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Heimonen Jesse

Heimonen Jesse

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Published by: Check Ritbumroong on Nov 27, 2011
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Customer perceived value (CPV) is the difference between total customer value and

total customer cost (see Figure 12). Total customer value consists of the perceived

monetary value of economic, functional and psychological benefits of the offering.


Total customer cost includes all costs the customer expects to incur in evaluating,

obtaining, using and disposing the offering. (Kotler and Keller 2006, 141)

Wang et al. (2004, 178-180) found in their research that the functional value, which is

perceived through supplier’s products and services, has direct impact on customer’s

behaviour considering cross-buying and repurchasing. Cross-buying means that the

customer purchases several different types of products from the supplier. They also

found that the social value of an offering, which is affected by personnel and the

image of the supplier, has a positive influence especially on customer satisfaction and

brand loyalty (Wang et al. 2004, 178-180). Therefore, one may agree with Kotler and

Keller (2006, 143) who argue that the customers perceiving high value tend to be


In the case of CCCOC, the focus should be on ensuring that the delivered functional

value meets the expectations and the social experience is pleasant enough to empower

the satisfaction. It must be also noticed that for some members of the Chamber, social

value may be the functional value at the same time, meaning that the members join the

Chamber to experience social interactions. Based on the author’s personal experience

it is to be noticed that entrepreneurs tend to be quite alone with their businesses;

therefore, perhaps just listening to them on regular basis may create value to them.

The interviewed CEO supports the interpretation by arguing that most of their

customers are not too much interested in influencing on government, but the well-

being of the entrepreneur is important (CEO interview 2010). Therefore, to be able to

understand the factors affecting to the customers value perception, the reasons for

being a Carlow Chamber’s member should be extensively researched.


As it is presented in the Figure 12, customer-delivered value may be increased by

improving the value of the product, services, personnel or brand image. Alternatively,

the organisation may achieve the same objective by decreasing the monetary, time,

energy or physic costs perceived by the customer.

In the interviewed organisation the value proposition was comprehensively re-

evaluated and reconstructed in 2003 and has been continuously improved ever since.

Decreasing the customers time and energy cost is one practical implication of the

development. For example the organisation aspires to offer easy and flexible options

to enrol events, search information, contact the organisation and pay invoices through

electronic automated channels. (CEO interview 2010)

Carlow Chamber should also consider the entire value proposition and examine all the

determinants affecting to customer perceived value. Together with the fundamental

understanding of customers’ needs, expectations and behaviour the required value

proposition improvement may be executed. As a conclusion, one may argue that to

manage customer relationships successfully, customer value creation process should

be examined in great detail and the value proposition modified to meet the


Customer-delivered value












Figure 12. Determinants of customer-delivered value (Kotler and Keller 2006, 141).


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