chapter  9
16 Pages

Value

Managers have increasingly begun to discuss the notion of customer value as an alternative to the satisfaction paradigm. For instance, Reichheld (1996) describes how, of those customers reporting satisfaction, more than 85% will switch in the next purchase cycle and how, of the 85%–90% of automobile purchasers who report high levels of satisfaction, only 40% will repurchase the same make or model. Thus, satisfaction is no longer enough in explaining consumer choices. In fact, it has also been suggested that value is what the customer really wants and that satisfaction is only the “report card” on how well a company is doing in delivering that value (Woodruff & Gardial, 1996).