1. Customer Perceived Value (CPV) is essentially a consumer's evaluation of total benefits less total costs of a product or service compared against a perceived alternative (Kotler & Keller, 2012). There are a few ways for a company to take to improve CPV on a specific product. First, it may focus on expanding total customer's benefit by improving its product’s image. It may also invest into functional characteristics of the product as well as provide a better and more personalized service. Second, a firm may choose to reduce the time, energy and psychological costs bared by the consumer. Arguably one of the best received approaches would be a monetary costs' reduction ...view middle of the document...
2. One could define a “Customer Relationship Management” as a set of practices called to manage various bits of information about the customers and their interactions with a firm aiming to maximize customer value, which in turn increases customer loyalty. HD acts to implement the CRM by consistently interacting with their customers in every way available. Setting up marketing researches, conducting media contacts with the buyers helps the company to identify different sub-groups within the community. A strong example showing how CRM is being implemented would be a recent move of HD to connect with the younger riders via social media network like Facebook. Moreover, to retain and grow this particular group of clients, the firm adapted a few existing bike’s models from its Dark Custom collection to stay connected with the younger riders.
3. One applies various objective scales to measure products’ performance qualities. In other words, a simple principle “the higher – the better” is generally applied. Conformance quality however, focuses on a level of precision, with which the product meets the expectations. Here one may use a different rule: “the closer the match – the higher the score”. With a new series of “Dark Custom” bikes, re-introduced in 2008, Harley Davidson specifically targeted younger riders, stripping down the chrome elements, bringing back the basic colours as well as simplifying the aesthetics. Such modifications meant little compromise on any of the performance qualities, as well as no major engineering effort. The message was to address a certain age group of the company’s clients. As per definition, the conformance quality played a major role in the new production line. It is the addressing of clients preferences, matching the products’ qualities to its desired specification which make the product excel in conformance quality.
1. The value proposition is an indication of the experience which customers can anticipate from the firm’s offering and their relationship with the supplier. The core competencies of Nordstrom are the highest level of customer service and superior product quality. Among other benefits one may outline the great variety of products available (upscale range) and trustworthiness of the brand. Nordstrom is selling top-quality apparel, handbags, accessories, jewelry, cosmetics, and fragrances.
2. Customer lifetime value (CLV) is the present value of future net profits attributed to the customers’ lifetime purchases with a company (Kotler & Keller, 2012). Nordstrom retains its current customers by means of their highly customer-oriented approach. Such service comes with a cost, yet it proves to be extremely rewarding. The company...