Marketing Management - Essay Example

According to Kotler (2003), customer perceived value (CPV) is the difference between total customer value and total customer cost. Total customer value includes four factors: product value, services value, image value and personnel value; and total customer cost includes time cost, monetary cost, psychic cost and energy cost (Tseng & Et. Al., 2007). The enhancement of the consumer perceived value can be achieved by increasing total consumer value or by reducing total consumer cost. This can be understood better with the help of an example of Wal-Mart, the UK based retail chain of stores.

To enhance the consumer value they offer huge assortments in merchandises. There are various options available for the consumers to chose from the various brands and their private level brands. In reduction to consumer cost, Wal-Mart offers ‘everyday low pricing’ strategy. This offering allows the consumers to save certain amount of money through the low pricing strategy of Wal-Mart. This helped Wal-Mart to cater its consumers’ added value through higher level of satisfaction (IMD, 2009).

This model suggests that how received and desired values adjust well into a disaffirmation type satisfaction model. The overall satisfaction can be known as the consumer’s judgment in reaction to assessment of understanding with the products and services. When the consumers make an evaluation, they create certain notions, developed from the past and present experiences about the value that they desired. The desired value directs consumers when they structure perception of the products or services whether it has performed excellently or weakly in the utilisation circumstances.

The consumer’s derived value is evaluated upon experiences they use on certain attributes of the experiences, performances and consequences. The received value may guide in the creation that is generally