Learning Unit 4 : A Framework of Customer Satisfaction

Value and Capabilities
Value for buyers consists of the benefits and costs resulting from the purchase of products. Value is perceived by the buyers. Superior value occurs when there are positive net benefits. A company needs to identify value opportunities that match its distinctive capabilities. A market-oriented company uses its market sensing processes, shares diagnosis, and cross- functional decision making to identify and take advantage of superior value opportunities. An organisation must determine where and how it can offer superior value, directing these capabilities to customer groups (market segments) that result in a favourable competency/value match.

Creating Value for Customers
“Creating value is the outcome of a process that begins with a business strategy anchored in a deep understanding of customer needs” The creating of customer value received a lot of attention from managers during the 1990’s. This interest was the result of companies’ experience with Total Quality Management (TQM) intense competition, and the increasing demands of customers.

This process view of capabilities highlights the interrelated nature of process and points to several important issues:

• The market driven organisation has a clear external focus. Capabilities typically span several business functions and involve teams of people.
• Processes need to be clearly defined and have identifiable owners.
• Information should be shared across all process participants
• The processes are interconnected to other processes and management needs to coordinate the linkages.