satisfaction of the customer.” (McDonald & Keegan 1997)
´ Since the value is defined by the customer, companies have to continuously
assess how to create and deliver value to the customer.
´ Modern communication technology enables companies to collect the
necessary data to build and maintain continuing relationships with their
customers.
Source: forbes.com
Practical Approach
´ In this context it is important to realize that a relationship with a (potential)
customer starts in fact before he or she actually buys the product or
service. And it doesn’t end after the actual purchase.
´ Companies can use...