Slide 1
Introduction: Good morning po sa ating lahat. Today I will be discussing about Building Customer Value Satisfaction and
Loyalty.
SLIDE 2
This consists of
1. Customer Perceived Value
2. Total Customer Satisfaction
3. Measuring Satisfaction
4. Product and Service Quality
5. Total Quality Management
SLIDE 3
As you can see this is the chart na nag cocompare sa Traditional Organization and Modern Customer Oriented Company
Organization.
In traditional organization, For those managers na naniniwala na ang customer ang only source of profit or what they say
is the true “profit center” as seen in chart A, the president is seen at the top, management in the middle, and frontline
people and customers at the bottom.
Successful marketing companies invert the chart to look like B. At the top are customers; next in
importance are frontline people who meet, serve, and satisfy them; under them are the middle managers, whose
job is to support the frontline people so they can serve customers well; and at the base is top management,
whose job is to hire and support good middle managers.
And as you can observe, may customers po sa side to indicate that in every level they must be personally engaged in
knowing, meeting, and serving customers.
Slide 4
(Read slide)
CUSTOMER PERCEIVED VALUE
How do customers make choices? They tend to be value maximizers. Customers choose—for whatever reason—the offer
they believe will deliver the highest value and act on it. Whether the offer lives up to expectation affects customer
satisfaction and the probability that the customer will purchase the product again.
So tayo as consumers, kung namimili tayo. Let’s say for example online shopping nag search tayo ng cellphone. Results
will come out madaming lalabas na brands. Ano ang una nating hahanapin? Yung specs. Anong specs ng phone ba yung
hinahanap natin. If nafilter na natin yung phones na nagpprovide ng specs na hinahanap natin anong next na
cinoconsider natin? Ofcourse yung price. So that is the Customer Perceived Value. Alin products ba yung magbibigay
satin ng more value commensurate with its price or if not, mas less.
Slide 5
Customer-perceived value (CPV) is the difference between the prospective customer’s evaluation of all the benefits and
costs of an offering and the perceived alternatives.
READ
TOTAL CUSTOMER BENEFIT
TOTAL CUSTOMER COST
Customer-perceived value is thus based on the difference between benefits the customer gets and costs he or she
assumes for different choices.
So ganun po sa example natin kanina.
Slide 6
READ BRAND LOYALTY
Brand Loyalty is a long term commitment to buy a particular brand based on quality and service, not price.
So we will have two perspective to discuss this, the consumer and the marketer.
So as consumers, what do you think is the brand that has the highest customer loyalty, na kahit mahal, binibili pa rin siya
ng consumers? Anyone po? Apple yes. Why? We can see sa news na kapag naglabas ang apple ng bagong phone, yung
mga customers nito nakapila na sa store bago pa magbukas. Kahit dito sa Philippines mostly naka Iphone and people
sometimes make a way to buy it kahit na pricey siya.
So sa perspective naman ng marketer, why is it important to have brand loyalty yung customers?
Yung mga consumers mo that is loyal sayo babalik yan. And ano pa? Word of mouth. Consumers na may brand loyalty
sayo will spread na ay Maganda itong product na to. Sulit to. Especially now na sobrang bilis na ng pag post sa social
media like tiktok, facebook, Instagram. One review ng isang loyal customer mo, madami na magchcheck ng product mo
and madami ng maeengganyo na bumili.
VALUE PROPOSITON
The value proposition is thus a promise about the experience customers can expect from the company’s market
offering and their relationship with the supplier. Whether the promise is kept depends on the company’s ability to
manage its value delivery system.
(Read slide)
Delivering High Customer Value doesn’t stop sa magandang product mo or sa loyalty ng cosumer sa brand mo.
Consumers also consider kung paano nila maoobtain yung service or product na inoofer mo. Lahat ng experience.
For example po. I searched sa Airbnb hotels in Clark Pampanga. So madaming listing na lalabas diba? May napili akong
dalawang listing na pagpipilian. One is cheaper from the other. Around Php 500 difference. Pero I am looking for a hotel
na malapit sa airport so nag chat ako sa dalawang host nung listing. Yung isa na mas mahal, nagreply agad ng Hello po.
We are about 15 mins away from airport. And you may take taxi or grab. With emojis pa. Haha. Yung isang cheaper, nag
reply after 30 mins and said Yes. 15 mins by car. Plain.
Tayo as consumer may ibat ibang perspective tayo ng pagpili. But to me, I chose yung nagreply agad. Why? Sa isip ko oh
sa listing na to, in case na may mga problem or inquiries ako, mas maeentertain ako.
Slide 7
Natapos tayo sa loyalty let us tackle now satisfaction.
If the performance or experience falls short of expectations, the customer is dissatisfied. If it matches expectations, the
customer is satisfied. If it exceeds expectations, the customer is highly satisfied or delighted.
Customer assessments of product or service performance depend on many factors, including the type of loyalty
relationship the customer has with the brand. So if the consumers are loyal to a brand, they form favorable perceptions to
the products that the already feel positive about.
How do buyers form their expectations? Expectations result from past buying experience, friends’ and associates’ advice,
public information and discourse, and marketers’ and competitors’ information and promises. If a company raises
expectations too high, the buyer is likely to be disappointed. If it sets expectations too low, it won’t attract enough buyers.
Slide 8
READ
Slide 9
Suppose customer satisfaction is rated on a scale from 1 to 5.
At a very low level of satisfaction (level 1), customers are likely to abandon the company and even bad-mouth it.
At levels 2 to 4, customers are fairly satisfied but still find it easy to switch when a better offer comes along.
At level 5, the customer is very likely to repurchase and even spread good word of mouth about the company.
Slide 10
Satisfaction will also depend on product and service quality.
We can say the seller has delivered quality whenever its product or service meets or exceeds the customers’
expectations.
Slide 11
Product and Service Quality, Customer Satisfaction, and Company Profitability are intimately connected.
Higher levels of Quality result in higher levels of customer satisfaction.
Which support higher prices.
Product Quality and Company Profitability also have correlation.
Slide 12
Total Quality Management
TQM oversees all activities and tasks that are necessary to maintain a desired level of excellence within a business and
its operations. This includes the determination of a quality policy, creating and implementing quality planning and
assurance, and quality control and quality improvement measures.
It emphasizes continuous improvement, involving all employees in the pursuit of customer satisfaction.
Focus on Customers
Customer satisfaction steers the direction of quality standards.
Understanding the feedback they provide on-demand products, preferences, and experiences is
fundamental to delivering products or services that surpass expectations.
Under TQM, customers define whether your products are high quality. The company may make use of surveys and that
may reveal insufficient durability of goods. This input is then fed back into TQM systems to implement better raw material
sourcing, manufacturing processes, and quality control procedures.
Commitment by Employees
Employees must participate in the implementation of TQM. This includes clearly communicating across departments and
leaders what goals, expectations, needs, and constraints are in place.
Employees must be on the same page as top management to properly apply total quality
management tools.
Encourage and empower employees at all levels to contribute ideas and efforts in a continuous
effort to achieve quality improvement. Total employee involvement integrates quality
throughout the production cycle. Quality-related issues and other immediate process issues are
addressed promptly.
Improve Continuously
This concept of continuous improvement helps a company adapt to changing market expectations. It allows for greater
adaptability to different products, markets, customers, or regions. Continuous improvement also drives and widens
the competitive advantage that a company has built over related companies.
The core component of TQM is the commitment to delivering quality and the continuous effort to
improve the quality of products and services. TQM strives to achieve excellence and total quality
control as part of the strategic plan of optimizing and improving processes.
Adherence to Processes
TQM’s systematic approach relies heavily on process flowcharts, TQM diagrams, visual action plans, and
documented workflows. These processes are then continually analyzed to better understand deficiencies in the process.
Communication
Data may transfer between departments freely, but there is a human element to coordinating processes and making sure
an entire production line is operating efficiently.
Data Utilization
The systematic approach of TQM only works if feedback and input are given to evaluate how the process flow is
moving.
Example of TQM
Toyota Production System A production system based on the philosophy of achieving the complete
elimination of waste in pursuit of the most efficient methods
2 Pillars of TPS
Jidoka in the TPS is "automation with a human touch," where human wisdom is added to automation.
Human wisdom means that when an abnormality occurs, such as a machine or equipment
abnormality, quality abnormality, or a work delay, the machine or equipment can detect the
abnormality and stop automatically, or the operator can stop the line by pulling the stop cord
themselves. This eliminates the outflow of defective products while also making it possible to build
quality into processes by clearly detecting abnormalities and preventing them from recurring.
Furthermore, having the ability to stop when an abnormality is detected means that machines and
equipment no longer need to be watched over, saving labor by reducing working hours.
To create these kinds of machines, it is necessary to first be able to do the work smoothly and
correctly by hand, determine abnormalities in the work, and replace those operations with machines.
In other words, rather than starting with a machine from the beginning, you must first try doing it
thoroughly by hand, implement kaizen, eliminate waste, inconsistencies, and unreasonable
requirements―known respectively in Japanese as muda, mura, muri―and make it possible for
anyone to do the work. You must then make it possible to detect abnormalities in the work and build
that into the actual machines. These incremental efforts lead to a production line that is high-quality,
low-cost, flexible, and easy to maintain.
This implementation of kaizen on work is the bedrock of jidoka. It doesn't matter how much machines,
robots, or IT excel; they can't evolve any further on their own. Only humans can implement kaizen for
the sake of evolution. In other words, craftsmanship is achieved by discovering the basic principles of
manufacturing through manual work and then applying them on the production line to steadily
implement kaizen. This cycle of kaizen in both human skills and technologies is critical for taking on
the challenge of new technologies and construction methods. Human wisdom and ingenuity are
indispensable to delivering ever-better cars to customers. Going forward, we will maintain our
steadfast dedication to constantly developing human resources who can think independently and
implement kaizen.
Just-in-Time
Making only what is needed, when it is needed, and in the amount needed
Fulfilling orders from customers as quickly as possible
A car is made up of more than 30,000 parts. These parts are made not only by Toyota but also at the
plants of many of our business partners. All plants must work with complete synchronization to make
the vehicles quickly and without waste. All adhere to the following principles of Just-in-Time to
achieve synchronized production: 1) Only make what is needed by the customer, when it is needed,
and in the amount needed; 2) Don't allow goods and information to be held up during production; 3)
Make them at the pace at which they're sold. It would take many months to fulfill a customer's order if
all the parts were made only after receiving it. To avoid that, the minimum number of parts needed
are stocked in advance on the vehicle assembly line so that a car can be built as soon as the order is
received. The preceding process has a store of finished products from which the next process can
pick up the parts that it needs. The preceding process is also stocked in advance with the minimum
number of parts needed to re-make parts picked up by the next process before the next pick-up,
allowing it to immediately replenish whatever was picked up. Having all processes engaged in this
loop achieves wasteless production where we only make what is needed, when it is needed, and in
the amount needed to fulfill customer orders and ensure that only sellable items are produced.
The continuous pursuit of these two pillars of the TPS are the wellsprings of Toyota's competitive
strength and unique advantages. We will develop human resources throughout Toyota who put this
philosophy into practice to make ever-better cars that will be cherished by customers.