Customer-Perceived Value. This is the customers evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers. Customers often do not judge values and costs accurately or objectively. They act on perceived value.
Customer Satisfaction. Customer satisfaction depends on the product’s perceived performance relative to a buyers expectations. If the products performance falls short of expectations, the customer is dissatisfied. If performance matches expectations, the customer is satisfied. If performance exceeds expectations, the customer is highly satisfied or delighted. Although the customer-centered firm seeks to deliver high customer satisfaction relative to competitors, it does not attempt to maximize customer satisfaction. A company can always increase customer satisfaction by lowering its price or increasing its services. But this may result in lower profits. The purpose of marketing is to generate customer value profitably.
How can your company use these concepts to increase business but also have satisfied customers?