How E-Business Leadership Results in Customer Satisfaction and Customer Lifetime Value - Assignment Example

Customer Value and Customer Satisfaction A. How E-Business Leadership Results in Customer Satisfaction and Customer Lifetime Value (Nadeem, 2006) Summary This paper encapsulates concepts like customer satisfaction, return on customer and customer lifetime value. The fact that acquiring new customers will cost the company many times more than retaining the current customer base is the groundwork on which the author has presented his ideas. Also, for a company to have processes efficient enough to meet customer’s expectations, there is a need to have a strong leadership in place along with an organizational culture which works for the customers. Consequently, customer satisfaction will reap profits as reward for the company and maximize return on customer as well as maximize shareholder’s return. Evaluative Critique The author of the article, Dr. Nadeem is the vice-chair of faculty senate at National University and is the author of several other research topics such as consumer satisfaction, consumer behavior, Board-Room leadership, Brand relationships etc. The paper is largely a collection and reproduction of several opinions which converge upon the central theme endorsed all throughout the article. The information and opinions provided in the text are accurate to the extent that an entire list of authentic bibliography has been referenced along with the text. The research paper is a collation of evidences from several other scholarly research manuscripts, and thus seems reliable. Validity of the ideas presented in the paper can be mandated because it has been supported through real-life examples on how customer lifetime value calculation is essential for a company and the effect of customer satisfaction and return on customer on company’s profit. However, the article does not relate properly to the topic. There are no evident biases towards any organization. Although, the research is well supported by references from previously established theories, the paper written is of 2006 timeline and the conclusions made have been revised and revisited upon by several new premise. As it is a dynamic environment these days, new researches are made and contested upon every year or two and thus this article would also be considered a bit out dated from that perspective. B. Teaching Customer Value Analysis to Business School Students (Milbourn, 2007) Summary This article discusses about the contribution of ‘Customer Value Analysis’ in assessing the importance of certain quality parameters. CVA is a step-by-step analysis of various factors which affect perceived value which consists of product quality, service quality and value-based prices. The overall objective is to evaluate which quality aspects are given more importance to by the customers and also an analysis of which competitors are scoring high on these attributes and thus getting preference among customers. Evidently, providing improved customer value through its primary business processes by being more market-oriented enhances the market position of a company with respect to its key competitors. Evaluative Critique The author is a management professor at University of Baltimore. Being a noted author and a consultant on various topics spanning organizational behavior, business strategy, quality service etc., the author has skillfully depicted insightful analysis on the topic which has been published by Journal of American Academy of Business, Cambridge. The article demonstrates a very effective and accurate depiction of the research hypothesis which has been proven finely using descriptive examples, tables, charts and exhibits. Several reference materials have been cited to demonstrate the authenticity of derivation of the analysis. The calculation of market-perceived quality ratio and the use of customer maps illustrate well the intricacies of the evaluative technique mentioned in the paper. The paper aims basically towards the learning of the students and hence a stepwise enumeration of how student should carry out the research process indicated in the paper has been neatly placed. The details of the paper publication can substantiate that the information provided in the paper is reliable and valid. It has been accepted and published in Journal of American Academy of Business, Cambridge along with its derivation from the theorems and propositions of renowned scholars like B. T. Gale with relation to customer value management topics as elicited by the reference list. Also, the data obtained through the focus group methodology has been clearly explained. There is no prominent bias towards any institution evident in the paper. Also, the article has been published in September 2007 and includes recent enough research findings. C. Best Practice Customer Value and Satisfaction Cultures (Garver & Cook) Summary This article lays special emphasis on Customer Value and Satisfaction (CVS) culture within an organization. Primarily to assess to what extent does CVS culture exist within an organization’s fabric and if it does, how do the employees use the CVS data for continuous improvement. Moreover, development of a culture conducive to develop customer value and satisfaction should make certain practices their norms and benchmark them as best practices. The authors have suggested a model for developing CVS culture which consists of CVS training; validating CVS data, having an appropriate performance evaluation and compensation system for CVS in place, develop individuals who are customer and CVS champions and a system of organization-wide communication network. All these would ultimately make the organization more market oriented and thus profitable. Evaluative Critique Garver and Cook are professors at Central Michigan University and have been associated with numerous prestigious journals. Mid-American Journal of Business is the publisher of the article. The article is very logically and coherently presented along with the research methodology used as well as the findings and the interpretation of those which mandates the accuracy of the research carried out. The research findings are qualitative and subjective in nature. However these are reliable findings as the propositions resulting out of these findings concur with the past researches carried out in similar domain. The reference bibliography cited with the research paper which spans across a wide range of scholarly articles and research contexts authenticates the validity of the research and its interpretations. There are no evident biases seen in the research paper except that the authors are vehemently promoting CVS culture in their texts. Since the paper does not mention the year of publication, the timelines of the research and its application is under scrutiny. Although, a possible assumption made could be that this article dates back to 2001 in which case, the research findings and conclusions are pretty outmoded and need revision and modification, before they can be reproduced. Conclusion All the three papers argue that the overall prosperity of a company rests on the perception of its value provided to its customers. Value which consists of certain attributes like product and service quality, and the pricing aspect. The quality variables and their total impact can indeed be measured using market-perceive quality ratio and hence customer value can be assessed. This value can in turn be factored in as customer lifetime value which is generated with a long term association of the customer with a company. For long term associations, customers look in for satisfaction which comes from the experience of their interaction with the company’s brand, product and culture. Thus developed is a loyal customer base which contributes in the company’s return on customer and increases its sustainable competitive advantages in the market. For accrual of such long term benefits, companies need to adopt innovative strategies which are manifested in the form of a culture which promotes customer value and satisfaction. Value is a term which identifies with a customers preference for a particular product or service of a company over its competitors. Value breeds a sense of content and satisfaction for the customers who come back to receive the same experience again and again. This framework once in place needs to be injected as a best practice and an effortless activity for the organization’s employees. This is known as customer value and satisfaction culture. An important facet of such organizations are strong communication channels for expedite transfer of data and its interpretation, a strong leadership and a customer focused mindset. Hence, from the three articles, we can synthesize that appropriate organizational culture creates customer value which consequently gives rise to customer satisfaction and which in turn strengthens the motivation and underlying foundation of an organization to carry forward this practice with continuous improvements. Read More