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Fiscal Policy and Growth: The Case of the Spanish Regions

  • Rajagopal
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    The role of customer value has been recognized by firms over time as an instrument that can stimulate market share and profit optimization. Customer values for a new product of firms 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, factors which are inter-dependent in the decision making process towards buying new products. The framework of analysis 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 focuses on customer value gaps in the process of marketing new products and explores the possible situations that may lead to lower customer value. The model discussed in the study has been subject to empirical testing through analysis of data collected from 369 respondents to a study conducted in 11 retail auto (or self-) service stores located in Mexico City.

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    Article provided by Economic Issues in its journal Economic Issues.

    Volume (Year): 11 (2006)
    Issue (Month): 1 (March)
    Pages: 9-24

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    Handle: RePEc:eis:articl:106rajagopal
    Contact details of provider: Postal: Burton Street, Nottingham, NG1 4BU
    Web page: http://www.economicissues.org.uk

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    1. Rajagopal & Romulo Sanchez, 2004. "Analysis of Customer Portfolio and Relationship Management Models : Bridging Managerial Dimensions," Microeconomics 0407001, EconWPA.
    2. Rajagopal, 2004. "Measuring Variability Factors in Consumer Values for Profit Optimization in a Firm – A Framework for Analysis," Microeconomics 0407011, EconWPA.
    3. Villanueva, Julian & Bhardwaj, Pradeep & Chen, Yuxin & Balasubramanian, Sridhar, 2004. "Managing customer relationships: Should managers really focus on the long term?," IESE Research Papers D/560, IESE Business School.
    4. Rajagopal, 2006. "Measuring customer value and market dynamics for new products of a firm: an analytical construct for gaining competitive advantage," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 8(3/4), pages 187-205.
    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.
    6. 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.
    7. Michaela Draganska & Dipak C. Jain, 2005. "Product-Line Length as a Competitive Tool," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(1), pages 1-28, 03.
    8. 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.
    9. 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.
    10. Hans H. Bauer & Maik Hammerschmidt & Matthias Staat, 2004. "Analyzing Product Efficiency – A Customer-Oriented Approach," Microeconomics 0402004, EconWPA.
    11. repec:ner:tilbur:urn:nbn:nl:ui:12-130212 is not listed on IDEAS
    12. Donkers, A.C.D. & Verhoef, P.C. & de Jong, M.G., 2003. "Predicting Customer Lifetime Value in Multi-Service Industries," ERIM Report Series Research in Management ERS-2003-038-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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