Measuring Aggregate Returns in the Customer Value: an Analytical Framework

The customer values for a new product of firm in competitive markets are shaped more by habits, reinforcement effects, and situational influences than strongly-held attitudes. However, the aggregate returns on the customer value towards the new product from the perspective of a firm may be observed manifesting in enhancing the market share, market coverage and augmenting profit in a given market. The academics, consultants and business people speculated that marketing in the new century would be very different from the time when much of the pioneering work on customer loyalty was undertaken (Churchill 1942; Brown 1953; Cunningham 1956, 1961; Tucker 1964; Frank 1967). Yet there exists the scope for improving the applied concepts as there have been many changes over conventional ideologies. It has been observed in one of the studies that the customer values are created towards the new products through individual perceptions, and organizational and relational competence (Johanson et.al., 2001). The value of corporate brand endorsement across different products and product lines, and at lower levels of the brand hierarchy also needs to be assessed as a customer value driver. Use of corporate brand endorsement either as a name identifier or logo identifies the product with the company, and provides reassurance for the customer (Rajagopal and Sanchez, 2004).

Citation:

Dr. Rajagopal and Ananya Rajagopal (2006) ,"Measuring Aggregate Returns in the Customer Value: an Analytical Framework", in LA - Latin American Advances in Consumer Research Volume 1, eds. Silvia Gonzalez and David Luna, Duluth, MN : Association for Consumer Research, Pages: 83-85.