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Measuring Customer Value Gaps: An Empirical Study in Mexican Retail Market

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Author Info

  • Rajagopal

    (Monterrey Institute of Technology & Higher Education, Mexico City Campus)

Abstract

The role of customer value has been largely recognized over time by the firms as an instrument towards stimulating market share and profit optimization. The customer values for a new product of firm in competitive markets are shaped more by habits, reinforcement effects, and situational influences than strongly-held attitudes. A basic premise of the paper is that the focus should be on maximizing total customer value and customer satisfaction which are inter-dependent in the decision making process towards buying new products. The framework of the construct is a proposed model which integrates all aspects so as to maximize the potential of the organization and all its subsystems to create and sustain satisfied customers. The discussion in the paper on the customer value gaps in the process of marketing new products and explores the possible situations that may lead to lower the customer value. The model discussed in the study has been subject to empirical testing through analysis of data collected from 369 respondents purposively selected. The study was conducted in the 11 retail auto service stores located in Mexico City.

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File URL: http://128.118.178.162/eps/em/papers/0508/0508012.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Econometrics with number 0508012.

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Length: 21 pages
Date of creation: 12 Aug 2005
Date of revision:
Handle: RePEc:wpa:wuwpem:0508012

Note: Type of Document - pdf; pages: 21
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Web page: http://128.118.178.162

Related research

Keywords: Product positioning; customer value measurement; retailing; marketing functions; aggregate returns; model construct and estimation;

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  1. Hans H. Bauer & Maik Hammerschmidt & Matthias Staat, 2004. "Analyzing Product Efficiency – A Customer-Oriented Approach," Microeconomics 0402004, EconWPA.
  2. Andrew Davies, 2004. "Moving base into high-value integrated solutions: a value stream approach," Industrial and Corporate Change, Oxford University Press, vol. 13(5), pages 727-756, October.
  3. Paul Ingenbleek & Marion Debruyne & Ruud T. Frambach & Theo M. M. Verhallen, 2003. "Successful New Product Pricing Practices: A Contingency Approach," Marketing Letters, Springer, vol. 14(4), pages 289-305, December.
  4. Ulf Johanson & Maria M�rtensson & Matti Skoog, 2001. "Measuring to understand intangible performance drivers," European Accounting Review, Taylor & Francis Journals, vol. 10(3), pages 407-437.
  5. Perraudin, William R. M. & Sorensen, Bent E., 2000. "The demand for risky assets: Sample selection and household portfolios," Journal of Econometrics, Elsevier, vol. 97(1), pages 117-144, July.
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