34536 - Customer Value Management

Course contents

COURSE DESCRIPTION

The need to understand the role of value in marketing is critical. This course focuses in particular on the role of market orientation, pricing, sales force and customer service aspects of an organisation in enhancing the creation and provision of superior customer value. Via an understanding of key marketing activities and the use of case analysis, students will understand how to blend the delivery of marketing offerings to maximize the value proposition. Activities for optimising, delivering and communicating customer value are examined. Particular emphasis is also placed on understanding the role of value in a service environment.

 

LEARNING OUTCOMES

By the completion of this unit, the student will be able to:

·         Explain what is meant by customer orientation and responsiveness.

·         Understand the concept of customer value and how it impacts business activities.

·         Understand how the various components of customer value interact to build customer satisfaction.

·         Consider the nomological net of value and how this acts to provide customer satisfaction and loyalty.

·         Understand how pricing and sales force management contributes to perceived customer value.

·         Examine how the relationship marketing paradigm creates long-term customer value.

·         Improve the participants' ability to understand practical complex business situations and be able to present and defend positions; this are built on a sound understanding of customers' perceived value in an offering.

 

CASE STUDIES

CASE STUDIES

The following case studies will be used during the course and are suggested to be read before the beginning of classes:

1)      Calyx and Corolla – Harvard Business School 9-592-035

2)      Bizrate.Com - Harvard Business School 9-501-024

3)      Cumberland Metal Industries, Engineered Product Division - Harvard Business School 580-104

4)      Hilton HHonours Worldwide: Loyalty Wars - Harvard Business School 9-501-010

5)      Club Med (A) - Harvard Business School 9-687-046

COURSE OUTLINE

COURSE OUTLINE
2011

Nov 16 Wednesday

9.00 – 11.00
Marketing, customer orientation and value
11.30-14.00
Calyx & Corolla; HBR 9-592-035

Nov 17 Thursday
9.00 – 11.00
Value propositions and positioning 1
11.30-14.00
Bizrate; HBR 9-501-024

Nov 18 Friday
9.00 – 11.00
Value propositions and positioning 2
11.30-14.00
Cumberland Metal Industries Engineered Products Division 1980; HBR 580-104

Nov 23 Wednesday
9.00 – 11.00
Adding value through branding
11.30-14.00
Hilton HHonors Worldwide: Loyalty Wars; HBR 5-501-05

Nov 24 Thursday
9.00 – 11.00
Providing value: The role of quality and service quality
11.30-14.00
Club Med (A); HBR 9687-046

Nov 25 Friday
9.00 – 11.00
Customer loyalty and retention
11.30-14.00
Presentations:
Clocky HBR 5-0508-022

The above schedule is indicative and may change depending on requirements

LECTURER

Albert CARUANA Ph.D. is Professor of Marketing at the University of Malta, Malta and Visiting Professor at the University of Bologna. His research interests focus primarily on market orientation and marketing communications. Dr. Caruana has undertaken post doctoral research as Fulbright Fellow in the US during 2004, as Commonwealth Research Scholar in 2000 and has been on various research fellowships in Australia. His work includes papers in the Journal of Advertising, Journal of Business Research, International Journal of Advertising, European Journal of Marketing and Industrial Marketing Management. Dr. Caruana has also pursued numerous teaching invitations in various countries. Prior to joining academia in 1992, he worked in marketing in the beverages industry and previously in banking.

 

FURTHER READING

Berger, P.D., et al. (2006), "From Customer Lifetime Value to Shareholder Value: Theory, Empirical Evidence, and Issues for Future Research, Journal of Service Research, 9 (2), 156-167.

Carbone, L.P. Clued In: How to Keep Customers Coming Back Again and Again, Pearson Education, 2004.

Caruana A, Ewing MT, How corporate reputation, quality, and value influence online loyalty, Journal of Business Research (2010), doi:10.1016/j.jbusres.2009.04.030

Caruana, A. (2004). “The impact of switching costs on consumer loyalty: A study among corporate customers of mobile telephony.” Journal of Targeting Measurement and Analysis of Marketing. 12(3), 256-268.

Caruana, A. (2002). “Service Loyalty: The effect of service quality and the mediating role of satisfaction.” European Journal of Marketing, 36(7/8), 811-826

Caruana, A., Ewing, M. T. & Ramaseshan, B. (2000). “Assessment of the three-column format SERVQUAL: An experimental approach.” Journal of Business Research, 49(1), 57-65.

Caruana, A., Money, A., & Berthon, P. (2000). “Service quality and satisfaction - The moderating role of value.” European Journal of Marketing, 34(11/12), 1338-1352.

DeBonis, J.N., Balinski, E.W., and Allen, P. Value-Based Marketing for Bottom-Line Success: 5 Steps to Creating Customer Value, McGraw-Hill and the American Marketing Association, 2003.

Gruen, T.W., Osmonbekov, T. and Czaplewski, A.J. (2006), "eWOM: The Impact of Customer-to-Customer Online Know-how Exchange on Customer Value and Loyalty," Journal of Business Research, 59, 449-456.

Guenzi, P. and Troilo, G. (2007), "The Joint Contribution of Marketing and Sales to the Creation of Superior Customer Value," Journal of Business Research, 60, 98-107.

Lin, G.T. and Lin, J. (2006), "Ethical Customer Value Creation," Journal of Business Ethics, 67, 93-105.

Mittal, B. and Sheth, J. Value Space: Winning the Battle for Market Leadership, McGraw-Hill, 2001.

O'Dell, S. and Pajunen J. The Butterfly Customer: Capturing the Loyalty of Today's Elusive Consumer, John Wiley and Sons, 2000

Oliver R. L (1980). “A cognitive model of the antecedents and consequences of satisfaction decisions,m” Journal of Marketing Research, XVII Nov, 460-9.

Parasuraman A., Zeithaml V. A. Berry L. L. (1994), “Reassessment of expectations as a comparison standard in measuring service quality: Implications for further research”, Journal of Marketing 58 January111-124

Payne, A.F., Storbacka, K. and Frow P. (2008), "Managing the Co-creating of Value," Journal of the Academy of Marketing Science, 36, 83-96.

Peppers, D. and Rogers, M., Managing Customer Relationships, John Wiley & Sons, 2004.

Petersen, J.A., et al. (2009), "Choosing the Right Metrics to Maximize Profitability and Shareholder Value," Journal of Retailing, 85 (1), 95-111.

Reichheld, F. The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value, Harvard Business School Press, 1996

Roig J.C.F., et al. (2006), "Customer Perceived Value in Banking Services," International Journal of Bank Marketing, 24 (5), 266-283.

Smith, J.B. and Colgate, M. (2007). "Customer Value Creation: A Practical Framework," Journal of Marketing Theory and Practice, 15(1), 7-23.

Trasorras, R., Weinstein, A. and Abratt, R. (2009), "Value, Satisfaction, Loyalty and Retention in Professional Services," Marketing Intelligence & Planning, 27 (5), 615-632.

Weiss, L., Capozzi, M., and Prusak, L. (Summer, 2004). "Learning From the Internet Giants," MIT Sloan Management Review, 24 (4), 79-84.

Readings/Bibliography

Book

Johnson, Bill & Weinstein, Art (2004). Superior Customer Value in the New Economy: Concepts and Cases, 2nd. Edition, CRC Press, ISBN: 1-57444-356-9.

 

While the set textbook will be useful, it is important to keep in mind that it is bad practice to hope to lean a subject by relying on single book or just the lecture slides. You come to university to read for a degree and not to take notes or build a collection of slides. This is even more so at a Masters level. You need to read around the subject covered in each session The textbook acts as a first reference while a list of papers and books of additional readings are provided below.

 

Teaching methods

METHODOLOGY

The course will be taught using a variety of formats, including lectures, classroom discussions and case presentations. Students will gain knowledge not only from marketing theory, but also from different cases and examples that will illustrate actual situationc. Cases will be used to provide practical experience to students and to help them apply their knowledge to the circumstances faced by firms.

Office hours

See the website of Albert Caruana