CUSTOMER-VALUE PERCEPTION: DELL

Customer-Value Perception: Dell



Table of Content

Introduction3

Customer Perceived Value3

Models4

Importance of Customer Value5

Value Proposition5

Customer Value Concept as a Decision Tool6

Profits and benefits of customer value6

Dell6

Overview6

Products8

Consistency and stability8

Customer Expectations8

The Highest Customer Satisfaction Ratings8

Customer Perceived Value for Dell9

Objectives10

Dells Marketing Strategy11

Value Proposition of Dell and compare and contrast with HP11

A New Scenario, a New Proposal13

The Performance14

Comparing Dell and HP15

Market mission of DELL15

Our Vision16

Market Mission of HP:16

Vision16

Where are we going to operate?16

How do we want people to behave?17

What do we have to be good?17

Competitive positioning and Competitive Differentiation18

Creating Competitive Advantage19

Porter's Generic Strategies19

New Value Proposition20

Conclusion22

References23

Customer-Value Perception: Dell

Introduction

In an era of rapid globalization, technological innovation, population boom, and environmental change, the need for international collaboration and standardization exists across disciplines in order to decrease duplication and the reinvention of competing standardizing platforms and processes for business, government, and society. The most important and a major challenge for the newly open clothing store there is a problem of competition. In this area, its level is very high. It should be noted that to date the market clothing retailer, as a rule, can be formed in each city. In addition, it can be presented as a major shopping from specialized retail chains and distinctive shops. But this does not mean that the idea to open his own clothing store to be forgotten once and for all. It is a fact that fashion retailing is highly profitable and competitive part of the UK retail sector. The consumer behaviour in this market can actually characterized by the impulse purchasing and inconsistent customers

Customer Perceived Value

Customer perceived value can be defined as “the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.” Marketers and price-setters must understand how customers perceive value, because that perception ultimately sets the price for a product in the marketplace. The product must also effectively satisfy the consumer's needs. Otherwise, regardless of price, the perceived value to the consumer is zero

Models

According to Zeithaml, (1998), the perceived value is the value that is a product or service in the consumer's mind. Perceived value has no direct link with the actual value or cost of manufacture. Taking into account the perceived value is very important for the policy of fixing the product, especially in situations of monopoly. Indeed, if the perceived value is much higher production cost, alignment of price on perceived value can generate very high margins.

As Woodruff (1997), says that Customer value is a concept that has gained in popularity over recent years in the literature on the relationship with customers. Popularity of use of the term is accompanied by a wide range of definitions and interpretations.

The variety of approaches to customer value can be observed also in the plurality of formulas representing the value (Woodruff, 1997, pp.139-154). Most of them represents the sum of discounted cash flows, but often introduced additional parameters specifying the type of cash flow.

Importance of Customer Value

Customers give the company different types of values ...