Customer Value Creation in Fashion Retail Industry

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In the past where retail competition is less intense, a store could target a wide range of market segment and provide the products which is appropriate to the group's needs. As the demographic trends are getting more diverse, customers’ need and satisfaction plays an important role in maintaining the customer value (Murray 1998). Most business strategy models have considered customer value as an essential aspect in attracting and retaining customers (Khalifa 2004). The key concept of customer value is based on the price and quality dimensions and measured in terms of the benefits the customers are getting out of the store. This can be broken down into four categories: the first value component models which is composed of the esteem value of a customer. The second, means-end models which proposes that customers acquire and use of the product to meet their desired end state. The third, the benefits-cost ratio model defined the value of the overall assessment for the customer based on the perception of what is received and what was given. Lastly, the combined models of customer is the mixture of any three models to develop a conceptual framework for customer value (Simova 2007). The term “benefits” was perceived as the service quality provided by the salesperson and the satisfaction of the customer . The service quality is defined as a perceived judgment from the customers where they compare their expectations with the service they assumed to have received (Gronroos 1984). This was further elaborated through two variables which service quality is dependent on: expected service and perceived service. With a pervious service, it could influence the expectations of a customer, whereas the perceived service is the result of the perception of the customer towards the service provided. This refers to the attitudes, ability and responsiveness of the salesperson (Cheng & Chi

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