Only with a profound understanding of the concept and its properties, it is for future applications of customer perceived value in relationship marketing. Customer perceived value can be determined by the relationship between perceived Marketers use this strategy to influence buyers to load up on products. Customer Satisfaction; Customer Perceived Value (CPV); Customer service and marketing interpretations suggested that customer relationship management Therefore, marketing analysts promotes the concept of customer loyalty as well .
The customer relationship management has quality to increase the chances of more profitability for the company as well as gaining maximum loyalty [ 32 ]. The two fundamental elements of CRM are trust and commitment and are considered exceedingly influential for developing and maintaining the strong connection between the firm and customers [ 18 ].
Different studies indicated the direct positive relationship among customer trust and customer behavioral response [ 36 ]. Similarly, the customers with strong trust and commitment levels are more likely to stay loyal with the firm.
Hence, it showed that commitment and trust are two factors which are positively related to customer behavioral intention [ 36 ]. This research focus on the two factors; trust and commitment those are responsible for customer relationship management. Additionally, these two elements have great significance as they promote collegial attitude which manage the accomplishment of relationship marketing [ 37 ]. Customer Loyalty Customer loyalty is considered an effective manner to evaluate the progress of the firm.
Additionally, the marketing procedures of most companies rely on gaining customer loyalty through the process of developing, retaining and enhancing the relationships with the potential customers [ 39 ].
The commitment of customers towards repurchasing behavior of customer is indication of their loyalty [ 40 ]. The marketing expense eventually decreases with the increase in loyal customer, it also helps to gain more customers and to boost market shares [ 7 ].
Customer Perceived Value: Understanding What Appeals to the Consumer
Therefore, marketing analysts promotes the concept of customer loyalty as well as its importance for achieving profitability goals [ 28 ]. There is sufficient confirmation in the current literatures which clarify the seriousness of trust and commitment for achieving customer loyalty.
Prior research explains that persistence of ideal service results in improved customer trust status and that assists to build deep-rooted link between firms and its customers [ 35 ]. Furthermore, the factor of commitment is proven to be key element in progressing and boosting customer loyalty [ 41 ]. The impact of customer loyalty on firm profitability is highly emphasized. The loyalty factors have proven to be very beneficial in past as it reduces marketing expense and customer positive reference helps to gain more customers [ 40 ].
Therefore, the firms should take initiative to analyze more dimensions of customer loyalty in order to increase its intensity [ 20 ]. Research Framework The Figure 1 demonstrates the relationship of customer satisfaction, customer perceived value, customer relationship management and customer loyalty. Here, customer relationship management is represented as the mediator for this given relationship.
The development of this framework is based on literature review of this study. This Figure also shows the construct of hypothesis from give variables. Demonstration of the relationship of customer satisfaction, customer perceived value, customer relationship management and customer loyalty. Customer satisfaction is positively associated with customer loyalty. Customer relationship management mediates the relationship of customer satisfaction and customer loyalty.
Customer perceived value is positively associated with customer loyalty. Customer relationship management mediates the relationship of customer perceived value and customer loyalty. Customer relationship management is positively associated with customer loyalty. Research Methodology This present research is composed on descriptive design and statistical cross sectional design.
The data was collected by random sampling.
The research design was chosen to examine the relationship between all given variables and its impact. This research design was selected for the depth analysis of variable in short time and cost effective. This study is conducted on restaurant sector of district Faisalabad, Pakistan. Furthermore, for this analysis ten different local restaurants were picked randomly. Target population is the group which is element of that study [ 4243 ].
In total, questionnaires were distributed from which questionnaires were returned, 35 questionnaires were unable to put to usage due to missing data. The items in this study were adopted from different studies. To measure customer satisfaction, the items were adopted from Cronnin and Taylor and Lam.
Customer perceived value measurement was done by the adoption of item from Wang [ 31 ] and Eggert and Ulaga.
Lastly, customer loyalty in service environment was measured by items adopted from Zeithmal [ 4 ] and Sirdeshmukh. Firstly the reliability statistics test was applied to examine the reliability of these variables. Reliability Statistics Following Table 1 shows the results for reliability statistics.
View Customer Stories Share: In fact, function is simply a means to deliver what a customer really wants: A customer buys a product for the perceived benefit he will gain from it. This perceived benefit, in addition to his opinion of the product, are what create customer perceived value.
He buys a drill to have the capacity to make holes. From most SaaS companies, people do not merely buy software, but rather solutions. How customers weigh a given solution may not depend entirely on how well the solution fits their needs. Customer perceived value often has little to do with actual price. Instead, it deals with abstract costs.
Customer perceived value can be determined by the relationship between perceived benefits and perceived costs: Terms explained Perceived product benefits exist on three levels: For example, buying a new suit will help you stay warm physicalland the new job for which you are interviewing logicaland save you from the embarrassment of walking around naked emotional.
Perceived costs include money, time, and labor. When comparing the difference between perceived benefit and perceived cost, if the difference is positive, customer perceived value is high, meaning customers will buy a product or service.
Customer perceived value approach: However, it does play a role. However, this is often not the case.
Marketers use this strategy to influence buyers to load up on products. For whatever reason, the human brain perceives the number nine to be associated with deals and discounts.
A way to combat this is to list a price with simply a number. Clearly, this is easier said than done when considering an SaaS company who conducts business in many countries and currencies around the world.
In such a case, an SaaS might consider a pull down menu at the top of their site, where consumers can choose their desired currency, and subsequently displaying the prices with numbers alone. However, the number had no real value or relevance until news outlets started illustrating what else Facebook could have bought. Credibility When a customer attaches a high level of perceived credibility to a product or company, he is more likely to buy that product or do business with that company.
Consumers are willing to pay more for brands with a reputation for quality. With credibility comes higher levels of trust and satisfaction.
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