Customer value

Question 1

How should a company measure the value of its products or services?

• What has the development been?

Answer 1

The emphasis has moved from internal measures such as quality to customer satisfaction measures on the product and service.

Currently, the emphasis is on establishing the reasons for a customer to choose one company’s product over another’s and considers everything to offer (products, service, image etc.)

Question 2

What are the five dimensions of Customer Value?

Answer 2

1. Conformance to requirements
2. Product Selection
3. Price and Brand
4. Value Added Services
5. Relationships and Experiences

Question 3

What is part of 1. Conformance to requirements ?

Answer 3

• Offer what the customer wants
• SCM creates availability
• Different SCM approaches
  
  • • Functionalitems(Cost)
  • • High-variabilityitems(Flexibilityandspeed)

Question 4

What is part of Product selection?

Answer 4

• Dealing with the proliferation:
  
  • Build-to-order
    
    • Configuration is determined when order comes
  • Centralized inventories
    
    • Products with long manufacturing lead times (Cars)
    • Large inventories at major DC (risk pooling)
  • A fixed set of options
    
    • Limit number of options
    • Dell, few options for modem and software installed

Question 5

What is part of Price and brand?

Answer 5

• Pricing is a key part of the customer experience
  
  • The correct supplychain supports the correct price
  • Wal-mart

Question 6

What is part of value added services?

Answer 6

• It is hard to compete on price alone
• Value added services are on the rise due to
  
  • Commoditizationofproducts
  • The need to get closer to the customer
  • Improving information technology
• Service puts the company closer to the customers => lots of insights and feedback!

Question 7

What is part of 5. Relationships and Experiences?

Answer 7

– An increased connection between the firm and its customers

– Good relationships help customer retention